The price of 1631's carbon tax at the pump

By TODD MYERS  | 
Oct 11, 2018
BLOG

Yesterday, I examined the cost of I-1631, the carbon tax, for the first full year in 2021. It is useful, however, to look at how that cost increases every year. Here is a quick guide to how the carbon tax increases gas prices through 2040.

The initiative increases the tax by $2 per metric ton plus inflation each year. This assumes the 15-member board doesn’t declare Washington to be on the path to meeting the CO2 reduction goals.

For simplicity’s sake, I’ve assumed a three percent inflation rate. As you can see, the tax almost doubles by 2025. A two percent inflation rate reduces that only slightly, with the tax going from 25 cents per gallon down to 24 cents per gallon in 2025.

Year

Price per metric ton of CO2

Cost per gallon @ 3% inflation

2020

$15.00

$0.13

2021

$17.51

$0.16

2022

$20.10

$0.18

2023

$22.76

$0.20

2024

$25.50

$0.23

2025

$28.33

$0.25

2026

$31.24

$0.28

2027

$34.23

$0.30

2028

$37.32

$0.33

2029

$40.50

$0.36

2030

$43.77

$0.39

2031

$47.15

$0.42

2032

$50.62

$0.45

2033

$54.20

$0.48

2034

$57.89

$0.52

2035

$61.68

$0.55

2036

$65.59

$0.58

2037

$69.62

$0.62

2038

$73.77

$0.66

2039

$78.04

$0.70

2040

$82.44

$0.73