Neither is the price spike. Which is why the earlier we transition away from subsidies, the less painful any transition will be.j-o-h-n wrote:Unlike a circuit breaker, it is not instantaneous.
You're right, but that's because it is so far off from economic feasibility that it's a non-issue. It's not even in the ballpark.j-o-h-n wrote:We don't exactly have a nuclear-powered tractor infrastructure sitting around on hot standby.
The point is to nudge oil to its natural price factor, where as supply steadily dwindles, the price will slowly but steadily increase. It's not going to simply "crash" if it actually has a correspondance to supply (which subsidies distort, as price is less directly coupled to supply). As price indicators slowly push oil up, investment in alternative infrastructure looks better and better. The very point of this however is gradual change, not a total crash.