Thus a fuel tax gives people also correct incentives to choose the fuel type, on top of incentives to select a car
with optimum fuel economy, drive optimum number of kilometers, and choose the optimum fuel consumption. In
addition, because the valuation of driving, fuel type, and car amenities vary across individuals, while the marginal
externality is the same for all, fuel tax gives each person incentives to behave optimally from the social point of
view, yet fully in accordance with their individual preferences and means.