Tom Konrad is a stock analyst who focuses on alternative energy investments. Konrad attended the National Renewable Energy Laboratory's (NREL) Fifth Energy Analysis Forum on October 27th. In the aftermath, he composed a list of Ten Insights into Carbon Policy and Its Implications (a very worthwhile read!).

There were two points that specifically addressed the problems with cars and offered some transportation solutions. In fact, Carectomy even made the list.

From Alt Energy Stocks:

INSIGHT #7: A Carectomy is Better than a Better Car

Regulations designed to solve a single problem often end up making others much worse. For instance, an increase in CAFE standards will make vehicles more efficient, lowering fuel costs. Driving will rise somewhat because it is less expensive, but this will only reduce the fuel savings by a small amount. However, the increased distances driven will increase accidents, congestion, parking costs, road costs, and other indirect costs to society, and these costs are likely to swamp the savings from better fuel economy. Society would be better served by policies which reduce driving, rather than increase it.

INSIGHT #8: Put the Car back into "A La Carte."

The current pricing system for driving is like the "all you can eat buffet." It encourages people to over-consume (drive too much) because the marginal cost of driving (fuel and maintenance) is only a small fraction of the average cost of driving, which consists mainly of fixed costs such as vehicle ownership and parking costs. Since most of the costs to society of driving are correlated to the number of miles driven (road safety, road maintenance, pollution), this leads to much higher costs to society for increased driving than to the individual. The all-you-can-eat pricing model is also unfair to the poor, because it makes it impossible for many to drive at all, when an a-la-carte pricing model would allow them to drive small amounts for essential trips.

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