“I have observed that in all other countries, including in America, people are complaining about how prices of [gasoline] are going up,” Denmark’s prime minister, Anders Fogh Rasmussen, told me. “The cure is not to reduce the price, but, on the contrary, to raise it even higher to break our addiction to oil. We are going to introduce a new tax reform in the direction of even higher taxation on energy and the revenue generated on that will be used to cut taxes on personal income — so we will improve incentives to work and improve incentives to save energy and develop renewable energy.” [Thomas Friedman, "Flush with Energy," New York Times, 2008.08.09]
The Danes aren't exactly suffering: they have managed to build wind power capacity to provide 20% of their electricity (wind provides just 1% of America's electricity). They have tripled their exports of energy efficient products in the last decade. And they have reduced their energy imports from the Middle East to zero.
Friedman also points to simple technology used by the Danes to conserve energy, like motion-activated lights and two-gear toilets for our two-gear excretory systems.
But why should we want to be like those lily-livered Europeans?
Because it was smart taxes and incentives that spurred Danish energy companies to innovate, Ditlev Engel, the president of Vestas — Denmark’s and the world’s biggest wind turbine company — told me that he simply can’t understand how the U.S. Congress could have just failed to extend the production tax credits for wind development in America.
Why should you care?
“We’ve had 35 new competitors coming out of China in the last 18 months,” said Engel, “and not one out of the U.S.” [Friedman, 2008.08.09]
Oh yeah, competitive advantage. That's why. You want to be second to the Danes? Keep drilling.
Just a minute here. I am half Danish actually, but that has nothing to do with this. Except that I have been to Denmark, I have ridden the bus there, walked miles in that country, and even ridden in a rickshaw across town in FLAT Copenhagen. This is a very small country. Towns are within a few miles of each other and most people live in cities/towns. They do not have a heavy dependence on oil as regards transportation because of the close proximity of towns, their bus/train system (which wouldn't work in much of the US without heavy gov't subsidies because of sparse population), and also the ability to get from here to there quickly on bikes. They are also a very highly taxed country. Everyone gets anything they need courtesy of the fed govt. There is not a huge incentive to work because they all get everything they need anyway.
ReplyDeleteI agree that we need to do more to develop alternative energy. But wishing it to happen immediately and raising the price of gas to $10 a gallon in this country to make it happen is ridiculous. What about all the people with cars that HAVE to use gas? We can't snap our fingers and magically all oil using items will magically be swtiched to another form of energy. This would only harm the very people you most claim to want to help. Transition is the needed term here, and also being willing to drill (not a nasty word to me) to use our own God-given natural resources in the transition. Ideally we will be using oil, nuclear, switchgrass, trash, etc etc in the future, but it will be a slow transition. Raising the price of oil will do nothing but hurt the US (and the poor especially).
The situation in Georgia should emphasize the point that we need to become energy independent immediately, and that means using all means available to us. And that means that the Dems need to get back to Washington DC and get to work, not spend this month in vacation. Hopefully Pelosi's actions and insistence on no vote will only hurt her and the Dems when they do decide to get back to work. And hopefully she is getting an earful from her constituents during her month long paid "vacation."
Nonnie
Right on, Nonnie. I might add that we should "pull out all the stops" and do everything in our power to ensure that we can never be energy-blackmailed or economically squeezed by the Russians, the Arabs, the Chinese, or anybody else.
ReplyDeleteEuropeans live with the threat that if they should happen to greatly displease the Russian Bear, they could spend the next winter freezing in the dark. They have an imperative to develop alternative energy that exceeds even our own.
The opportunities for job creation and entrepreneurship in the alternative energy field are enormous. Targeted tax breaks (and assurances that they will remain in effect) can spur alternative energy development in the private sector. Taxing the people more and then using the money to create government programs for energy development might work too, but that would be socialism. The world seems to have been on a track away from that paradigm recently.
We can't expect to get rid of our energy woes by drilling in the wallets of taxpayers, any more than we can expect to solve it by drilling in the continental shelves. Gasoline and other energy prices are going to rise enough from market forces alone; we don't need to be whipped by the government too. Raising taxes in the face of a recession strikes me as downright dangerous.
Unfortunately, most people don't change until they have to. Everyone could have been driving smaller cars if they cared about their "God-given natural resources" and the "transition" started back with Jimmy Carter. The increased cost of oil will force a change that probably won't occur any other way since short term goals rule the day. Oh, forgive me if I should have placed a hyphen after short. What else did I do wrong? A couple of you remind me of cranky English teachers with ugly red pens. JH
ReplyDeleteTen dollar a gallon gas...who needs this standard of living anyway, Let the unemployment lines begin!
ReplyDeleteWhen gas that expensive renders the money built up by responsible people over their entire lives into 15 to 20 cents on the dollar because of inflation and devaluation of the currency, you can tell them its for their own long term good.
We can't drill our way out of this crisis, but we can't solve it without including drilling. I won't abide this green death, and can't vote for anyone promoting it.
We drove Chevettes back in the day, think we had every color available over the years we had them. Were great cars, cheap to buy, great mileage. Then went to Corsicas with a little bit more room, still good gas mileage. Why did the car manufacturers stop making them? I firmly believe that cars could get better mileage now - they used to. Why not now?
ReplyDeleteWe refuse to buy minivans etc because gas mileage is terrible. Do have pickups but are necessary on the farm.
I think people would buy small, cheap, great mileage cars if they were available.
Comrade Herbert:
ReplyDeleteDon't you think that there is a gov't conspiracy controlling gas prices (and big oil's profits)?
Beware because everything has been foretold already in the Good Book.
I just heard, courtesy of our Public Utilities Commission, that natural gas will cost 50 percent more this coming winter than it cost last winter.
ReplyDeleteHow do they know this?
Looks like the natural gas companies here and elsewhere are saying they plan to ask for increases. Plus, the PUC is looking at gov't data and market forces:
ReplyDelete"According to data provided by the Energy Information Administration, residential heating fuel costs in the Midwest are expected to increase this winter around 50 percent for natural gas, 37 percent for heating oil and 32 percent for propane when compared to last winter.
"'The cost of crude oil directly affects the price of most types of heating fuel,' said PUC Chairman Gary Hanson. 'Propane is created as a byproduct of crude oil refining; crude oil is a major cost component of heating oil; and crude oil, along with declining net imports, increased demand and lower inventories, drives up the price of natural gas,' he explained" ["PUC Says Be Prepared for Higher Heating Costs," Madison Daily Leader, 2008.08.14].
Thanks for clarifying, Cory.
ReplyDelete