http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/ The Latest on Climate Science, Solutions, and Politics Fri, 09 Jan 2009 07:00:33 +0000 http://wordpress.org/?v=2.1 http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17669 Just watching Fri, 15 Aug 2008 18:09:29 +0000 http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17669 Any tax to an energy company will be passed on to the consumer. If we continue burnning carbon fuels it will soon not matter how inexpencive these fuels are, we will have spoiled our planet to the point we will not be able to have water or food to sustain ourselves. Any tax to an energy company will be passed on to the consumer.
If we continue burnning carbon fuels it will soon not matter how inexpencive these fuels are, we will have spoiled our planet to the point we will not be able to have water or food to sustain ourselves.

]]> http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17682 Steve Sat, 16 Aug 2008 05:10:16 +0000 http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17682 Increased taxes on energy companies are generally only passed on to consumers if the price elasticity of demand for oil is low. Considering that we've seen record setting drops in miles driven this year, which would indicate reduced demand in response to higher prices, gas prices seem to be at least somewhat elastic. At worst, oil companies would likely only pass a portion of the taxes on to consumers. However, if the resulting higher gas prices and revenues from the tax allowed the U.S. to move farther forward with alternative energy sources, the longer term gains (less global warming) would more than offset any short term pain. Increased taxes on energy companies are generally only passed on to consumers if the price elasticity of demand for oil is low. Considering that we’ve seen record setting drops in miles driven this year, which would indicate reduced demand in response to higher prices, gas prices seem to be at least somewhat elastic. At worst, oil companies would likely only pass a portion of the taxes on to consumers. However, if the resulting higher gas prices and revenues from the tax allowed the U.S. to move farther forward with alternative energy sources, the longer term gains (less global warming) would more than offset any short term pain.

]]> http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17703 Earl Killian Sun, 17 Aug 2008 03:32:49 +0000 http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-17703 Taxes on crude oil producers within a geographic region have no impact on the prices seen by consumers. The crude oil price is set by the world market. Taxed producers have no ability to pass the increase to the refineries, because the refineries would simply buy from an untaxed producers. Therefore the profits of the taxed producer are reduced, but the consumer sees no effect. The only way the tax can affect the world price is if it drives a producers out of business, thereby affecting world supply. With oil prices at today's levels, that is quite unlikely. Taxes on crude oil producers within a geographic region have no impact on the prices seen by consumers. The crude oil price is set by the world market. Taxed producers have no ability to pass the increase to the refineries, because the refineries would simply buy from an untaxed producers. Therefore the profits of the taxed producer are reduced, but the consumer sees no effect. The only way the tax can affect the world price is if it drives a producers out of business, thereby affecting world supply. With oil prices at today’s levels, that is quite unlikely.

]]> http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-18868 Stimpy Wed, 10 Sep 2008 03:26:42 +0000 http://climateprogress.org/2008/08/15/dog-bites-mans-compromise/#comment-18868 No matter how you cut it, taxes on US crude producers will reduce their ability to compete internationally against multinational oil companies and national oil companies to develop energy resources. While Exxon, Chevron, and Conoco have been buying back their stock at record pace, its hard to imagine that further taxing them is going to make them less likely to do this, rather than compete head to head overseas in increasingly nationalistic markets. In general, this could reduce tax revenues levied against US crude producers long term. I guess this would be the opportunity cost of whatever the newly collected taxes would be utilized by the Fed short term. No matter how you cut it, taxes on US crude producers will reduce their ability to compete internationally against multinational oil companies and national oil companies to develop energy resources. While Exxon, Chevron, and Conoco have been buying back their stock at record pace, its hard to imagine that further taxing them is going to make them less likely to do this, rather than compete head to head overseas in increasingly nationalistic markets. In general, this could reduce tax revenues levied against US crude producers long term. I guess this would be the opportunity cost of whatever the newly collected taxes would be utilized by the Fed short term.

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