That should be how things go in an a supposedly environmentally friendly state like California. A state where tailpipe emissions account for the largest source of our greenhouse gas emissions. A state where so-called “light truck” sales dominate the market — meaning inefficient pick-up trucks and SUVs. A state that accounts for 40% of the nation’s electric car market, but has seen vehicle greenhouse gas emissions go up regardless. A state that plans to ban the internal combustion engine by 2035 to combat climate change.
Apparently not.
Amid a rise in inflation, Republicans across the country have been calling for gas tax holidays even before the conflict in Ukraine sent oil prices spiking. But, Tuesday night, Gov. Gavin Newsom decided to do them one more regressive, by announcing in his State of the State address that he will be pursuing a tax rebate for car owners to help cover the rising price of gas. Newsom’s office told CalMatters’ Emily Hoeven that this proposed rebate is in addition to his earlier calls to halt a rise in the gas tax set to go into effect in July.
Because of all the things California could choose to subsidize, let’s make it fossil fuels and the machines that burn them.
Milk prices are up over 37% since last October, by some estimates. “Diaper banks” are seeing demand surge as the price of childcare items soar. Discount retailer Dollar Tree — its entire gimmick for the past 35 years has been charging a buck for the majority of its inventory — even announced that it is raising prices to $1.25.
And yet it is the increased cost of gasoline that consumers somehow can’t afford to bear.
It’s all political theater, of course.
Studies have shown consumers receive only modest savings from gas tax holidays. The money instead largely flows into the coffers of oil companies. Wealthier people drive far more in California, and stand to benefit from most from a gas tax holiday, as well as any refund that isn’t targeted for income. And if California was genuinely interested in lowering gas prices for consumers, it could attempt to investigate and eliminate the mystery gas surcharge of 30 cents per gallon that UC Berkeley economist Severin Borenstein has been writing about for years — a surcharge that goes directly into the pockets of oil companies and not state coffers that fund our infrastructure.
“California’s gas tax is much higher than other states,” Borenstein says. “That gets a lot of attention when people are getting outraged at gas prices. But most of that money is going to public programs. It supports roads, bridges and help for low-income families.”
Moreover, high gas prices are actually a good thing in that they encourage drivers to behave more responsibly. Unlike rising food and housing costs, consumers have plenty of agency in the face of increased gas prices. They can choose to carpool, for instance, or make fewer trips.
A recent AAA survey of drivers in 13 states found that even modest escalations in price are enough to change behavior for the better. In the survey, 75% of respondents said rising gas prices over the past few months have led them to drive slower and for shorter distances and to ease up on their climate controls, among other global warming-friendly strategies for saving fuel.
In a state like California, where upward of 95% of people live in an urban setting, most of us have the option to take the bus.
The performative populism of a gas tax rebate rings especially hollow when we’re only months removed from pandemic-induced stimulus checks. If Newsom genuinely wants to help those who are struggling to pay bills, he doesn’t need to reward the burning of fossil fuels. He can do what he did during the height of the pandemic — put money directly in the pockets of those who need it most.
Matthew Fleischer is The Chronicle’s editorial page editor. Email: matt.fleischer@sfchronicle.com
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