Potential impact on Mexico of U.S. marijuana initiatives

In the short-term, these initiatives will probably not have a large impact, though over the long-term the effects could significantly weaken Mexico’s cartels. Colorado’s initiative will not go into effect for more than a year because the regulatory framework must be adopted by the state by July 1, 2013, and only in October 2013 can licenses to sell be distributed. On the other hand, Washington’s law goes into effect in January 2013, but it is a more geographically isolated state; it would be easier to drive from Colorado to many other states to distribute Colorado marijuana. This process, which is likely and assumed in IMCO’s report, is the market mechanism that could reduce Mexican cartel profits. Continue Reading

Should the federal government subsidize natural gas 18-wheelers?

Natural gas seems poised to make dramatic inroads into the transportation sector for long-haul trucks, given a powerful combination of high diesel prices, a company making large investments in building a nationwide network of stations, and major manufacturers eagerly producing the trucks. A widespread shift to natural gas would have a substantial impact on America’s oil consumption; long-haul trucks, i.e., “big rigs” or “18-wheelers,” transport goods all around the country, and they consumed about 1.9 million barrels a day b/d of oil in 2010. Continue Reading