I researched this article. President Obama's commitment to the reduction of oil dependence in the near future by referring to other technologies could dramatically help our economy. His attention has been drawn to solar and wind power as the electrical impact on the situation. This, along with his push for less driving and hybrid cars could cause lower prices in heating oil used in homes across America. By capping carbon emissions and lessening America's need for fossil fuel we will be potentially paying much less. It is thought by diminishing our dependence others will follow suit, decreasing world demand for oil, and increasing its supply relative to demand, therefor lowering the equilibrium price for oil. This is much needed for currently in our economy crude oil prices have inflated because of demand-pull inflation where too many people need something we have less and less of. Like we have discussed in class, our expectation on what will happen to the price of oil will greatly effect the way we act now because we act in a way that is most beneficial to us. By believing in the strength of these policies our demand for oil will decrease and worldwide prices will fall. This situation is a great example of the importance in understanding the difference between short run and long term results. If the American people act more efficiently in the short run by reducing their carbon footprint prices will fall in the long run. In the future I see these policies implementing a stronger dollar because America is starting to go green and seek out alternate energy sources such as clean coal, and by doing so our oil prices will drop.
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