Or the third solution: a carbon tax.

That is a tough sell in the current environment. It's a regressive tax, so opposed on both ends of the political spectrum. People on the far right don't believe in climate change, and people on the far left don't believe in market efficiency. With 20% of the world's oil flow crimped in the Strait of Hormuz for who knows how long, higher energy prices is the last thing people want to contemplate.

In the longer run, a carbon tax is the best option. The fossil fuel price shock is a strong signal to produce energy through other means. There are major engineering initiatives around developing cheaper and safer nuclear energy. and it's cheaper now to deploy a solar farm than a coal plant.

A carbon tax would raise money to pay off national debts and encourage consumers and producers to figure out the most efficient way to accomplish their needs while minimizing their carbon footprint. It's a tough sell today, but this is they way to go for a better quality of life tomorrow.