Re: Energy policy is the key to turning us around
by
EarlyBird
11/18/2008, 5:04 PM #
I totally agree on the general concept here, but worry about this part:
"...but that's just an issue of R&D to decrease costs and either subsidies for renewables or taxes for other forms of energy to account for externalities like greenhouse gasses and nuclear waste."
I'm concerned that we would end up with a massively subsidized alternative energy industry which is responding to government-political pressure rather than consumer-market pressure. So the American tax payer end up basically propping up an industry which produces a mediocre product which does not stay competitive in the marketplace, and worse, allows R&D to stagnate. It becomes the energy equivalent of Detroit's Big Three.
I do want the government to "do" something really big to jumpstart the alt energy industry, in the manner in which JFK launched the moon project. But everything I come up with either ends up with a stagnate, tax-dependent industry or just becomes a boon doggle of giving tax breaks to companies to do R&D.
Let's just hope that the Arabs discover they have far, far fewer oil reserves than they expected, that drives up the cost of oil to extremely painful levels. That will create massive consumer pressure to produce the alternatives.