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Nov. 6, 2009
Rabbi Berel Wein: Choosing to hear
JWisdom.com Zero to 1/60th: How to Empower An Hour with Gavriel Aryeh Sande (7 minutes)
Caroline B. Glick The mullahs' big week
Suzanne Fields A Fallen Wall for Fallen Man
Nov. 5, 2009
The Kosher Gourmet: Three scrumptious -- but simple -- butternut squash dishes
JWisdom.com Hidden Hints: Unlocking Faith & Prayer with Rabbi Jay Yaacov Schwartz (10 minutes)
Nov. 4, 2009
Tom Hamburger and Kim Geiger: Should prayers be covered?
JWisdom.com When God played peacemaker With Rabbi Sroy Levitansky (5 minutes)
Nov. 3, 2009
Martin Peretz: Beware, Barack. Beware, Rahm. Beware, Axelrod
JWisdom.com Are you are closet idolater? With Sara Yoheved Rigler (10 minutes)
Nov. 2, 2009
Paul Greenberg: The Holocaust is now on Facebook
JWisdom.com Abraham's Strange Change With Rabbi Yitzchok Fingerer (5 minutes)
Oct. 30, 2009
Rabbi David Aaron: Secret to Immortality
Caroline B. Glick Silencing dissent in America
Oct. 29, 2009
Lini S. Kadaba: Do tactics avert flu or reduce humanity?
JWisdom.com We Must Revamp our Religious Vocabulary With Gavriel Aryeh Sanders ( 10 minutes)
Oct. 28, 2009
Rabbi Yonason Goldson: Atheists in Bubbleland
JWisdom.com Why what we wear impacts who we are With Rabbis Mordechai Becher, Menachem Golberger and Aliza Bulow ( 10 minutes)
Oct. 27, 2009
Paul Greenberg: The United Nations Is Outraged Again, Or: Department of Mideast Static
JWisdom.com The Science of Love With Rabbi Jonathan Rietti ( 7 minutes)
Oct. 26, 2009
The Jewish Ethicist by Rabbi Dr. Asher Meir: Damaging disclosures with a twist
JWisdom.com Wisdom and Wonks With Rabbi Eytan Feiner ( 7 minutes)
Oct. 23, 2009
Rabbi David Aaron: Are you ready for the ultimate pleasure?
JWisdom.com Watermark and oneness with Rabbi Sroy Levitansky ( 4 minutes)
Caroline B. Glick Stop using limited powers in a way that expands our enemies' advantages over us
Oct. 22, 2009
Steven Emerson: Terror Cases Share Desire to Kill Americans
JWisdom.com No More More Family Fights --- Really? By Sarah Chana Radcliffe ( 5 minutes)
Oct. 21, 2009
Tonya Alanez: Holocaust denier sues survivor, calling Auschwitz memoir 'vicious lies'
JWisdom.com Meditating Jewishly: A Panacea for Success by Sarah Yoheved Rigler ( 7 minutes)
Oct. 20, 2009
Dennis Prager: Obama and Dalai Lama: Why Israel Worries about U.S. President
JWisdom.com Abraham was not religious By Rabbi Yitzchok Fingerer ( 6 minutes)
Oct. 19, 2009
JWisdom.comWhy Good People Do Bad Things By Rabbi Eytan Feiner ( 7 minutes)
Oct. 16, 2009
Rabbi Yonason Goldson: The Perfect Number
JWisdom.com Hearing Voices By Rabbi Sroy Levitansky ( 5 minutes)
Caroline B. Glick How Turkey was lost
Oct. 15, 2009
Jeff Jacoby: Peace vs. the 'peace process'
JWisdom.com: Former MTV producer and stand-up comedian Rabbi Lawrence Hajioff: Taming a Control Freak (A VERY fast 15 minutes)
Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review May 2, 2006 / 4 Iyar, 5766

Put some sugar in your tank

By Niall Ferguson


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http://www.JewishWorldReview.com | The British call it petrol. Americans prefer gasoline. But whatever you call it, prices at the pump are soaring. Last week, gas topped $3 a gallon in parts of the U.S. That's nothing. Driving down England's M40 on Friday, I passed stations selling regular unleaded for the equivalent of $6.62 a gallon. If they offered fuel at U.S. prices, there would be a queue from Heathrow to Birmingham.


It's no great mystery why the British pay more than double what Americans pay. For years, Britain has levied much higher taxes on fossil fuels than the United States. So if British motorists want to blame someone for the high cost of motoring, they know where to start.


Of course, it's not the government's fault that the underlying price of petrol has risen steeply since Tony Blair came into office. Crude oil futures in recent weeks hit more than $75 a barrel. That's six times the price producers were asking in December 1998.


So who's to blame for higher oil prices? Lord Browne, chief executive of British Petroleum, points the finger at hedge funds. Leading Democrats blame President Bush for being too "cozy" with the oil industry. Those who argued that the Bush administration invaded Iraq to make oil cheap now argue that it was in fact, er, to make oil dear.


This blame game is a farce. The price of fuel is high because global demand has risen about 40% in the last 20 years. In the last five years, the G-7 countries have accounted for just 15% of the growth in global demand; China has accounted for twice that. Soaring demand is coinciding with stagnant supply. Global refining capacity has scarcely grown, and it took a big knock from last year's hurricanes. Meanwhile, political instability in some principal oil-producing countries — Iraq, Nigeria and Venezuela — has made commodity traders and intelligent investors legitimately pessimistic about future supply. And let's not forget the possibility of U.S. airstrikes against Iran.


Could we be about to relive the 1970s, which was the last time oil prices were this high relative to other consumer prices? The good news is that, thanks to increased efficiency and reduced industry, the G-7 economies are much less dependent on oil than they were in the days of bell-bottoms. Some analysts even argue that high oil prices are good, on the principle that they send a signal to producers and consumers that it is time to seek new sources of energy.


Nonsense. The trouble is that high oil prices are not a big enough inducement to reduce fossil-fuel consumption. On the contrary, they are as much a signal for oil companies to exploit hitherto nonviable deposits of hydrocarbons, such as Canada's tar sands.


So what is to be done? Is there a better way to propel ourselves around than sucking oil out of the ground, refining it and setting it alight in internal combustion engines? The answer is yes.


I've often agreed with Homer Simpson that alcohol is the solution (as well as the cause) of most of life's problems. In this case, the answer is the form of alcohol known as ethanol, which is derived from plants, such as sugar cane.


Unnoticed in the Northern Hemisphere, one country is pioneering a transportation revolution by switching to ethanol: Brazil. Today, ethanol accounts for 40% of all automobile fuel in Brazil; 80% of new Brazilian cars are flexible-fuel cars that can run on either petrol or ethanol.


What's preventing the Northern Hemisphere from following Brazil's lead? The answer is not so much Big Oil — though U.S. oil companies have fought tooth and nail against the introduction of ethanol, even as a fuel additive — as Small Agriculture. To protect northern farmers, huge tariffs are imposed on imports of Brazilian-produced ethanol by the U.S. and the European Union.


Yet not even a world of perfect free trade would convert humanity to more prudent forms of propulsion. More tax incentives also are needed to encourage people to buy flexible-fuel cars.


And if you want to know how to pay for those tax breaks, just ask the British. British-style taxation of gasoline won't stop Americans from driving Hummers. But it could help finance a transition to the car of the future: "green" Hummers that run on booze.

Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.


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Niall Ferguson is a professor of history at Harvard University. He is the author of "Empire" (Basic Books, 2003) and "Colossus" (Penguin, 2004). Comment by clicking here.

04/25/06:Hu and the dog that didn't bark
04/18/06: Should Americans be less optimistic?
04/11/06: Globalization's second death?
04/04/06: So many ‘special’ friends
03/28/06: Let's get it right about what has gone wrong
03/21/06: Congress is trying to give the world a globotomy
03/14/06: Lame ducks can still bite back
03/07/06: A 19th Century critique of a 21st Century president
02/28/06: The crash of civilizations
02/21/06: Not the president, but close
02/14/06: Want historic trouble? Look south
02/07/06: Greenspan advising Britain? It's housing bubbles, deficits and potential meltdowns all over again
01/31/06: Missing the Cold War
01/24/06: It's a sick, Thick World
01/17/06: Tomorrow's world war today
01/03/06: Scotland, it's over, but keep the accents
12/20/05: History, democracy and Iraq
12/20/05: History, democracy and Iraq
11/22/05: Ghost of Napoleon haunts Tony Blair
11/22/05: Can it happen in Britain too?
11/15/05: Red plus blue equals purple
11/10/05: The fires of disintegration
11/01/05: Triumph of an über-wonk

© 2006, Los Angeles Times Distributed by Los Angeles Times Syndicate

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