Carbon Tax and Gas prices
The following is a gross oversimplification but I needed to get some numbers down.
Where I'm at a gallon of gas is around $4.50 which I think is crazy cheap even though it's more expensive than most other areas in the USA.
The recommended carbon tax from recent research if $185 per metric tonne (2204.62lbs).
Every US gallon of gas creates approximately 8.9 kg of CO2. That means that 112 gallons produces 1 tonne of CO2. So an additional $1.65 on my gallon.
We've seen price fluctuations during covid similar to this. I could also reduce my gas consumption massively by changing cars. In fact if I was driving the cars I had in the UK I could shrink my gas cost by much more than the price hike.
There are a lot of things I skipped over here on working out the price. One factor that I missed is what would the petrostates do if we increased the gas tax? They need the revenues from Oil. OPEC decides how much to pump based on lots of factors but if oil consumption going down because tax has increased they need to pump more oil to bring prices down and keep demand up for as long as possible, they really need the money. One of the scariest things about moving off Oil is what's going to happen to the Petrostates as their economies start failing. Some of the economies see it coming, the UAE is recreating Dubai. Mohammed bin Salman is trying to diversify the Saudi Economy for a reason.
The states that don't use the money from oil to create a more diversified economy are going to pay an awful price when the money runs out.