[pp.int.general] (no subject)

[Alexandre Oliva]

On Jul 24, 2012, Richard Stallman <rms at gnu.org> wrote:

> If a few people buy less of something, the price will go down a little
> and that will encourage others to use more of it.  However, placing a
> tax on it will encourage everyone to use less of it.

[...]

> This tax will encourage all forms of renewable energy, but they will
> still compete with each other.

The status of oil- vs renewable fuels in Brazil raises an issue that
needs to be taken into account: alcohol from sugar cane is used as fuel
by itself, and in combination with gasoline, and the produces of alcohol
and sugar *know* that this is so.  So, whenever there's a rise in the
price of oil, they will raise the price of alcohol so that the
efficiency ratio (km/$) of the fuels remains about the same, and then
raise the prices of sugar so that it remains as profitable as alcohol.

I'm concerned that taxing certain kinds of energy sources without
sufficient, let's say, “market freedom” (i.e., oligopolies, price
fixing, etc) may not have the effect of driving people away from the
taxed goods, but instead just raise the prices of the sustainable
alternatives so that the comparative efficiency ratio remains at the
same equilibrium as before.

-- 
Alexandre Oliva, freedom fighter    http://FSFLA.org/~lxoliva/
You must be the change you wish to see in the world. -- Gandhi
Be Free! -- http://FSFLA.org/   FSF Latin America board member
Free Software Evangelist      Red Hat Brazil Compiler Engineer