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Tax oil -> Create demand for alternative energy -> Avoid political and economic problems associated with a diminishing supply of energy. Simple.
by JesseAldridge 18y ago
Tax oil -> Create demand for alternative energy -> Avoid political and economic problems associated with a diminishing supply of energy.
Simple.
- laut 18y agoDenmark uses oil for cars. Coal for electricity. Denmark now gets a lot of offshore oil relative to the size of the country, that's why Denmark is a net exporter.
- natrius 18y agoThe problem with that approach is that it assumes everyone is foolish. A rational actor presented with information that oil supplies will decrease in the near future would adjust his behavior as he sees fit. Moreover, the market will price in the costs of continuing to rely on oil. Sure, price in the externalities of oil use, but I don't think we should raise prices beyond that just to reduce demand.
- steveplace 18y agoBetter (but less simple) idea Get an MPG benchmark, say 25. Give a tax credit for cars that overperform and a tax debit for cars that underperform. This creates a revenue-neutral incentive structure that would help cycle in more efficient cars into the market. Every so often, raise the benchmark. Of course you have the problem with fleet vehicles which are always going to be below the benchmark, but they could rotate into natty as a source.