Chinese
fuel shortages: The need for hybrid tax credits?
Tuesday, March 25, 2008
Give
the Prius some credits
For some in China today, there isn't any gas or any
diesel. Maybe tomorrow, maybe not. If any fuel does come,
it will quickly be guzzled away. China, inevitably, must
find more foreign oil - a LOT more.
Hence, even if America becomes a little more fuel
efficient in the next few years, increased consumption
from China will easily replace our demand.
The need to go hybrid
Yesterday, I posted studies demonstrating America's
increasing demand for fuel efficiency, and the desire for
more fuel efficient automobiles. Yet, other studies
indicate that while American consumers definitely want
more efficient vehicles, they don't want to pay any extra
costs for such autos - even if those costs are more than
recovered during the life of the vehicle.
Thus, isn't it time for some temporary government
intervention?
Just to be ridiculous, let's say America spent $1 trillion
dollars over 3 years on tax incentives for Americans to
recover the costs from buying hybrid
cars and plug-in vehicles. Such a number would
significantly help enable automakers to achieve
cost-effective economies of scale.
Too expensive?
We'll spend more than $1 trillion dollars to purchase and
secure foreign oil in just the next year or two - and that
doesn't even include any money spent on the war in Iraq.
On the contrary, it's too expensive for America not to
act.
Why hybrid?
Hybrids are not fuel dependent, plus even today's hybrid
vehicles push research into the batteries required for
plug-in hybrids, electric vehicles and even fuel cell
vehicles. More important today, the next generation Prius
and Honda's new dedicated hybrid, for example, will take
hybrids to the next level - even without lithium. We have
the technology.
Why the government?
It seems true that government involvement in almost
anything turns small problems into more complex problems.
Yet, the government has always been involved in foreign
oil. If the government is going to be involved anyway, why
not focus on government-influenced change - ending foreign
dependency - rather than just the government's maintenance
of the foreign-oil lubricated status-quo?
Isn't it time to move forward like there's no tomorrow?
Wouldn't hybrid
tax credits help pick up the pace?
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