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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (7551)	4/25/2009 12:33:03 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 86356

Like medieval priests, today’s carbon brokers will sell you an indulgence that forgives your carbon sins. It will run you about $500 for 5 tons of forgiveness DAMN!! That's the PERFECT ANALOGY!! Mind if I borrow it sometime (or did you borrow it already.. ;0)? Hawk

To: The Vet who wrote (7551)	4/26/2009 7:28:11 PM
From: RetiredNow	Read Replies (2) \| Respond to of 86356

Actually, it's the application of modern economics, which is the attempt to ensure externalities are priced in. If a product has negative impacts on other parts of the economy and those negative impacts are not priced into the product, then that product is artificially under-priced. You could be making money on the product, but the economy as a whole could be suffering, because more money is spent dealing with the externalities than the profit made on the product. It's Econ 101. Oil is like that. We get great benefits from a cheap oil and gas price, but then we spend $600B in a year in military to ensure our military domination around the world so we can secure our oil supplies. That's a simplification of course, but in the face of $1 trillion in Iraq war costs, we need to understand that securing our oil supplies is not longer a trivial expense and it needs to be priced into retail oil and gas in this country so that other substitutes can be compete properly, so that the economic gravitates to the energy sources that make most sense to grow the overall pie. Again. Econ 101.