steveross

The Garage Sale Indicator

Though I agree with the premis, couldn't the statistic just be a confirmation that craigslist is being used more?

Only These Three Things Can Halt Oil's Advance

I know the following ideas might not be popular, but neither will $200 a barrel oil.

A SIMPLE SOLUTION FOR PEAK OIL CRISES

This is a 2 part solution to the runaway price of oil. It’s goal is to change driving habits, increase the mpg of cars, increase the use of alternative energy, and reduce the speculative pressures on the price of oil.

Part 1. $5 Consumption Adjustment

A $5 consumption adjustment will be added to the price of each gallon of gas sold. This money will be put in a pool and at the end of each month, divided by the number of drivers and rebated, preferably by direct deposit, to each driver. The average driver will say pay $500 extra for their gas and then will be rebated $500. The person who drives less than average will get rebated more than the extra cost and therefore will end up paying less than market for their gas. The person who uses above the average will pay more then the money rebated. For the average person, there would be no cost and they will save because of a lower market price for gas. For the person who is having trouble buying groceries and gas now can make ends meet by buying less gas therefore reducing the cost of gas both by using less and by ending up paying less than market for the gas they use. Of course, the person who uses more than the average will have to pay for this which is exactly how things should be.

Of course there will have to be some considerations made for people who use their cars for business. There will also be a cost to manage the system, though most of this will be done by computer, and in any event, the cost will be for less than say a war in Iraq.

While part 1 will lead to voluntary conservation, it also will make alternative fuels much more competitive with gas since they would not have a consumption adjustment. (85/15 blends would have 85% of the consumption adjustment).

Part 2. MPG Price Adjustments

Automakers will no longer have to comply with any mpg standards. Each year the average mpg of all the cars sold will be calculated. The next year, those that are sold with less than the average will have a $ 1,000 per mpg less than the average added to the cost of the car. Those cars sold with a higher mpg than the average will get a rebate of $1,000 per mpg above the average.


The results of these 2 plans taken together should 1. Have drivers doing everything possible to be below the average gas consumption. 2. Especially with Part 1 in place, auto sales will be extremely mpg driven giving automakers all the incentive they need to increase the mpg of their cars. 3. Increase the use of alternative fuels and 4. The moment these plans are announced with an implementation date, speculators should stop bidding up oil futures.

Peak Oil: While Washington Sleeps...

First, gas will have a $5 per gallon consumtion ajuster. This money will be collected every month, devided by the number of drivers, then returned every month, preferably through direct deposit, to all drivers. The average drive will lay out, say $500 which they will get back at the end of the month. The driver who drives less than the average will lay out less money than they get back and effectively will be getting their gas for less than market. For those who say they cannot afford to pay for gas and groceries, by driving less they will save 3 ways. Using less gas, getting back more than they spend for gas, and a lower market price because of reduced consumption. For the average American, they will get back what the extra they pay but will also save from a lower market price for gas. The person who drives more than average will wind up paying for this, as they should, but will also benifit from the lower market price. YES, I realize there will have to be some considerations made for people who use their car for business.

This consumption adjustment shoud not only reduce the amount of miles the average person drives, but it will make alternative energy more competative since they will not have the consumption adjustment.

Secondly, there should be a mpg price adjustment attached to new car sales. Each year we can figure out the average mpg of the cars sold the year before. Then any car that has a lower mpg will have a surcharge, say $1,000 per mpg below the average. The money would then be given as a mpg discout on cars that get more than the average mpg, again say $1,000 per mpg above the average. Auto makers would not have any mandatory mpg that they would have to attain, but they will only stay in business if they can get their mpg up to or above the avarage. Instead of spending money on design, they would be compelled by good business sence to put all their effors into increasing mpg.

I realize there are some issues here along with more government, but this is one time that I think more government might be needed.