OL: Nigel is asserting that the inevitable and only response is that people will use their cars more. Now, this is not the inevitable response, it is a possible response — in a market place in which the Government made no intervention whatsoever. But the fact is that this is not a market in which the Government doesn’t intervene. The Government intervenes a great deal: in taxing petrol, in taxing cars, in road-building programmes, in congestion charging and in many other ways.
NL: So you want to tax petrol more, do you?
OL: No; what I’m saying is that there are all sorts of ways in which government can intervene to try to make sure that, if cars become more efficient, the consequence is that people bear a lower cost of petrol, rather than that they use their cars more.I don’t think there are terrifying costs associated with a gradual movement towards a lower carbon economy over 40 or 50 years.
NL: Well, I’m glad to see Oliver now saying we only have to do something gradually over 40 or 50 years. This is not what the alarmists are saying; they say, “Unless we do something drastic in the next 10 years, it’s going to be too late.” But I’m not sure what Oliver is proposing to do. The fact is that non-carbon energy is hugely more expensive than carbon energy. And the only way you can get a shift is to make carbon energy considerably more expensive than it would otherwise be, so that non-carbon energy becomes economic.
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