tag:blogger.com,1999:blog-7610074516299275060.post6029678987973556..comments2024-01-21T11:18:54.087-05:00Comments on Lost in the Movies: A Crude Awakening: The Oil CrashJoel Bockohttp://www.blogger.com/profile/11238338958380683893noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7610074516299275060.post-74392657708327452362008-10-30T20:04:00.000-04:002008-10-30T20:04:00.000-04:00While I am no fan of untrammelled capitalism, ther...While I am no fan of untrammelled capitalism, there is a role for free markets here. Scarcity and the imposition of carbon-trading will lead to a cost-shift to alternative energies as they become more competitive. But a degree of planning and market intervention will be required. The young doomsayer in the film was right on bio-fuels. The uncontrolled shift of arable land from food crops to biofuels has already precipitated a global shortage of staples such as rice and wheat. <BR/><BR/>Here in Australia E90 gasoline (10pct ethanol) is by govt fiat set at a 3 cents/liter discount to regular fuel, and the ethanol is sourced from sugar cane waste, that would otherwise be burnt. This is an example how markets and activist govts can work together. We are also set to introduce compulsory carbon trading by 2012, but it's effectiveness will depend on how the strong govt is in resisting free start-up credits and less-than ambitious carbon-reduction targets.Tony D'Ambrahttps://www.blogger.com/profile/00359495250856189815noreply@blogger.com