Energy Literacy Advocates Newsroom

At the Reuters Autos Summit in Detriot today, automotive executives joined the call for a gas tax in America.

The reasoning behind car execs joining the ranks of enviromentalists, etc? Rather than using $25 billion in stimulus for alternative fuel projects, car companies cite that a gas tax which raises gas to a constant price level would drive more consumers toward efficient cars, and thus supply the demand necessary for innovation.

Mike Jackson, chief executive of AutoNation - the largest car retailer in America, called for using a tax to set a $4 to $5 gas price that remained steady. Car executives feel that this would generate consumer demand for efficent and alternative fuel vehicles, rather than allowing the market to dictate gasoline prices.

Ultimately, executives concluded that an energy independent American can only come after higher prices are placed on fuel.

However, auto executives are about as (un)popular as any proposed fuel tax. Raising the price on gasoline remains a politically unpalatable issue.