The recent spike in gas prices has focused our attention on the problem of constrained supply and increasing competition with emerging markets for that supply, Charles Krauthammer notes in a recent column.
He notes that we should continue to drive down demand -- with an artificial price floor of $3/gallon if nothing else -- and find additional supply.
I agree with his premise, but I think he misses one thing -- the best, most permanent solution to the problem is to develop alternative energy sources. And I think the best one is gasohol (80 percent alcohol, 20 percent gasoline).
While there are technical and infrastructure challenges to adopting gasohol, the long-term benefits are clear -- it burns cleaner, is cheaper (especially at current gas prices) and comes primarily from renewable resources. The alcohol can be made from a variety of crops -- corn, wheat, rice, sugar, etc.
In Brazil, most vehicles can run on either gasoline or gasohol -- if they can do it, we can too.