The Deepwater Horizon spill illustrates that every gallon of gas is a gallon of risks — risks of spills in production and transport, of worker deaths, of asthma-inducing air pollution and of climate change, to name a few. We should print these risks on every gasoline receipt, just as we label smoking’s risks on cigarette packs. And we should throw our newfound political will behind a sweeping commitment to use less gas — build cars that use less oil (or none at all) and figure out better ways to transport Americans.
Ms Margonelli notes that the Gulf disaster will likely lead to calls for a ban on new offshore drilling, and that this ultimately won't accomplish very much. Demand for oil will remain high, and so the drilling, pumping, and transport of oil will continue. While Americans (and much of the world's citizens) remain hungry for fossil fuels, a supply-side solution to the problem of negative fossil fuel externalities—environmental and human disasters, foreign policy complications, and the looming catastrophe of global warming—is unlikely to do much good.
What would do some good would be an effort to limit oil demand, and the most direct way to accomplish that is to tax the stuff. America notably has one of the lowest national petrol tax rates of any developed nation. The rate was last increased in 1993, and its value has eroded significantly since then, in real terms and relative to the market price of oil. It's an absurd state of affairs given America's dependence on oil. It's more ridiculous still when one considers that the federal government has been running short of funds to pay for and maintain its highways for years, and the federal highway trust fund is basically dry. America can't afford its infrastructure.
Obviously, these problems are all linked. Heavy oil dependence makes petrol tax increases extremely unpopular. Increases therefore do not pass, which keeps prices relatively low and dependence levels high. It also keeps revenues low, which limits investments in alternative transportation modes (it's no coincidence that America has one of the lowest petrol tax rates and one of the worst national rail systems among developed nations).
Because this cycle is difficult to break, America seems to wait, perpetually, for events that might unite politicians behind a banner of shared sacrifice and give them the courage to do the right thing—raise the petrol tax steadily over a period of years. For a fleeting moment, it looked like President Bush might use the terrible attacks of September 11 to remind Americans of the risks of heavy dependence on petroleum and call for a petrol tax rise. He didn't; instead he rather famously told Americans to go shopping, which required the vast majority of them to get in their cars.
Now, there is another opportunity. Deficit hawks have been warning about deficits; here is one of the most efficient revenue-raising methods available. Others have stressed the need for American rebalancing and reduction of the trade deficit; a petrol tax will reduce oil imports, which account for a major share of the current account deficit. And obviously, a petrol tax increase will speed the transition to more efficient and electric automobiles, it will reduce spending on petrol and carbon emissions, and it will reduce the likelihood of future disasters like the one currently threatening the Gulf coast.
For too long, Americans have pretended that the only cost to a gallon of petrol is the cash they hand over at the filling station. The government now has yet another opportunity to correct this fantasy. It should seize it
Ms Margonelli notes that the Gulf disaster will likely lead to calls for a ban on new offshore drilling, and that this ultimately won't accomplish very much. Demand for oil will remain high, and so the drilling, pumping, and transport of oil will continue. While Americans (and much of the world's citizens) remain hungry for fossil fuels, a supply-side solution to the problem of negative fossil fuel externalities—environmental and human disasters, foreign policy complications, and the looming catastrophe of global warming—is unlikely to do much good.
What would do some good would be an effort to limit oil demand, and the most direct way to accomplish that is to tax the stuff. America notably has one of the lowest national petrol tax rates of any developed nation. The rate was last increased in 1993, and its value has eroded significantly since then, in real terms and relative to the market price of oil. It's an absurd state of affairs given America's dependence on oil. It's more ridiculous still when one considers that the federal government has been running short of funds to pay for and maintain its highways for years, and the federal highway trust fund is basically dry. America can't afford its infrastructure.
Obviously, these problems are all linked. Heavy oil dependence makes petrol tax increases extremely unpopular. Increases therefore do not pass, which keeps prices relatively low and dependence levels high. It also keeps revenues low, which limits investments in alternative transportation modes (it's no coincidence that America has one of the lowest petrol tax rates and one of the worst national rail systems among developed nations).
Because this cycle is difficult to break, America seems to wait, perpetually, for events that might unite politicians behind a banner of shared sacrifice and give them the courage to do the right thing—raise the petrol tax steadily over a period of years. For a fleeting moment, it looked like President Bush might use the terrible attacks of September 11 to remind Americans of the risks of heavy dependence on petroleum and call for a petrol tax rise. He didn't; instead he rather famously told Americans to go shopping, which required the vast majority of them to get in their cars.
Now, there is another opportunity. Deficit hawks have been warning about deficits; here is one of the most efficient revenue-raising methods available. Others have stressed the need for American rebalancing and reduction of the trade deficit; a petrol tax will reduce oil imports, which account for a major share of the current account deficit. And obviously, a petrol tax increase will speed the transition to more efficient and electric automobiles, it will reduce spending on petrol and carbon emissions, and it will reduce the likelihood of future disasters like the one currently threatening the Gulf coast.
For too long, Americans have pretended that the only cost to a gallon of petrol is the cash they hand over at the filling station. The government now has yet another opportunity to correct this fantasy. It should seize it
No comments:
Post a Comment