Gas Prices and Environmentalists

What do environmentalists1 want? They want better, cheaper, cleaner energy (all good things). For a long time, I’ve held a grudge against environmentalists because while they want these things, they are also opposed to the one known way to get it – nuclear power. Now, maybe they have a principled stance here: it’s true that nuclear power can be dangerous, but more people die in coal mining accidents than from nuclear power plant accidents. Nuclear power could also leave a mess in some cases (a la Chernobyl), but it’s less dangerous than the amount of carbon dioxide we’re putting out, and less risky if properly engineered (as long as plants are designed fail-safe, we’re okay — see Three Mile Island). So, I’ve always been suspicious that what the environmentalists really want is to throttle technology and exert some kind of control over other people.

Environmentalists pressure the government and oil companies (this is their right) to fund alternative sources of energy, but these projects have almost been doomed from the start due to economic pressures. The free market does wonderful things, including innovation of better, newer, and cheaper things. However, since most environmentalists tend to have little faith in the free market (and are usually decidedly socialist), they believe the only way to get what they want is to force the government to fund the R&D. The biggest impediment to finding alternative energy sources is that oil has been so cheap that it hasn’t been worth it from an economic standpoint — it just hasn’t been profitable, except in the sense of good publicity2.

But oil and gas prices are going up. At some point, gas prices are going to be so high that private companies are going to be able to realize enormous profits from investing in R&D for alternative energy sources. If gas prices keep going up and stay there, I predict that we’ll start seeing a flood of innovation from the private sector that will lead to all sorts of good consequences for the environment and consumers. Most people seem to be blaming Bush for outrageous oil prices. Personally, I’m not sure how much control the President has over such things, but for the sake of argument, let’s assume that Bush is solely responsible. He could wind up being the single greatest force for the environment under this scenario. Environmentalists should be rejoicing at high gas prices and praising Bush for his unintentional foresight.

1

I don’t intend to use the term in a derogatory manner. I consider myself an “environmentalist” in that I am concerned about it, etc. In this article, I’m generally talking about the extreme version of environmentalis.

2

Publicity is a good motivator insofar as it affects a company’s profits. It’s a one-off motivator; if you really want to motivate a company to do something, find a more direct route to the bottom line.

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