European fuel efficiency standards for new vehicles will lead to a lower global oil price according to a groundbreaking new study published today by Enerdata energy consulting. National governments must respond by increasing fuel taxes to counteract the increase in oil demand and greenhouse gas emissions that would result, according to T&E who commissioned the study. Economic assessments of energy efficiency measures normally use fixed oil prices when accounting for economic benefits. But the Enerdata study, for the first time, examined the future effect on the oil price itself when carmakers are forced to comply with European fuel efficiency standards from 2012. The report found that for every 1% reduction in global oil consumption, the price of oil drops by up to 2%. Furthermore it found that the economic benefits of fuel efficiency measures in Europe are typically underestimated by up to 17% because of the failure to account for a drop in oil prices. Jos Dings, director of T&E said: "This study shows that the economic benefits of energy efficiency measures in transport have been seriously underestimated in the past because nobody ever looked at what happens to oil prices as a result." "But our environment will pay a high price for cheaper fuel, so Europe needs to send a strong message that fuel tax increases at national level will have to go hand-in-hand with fuel efficiency standards if we are going to seriously tackle spiralling transport CO2 emissions." "Europe's technological standards for new vehicles are incredibly important, but national governments can't hide behind them. Higher fuel taxes will have to play an equally important role in getting emissions under control." "Although advocating higher fuel taxes may seem odd during the current economic crisis, governments could use the increased fuel tax revenues to reduce labour taxes which would boost jobs and the economy as a whole. It shouldn't mean people being hit in the pocket." http://www.transportenvironment.org/News/2009/4/Study-fuel-efficient-cars-lead-to-lower-oil-prices/ You can expect for the U.S.of A. also lower oil prices as "clunkers" program rewards fuel-efficient cars...
Unlikely. People in China, India and other countries are discovering cars faster than the west will improve MPG... Think about the sub $3000 car Tata is putting out. Imagine that getting throughout India and other lower income countries. But I do agree we should put heavy taxes on fuel. Use them to pay for the new medical insurance we are promised, but cheap fuel will roll back the MPG improvements.
Transportation system in europe is more advanced than here in the US, In europe you don't need autos to move, here in the US if you don't have a car, you're death. Putting more taxes on Gas will drive the prices at the retail store at some Tought levels for consumers. In europe you pay over $6-$8 per gallon, You want that here?..
Quote from rubibond007: Transportation system in europe is more advanced than here n the US, In europe you don't need autos to move, here in the US if you don't have a car, you're death. We could use a lot better public transportation system in the US, in the populated areas. Many people drive to work in spite of living near the train or subway or bus. if the extra money helped to set this up, yes. Putting more taxes on Gas will drive the prices at the retail store at some Tought levels for consumers. In europe you pay over $6-$8 per gallon, You want that here?.. That is why Europeans don't buy an 8,000 pound Excursion just to drive 1 person to go back and forth from work or shopping. A 30 MPG car gets 2 people there just as well as a 15MPG pickup. Yes I want higher fuel costs here. When it was $4 a gallon, SUVs and pickup sales plummeted and fuel-efficient cars soared. Small cars in Europe are actually a lot more expensive than in the USA. It is called "demand." But no one said $6-$8 a gallon, did they?
The author of this great article (http://www.epmag.com/WebOnly2009/item41209.php) suggests a flex tax structure where gasoline under a certain price is taxed but if the price rises too far there is no tax. The idea is to remove some price volatility and to resist from adding to gas prices when they're high, as high prices cause recessions. I agree whole-heartedly with the need for more electricity sources, with nuclear a great option, but also clean(er) coal tech -- don't see why it can't be improved. And maybe future biofuels by firms like Synthetic Genomics (run by Craig Venter who tied in the race to decode the human genome) can have an impact. I met a cute French girl at this club in LA who said she's here working on new battery technology in Pasadena. **SWOON!** We might move toward electric cars faster than most currently anticipate...