Comment Re:EU has it right (Score 1) 764
The best idea of this nature I've heard was to use taxation to ensure a _minimum_ oil price.
As other posters have mentioned, each time the oil price increases, there is a justification to invest in alternative fuel sources / engines / distribution networks / etc. However, when it subsequently collapses again, such technologies are no longer cost-effective (lacking critical mass, or simply being more expensive than oil at its' lows). Investment in alternatives is therefore a bit of a mug's game.
With a minimum price for oil that is high enough to sustain the cost-effectiveness of alternatives, there's a justification to make the long-term large-scale private investments required to build alternative fuels to a critical mass at which they become economical.
Politically a little tricky, however.