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Politics : Politics of Energy

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To: RetiredNow who wrote (7674)	4/26/2009 10:57:24 PM
From: Brumar89	Read Replies (1) of 86356

The externalities you complain about (and grossly exaggerate imo) are, I think you'd agree, externalities involving oil imported from dangerous, hostile regions of the world. Not with oil we produce ourselves or oil from friendly neighboring countries like Canada or Mexico. Accordingly, the logical way to price any externalities associated with oil from undesirable foreign sources would be to impose an import tax on oil imports. Exclude CN and MX as they're NAFTA treaty countries. That would target the tax on the problem oil only and wouldn't discourage production here or in CN or MX. As I've said before: As to the national security - domestic vs imports issue, I've said before the simplest way to deal with that would be an import tax on oil and gas from sources we don't have a free regional trade relationship with (it makes no sense to tax imports from Canada and Mexico). Set the tax at say $5-10 a barrel from places other than MX and CN. This would encourage domestic production, discourage imports and give the government a source of revenue to fund R&D, refund to the public, whatever. Message 25492295

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