Oregon – First in the Nation
Thanks to a tip from Greg Mankiw’s blog – we learn that Oregon was the first state to impose a tax on gasoline – back in 1919. This article in Wired describes the interest of the state to fund highway projects, including the Columbia River Highway up the Gorge. So, this isn’t really an example of a Pigovian Tax, which is usually imposed to change behavior.
What do you imagine the price elasticity of demand for gasoline was back in 1919?
I teach principles of economics courses and a course in the economics of healthcare at Southern Oregon University.