As long as the US and/or global economy hangs in there, we will end up seeing prices for gasoline, and oil, going up and doing during the year, in a seasonal manner.
and hope your garage doesn't explode! *lol* But that doesn't solve the bigger problem. So we're moving to a tiny town where everything is biking/walking distance :)
That certainly is a great way to reduce your own direct consumption of fuel!
As I've mentioned, there is just about enough light in the morning now that I can bike to school without getting run over by a gravel truck.
Now if we can just get people to wake up to the fact that we are at peak oil, and the impact of this is going to be higher prices. After all, gasoline is worth perhaps $1,400.00 per gallon. Most people don't have a clue about that. Most still think that $3.00/gallon is outrageous.
If I had my druthers, I would do most of my work at home, grow lots of food (or live near a nice farm that grew a nice variety), and live in a zero-energy home that was warmed and provided with electricity all from the sun. :-) I'm still working on how to make that dream a reality. :-)
With peak oil, both curves are moving at the same time, away from one another. That causes a very rapid increase in prices.
As for peak oil, markets readjust. If the price of fuel skyrockets more people take the bus/train move closer to the city, etc. All of which help correct the market and make us more environmentally friendly.
Markets solve all of our wasteful problems, although reactively.
Re: Tax IncidencevaluesystemOctober 18 2009, 12:45:23 UTC
My understanding of taxes is that all taxes on producers are passed on to consumers, in one way or another.
There are, of course, difficulties in doing this in many cases, particularly if there are competing producers who are not subject to the addition tax expense.
Independence from oil
anonymous
December 17 2009, 23:47:33 UTC
Thomas Freidman advocates raising the price of gas as a means to reduce demand for oil. If there is no readily available alternate energy source, how does this proposed price rise impact your analysis on inelastic demand and supply ?
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Moving across the country is going to be EXPENSIVE.
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As I've mentioned, there is just about enough light in the morning now that I can bike to school without getting run over by a gravel truck.
Now if we can just get people to wake up to the fact that we are at peak oil, and the impact of this is going to be higher prices. After all, gasoline is worth perhaps $1,400.00 per gallon. Most people don't have a clue about that. Most still think that $3.00/gallon is outrageous.
If I had my druthers, I would do most of my work at home, grow lots of food (or live near a nice farm that grew a nice variety), and live in a zero-energy home that was warmed and provided with electricity all from the sun. :-) I'm still working on how to make that dream a reality. :-)
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As for peak oil, markets readjust. If the price of fuel skyrockets more people take the bus/train move closer to the city, etc. All of which help correct the market and make us more environmentally friendly.
Markets solve all of our wasteful problems, although reactively.
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If there was a carbon tax and as both demand and supply are inelastic, would the tax be bared equally by consumers and producers?
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There are, of course, difficulties in doing this in many cases, particularly if there are competing producers who are not subject to the addition tax expense.
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