How much higher than European gas prices should we have to pay?
Marlo Lewis
October 5, 2007>Today’s New York Times, noting that crude oil recently hit $83.32 a barrel on Sept. 20 and stayed above $80 a barrel for the next two weeks, provides some eye-popping numbers on how the high cost of crude is affecting transport industries:
Airlines worldwide expect to spent $132 billion for jet fuel this year, up from $40 billion in 2002. The industry estimates that the share of operating costs devoted to fuel has doubled in six years. Similarly, the American trucking industry expects to spend $107 billion on diesel fuel this year, up from $45 billion in 2002. This means that fuel eats up nearly twice as much of the industry’s annual revenue…
Fortunately, a boom in business has protected trucking’s bottom line. “Had this happened 10 years ago, the industry would have been decimated,” the Times quotes Bob Costello, chief economist for the American Trucking Association, as saying.
An obvious question that leaps to mind: How much higher can fuel prices go without ‘decimating’ the trucking and airline industries–or without triggering a recession?
This question is all the more pertinent given the enthusiasm on Capitol Hill for mandatory global warming policies. For example, John Dingell, Chairman of the House Energy and Commerce Committee, recently advocated (a) a $50 tax on the carbon content of fuels, (b) a $.50 hike in federal motor fuel taxes, and (c) a cap-and-trade program adequate to reduce U.S. emissions 60 to 80 percent by 2050.
A $50 tax on the carbon content of fuels translates into a $.50 cents per gallon gasoline tax. So Dingell is effectively asking for a $1.00 per gallon hike in gasoline taxes. A cap-and-trade program, especially one tough enough to reduce emissions by 60 to 80 percent, would put an additional heavy constraint on petroleum supply, further inflating fuel costs.
So it is a real question whether the airline and trucking industries could remain profitable under the kinds of global warming policies Dingell and others are proposing–and whether the U.S. economy could continue to grow.
Although higher fuel costs would hurt consumers and the economy, emissions might still go up: economic pain for no environmental gain. Consider the European experience.
Because of high motor fuel taxes, Europeans in some countries pay $7.00 a gallon or more for gasoline. But where in Europe are all the zero-emission vehicles? Where is the miracle fuel to replace petroleum? Europe is not one mile closer than we are to achieving a “beyond petroleum” transport system. Indeed, EU transport sector emissions grew by almost 26 percent from 1990 to 2004.
Dingell is more up front than most pols about the costs of Kyotoism. But hiding the costs of climate policy has become a fine art on the Hill. The question a straight talker like Dingell should be raising is: How much higher than European level gasoline prices does Congress think Americans should have to pay to reduce emissions?
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The Day the Earth Responded..."
"The Day the Earth Responded..."
Just a bunch of the same "save-the-earth mumbo jumbo..." as one politician put it. How could we just sit back and not do anything. "The Day After Tomorrow"...what a great, special effects extravaganza. Some say, even scientists, that the movie is very disbelievable...is it? Is it that outrageous. Well, yeah...(the whole ship sailing through New York with the wolves on it is a lil crazy..haha)
Is our planet not in extreme danger though? What happens to a civilization when a civilization abuses all of it's natural resources to the ummfth degree!?!? The more I read about these poor polar bears...the more it drives me crazy. I am not smart enough to write a thesis...or my "papers on natural disasters..." but I am smart enough to see and read the news everyday.
It's no coincidence that it's raining in places for months where it never has before; also, mudslides, earthquakes,hurricanes, tornados, huge sized hail(not just in movie), floods, tital wave/tsunamis... I do not believe it is God punishing us...it is us punishing ourselves for a couple centuries of being naive. I just read yesterday, or the day before, about how certain parts of Alaska are melting away.
They won't even be there within the next 25 years probably. Again, polar bears are drowning and starving and resorting to cannibalism, according to some explorers/scientists observations. Some people will read this and say or comment..."who cares?" or "You sound like every other nut..." Whats sad is that it's that mentality that will do us in for the future of of Earth.
I am not a political analyst, a journalist, nor do I work for CAPTAIN PLANET (hahaha). I am literally a concerned human being. Our country as a collective group needs to contribute our own things.
I hope a lot of people read this. I hope a ton of people read this.
excellent satire
excellent satire
How about this: all the
How about this: all the people that believe global warming is purely a man made phenomenon agree to a voluntary cost increase of $0.50 per gallon of gasoline for every gallon they purchase. They can send their checks monthly directly to the US Treasury. We could ‘earmark’ those funds for the express purpose of combating global warming. This is similar to what some states have put into effect, a way to pay additional taxes if one so desires to help the government. Surprisingly enough, those accounts have not received a lot of money, even though there are many people that feel that taxes should be raised. I guess they mean raise someone else’s taxes, not theirs.
How 'bout a little fire,
How 'bout a little fire, Scarecrow?
This is a meaningless piece of tripe. No one in Washington considers carbon taxes a seriously. Cap-and-trade legislation will be what is passed, sooner than you ever thought possible.
Myron sez: I'm melting! I'm melting...
All the beautiful lies come to naught!
Global Warming
i think we shouldn't have to pay that much higher for gas because we are supposedly trying to make Iran our allys and if not that much action has been happening over there something good should be happening so gas should not be that big of a deal but i still think we should use an alternative soucre to run cars or just walk or ride a bike it is better for the enviroment and you.