I disagree that the only way for the government to encourage energy conservation is to increase the price of gasoline and electricity. Some people may say that energy conservation is one of the national policies. Thus, state only could control for energy conservation. However, The rapid change on energy policy arouses side effects. Also, if government acts for energy conservation with increase the price of gasoline and electricity, it causes inflation in economy.
First of all, the rapid transform on energy policy arouses side effects. Some people may mention that it is necessary to preserve energy. However, some people will have a hard time due to the policy. People especially who work transportation will suffer from increase the price of gasoline and electricity. Let me take my friend for example. He drives taxi as a job. He often talk to me, if gas price will increase, he may quit his job. It is because expensive gas price always will effect negatively to drive. In other words, these people are sensitive from the government policies on energy conservation.
Second, if government acts for energy conservation with increase the price of gasoline and electricity, it causes inflation in economy. If inflation starts in economy, A lot of side effects emerge in economic life. For instance, consumption will sharply decrease because increase of price of all goods. Also currency value will collapse. These effects make our economy more difficult. Of course, some people may say that if inflation will emerge, state could handle the national economy. However, an excessive intervention of states in economy field will arouse other side effects.
In conclusion, I do not agree that it is because the only way for the government to encourage energy conservation is to increase the price of gasoline and electricity. Also if government acts for energy conservation with increase the price of gasoline and electricity, it causes inflation in economy. |