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Reducing Gasoline Price Variability: A Modest Proposal
The Energy Journal
  • Mark Leclair, Fairfield University
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The recent volatility of short-run gasoline prices in the United States has resulted in calls for the government to intervene. This paper details a simple means of reducing that variability, utilizing federal tax policies, without eliminating the signaling role of prices in the medium- to long-term. If properly implemented, the gyrations in gas prices could be largely removed, with little impact on the revenue that the federal government generates through taxation. If applied to the markets in nations that have significantly higher gasoline taxes, essentially all price volatility could be removed.


Copyright 2006.

A link to full-text has been provided for authorized subscribers.

Published Citation
LeClair, Mark. 'Reducing Gasoline Price Variability: A Modest Proposal.' The Energy Journal 27.2 (2006): 41-54.
Peer Reviewed
Citation Information
Mark Leclair. "Reducing Gasoline Price Variability: A Modest Proposal" The Energy Journal Vol. 27 Iss. 2 (2006)
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