U.S. Told to Hike Fuel Prices to Cut Pollution

The U.S. must raise its “very low prices” for fuel to meet commitments to reduce the potential impact of carbon dioxide emissions on the global climate, the International Energy Agency said. The U.S., the world’s biggest energy consumer, can’t reach carbon dioxide reduction targets unless it goes beyond its plan to invest in new technology for more efficient use of gasoline, coal and other fossil fuels, the Paris-based IEA said in a report on U.S. energy policy. After industrialized regions reached an agreement in December on cutting emissions linked to global warming, President Clinton proposed a program of $2.7 billion in new research and $3.6 billion in tax credits to foster technologies to reduce carbon dioxide emissions. “This strategy needs to be complemented by a mechanism that raises energy prices to include the cost of damage done to the environment by energy use,” the IEA said. Fuel prices might have to more than double to curb consumption enough to meet the targets, IEA Executive Director Robert Priddle said at the 17th World Energy Conference in Houston. Robert Gee, a U.S. Energy Department official at the conference, said the Clinton administration opposes any new tax on fuel.