Posted by Jonathan Adler:
Foul Winds for Alternative Energy:
http://volokh.com/archives/archive_2007_09_23-2007_09_29.shtml#1190990531
Renewable energy sources offer many potential environmental benefits,
including the reduction of air pollution, carbon emissions, and other
consequences of energy extraction and production. To date, however,
many renewable energy sources have had difficulty breaking into energy
production markets. Despite decades of federal subsidies and other
support, it often remains difficult to offer renewable energy at a
competitive rate.
Many argue that the best way to promote renewable energy sources, such
as wind power, is to offer yet more federal subsidies, tax incentives,
and the like. In [1]this article on NRO -- another contribution to
NRO's [2]"Energy Week" -- I suggest a different tack: Reducing
regulatory obstacles to alternative energy projects. One of the
largest hurdles for major wind projects, for example, are regulatory
requirements that increase costs, induce delays, and offer NIMBY
activists opportunity to strangle such projects in the crib. Though
well-intentioned, some of the regulatory requirements imposed on wind,
wave, and other power projects have the effect of stalling the advance
of alternative energy technologies. I conclude:
Alternative energy advocates often bemoan the lack of a �level
playing field� for renewable energy, recommending additional
federal subsidies as the solution. Yet renewable energy sources
already receive generous financial support from the Department of
Energy and other government sources. In practice, such funding does
little to bring commercially viable facilities on line.
To promote alternative energy development, there�s no need for more
handouts. Instead the government should get out of the way. If the
goal is to increase actual alternative energy production, and
increase the proportion of renewable energy that supplies
electricity to American consumers, the best thing the federal
government can do is reduce or remove regulatory obstacles to
energy entrepreneurship and innovation. If renewable energies are
to capture a sizable share of the energy market, what they need,
more than anything else, is regulatory room to compete.
References
1.
http://energy.nationalreview.com/post/?q=Mjg1YWVjNDZjZTBkNDhlODUzZjVkZThmM2U0YjAwNjE=
2. http://energy.nationalreview.com/
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