I too find the argument compelling that driving is under-priced, but I'm always leery of any reasoning that stops there, as the next step usually seems to be "well, we need to correct the price," which is only a good solution in a vacuum.

As the Macron government in France learned the hard way, underpricing one mode of transport for decades has a profound effect on multiple other markets, and suddenly trying to correct it has a very real human cost. When driving is underpriced, public transport can't compete, and investment in it wanes. Meanwhile, residential development adapts to automotive transport with sprawl.

And so a significant part of the population has no fallback if they become priced out of driving. A good policy solution must take the transportation, housing, and labor markets into consideration when pricing in the externalities of driving.