May 21, 2014

Cross-border gas-tax leakage = Not much x Not much

So argues Yoram Bauman at Sightline:

How much of the reduction in petroleum consumption in British Columbia (see graph below) is caused by Canadians filling up south of the border?

The answer: not much.

.

GAs Tax 2

.

It turns out that there are a host of other factors that affect the cross-border gasoline market, including exchange rates, regulations, other taxes unrelated to the carbon tax, and even the ease of crossing the border.  …

As for gas prices, the figure below shows ten years of gas price differentials between British Columbia and Washington State; on average gas has been about $1 a gallon more expensive in BC, and it’s currently more expensive by about $1.25. The impressive line at the top shows how much of that spread is the result of factors completely unrelated to the BC carbon tax:

.

Gas price

.

Yoram delves way deeper here – so if you’re going to comment, take a read first.

Posted in

Support

If you love this region and have a view to its future please subscribe, donate, or become a Patron.

Share on

Comments

  1. One can’t really single out the carbon tax, there are plenty of other gas taxes driving up the cost here vs, in Whatcom county. I imagine most posters here are relatively close to the downtown core. A few regular trips to the border crossings would be an eye opener.

Subscribe to Viewpoint Vancouver

Get breaking news and fresh views, direct to your inbox.

Join 2,277 other subscribers

Show your Support

Check our Patreon page for stylish coffee mugs, private city tours, and more – or, make a one-time or recurring donation. Thank you for helping shape this place we love.

Popular Articles

See All

All Articles