More Prius Humor from the Wall Street Journal - GreenHybrid

dcf · #1 (**permalink**) 12-14-2005, 11:24 AM

http://www.treehugger.com/files/2005...prius_humo.php

Quote:

Not content with the response he received from his last article, WSJ Humorist Holman Jenkins Jr. is at it again with his wild and crazy economic analyses:
"Doesn't saving oil have benefits beyond the dollars save- for instance, postponing the doom of civilization?

No: If Prius owners consume less, there's less demand, prices will be lower and somebody else will step up to consume more than they would at the otherwise higher price."

and our favourite zinger:
But wouldn't using less oil make us less dependent on Mideast imports?

Just the opposite: In the nature of things, the cheapest oil is consumed first, and Mideast oil is the cheapest. Drive a Hummer if you want to reduce America's reliance on Arab oil. Indeed, if we all pull together and drive gasoline prices high enough, we'd be able to satisfy all our fuel needs next door from Canadian oil sands."

EricGo · #2 (**permalink**) 12-14-2005, 02:13 PM

Quote:

No: If Prius owners consume less, there's less demand, prices will be lower and somebody else will step up to consume more than they would at the otherwise higher price."

In a pure free market economy, this effect is seen.

So the author is only guilty of pushing ideas out of context, not pushing bogus ideas per se.

blueskies · #3 (**permalink**) 12-15-2005, 09:05 PM

That is assuming other people make the poor choice
of having a gas guzzler. If everyone buys a fuel efficient vehicle
oil usage *will* decrease.

If oil demand remains the same, it's clear that the Prius drivers with their more modest lifestyles are subsidizing other people who are using more....

Quote:

Originally Posted by dcf

http://www.treehugger.com/files/2005...prius_humo.php