> > Oil, coal and gas will eventually be replaced as > > primary energy generation sources when other energy > > sources become either economically (I'm looking at > > you, solar) or technologically (fusion) viable and > > also as consumers increase demand for alternative > > energy sources
This is correct in terms of economic theory; the problem is that it isn't forward-looking. As long as oil prices remain low, there's little incentive for the private sector to invest a lot of capital in alternative sources, especially in carbon-neutral alternative sources. By the time there is sufficient incentive, it may be too late.
While I don't like the subsidies for oil, gas and nukes, having higher fuel tax has worked well in Europe. The goal is to price the petrol and diesel high enough so that people will drive more efficient vehicles, while having a tax base that can cover the cost of having excellent roads and cleaning up pollution. It seems to be working more or less, except, of course in the UK where any opportunity to tax is doubled only because they can. I'm amazed at the improvements in roads even in poorer countries like Portugal, Greece and Croatia. Market forces have made gasoline prices fluctuate wildly, and it will eventually go back up over $4, probably $5. I'd rather see the higher price as a tax to be used for road improvements and pollution abatement than as pure profit for the price-gauging oil cartels.
There's one subsidy that is working very well. In Germany, people get grants to put photovoltaic tiles on their roofs. Their electric bills remain the same as before installing the PV tiles with the grant making up the difference, until 5 years when the payback for the roof tiles is complete, after which the energy cost goes down significantly and the grant ends, http://tinyurl.com/dgn4c8.
Gotta have some incentive for most people--either carrot or stick. ************************************************************************* ** List info, subscription management, list rules, archives, privacy ** ** policy, calmness, a member map, and more at http://www.cguys.org/ ** *************************************************************************
