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Feb 09, 2006 -- U.S. Newswire
An unfettered market rather than President Bush's call for energy independence is the best solution to America's energy crisis, according to NCPA Senior Fellow H. Sterling Burnett. Burnett cites two key drawbacks to government subsidies for domestic, renewable fuels. First, if a renewable fuel cannot survive in the marketplace without a subsidy, then producing it wastes scarce resources. A study from scientists in New York and California, for instance, has shown that it takes as much or even more energy to make ethanol than the energy it produces. In other words, burning ethanol could actually increase our need for oil and gas imports. In addition, when government dedicates funds to particular technologies, it stifles innovation because private capital often follows government dollars. Thus the public is denied technological innovations which might have occurred without government interference in energy markets. Improved energy technologies, fuel sources, combustion or delivery systems which might have produced cheaper, cleaner energy than current technologies go undiscovered or wither from lack of funding. "In the 1990s government promoted natural gas as the fuel of choice while doing nothing to reduce barriers to new development," said Dr. Burnett. "This resulted in increased demand, decreased supply, and high prices consumers are suffering under today." --- The NCPA is an internationally known nonprofit, nonpartisan research institute with offices in Dallas and Washington, D. C. that advocates private solutions to public policy problems. We depend on the contributions of individuals, corporations and foundations that share our mission. The NCPA accepts no government grants. News Provided By |
