<BP CEO: Oil markets will save us The Oil Drum DrumBeat: June 14, 2008>

63 comments on Eliminating Subsidies Won't Cut It (Demand for Oil That Is)

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GRLCowan on June 13, 2008 - 11:11am Permalink | Subthread | Comments top

Subsidized commodities tend to be available in inflexibly limited amounts. And by "inflexibly limited" I mean even more inflexibly limited than mere nature requires.

The more usual case, with natural gas and petroleum-derived fuels, of heavy consumption taxes -- negative subsidy -- makes government push them by means that are available only to it. Laying urban developments out in such a way that people have to drive long distances often, for instance.

--- G.R.L. Cowan, H2 energy fan 'til ~1996
http://www.eagle.ca/~gcowan/boron_blast.html

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SamuM on June 13, 2008 - 11:50am Permalink | Subthread | Parent | Comments top

This is an interesting argument, is there actual correlating data to back it up or even historical causal evidence to prove it?

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GRLCowan on June 13, 2008 - 12:52pm Permalink | Subthread | Parent | Comments top

Correlating data are more likely to be available than proof, I think, if by proof one means Hansard or local council excerpts saying anything like "We must make them burn more fossil fuel"; one would not expect such candour.

Here's an instance of the argument being used predictively: http://autos.groups.yahoo.com/group/future-fuels-and-vehicles/message/5123

--- G.R.L. Cowan, H2 energy fan 'til ~1996
http://www.eagle.ca/~gcowan/boron_blast.html

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63 comments on Eliminating Subsidies Won't Cut It (Demand for Oil That Is)

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