| True cost of oil not reflected at the bowser |
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| Written by Bruce Thomas |
| Sunday, 07 March 2010 14:05 |
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Terry Tamminem, until recently head of the Californian Environmental Protection Agency, was quoted yesterday [i] as suggesting that the price of petrol would need to rise from current levels of $1.20 to $3.60 per litre if all externalities:
are taken into account. The community bears the cost via higher taxes. Due to the lack of transparency in the true cost of bringing products and services to market, there exists an unchallenged acceptance of these costs. Trebling petrol prices (an increase of $2.40 per litre) to incorporate externalities makes the impact of a price on carbon pale into insignificance. Using the accepted conversion factor of 2.5 kg of carbon dioxide emissions from burning a litre of petrol, a carbon price of $20 per tonne equates to a price impact of 5 cents per litre; less than the weekly fluctuation in Sydney petrol prices from Tuesday through to Saturday.Examples of technological breakthroughs that have resulted in improved fuel efficiency include hybrid vehicles and high performance diesel engines. Notwithstanding the obvious fact that we are using oil at an unsustainable rate, the knowledge of the true cost of oil should be a wake up call to the importance of addressing efficiency improvements and reducing current levels of oil consumption. Just as importantly investing in programs that modify and change driving behaviour are producing measurable reductions in fuel consumption. An outstanding example of the latter can be seen at Linfox where “eco-driving” made a substantial contribution to a 28% reduction in emissions over the period 2006-07 to 2008-09.[ii] A major component of the eco driving program is the provision of driver training to demonstrate the opportunities for performance improvement. Heavy vehicle ‘eco’ driver training is not the only role where workplace training to improve business efficiency, lower operating costs and lower carbon emissions is relevant. All positions from the boardroom to the factory floor need to be provided with competency-based training to develop new skills and improved decision making. Now is the time for training in efficient use of fuel to be compulsory for the community as a whole so as a society we can all benefit. [i] http://smh.drive.com.au/true-cost-of-oil-not-reflected-at-the-bowser-20100302-pgf3.html [ii] http://www.linfox.com/Environment/What-we-are-doing.aspx
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| Last Updated on Tuesday, 09 March 2010 16:01 |