Seize the day

Seize the day

The fall in the price of oil and gas provides a once-in-a-generation opportunity to fix bad energy policies.

Why I pick up this article: Ms.Lily, a teacher in Berliz (Canada)

Summary:

Seize the day = Now is the time to rationalize energy policy

(1) What has been changed?

A: Oil price (+ advances in clean energy and conservation)

The price has plunged in six months. (+ management of energy consumption)

The challenge: Producing enough of oil >>> Managing abundance of oil

(2) What is the core problem?

A: energy policy (fuel subsidies / carbon tax)

Ex: America has changed to produce enough oil but it still…

bans the export of oil and restricts exports of natural gas

subsidizes for ethanol producing farmers and nuclear plants

Ex: World has put too much subsidies on fossil fuels

$550,000,000 in a year led to 36% of global carbon emission (1980-2010)

(3) What should be a better policy?

A1: Raise taxes on fossil fuels (A carbon tax)

Ex: America puts a tax of just 18 cents / a gallon (3.785l) on petrol.

A2: Encouraging the growth of seamless global energy market

Ex: Scrapping unfair obstacles to energy investments

Discussion:

(1) Price of energy heavily effects on human behavior and its decision. Can you describe some examples? What is cause and effect?

(2) Do you agree with the idea of the Economist? Why and why not?

(3) Some might say that tax on selective things (tabacco/cars) distort free