From Deutsche-Welle (German newspaper), the Dutch government is imposing a new tax to replace current road taxes and auto sales taxes. The new system will impose a tax on each car based on distance driven. More fuel efficient cars will be taxed at a lower rate. Driving during congested periods will be taxed at a higher rate. How can they do it? GPS tracking. Interesting (and pretty solid IMO) application of Pigou ... but a bit scary in terms of, you know, the big brother implications.
What do you think?