> Doug gave the example of study of how U.S. inefficiency makes U.S.
> industry less competive than European industry. But note that
> is true at CURRENT OIL PRICES and was true even when oil
> $35/barrel. In short if price signals worked in this context,
> U.S. industry and autos would already be a great deal more
> efficient than they are. A great deal of effort on this list
> goes to analyzing irrationality among the working class, and
> a great deal of it is accurate. But it is worth noting that
> irrationality is not confined to the working class. I'm
> arguing that something has to be done. But I don't understand
> why when it comes to energy efficiency a bunch of people who
> ought to know better seem to be adapting efficient market
> theory - in a time when even conventional economists are
> discarding efficient market theory and in an area (energy )
> where price signals produce lower effects than in normal commodities.
I do not think anyone here proposed that. All I was saying is that changing price structure will change behavior, because I know that from my own experience that they do. I take a train to DC because it cost me less, and drive to Harrisbutg of New York becaouse it is expensive. That has nothing to do with the effcient market.
I think you labor under a mistaken assumption that there are no alternatives to cars in this country. I can assure you that they are, it is just people do not use them. For example here in Baltimore, you can sit in traffic on I-83 and be passed by almost empty light rail running alongside. Do people take light rail? No. Why? Here is a hint - in the burbs it is called the dark rail. Get it? DARK rail.
So to answer your question about focus on behavior modification - what you say about the role of industry is certainly true, but it tells only a part of the story. The other part is individual behavior that has more to do with social status and racism than economics. People drive not because driving is ecomically efficient, but because they feel "safer," meaning insulated from people with dark skin color that use mass transit. In fact, if you want to see how the US apertheid system works, do not look at the prison system or the police - look at the transit system. With few exeptions (NYC, DC), white people drive, dark people take the transit.
I see nothing wrong with slapping a higher fee on people who do not feel "comfortable" taking the bus. It may or may not change their behavior, but at least it will stop subsidizing the transit apartheid.
Wojtek