Monday, Nov 30, 2009 at 14:40
I agree, there is lots of oil still inside the earth.
You have to invest increasingly higher amounts of energy to get to it and/or turn it into a refinable product.
This amount of energy can only feasibly be invested as long as there is enough of the 'cheaper' energy around. Once this cheaper energy has been burned up, funding in the associated downturn will be harder to find. There could be a real chance that we won't make it to the 'harder to get stuff' at all if we run out of the 'cheaper stuff' too early.
Taxing is one way of channelling funds toward expensive and risky exploration projects.
Diverting a certain amount of GDP toward it by decree, is another, but this would hurt the economy probably more than taxing the luxuries first.
Governments at this stage are still experimenting as this is an unprecedented global situation.
BTW, I doubt that there are still enough smokers left who could miraculously make this happen...
regards, Peter.
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