prop 87 got shot down. if a measure addressing the externalities of our petroleum addiction can’t pass in california, i have a feeling it’s going to be a while before the united states at large moves to do anything.
the cost of a gallon of gasoline is not reflected in its price. taxes should be much higher on oil products. i agree with greg mankiw’s pigou club manifesto. i guess it’s not that surprising that in a period of negative savings, americans want to put this one on the credit card too.
how can we get people to wrap their heads around this idea? climate change is going to get much worse, and the longer we wait, the more painful the consequences will be. nicholas stern’s study suggests a possible 20% reduction in global GDP.
this is something that is going to have to come from the grassroots level, because no politician in his or her right mind is going to suggest anything of the kind. but so long as people are shortsighted about what is at stake, they are apparently going to keep voting in favor of cheaper gas for the hummers.