Examining our oil addiction

The current issue of Resources is dedicated to America’s oil addiction. The writing is a little heavy, but there’s some great stuff in it, especially for you policy aficionados out there. 

Here are a few excerpts, all from the pdf available at RFF.org. There’s also a great chart looking at the pros and cons of different policy approaches.

Expanding Oil Supplies, by Joel Darmstadter and Robert J. Weiner:

There are three potential reasons why the social value of additional oil and its price may differ: increased production may lower the world oil price, increased production may enhance resilience to supply disruptions and price shocks, and increased production risks environmental harm.

Replacing Oil: Alternative Fuels and Technologies, by Raymond J. Kopp:

In the near-to-medium term, biofuels are poised to be competitive. In the longer term, hydrogen and electricity offer the technical potential to completely wean the United States from petroleum use.

The Economics of Improving Fuel Economy, by William A. Pizer:

Imagine a $10 technology that can save $15 in fuel. If that same technology can be used to provide an increase in power or size that is worth $20 to consumers, the market will push technologies toward power and size over fuel economy.