Sending out checks and cutting the gas tax both have the same aim, but the two methods have different implications for reducing usage of fossil fuels, says David Neumark, an economist [and Distinguished Professor] at UC Irvine. When the price of gas is high, people try to use less of it, said Neumark. If the state sends out checks, people who can’t change how much gas they use can use the money to offset higher prices at the pump, while others could try to drive less and use the money to cover other needs. … Cutting the gas tax to directly bring down the price of gas, he said, would have the opposite effect: It would make it easier for people to decide to drive more. 

For the full story, please visit https://calmatters.org/economy/2022/03/gas-money-rebates/.