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Why 2014 is a big deal for America

I was just about to go with a column that started like this: When they write the history of the global response to climate change, 2014 could well be seen as the moment when the balance between action and denial tipped decisively toward action. That’s thanks to the convergence of four giant forces: São Paulo, Brazil, went dry; China and the United States together went green; solar panels went cheap; and Google and Apple went home.

But before I could go further, the bottom fell out of the world oil price, and energy economist Phil Verleger wrote me, saying: “Fracking is a technological breakthrough like the introduction of the PC. Low-cost producers such as the Saudis will respond to the threat of these increased supplies by holding prices down” — hoping the price falls below the cost of fracking and knocks some of those American frackers out. In the meantime, though, he added, sustained low prices for oil and gas would “retard” efforts to sell more climate-friendly, fuel-efficient vehicles that are helped by high oil prices and slow the shift to more climate-friendly electricity generation by wind and solar that is helped by high gas prices.

So I guess the lead I have to go with now is: When they write the history of the global response to climate change, 2014 surely would have been seen as the moment when the climate debate ended. Alas, though, world crude oil prices collapsed, making it less likely that the world will do what the International Energy Agency recently told us we must: Keep most of the world’s proven oil and gas reserves in the ground. As the IEA warned, “no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050” — otherwise we’ll bust through the limit of a 2-degree Celsius rise in average temperature that scientists believe will unleash truly disruptive ice melt, sea level rise and weather extremes.

Technology is a cruel thing. The innovators who’ve made solar panels, wind power and batteries so efficient that they can now compete with coal and gas are the same innovators who are enabling us to extract oil and gas from places we never imagined we could go at prices we never imagined we would reach. Is a third lead sentence possible? There is. In fact, there is an amazing lead waiting to be written. It just takes the right political will. How so?

Let’s go back to my first lead. The reason I thought we were decisively tipping toward action was, in part, because of news like this from the BBC on Nov. 7 in São Paulo: “In Brazil’s biggest city, a record dry season and ever-increasing demand for water has led to a punishing drought.” When a metropolitan region of 20 million people runs dry because of destruction of its natural forests and watersheds, plus an extreme weather event scientists believe was made more intense by climate change, denialism is just not an option.

Then you have the hugely important deal that President Barack Obama and President Xi Jinping of China struck on Nov. 12, under which the United States will reduce its carbon emissions 26 percent to 28 percent below 2005 levels by 2025, and China will peak its carbon emissions by or before 2030. China also committed to build by 2030 an additional 800 to 1,000 gigawatts of clean power — or nearly as much new renewable energy in China as all the electrical capacity in America today. That will greatly spur innovation in clean tech and help do for solar, wind and batteries what China did for tennis shoes — really drive down global prices.

Also, in February, Google bought Nest, for $3.2 billion. Nest makes a $250 smart thermostat that can save homeowners tons of money by learning their temperature preferences and automatically managing their air-conditioners and home heating systems for the greatest efficiency. Also this year, Apple announced the development of the Apple HomeKit, which will enable customers to remotely manage their appliances and home energy systems on their iPhones. When Apple and Google start competing to make homes more energy efficient, watch out. We likely will see nonlinear improvements.

But what if Verleger is right — that just as the cost of computing dropped following the introduction of the PC, fracking technology could flood the world with cheaper and cheaper oil, making it a barrier to reducing emissions? There is one way out of this dilemma. Let’s make a hard political choice that’s a win for the climate, our country and our kids: Raise the gasoline tax.

“U.S. roads are crumbling,” Verleger said. “Infrastructure is collapsing. Our railroads are a joke.” Meanwhile, gasoline prices at the pump are falling toward $2.50 a gallon — which would be the lowest national average since 2009 — and consumers are rushing to buy SUVs and trucks. The “clear solution,” said Verleger, is to set a price of, say, $3.50 a gallon for gasoline in America, and then tax any price below that up to that level. Let the Europeans do their own version. “And then start spending the billions on infrastructure right now. At a tax of $1 per gallon, the U.S. could raise around $150 billion per year,” he said. “The investment multiplier would give a further kick to the U.S. economy — and might even start Europe moving.”

So there is a way to make 2014 that truly decisive year in confronting both climate and rebuilding America, but only our political leaders can write that lead.

Thomas Friedman is a columnist for The New York Times.

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