Earth Equity News

Mixed Feelings about Gas Prices. Commentary by Thomas Friedman, NYTimes, October 22, 2008. "Last week, U.S. retail gasoline prices fell below $3 a gallon -- to an average of $2.91 -- the lowest level in almost a year. Why does this news leave me with mixed feelings? Because in the middle of this wrenching economic crisis, with unemployment rising and 401(k)'s shrinking, it would be a real source of relief for many Americans to get a break at the pump... Yet, it is impossible for me to ignore the fact that when gasoline hit $4.11 a gallon we changed -- a lot. Americans drove less, polluted less, exercised more, rode more public transportation and, most importantly, overwhelmed Detroit with demands for smaller, more fuel-efficient, hybrid and electric cars... But with little credit available today for new energy start-ups, and lower oil prices making it harder for existing renewables like wind and solar to scale, and a weak economy making it nearly impossible for Congress to pass a carbon tax or gasoline tax that would make clean energy more competitive, what will become of our budding clean-tech revolution?" Reader's response, By Daniel Rosemblum, Carbon Tax Center cofounder: "You've conceded far too much in your column when you assumed 'a weak economy making it nearly impossible for Congress to pass a carbon tax or gasoline tax that would make clean energy more competitive.' A revenue-neutral carbon tax, with revenues returned through off-setting tax reductions or 'dividends' would actually provide a stimulus for the economy. Better to tax pollution than work! Back on May 28 of this year, in a column titled Truth or Consequences you described why we need a guaranteed high price of gasoline forever. You described how a price floor would never let the price of gasoline fall below a certain level. As you said then, 'The only way to get from here to there is to start now with a price signal that will force the change'. You were right then. Why back-off now?"