I would estimate that we need to have gas priced at around $3.50/gallon to create the proper incentives for alternative energies to thrive. But, while I agree with the fundamentals of the argument, I think Ray has oversimplified the solution.
Much like the ?Frictionless Plane? from freshman physics, or the ?Infinite Gaussian Surface? from Electro-magnetics, Ray has fallen victim to a similar simplification ploy commonly used by Political Scientists known as the ?Honest Politician constant?. Because of the failure to include this constant, which I believe today sits somewhere between 0 and 0.00000000001, the solution is fundamentally flawed.
To be certain, even if there were some way to guarantee that revenues from such a tax actually went to infrastructure, I?d be hesitant to give yet more money to the people that bring us tobacco museums in West Virginia and vacation excursions to the Dominican Republic. The Feds already have all the money, and they’ve been doing a great job of printing more. We need to starve the beast.