John's Blog

John's no-cost, market based, choice-friendly plan to reduce oil consumption

So we need to reduce oil consumption. Even supply-siders like Pres. Bush are admitting this now. But petroleum taxes are politically untenable, the deficit is out of control and American's like our consumer choice. So what's a nation to do? Well, here's my current plan.

We need a two pronged approach involving:

a) a revenue neutral feebate system at vehicle registration.

Registration fee is based on vehicle value. If you get below 25 mpg, you pay a X% surcharge. If you get over 40mpg, you get a Y% rebate. X and Y are adjusted to make the system revenue neutral. Working poor driving old inefficient jalopies are not overly penalized because their vehicles aren't worth very much. Likewise, someone that has a new TDI isn't penalized very much for also having an old beater pickup for runs to the dump/home depot. Likewise, if you want to drive an Expedition, you'll still be able to buy one; your yearly operation cost will just increase a bit.

b) mandatory biofuel compatibility in all new vehicles.

It need not be neat biofuels. Requiring all diesels to be B50 compatible and all gasoline engines to be E85 compatible seems reasonable to start. This way, when E85 and B50 are available, the consumer has the *choice* to use them without having to worry about warranty issues. Detroit already makes plenty of flexfuel vehicles that can run E85, gasoline or any blend in between.

What do you think?

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