The 2nd Chernobyl?

May 17, 2010 • Tim Lee  
Filed under Opinion

Today, in the face of the oil spill crisis in the Gulf Coast, many are finally beginning to talk about energy reform. In response to the growing debate and concern, Glenn Beck has argued that the oil spill was a conspiracy orchestrated by environmentalist. And as we all know, when Glenn Beck talks, it’s a national issue.

Unfortunately, most of the discussion over pursuing alternative energies has been limited to government subsidies of various sectors such as loan guarantees for nuclear power and tax credits for solar power. Taking insight from history, we must step back and not continue the course that has proven so detrimental to American competitiveness and security.

According to Reuters, America spends $36.5 billion dollars every ten years to incentivize oil production. In the fight against dwindling resources and climate change, it becomes imperative that we challenge the institutions which allowed for the rise in fossil fuel consumption and the resultant climate change.

However, we should not replace these subsidies with newer ones aimed towards alternative energies. The history of government energy policies can be summed up in two words: wrong choices. Indeed, from oil to “green corn ethanol”, government has a bad track record for choosing inefficient fuels. Just as current oil subsidies have crippled investments in alternative energies, subsidies for other alternatives may backfire and stem necessary innovation. Rather than depending on bureaucratic and political decisions, Washington should let the free market decide which fuel America will run on.

Politicians have a unique opportunity to change the trajectory of America with a truly bipartisan bill. Democrats should tout the program’s environmental friendliness while Republicans can argue that the removal of subsidies will protect the free market and reduce the ever-rising federal deficit. Lamentably, efforts by president Obama have been challenged by Big Oil. These influential lobbying groups have been spreading their reports that reducing their subsidies would hurt the economy. When, in fact, subsidies only account for 1% of total revenue for these companies.

It is time for Washington to no longer play puppet to interest groups and write legislation that represents the interests of America: the status quo has proven unsustainable. Hopefully, the oil spill will prove to be fossil fuels’ Chernobyl.

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