Friday, 30 May 2008

Europe fuel protests spread wider

Southbeach notation is effective at capturing the conflicts and dilemmas within global or national issues in a clear and unambiguous way.

In this case, the coupled effects of a growing demand for oil, particularly in emerging economies, at a time when future supply is uncertain, is leading to rising fuel prices. This is leading to protests by citizens who depend on burning fuel oil for their liveihoods. As a result, strikes across Europe are occuring and subsidies are being asked for.

Governments could implement subsidies, and/or reduce high tax levies on fuel, but they don't want to. It would limit their tax incomes, and, would counteract the green agenda. Rising fuel prices are good in the eyes of green activists. Less fuel burnt means less global warming. Less travel means less globalization and less damage to the environment. By contrast, putting in place subsidies or lower taxes for fuel would not only send out a bad signal, it would further increase travel and degrade the planet further. Governments like taxes to be high, so they can spend more money pleasing other interest groups and voters. So they like high fuel prices and can claim they are green at the same time. BBC news

No comments: