Marc,
You are touching one of the most important subject of the energy politics
of today. You can see "Energy taxes" as an efficient way of supporting
energy conservation, which is the most common and strongest argument. It
has also become one of the most supportive methods to depress alternative
energy solutions. It is true that it depress economic development, but it
can be argued that most taxes do so. The energy taxes are probably
especially bad in depressing the economy, not because the tax, but its
influence in economic cycles. It is many arguments for and many against. If
you look for even out the economic cycles it could be as efficient as
interest rates.
I always say that fuel taxes have an equal or larger influence on economics
as interest rates, but the politicians and economists do not really
appreciate it. I am in some ways a supporter of fuel taxes, but not in the
way they are applied today. It could be as powerful, important and
efficient as interest rates and already have the same effects on society.
In the developed rich countries, it should be used more intelligent. High
energy taxes in a developing country could have a direct negative effect on
the development.
The ways and the inflexibility in design and handling of todays energy
taxes are utterly stupid and dangerous. The influence of interest rates are
constantly monitored and adjusted by experts, but energy taxes that might
have more influence does not get the same attention.
Hakan
At 07:22 PM 12/14/2002 +0800, you wrote:
>"Following the Iraqi invasion of Kuwait, the Wall Street Journal
>(9/10/90) reported on why Japan has been so much more successful in
>conserving oil than the U.S. The report focused on the role of
>Japan's government in coordinating energy programs and compelling
>corporations to install energy-saving machinery. Yet it managed to
>overlook what Ronald Morse, an energy specialist quoted in the
>article, subsequently described to EXTRA! as the most important
>reason of all: a tax policy that keeps Japanese energy prices high
>and demand low."
>
>Let's not mention that the Japanese economy is in the toilet - that
>would be impolite. Prosperity is inversely tied to the cost of energy,
>folks, and anybody who really believes that giving the bureaucracy a
>dollar or two every time we buy gas at the pump is going to help us
>should move to Europe or Japan...and keep a stiff upper lip in the face
>of chronic, steadily rising unemployment.
>
>When free market prices for a commodity go up, the extra profit goes
>into producers' pockets and provides an incentive for capital to migrate
>either to increase supply or to provide alternatives. When prices are
>raised artificially and the extra cost is pissed away by government, the
>result is economic stagnation now and worse to come.
>
>Marc de Piolenc
>Iligan City, Philippines
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