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#(a)# The information provided reflects the economic and environmental considerations surrounding the use of fossil fuels, particularly gasoline, in the context of global and national policies. The International Center for Technology Assessment's 1998 estimate that the true cost of gasoline could be as high as $14 a gallon if all externalities were accounted for highlights the significant disparity between market prices and the actual economic impact of gasoline consumption. This includes environmental degradation, health costs, and military expenditures related to securing oil supplies.
#(b)# The comparison of gasoline taxes between the United States and European countries such as Britain, Germany, France, and Italy indicates a policy difference where European nations have opted to internalize more of the external costs of gasoline through higher taxes. This serves not only to generate revenue but also to discourage excessive use and to fund alternatives. The lower tax rate in the United States suggests a different approach to energy policy, one that has historically been less aggressive in addressing the hidden costs of fossil fuel consumption.
#(c)# The 2005 energy policy under President George W. Bush's administration, as well as the subsequent 2007 energy law, reflects the ongoing debate and policy decisions in the United States regarding energy sources and environmental impact. While there was an emphasis on securing fossil fuel resources and exploring nuclear and renewable energy, the absence of provisions to directly address CO2 emissions or significantly raise fuel efficiency standards indicates a reluctance to confront the environmental costs associated with fossil fuel consumption at that time.
#(d)# The energy consumption data from 2008 shows a heavy reliance on fossil fuels (85%) in the United States, with oil being the largest single source. This underscores the challenge of transitioning to a more sustainable energy mix and the potential environmental implications of such a high dependency on fossil fuels.
Answer
The historical context provided demonstrates the complexities of energy policy in the United States, which has often been characterized by a tension between economic interests, energy security, and environmental concerns. Despite recognizing the external costs of gasoline consumption, U.S. policies have been slow to internalize these costs through taxation or regulation, and efforts to address CO2 emissions and fuel efficiency have been limited.
Key Concept
Energy policy and environmental impact
Explanation
The student's question touches on the broader themes of how societies manage resources and the environment, as well as the role of government in regulating industry and protecting public health and welfare. It also reflects the challenges of transitioning to sustainable energy sources in the face of established fossil fuel consumption patterns.