How Should Modern American Energy Policy Be Formed?

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  • July 11, 2012 at 6:46 pm #230

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    The US government has lead the development of the modern alternative energy industry by using protectionist economic policy, effectively shielding domestic companies from foreign competition and giving high-risk tech/implementation efforts opportunities to establish their place in the marketplace. A problem now developing is the fact that these protectionist policies are not being repealed and companies are stagnating in development and becoming dependent on government support. As long as a company satisfies the minimum requirements for subsidization, inefficiency and stagnation are allowed to survive. Short-run motivation for technological development and scientific advancement no longer exists because a (questionably) sustainable business model relying on government support is convenient and relatively stable.

    For as long as the current government-support cycle continues, domestic alternative and renewable energy companies will remain static. Technological development will slow, competitive advantage will be (and already is being) lost, financial strain on the government will grow, US jobs and companies will be threatened by the possibility of government funding disappearing (after becoming too reliant on it to survive without), and America will lose dominance in the alternative energy field.

    How should American energy policy be formed to best ensure long-term alternative/renewable energy development and economic stability? What is likely to happen to the domestic energy industry in the long-run under current policies? What are the current policies, and what are the goals of current policy? Are these goals even attainable under current policies? These questions focus on studying the status quo of the alternative energy industry, how policy is influencing it, and how policy could be improved to benefit the development of the industry.

    Discuss.

    • This reply was modified 5 years, 5 months ago by  Administrator.
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