Problem
Suppose policymakers want to model the increase in the fuel tax as a Pigovian Tax, which economists often argue should be based on the Social Cost of Carbon (SCC). Consider that the SCC is most often computed by considering the present value of future damage costs associated with Climate Change. Given the findings of Alexander et al. (2019) would you say such a tax based solely on SCC in this manner fully captures the negative consequences of auto emissions? Finally, would a sufficient fuel tax increase preclude a need to implement the first two policies? Explain.