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IMAGINE A WORLD WITHOUT CARS

"Oil is the problem. Cars are the solution", say Iain Carson and Vijay Vaitheeswaran of The Economist in their new book, "Zoom". They predict another industrial revolution-- and they want the American government to spark it ...

Special to MORE INTELLIGENT LIFE

Imagine a world without cars. Suddenly, it might seem that three great evils widely associated with automobiles--environmental harm, economic pain, and geopolitical insecurity--would vanish. But realistically, a world without cars would be a dim, joyless place with much-diminished freedom, mobility and prosperity.

This is especially true for America, the birthplace of the modern automobile industry and of most of the political, technological and cultural developments behind mass motorisation. From drive-through banks to drive-in churches, car culture permeates American life. Three-car garages are becoming the norm. Inspired by the American example, developing giants such as China and India are taking to the roads too. Soon we will be a world of a billion cars.

Oil is the problem, not cars. That is why we must reinvent the automobile. As engines of change, clean cars of the future can help speed the world towards a more sensible approach to transportation. The snag is getting from here to there. Big oil clearly has no interest in seeing its main product fall by the wayside, and the Detroit car industry has shown few signs of real innovation or long-term vision.

Contrary to what some critics claim, there is nothing inherently evil about oil companies' pumping oil, or carmarkers' selling cars. That is their job, and for decades it was socially acceptable for them to do it. The difference today is that society's expectations are changing. A richer, greener, better-informed world is demanding more from its energy and transportation industries. The social contract is evolving--but public policies have not yet changed to reflect that progress.

That is why government still matters. Only sensible and courageous action by government to take account of the external costs of burning oil can set things on the right course. These external costs are not reflected in the pump price of gasoline, but of course we pay for them through the Pentagon budget, the suffering of asthmatic children, and the pain of economic shocks. Only if the federal government spurs change, either through market-based regulation or, better yet, through carbon taxes, will America level the playing field and give clean cars and carbon-free energy a fighting chance.

That will happen only if everyone is ready to abandon the myth of cheap fossil fuel and pay an honest price for gasoline. There are signs that a Great Awakening is changing consumer attitudes on this crucial issue. Ask ordinary Americans if they will simply support a hike in gasoline taxes, as the New York Times did in 2006, and the majority say "no". But when the pollsters asked whether those same people would be willing to support higher gasoline taxes if the money went to reduce oil imports and to fight global warming, a strong majority responded "yes".

That suggests people are ripe for a new approach. Americans will follow political leaders with vision and courage, who put forth a comprehensive, bipartisan, long-term strategy to tackle oil addiction and global warming. No one likes to pay taxes, but Americans do respect straight talk and have always had a strong sense of fair play. If political leaders take the trouble to explain the notion of oil's external harms, and make the case for subsidy and tax reform, citizens will rally to the cause.

Tomorrow: What is the right price for petrol?