I think the truth is somewhere inbetween. They understand somewhat, but other voices are telling them: nothing to worry about BAU. A quote (I can't remember whose -so my apologies in advance) that it appropriate is:
"Don't expect a man to understand something on which his job requires that he doesn't". And the political application process is such that they can't afford to understand PO.

A small suggestion on bullet (2): It would be better, not to compute the expected revenues from the gas tax and set this amount into law. Much better would be to earmark the revenues to the people. That way the amount adjusts with the revenue, and corrective political action is not required when assumptions are proven wrong. It is all too easy to game a revenue neutral proposal such as your, by say overestimating revenue -and turning it into a tax cut.

Agreed. I don't think there's some big conspiracy where they all know about peak oil, but won't talk about it in public. OTOH, at least some politicians clearly do understand the problem. Republican Roscoe Barlett, for example. He may give his peak oil speeches to the cleaning staff, but they're on the record. Democrat Bill Clinton has given talks about peak oil, and Al Gore has mentioned it, too.

I think they know about it. Some of them, anyway. After all, most of them are old enough to remember the '70s energy crises. But they think we'll innovate our way out of it, as we always have in the past.

Like Tom Whipple said...politicians have so much on their plates already. Unless you can give them a solid and imminent date ("the gas stations will go dry July 3, 2008"), it won't be a priority for them.

A quote (I can't remember whose -so my apologies in advance) that it appropriate is:
"Don't expect a man to understand something on which his job requires that he doesn't".

"It is difficult to get a man to understand something when his salary depends on his not understanding it." -- Upton Sinclair