A confession: I’m one of those people who delights as the gas price numbers at the Kwik-E-Mart around the corner from my house tick up higher and higher. I know, I know, I’m a bad person. There are folks for whom that price really hurts, who don’t have the disposable cash to buy 30-year old Frank Zappa albums when the mood strikes them.
My thinking is that price increase will surely in some sense rationalize our consumption. If we don’t have the gumption to actually tax for the externalities, maybe the price runup will have a similar effect. Sadly, not so much, as Erica Myers pointed out last week:
Despite a recent spike in domestic gas and electricity prices, demand for energy has barely moved. In fact, the more that 100% increase in oil prices in recent years may actually be leading to an increase in carbon emissions.