Almost two years ago I published a proposal to reduce oil consumption by adding a significant gasoline tax at the pump and at the same time lowering income tax, adjusted so that the process is "revenue neutral", and has no major net change for the average joe.
J. Donanld Tillman:
A Modest Proposal to Improve the National Energy Policy
The proposal would effectively increase the price of gas to closer reflect its true cost and provide a financial incentive for conservation and alternate forms of transportation and fuels, but without any net cost to the consumer.
I see this idea is gaining some momentum:
Harvard Professor Greg Mankiw's Blog:
"The Only Republican in San Francisco":
Trading gas taxes for income taxes