California Has a Gas-Price Mystery: Too High, but Why? – January 2023
Faculty Director Severin Borenstein contributes to the discussion of why California has such high gas prices.
“There are some quantifiable sources of the California premium. Higher state gas taxes are one reason. The state’s clean air policies are another. These include a cap-and-trade program for greenhouse-gas emissions, a low-carbon fuel standard and a fee for the abatement of leaking underground storage. California also mandates a cleaner-burning gasoline, which adds around 10 cents a gallon.”