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by anonuser123456 1136 days ago
The price of oil+nat gas will fall as alternative forms of energy come online. But when the price falls, consumption goes up (demand elasticity).
2 comments

If the logic works in this direction, it works in the other direction too - are you saying we should shut down renewable energy so that the price of energy goes up and consumption of it goes down accordingly?
>are you saying we should shut down renewable energy so that the price of energy goes up and consumption of it goes down accordingly?

No. I’m suggesting that once a cost competitive alternative exists at scale for hydrocarbons, we institute Pigouvian taxes (e.g. carbon taxes). This ensures that at the margin, people are incentivized to choose low/zero carbon energy sources.

There is a nonzero cost of extracting hydrocarbons, the price can only fall so far.