Measure those costs and benefits that can be expressed in dollar terms and either estimate or acknowledge those that cannot be measured easily

Measure those costs and benefits that can be expressed in dollar terms and either estimate or acknowledge those that cannot be measured easily. Because a complete cost-benefit analysis of raising the gasoline tax can become exceedingly complicated, consider a narrow study. Although economists cannot easily measure all benefits noted, they have estimated that the pollution damages amount to about 40 cents a gallon, the carbon dioxide emissions 6 cents a gallon (estimates vary widely here), traffic congestion about 70 cents a gallon on average, and traffic accidents 60 cents a gallon, for a total of $1.76 a gallon (Parry 2002).


Book (Public Policy Kraft, Michael E.)