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Currently there is very limited data on how efficiently fuel can be made from electricity.Maybe explain that some more?
If electricity gets so cheap that oil companies can make fuel from it, consumers will use more and drive the price back up. Basically you're counting on the free market to "put a price on carbon" when every experience of the free market suggests that it has to be dragged kicking and screaming to ever account for hidden costs.
We didn't get containment on nuclear reactors, nor scrubbers on coal plants, by leaving it to the free market. We got those by government regulation.
The Navy back in 2015 was saying they could make jet fuel at a 60% efficiency.
Sunfire is saying 81% if the plant is next to a CO2 source.
For the purposes of this exercise, I will use the NAVY's low efficiency figure, of 60%.
A gallon of gasoline contains 33Kwh of energy, if you can only store that energy at 60%, you need
33/0.6 = 55 Kwh of electricity to create a gallon of gasoline.
A barrel of oil can be refined into 35 gallons of gasoline.
If wholesale electricity is at $0.05 per Kwh ($50/ Mwh), then the breakeven price
would be 55 X .05 X 35 = $96.25 per barrel.
We could tax carbon, but it would not change much globally.
Changing how the world gets the energy it uses will change everything, and that, I think will happen on it's own.