The news has been full of evidence that automobile sales are way down. For some vehicles, demand appear to be undiminished by the financial crisis and recession. What do these vehicles have in common?
Category Archives: Energy
It is a fact of physics that vehicles with greater mass do better in collisions. Wall Street Journal automotive columnist Joseph B. White explores this trade-off from an odd perspective — one in which he seems to wish that it it weren’t so.
Syndicated columnist Charles Krauthammer has endorsed a gax tax as a tool for reducing U.S. demand for petroleum, and thus the world price. He is “agnostic” about the threat posed by anthropogenic global climate, but hardly so with respect to the perils of transferring great wealth to regimes that are opponents or sworn enemies.
Krauthammer insists that such a gas tax be a “net zero” tax, by which he means revenue neutral. Revenue collected by the tax would be matched by reductions in payroll taxes.
Here are some challenging issues in political economy that Krauthammer does not address, but which much be resolved for a proposal such as his to succeed.
The world price of oil has fallen from about $140 per barrel to less than $50, all within just a few months. Global macroeconomic conditions have deteriorated, of course, but that does not seem to explain what has happened.
Wall Street Journal columnist Joe White discusses the drop in oil prices, and he cannot seem to decide whether this is a good thing or a bad thing. Read More →
Sen. John McCain has proposed that the federal government award a $300 million prize for the “for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars.”
Assuming it would be a good thing to have this technology, is McCain’s proposal economically sensible?