In this article, Jad Mouawad writes about how new technologies are getting more oil out of existing oil fields. I have always been one to believe in technology and our ingenuity. This is another example of how we can get more energy. I expect to see more energy out of every solar panel, more energy saved by LED lights over incandescent and fluorescent. I expect to see more energy efficient cars.
And all it takes to drive this invention is something very simple: expensive traditional energy. The Car Talk brothers have joked that the only way to get to the next energy technology is to use all of this oil up. So maybe all of those suburban moms driving SUVs and Hummers have been doing us a favor. But I do not think the poorer people who actually can’t afford to fill up their gas tanks and now have to walk or bicycle to work think it is a favor.
Personal economic decisions are the only way that global changes take place. I may believe it is better for the environment to use a hybrid car. I may believe it is better to eat organically, or to eat less meat to save the environment, but unless millions of others are also making these same decisions, I will have little impact. Most people do not have the luxury of choosing based on their beliefs but can only decide with their pocketbook because it is slim and threadbare. And as painful as I think it would be, I believe that the best way to increase innovation in the energy industry is to tax the use of fossil fuels instead of subsidizing other fuels. This will work because innovation will only succeed when there is a void to be filled.
To further complement this policy I recommend that the proceeds from this tax be used to increase conservation and for alternative energy research. In some long round about way, this may then get the consumers back to break even on the costs of the tax in the first place. I am sure everyone from Adam Smith to the latest free market guru would prefer that the market should just take care of this. The only problem is that the market may be too slow. Implementing technology takes time because there are physical and social infrastructure delays. How long will it take for carpooling to become common? When will there be enough E85 or electric power charging stations out there? How long will the government take to increase public transportation? The answer to all of these may be “a long time.” I say shorten that time frame.
I completely agree with you. It seems that when I was in Brazil, the government did what they planned on doing and stuck with it. Here in the US, it seems that politics interfere with the life of a government program and solutions to problems. I am afraid for our children and their children who will be left with our mess.