As prices have risen, worries about energy security and long-term climate effects have reached a fever pitch.
History teaches that innovation directed by markets can solve problems such as these...
Recent cost comparisons by Deutsche Bank's auto analysts suggest electric cars will be cheaper to operate than conventional vehicles. Fuel costs per mile for gasoline-fueled cars are $0.27 in Germany, $0.24 in Britain, $0.17 in Brazil and $0.11 in the U.S., with differences driven by local fuel taxes. For electric vehicles, the cost per mile is a mere $0.02. If one adds in the cost of a battery amortized over the life of the car, the cost is still only $0.10. Batteries will be expensive, at least in early years, but electric cars won't need costly engines or complex transmissions like today's autos. With few moving parts, reliability will increase.
Cost differentials like those could drive a quick transition to energy-efficient forms of transportation...
... incremental effects on oil demand could be powerful. Developed countries would grow less dependent on oil producers, and transportation-related greenhouse gas emissions could ease (even coal-fired power plants are better than millions of gasoline-powered autos). As costs fall, electric vehicles could be adopted in developing countries, amplifying energy security and climate benefits.
Such a transition would reduce the world's dependence on regimes run by thugs and theocrats...
