High Costs of Cheap Oil

High Costs of Cheap Oil. YaleGlobal. Deepak Gopinath. May 7, 2015.

Consumers are delighted by low oil prices and economists anticipate increased global growth. But the low prices are locking many industries into infrastructure that relies on fossil fuels. “High-carbon infrastructure – power plants, pipelines, factories, inefficient buildings, roads and transport vehicles – built now will last and pollute for decades to come,” writes Deepak Gopinath. The low prices suppress demand for new technologies based on alternative fuels. Developing nations account for most global population growth in the energy sector. Delays in developing alternative energies lock countries like China and India into competitive patterns that encourage dependence on fossil fuels. In addition to ending subsidies for fossil fuels, Gopinath encourages taxes on consumption to reduce use and develop funding for alternative energies. [Note: contains copyrighted material].

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