Wednesday, May 07, 2008

I think Robert McFarlane needs some economic review

He asserts:

Fortunately, we have the means to relieve this strategic vulnerability. There are four policy measures to alleviate this threat and in the process lower the global price of oil and dramatically reduce our emissions of greenhouse gases:

- Accelerate the introduction of second-generation biofuels (e.g. cellulosic ethanol and methanol) which don't rely on any food crop as feedstock, and should not require any government subsidy.

- Establish an Open Fuel Standard. That is, require that any automobile sold in the U.S. be a flexible fuel vehicle capable of burning gasoline, methanol, ethanol or any combination of the three – a feature that costs just $100 per vehicle.

- Accelerate the production of plug-in hybrid-electric cars and trucks.

- Introduce the use of lighter, stronger carbon composite materials, as Boeing is doing in the new 787 Dreamliner aircraft, into the production of cars and trucks. A Pentagon study a few years ago concluded that this step alone could reduce our oil imports by 48%.

1. Biofuels still need land, for growing the switchgrass and the wood for celluosic ethanol and methanol. If demand for these biofuels rises, land will be reallocated away from growing foods.

2. See .1.

3. Most electricity in the nation is generated from coal. Does Mr. MacFarlane believe that the decades-long embargoes on new coal and nuclear plants will magically disappear? Or maybe he thinks biofuel plants are the answer (if so, see .1.)

4. Will the savings provided by lighter, stronger materials fully offset their costs? If not, it may not make any sense.

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