> Why doesn’t the government use gas tax increases as a tool instead of up-front discounts?
Given the huge corpus of two datapoints (Norway and France), it seems that:
- if you offer discounts on EVs, people who own gas-powered cars will progressively replace them with EVs ;
- if you increases gas taxes, people who own gas-powered cars will spend their saturday afternoons demanding your head on a spike, and stop voting for you until you roll-back on the gas tax increases. (At which point, they will mostly keep not voting for you, but that's an unrelated debate.)
I suspect not every government has the benefit of choosing between both options - Norway might be an outlier here.
(And most government will probably choose the "wise" third path of doing nothing.)
My underlying theory (that must have been tested by Cialdinni, Khaneman or Ophra) is that rebates feel good, and taxes feel bad. But I don't have a double-blind placebo-controlled experiment to cite.