5 ms·
The faster the oil/gas price increases, the more attractive electric cars become. Unfortunately, it could also mean US will never cut oil subsidies, unless they
by devx 13y ago
The faster the oil/gas price increases, the more attractive electric cars become. Unfortunately, it could also mean US will never cut oil subsidies, unless they do it now, before the perceptible decline starts.
Hopefully, governments will at least resist the urge to increase oil subsidies to keep the prices the same. Instead they should be looking at building electric car infrastructure in their countries, faster, so when the gas prices start climbing, the population switches "smoothly" to electric cars, and doesn't feel much of a shock.
- fleitz 13y agoMost countries tax oil heavily. Europe and Canada come to mind.
- arthurcolle 13y agoThe country of Europe
- thrownaway2424 13y agoYeah. Last time I was in Europe the local gas tax was more than the entire price of gas in the USA. Our low gas tax is, in effect, a subsidy, because we (as a society) choose to ignore the externalized costs of burning gasoline. Gas is currently 2CHF per liter (about $8 per gallon) in Zurich, in case you haven't been out of the USA lately.
- fleitz 13y agoYou could call it externalizing the costs of burning gasoline, or you could call it internalizing the profit of burning gasoline. The rest of the world burning gasoline results in cheap credit for the US. http://www.newyorkfed.org/research/current_issues/ci12-9/ci12-9.html http://www.newyorkfed.org/research/current_issues/ci12-9/ci1...
- thrownaway2424 13y agoThe result of burning all that fossil fuel will indeed by internalized in the end, but when it comes around I doubt you'll call it a profit.
- thoughtsimple 13y agoAnd in the US we are starting to tax cars that use less gasoline than average. Not exactly in sync with the problem.
- forgingahead 13y agoYes, because the gas tax is not used only to discourage consumption, but to fund road construction and repair.[1] The simple consequence of getting used to the idea of a tax revenue stream (because current and future spending depends on it), only to have that revenue stream be threatened (because of non-gas guzzling vehicles), leads to the blunt reaction of "hey, let's just tax them more". [1] http://en.wikipedia.org/wiki/Highway_Trust_Fund http://en.wikipedia.org/wiki/Highway_Trust_Fund
- astrodust 13y agoCanada's petroleum taxes are only "heavy" compared to the US. They're actually really thin compared to other G8 countries.
- crusso 13y agoWhenever I hear of "oil subsidies", I follow up -- looking for what is meant. It usually turns out that the subsidies are for small players prospecting, not the "big oil". Alternatively, there are subsidies for all businesses that oil companies take advantage of. Oil companies are less subsidized than solar companies, from what I've been able to see. If you have other information sources, then I'd love to see them. I wish we would lose the spin and just talk facts on these subjects.