Some people are of the opinion that there is no alternative to decrease global fuel demand, even though there has been a great rise in fuel prices during the last 10 to 20 years. This imposes a great risk to the world deposits of fossil fuels. In this essay, I will discuss why I disagree with this thesis.
On one hand, prices are only a part of the variables involving the use of fuels. While there are many goods that could be manipulated in its price to rise or limit its consumption, fuel is not one of these. Hence, the importance of understanding that fuels have not yet found their competitors, nor their replacement. Take for example chocolate, if prices of chocolate were to increase by 50% its demand would be reduced dramatically. This is not the case with fuels, though it may cost a lot more to fill the tank, people will still need to get to work every day.
On the other hand, fuel consumption is directly related to the lack of alternative sources of energy. Moreover, these technologies such as electric vehicles are still a rather small fraction of all vehicles in the world. If these technologies were to become mainstream by the power of campaigns and large investments in research, the world could stand a chance to reduce the pressure put on the fossil deposits. For instance, the governments can initiate campaigns to promote the use of electric vehicles by applying tax incentives for the purchase of such cars.
In conclusion, fuel prices are in most cases inelastic. Therefore, it would take a lot of different efforts to replace the need of fuel consumption, thus having little to no impact on reducing pressure on the world's fossil deposits depletion. In addition to this, newer technologies will take several decades to be fully developed in order to replace the fuel demanding industries.
Some
people
are of the opinion that there is no alternative to decrease global
fuel
demand,
even though
there has been a great rise in
fuel
prices
during the last 10 to 20 years. This imposes a great
risk
to the world deposits of fossil
fuels
. In this essay, I will discuss why I disagree with this thesis.
On one hand,
prices
are
only
a part of the variables involving the
use
of
fuels
. While there are
many
goods
that could
be manipulated
in its
price
to rise or limit its consumption,
fuel
is not one of these.
Hence
, the importance of understanding that
fuels
have not
yet
found their competitors, nor their replacement. Take
for example
chocolate, if
prices
of chocolate were to increase by 50% its demand would be
reduced
dramatically
. This is not the case with
fuels
, though it may cost a lot more to fill the tank,
people
will
still
need to
get
to work every day.
On the other hand
,
fuel
consumption is
directly
related to the lack of alternative sources of energy.
Moreover
, these technologies such as electric vehicles are
still
a
rather
small
fraction of all vehicles in the world. If these technologies were to become mainstream by the power of campaigns and large investments in research, the world could stand a chance to
reduce
the pressure put on the fossil deposits.
For instance
, the
governments
can initiate campaigns to promote the
use
of electric vehicles by applying tax incentives for the
purchase
of such cars.
In conclusion
,
fuel
prices
are
in most cases
inelastic.
Therefore
, it would take
a lot of
different
efforts to replace the need of
fuel
consumption,
thus
having
little
to no impact on reducing pressure on the world's fossil deposits depletion.
In addition
to this, newer technologies will take several decades to be
fully
developed in order to replace the
fuel
demanding industries.