EJ Hill: I did not intend to dissuade anyone from discussing the tax and economics issues – indeed, I thought I made it clear that it is worthwhile to discuss a Pigouvian approach, both the technique of such as well as the morals (as you seem to indicate with problems about taxation.)
Obviously I disagree with you about the state of research of some of the posters’ claims, in particular the ones which are centered around “just drill more”, as it can be paraphrased. People who make such claims rarely (if ever) cite the actual research done on the resource (and the limits of such), or of production history or prospects, or actual demand figures, or (such as in the case of the California coast) such practical things as local politics.
On whether raising gasoline prices would reduce demand – clearly the demand for gasoline in the US is very inelastic. This has been known for some time. There are some who claim that long term demand is somewhat more elastic, but still, as a commodity gasoline demand is a very tough issue to approach. Frankly, $1/gallon may not be sufficient to curb demand enough.
And that leads to Moonage’s insight: “A bold President would do it. Only a very stupid candidate would.” Perhaps there is no Presidential candidate who ever could discuss what it would take to significantly reduce oil imports, and be elected.
