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Higher electricity prices mean that electricity's total share of the energy consumption mix is depressed

Only where there would be an easy choice between electricity and burning stuff. But using electricity often requires significant and long-term investment, which will be avoided even if electricity is already the cheaper option on the long-term (think of rail electrification). Meanwhile, if you lower taxes, consumption is more likely to rise in ways that don't replace other energy consumption: leaving all the lights and computers on, more elaborate Christmas lights, bigger TVs and such.

If we are to use taxes as an incentive to further electrify energy consumption, then surely in the form of tax increases (for fossil fuels) rather than tax cuts (for electricity).

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Thu Jul 4th, 2013 at 07:44:35 AM EST
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