pump taxation as the primary incremental cost of
only of the 10-year federal tax credit (approxi-
driving, outside of vehicle costs and (free-market)
mately 1.7 cents per kWh today) but also of
fuel costs. See generally, Gabriel Roth, Roads in a
accelerated depreciation (a 5-year rather than a
Market Economy (United Kingdom: Avebury
20-year write-off of capital costs).
Technical, 1996).
115. Flavin and Lenssen, pp. 1012; and Nelson
126. See, for example, a spot check of 25 liquid
Hay, ed., Guide to New Natural Gas Utilization
products at a Philadelphia grocery store in
Technologies (Atlanta: Fairmont, 1985), pp. 32331.
Interfaith Coalition on Energy, "The Cost of a
Gallon of Gasoline," Comfort & Light Newsletter,
116. Cler and Lenssen, pp. 13, 28; Gerald Cler and
Spring 1998, p. 2.
Michael Shepard, "Distributed Generation: Good
Things Are Coming in Small Packages," Tech
127. A recent advertisement by Mobil described
Update, November 1996, pp. 1416; and "Utilities
the goal of new-generation refineries as produc-
Benefit in DOE Grants for Fuel Cells," Gas Daily,
ing "a new breed of fuels that burn cleaner and
August 23, 1996, p. 6.
more efficiently, lubricants that last longer and
117. Cler and Lenssen, p. 27.
chemicals that are recyclable" from advanced
compositional modeling and molecular engineer-
118. Battery storage devices to hold electricity
ing (membrane and catalyst technologies). Mobil,
from ten seconds to two hours cost between $400
"Technology:
Transforming
Tomorrow's
and $1,000 per kilowatt. DOE and EPRI, p. A-4.
Refineries," New York Times, September 17, 1998,
Battery costs alone are as much as or more than
p. A31.
the installment cost of distributed oil and gas
128. W. Michael Cox and Richard Alm, "Time
generation, making the competitive viability of
Well Spent: The Declining Real Cost of Living in
intermittent energies decades away at best.
America," in Federal Reserve Bank of Dallas, 1997
119. Yves Smeers and Adonis Yatchew,
Annual Report (Dallas: Federal Reserve Bank of
"Introduction, Distributed Resources: Toward a
Dallas, 1998), p. 11.
New Paradigm of the Electricity Business," Energy
Journal, Special Issue, 1998, p. vii. See also Robert
129. Ibid.
Swanekamp, "Distributed Generation: Options
130. See, for example, New York Times reprint,
Advance, But toward What Pot of Gold?" Power,
"Ford Motor Co. Plans to Reduce Average Price
SeptemberOctober 1997, pp. 4352.
on '99 Cars, Trucks," Houston Chronicle, August 11,
120. Nancy Rader and William Short,
1998, p. 4C.
"Competitive Retail Markets: Tenuous Ground
131. Cox and Alm, p. 11.
for Renewable Energy," Electricity Journal, April
1998, pp. 7280.
132. Arthur Cummins, "Diesel Vehicles, in
Greener Mode, May Stage Comeback," Wall
121. EIA, Annual Energy Outlook 1998, p. 57.
Street Journal, April 9, 1998, p. B4. Mainstream
122. Of the 17 states that had announced a
environmentalists overrate the environmental
restructuring of their electric industry as of early
potential of diesel relative to gasoline, citing the
1998, 8 had a renewable quota requirement, 3 had
lower CO2 emissions of the former. Carbon
financial subsidies in addition to a quota require-
dioxide, as will be discussed, is not a pollutant,
ment, and 5 had financial incentives for renew-
compared with other emissions that are greater
ables only. For a list of those states and programs,
with diesel technology.
see Bentham Paulos, "Legislative Help Grows at
133. "Diesel Will Continue to be Heavy-Duty Fuel
State and Federal Level," Windpower Monthly, April
of Choice," p. 9.
1998, pp. 52, 54.
134. Robert L. Bradley Jr., Oil, Gas, and Government:
123. American Automobile Manufacturers
The U.S. Experience, (Lanham, Md.: Rowman &
Association, Motor Vehicle Facts & Figures, 1997
Littlefield, 1996), pp. 174445.
(Washington: AAMA, 1997), p. 44.
135. Public Law 96-294, 94 Stat. 611 (1980).
124. American Petroleum Institute, How Much We
Pay for Gasoline: 1997 Annual Review (Washington:
136. EIA, Annual Energy Review 1997, pp. 37, 251.
API, April 1998), p. i.
137. American Petroleum Institute, "Alternative
125. Ibid., pp. iiiii; and EIA, Monthly Energy
Fuels," p. 2.
Review, February 1999, p. 114. In a free-market
system, electronic road billing would replace
46