The Unbroken Window: "According to the EIA, average retail gas prices in 1998 were $1.06. In March of this year, average prices exceeded $3.86. Even after considering that the price level in the economy increased by 41% over this time period, the real price of gasoline seems to have increased by a factor of over 2.5. So if gas prices rise by just a few more cents, as they “surely” will, then we’ve achieved our emissions reductions targets. Global warming problem solved. Right?"
'via Blog this'
2 comments:
Is petroleum the exception to the "commodity prices always dropping" theory?
I don't get the second to last sentence. Are they saying gas consumption is so elastic that price increases have significantly reduced emissions?
I don't think the theory is commodity prices always fall. I think the theory is more like: the more humans we have the more ideas and innovation we have, so more humans actually make everyone richer. A basket of commodities is an approximation of that progress. A rise in the price of one commodity does really offer much evidence to the contrary.
I think all he is doing in this post is mocking the Kyoto protocol. Everyone knew that even if we reached the benchmarks it would have no significant affect on global temperature.
We'll we're gas prices are almost there! Shouldn't the backers of the protocol be celebrating that? And are we better off?
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