2. No one's calling for the guillotine for all car owners (that would include me!). But democratic governments are a function of their citizens. If externalities are not being internalized, it's because there is some powerful faction -- drivers, in this case -- that benefits from the status quo. Yes, the US govt is dysfunctional, but go ahead and try surveying the US public about a carbon tax that would raise gas to $10/gallon. It's not just some abstract 'government' that favors subsidies here -- it's pretty much the entire citizenry.
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