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post #1 of (permalink) Old 07-23-2008, 11:08 AM Thread Starter
jonathan75
 
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Default Why we need to keep gas above $4

I found an interesting commentary on MSN. It makes a good point. High fuel prices would accelerate the move toward fuel-efficient vehicles. If the price of fuel drops down again we may never get the iQ in the US. Maybe we should hope the prices stays high. Here is a link to the commentary.

http://articles.moneycentral.msn.com...l20080722.aspx

"A variable tax on gasoline would accomplish another important objective: Knowing for certain that gas prices would never drop back to $2 a gallon, consumers and manufacturers would rapidly accelerate the shift to more-fuel-efficient vehicles. This would reduce long-term gasoline-demand expectations and could lead to lower short-term energy prices for the struggling energy-sensitive sectors of the U.S. economy."


Jonathan
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