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such as plug-in electric hybrid engines, another two billion tons from gasoline vehicles would be displaced by plug-in hybrids refueled by the new solar power grid In 2050, US carbon dioxide emissions would be roughly two-thirds less than 2005 levels, putting a major brake on global warming94 The price tag for the overhaul of the nation s energy infrastructure could be met through a carbon tax A carbon tax of half a cent per kilowatt hour about 10 percent more than today will be required to induce electric companies to adopt solar capture and storage systems to replace coal and gas power plants This might start as a sliding scale increasing over time to give producers and consumers time to adapt It may also be added to gasoline prices say 50 cents a gallon which isn t much compared to places like Europe where taxes are routinely $2 to $4 a gallon One of the most interesting developments during oil s rise from $25 per barrel to $147 was how the United States and the global economy have adjusted relatively well compared to the oil shocks of the 1970s and 1980s Establishing a multiyear phase in of one or several carbon taxes would provide a decent amount time for the US energy community to digest this cost, causing no worse of a shock than the recent oil price spike Although $500 billion is substantial, it is also less than a third of the $17 trillion in subsidies US agriculture has received in the last 35 years Imagine if government had forward bias versus a Micro Domestic perspective when farm subsidies began in the early 1970s the same time as the rst oil crisis Most important, these subsidies will kick-start the United States freedom from policy and budget issues driven by international energy con icts, perhaps allowing new perspectives to emerge in managing many global relationships and insuring the capitalist peace in the Macro Quantum world
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Energy remains the greatest link to most twenty- rst century crossborder issues we ve been discussing Potential shortages and resulting imbalances, along with climate change, can easily thwart the capitalist peace in the more crowded, wealthier world of the future The task now is to face the facts, harmonize public policy with private sector
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innovation, and shape consumer patterns in progressive ways While the United States global position may be slowly weakening, there is no reason why poor energy choices should be part of that equation On the contrary, the United States may be able to reassert its legitimacy and voice in global affairs with a bold new plan Dozens of energystarved countries may be the bene ciaries of US innovation, as well as dozens of countries saved from unforeseen environmental havoc A new energy paradigm set by the government could allow US industry and labor to revitalize itself with renewable energy technologies on the brink of phenomenal growth Financially, we can reduce trade de cits while easing pressure on the dollar and keeping interest rates down We just may be at the cusp of the next great technological revolution like those spurred by railroads, electricity, and the computer It is an historic opportunity too important to take lightly
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Car Talk Since the mid-nineteenth century invention of fossil fuelpowered combustion engines, the automobile has become a xture of modernity, not just as a personal form of transportation but also as a symbol of status and individual style Why, given all the oil crises, hasn t some new type of engine surfaced Why do cars, and even airplanes, only run on oil Imagine if the automobile ran on, say, salt water While we can t readily convert salt water to energy, the point is, with some creative thinking, we may not need to throw in the towel on automobiles Cars offer unparalleled exibility in transportation: the ability to move one to eight people (and their stuff) at once to and from very speci c land-based locations Trains can t do it, planes can t do it, boats can t do it And while those single-personmoving Segways look cool, they re not much better than an old bicycle These days, tree huggers regard cars as yester-tech; (Continued )
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