Monday 21 July 2008

High oil prices do not always prevent global warming

Occasionally it is stated that high oil prices may prevent global warming since people will not want to buy so much oil. That is true if high oil prices were caused by suppliers raising their prices. But the current increase in prices is caused in large part by increased global demand. As demand increases, oil prices go up, but so does the amount consumed. So demand led oil price increases is an indicator that global warming is likely to increase.

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