More Gulf of Mexico fallout predictions
Institute of the Environment Professor Matt Kahn discusses the economic fallout from the Gulf oil spill in Financial Times blog Energy Source.
Economist Matthew Kahn, who has previously written about the effects of several other environmental disasters such as Exxon-Valdez and Bhopal on regulations, floats several possibilities for this one:
1. The “Spill Baby Spill” crowd will use the law of small numbers to highlight the safety consequences of domestic oil production and hint that California’s coast will be more likely to suffer if domestic efforts increase there.
2. The nascent electric car industry will lobby for subsidies to accelerate the transition to their use in replacing gasoline vehicles.
3. Will a pro-gas tax contingent in the Congress emerge as they argue that this policy will collect revenue, battle climate change, accelerate the transition to electric vehicles and reduce our desire for off shore oil? Will any Republicans join this coalition?
4. What will the “Drill Baby Drill” crowd push for? Will they point to a “Smart Pump” that can minimize the environmental damage of offshore drilling?
To read the full blog entry by Kate Mackenzie click here.
Published: Wednesday, May 05, 2010