I've talked in the past about the importance of the Hydrogen Economy and the potential it has to create new economic development opportunities, but I think a better term is the Energy Economy. As the price of gasoline, diesel fuel, and home heating oil rises, I don't think we're all going to end up shivering in the dark.
Instead, we're going to see alternative energy sources become not affordable, but cheaper. The U.S. has already made one successful energy transition. By the end of the 19th century, virtually every tree in the Appalachian forests up and down the East Coast had been cut down, mostly to heat homes. Most old growth trees, regrettably, were burned in fireplaces.
As the price of wood skyrocketed, coal became a cheap and useful alternative, and the country gracefully made the switch without a collapse of the economy. Today, it's going to be alternative sources like hydrogen, wind, solar, and biomass that will take the place of natural gas and oil.
Wired News has an article on the growing popularity of biodiesel fuel, and chronicles the efforts of one dedicated individual who makes biodiesel fuel for his car from used cooking oil; it costs him forty-one cents a gallon.
Is the Energy Economy on the economic development radar of your region? Do you have technology companies and other kinds of energy firms that could give your region a competitive advantage?