Is It Time for a New Tax on Energy? (Yes) (WSJ economist survey) [View All]

[rcdean]

Economists Say Government Should Foster Alternatives – But Not How Bush Proposes

By PHIL IZZO
February 9, 2007



The government should encourage development of alternatives to fossil fuels, economists said in a WSJ.com survey. But most say the best way to do that isn't in President Bush's energy proposals: a new tax on fossil fuels.

Forty of 47 economists who answered the question said the government should help champion alternative fuels. Economists generally are in favor of free-market solutions, but there are times when you need to intervene," said David Wyss at Standard & Poor's Corp. "We're already in the danger zone" because of the outlook for oil supplies and concerns about climate change, he said.

A majority of the economists said a tax on fossil fuels would be the most economically sound way to encourage alternatives. A tax would raise the price of fossil fuels and make alternatives, which today often are more costly to produce, more competitive in the consumer market. "A tax puts pressure on the market, rather than forcing an artificial solution on it," said Mr. Wyss.
...

In the survey, which was conducted Feb. 2-7, just two economists recommended regulations that require energy companies use more alternatives, one of the keys of the Bush plan...

...the economists said dependence on fossil fuels remains a threat. When asked to pick the greater geopolitical threat to the economy, by almost an 3-to-1 margin the economists chose a disruption in crude oil supplies caused by tensions in the Mideast over the impact on spending and confidence that could follow a major terrorist attack. "The economy has already proven it can survive terror attacks. It had a harder time with almost $80 per barrel oil," said Ms. Swonk.

This is from the WSJ which requires a subscription. But the remainder of the piece does not provide much more on this subject; it discusses Sarbanes-Oxley and other questions asked of this group of economists. Anybody wanting access to the article can message me and I'll send you one of their invitations.

It's a good piece, show's up Shrub's fatuous "energy plan" and points the way to something almost inevitable, though it may not come 'till Jan '09 when the current moron in chief is gone and when it can be done more safely from a political standpoint.