Wednesday, January 5, 2011

End all Energy Subsidies

An interesting article that discusses ending all energy subsidies. The argument is that since most subsidies actually go to fossil fuels, this will help green possibilities. And with cap and trade dead, it may be the only politically feasible way to encourage green alternatives.
If President Obama wants to set us on a path to a sustainable energy future—and a green one, too—he should propose a very simple solution to the current mess: eliminate all energy subsidies. Yes, eliminate them all—for oil, coal, gas, nuclear, ethanol, even for wind and solar. It will be better for national security, the balance of payments, the budget deficit, and even, believe it or not, the environment. Indeed, because wind, solar, and other green energy sources get only the tiniest sliver of the overall subsidy pie, they’ll have a competitive advantage in the long term if all subsidies, including the huge ones for fossil fuels, are eliminated. And with anti-pork Tea Partiers loose in Washington and deficit cutting in the air, it’s not as politically inconceivable as you might think.
In any event, it certainly would eliminate wasteful subsidies.