a) Describe the benefits of gasoline/diesel powered engines compared to various alternatives.
b) Discuss the costs of gasoline/diesel powered engines compared to the alternative.
c) Various scholars, including Greg Mankiw, have suggested that consumers of gasoline/diesel engines do not internalize all of the costs of these engines; what solution do they suggest for this issue and discuss the economic arguments for and against such solutions.
d) What are the estimates of the elasticity of the demand for gasoline in the short-run and what are the implications for the solutions discussed in response to part c
e) Discuss the economic arguments in favor of and against the subsidies (both implicit and explicit) provided to gasoline/diesel engines as well as their alternatives. Make sure to provide a comprehensive discussion of all types of subsidies.