Hi all,
All the talk of peak oil and what will happen has got me thinking a little more laterally about the possible scenarios. At some point when the supply is really constrained the price will go to $2, $3, $5 or who knows what price.
The people who can afford the new electric cars that Michael talks about will be those better off, higher income people. This is especially so because the materials needed to make the batteries will be in limited supply, causing costs to be high.
As the demand for oil/petrol is fairly inelastic, the poorer members of society are the ones that cannot afford the new electric cars, nor afford to move close to public transport. This probably being a large percentage of the population.
What will a government do in such a situation:? the only thing they know how to do, regulate. It will not surprise me to see rationing, coupon style, introduced at some stage in the future.
The price mechanism by itself only helps the well off, but poorer people vote and the only way to help them will be rationing and price subsidies for low income households. If we see this world-wide then big brother here we come.
The future does indeed look scary at some point, just how close we are is anyones guess.
bye
All the talk of peak oil and what will happen has got me thinking a little more laterally about the possible scenarios. At some point when the supply is really constrained the price will go to $2, $3, $5 or who knows what price.
The people who can afford the new electric cars that Michael talks about will be those better off, higher income people. This is especially so because the materials needed to make the batteries will be in limited supply, causing costs to be high.
As the demand for oil/petrol is fairly inelastic, the poorer members of society are the ones that cannot afford the new electric cars, nor afford to move close to public transport. This probably being a large percentage of the population.
What will a government do in such a situation:? the only thing they know how to do, regulate. It will not surprise me to see rationing, coupon style, introduced at some stage in the future.
The price mechanism by itself only helps the well off, but poorer people vote and the only way to help them will be rationing and price subsidies for low income households. If we see this world-wide then big brother here we come.
The future does indeed look scary at some point, just how close we are is anyones guess.
bye