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There's some misguided messaging out there in California trying to take advantage of high gas prices from the Iran bombings and CARB's cap-and-invest rule making. Some are using this moment of high gas prices to delay CARB's cap-and-invest rule making. 1/

latimes.comFuel, energy prices raise the pressure as California officials take next steps on climateA plan to strengthen California's climate program faces pushback as industry groups and some lawmakers warn the changes could drive up already-high energy costs.

Kyle Meng

@kylemeng.com

13 Mar

Let's get the causality and economics of this straight. The higher gas prices we're seeing is driven by the Iran bombings. That is a global supply shock that has nothing to do with California's cap-and-invest program. 2/

Kyle Meng

@kylemeng.com

Furthermore, California's gasoline prices are rising similarly to that of other U.S. regions, as shown in the plot below. This counters arguments that California's policies such as cap-and-invest are worsening the gas price impact of the Iran bombings. 3/

13/3/26, 6:29 pm0 reposts0 likes

Kyle Meng

@kylemeng.com

13 Mar

And if anything, California's efforts to increase EV adoption reduce the pain of high gasoline prices. When EVs are widely available, households are more able to substitute away from gasoline usage during moments like this. And California has the highest per capita adoption of EVs. /n