Saturday, February 18, 2006

Next comes jalapeño oxygenate

El Wapo reports on the rise of ethanol. The critics of ethanol are sounding pretty dumb these days. If we added an accurate national security and foreign trade balance externality fee to gasoline, methanol would become cheaper overnight. Direct the fees toward a national security and foreign trade balance externality credit on methanol sales, and it would be no contest. And by the time economies of scale in dual or triple use motor engines have matched those of gasoline-only engines, we would be set for life. Also pair it with hybrids, and make permanent the income tax credit on original purchase of a hybrid, and add one for dual/triple-use.

For the most cogent summary of the coming methanol/ethanol revolution, read here.

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