Higher Prices for Oil the Antidote?

WSJ points out that higher gas prices are needed, not lower ones, if there are externalities associated with driving cars, for which a case can be made. The standard solution to externalities is to tax them using the Pigouvian tax which is simply to price the good up or down the size of the negative or positive externality. That is, close the gap between social and private costs, and theoretically, the problem is solved. I hinted at this yesterday. So maybe the Fed's getting responsibility for what will eventually be a movement to more fuel-efficient automobiles and less urban sprawl (assuming most of this rise in oil prices is due to the depreciating dollar).