Show me where the economy has forced any one to cut down. Our petrol price is exorbitant now but people still use there cars inthe exact same way. In any event no company is going to sell anything at a price that no one will buy, so even high costs will never get to the point that will mean no sales. If you believe that companies are one day going to wake up and say 'hey their is not much fuel left, only enough for another 10 years, so lets put the price up to the point that no one buys anymore then you don't know much about how companies make money. They want to make as much profit as posible but also want to make sales so they insure that prices remain affordable.
So you are saying the petrol price getting bigger has had no impact on the car manufacturing industry. No impact on the types of cars people are buying (Small vs Large), no impact on how we drive (Economically vs "heavy right foot"), how much has already been spent on R&D into alternative fuel sources and will continue to be spent on this?
As far the limit or cap on prices, the limit will be at what point is no one on the planet willing to pay the price asked. Think forwards. Most people will probably be using alternative fuel sources and only the super-rich with their old cars and ferrari's and such will be able to afford it So the cap will be far above what most people can afford. The more profitable it is drilling and selling oil the more likely investors will put money into looking for alternatives.
The price equilibrium is the point at which supply and demand meet. If demand remains high then they can keep raising prices until and equilibrium is reached. It has nothing to do with afforadability but profit maximisation. Read the damn article. I know perfectly well how companies make money and being nice and pricing everything low so it is affordable has nothing to do with it. Prices will always in a free market reflect supply and demand. So you are right in that they won't raise prices till no one can afford it (NO demand) but wrong to assume it will remain affordable. Not when they can make more money by raising the price.
Guess what all the environmentally friendly solutions, gadgets and eco friendly alternatives produced thus far have come in the absence of any legislation. Why is this?
People have realised that if you consume something that doesn't replenish it won't last forever. At some point it will run out. So people are seeking alternatives.
People have also realised that due to the changes in technology it will be cheaper and more efficient to use certain alternatives rather than drilling and shipping oil all over the globe. It has nothing to do with any enacted legislation forcing R&D into those areas.
In the face of rising costs to our current lifestyle people demand cheaper alternatives.
Seriously you are the one who shows lack of understanding.
And stop passing AGW as a fact that the entire scientific community is in agreement about. If the community was then there would be 1 climate model that is 100% accurate or pretty close. Not 20 or so. And those other 20 models wouldn't need anymore more funding would they? So due to the fact that their are multiple models and massive DISAGREEMENT, AGW is not a fact. Not like gravity or *gasp* evolution.
Besides how the scientific community agrees with a hypotheses is by attempting to disprove it(And failing) and questioning and checking the data and evidence. When the evidence from the IPCC is called into question that throws everything up in the air.
http://www.youtube.com/watch?v=QThpdRs6hoY
Besides AGW is a hypotheses. The models used as evidence for AGW are hypotheses themselves, not facts. Trying to enact legislation that will change how people interact and do business on a massive scale whilst not caring about the consequences or the economic effects is completely irrational and insane.