Two years ago a friend and his sister debated her purchase of a hybrid automobile. He showed her that the premium price of the car outweighed her probable gasoline savings unless the car lasted a very long time without any maintenance. She told him, “I’m not buying it to save money. I’m buying it to use less gasoline.”
Recently the same friend’s dentist offered his opinion on fossil fuels – he declared that the West should be burning petroleum as fast as possible. His rationale? Every retrievable ounce of oil is going to be pumped and burned anyway, and the West has the best technology for minimizing the pollution. According to him, letting developing nations burn that oil would be worse for the environment.
Whether or not we agree with their approaches, my friend’s sister and his dentist both seek the same thing: they want the world’s energy needs met in more environmentally benign ways. And there are about six billion opinions on how to do this. But is there any clear common ground?
Yes, there is. For most of humankind’s existence, resources have been scarce. I believe we are hardwired to find waste repulsive, but the rapid economic growth of the last half-century blinded many of us to the wasteful nature of our energy use.
Now that the consequences of our misspent resources confront us everyday at the gas pump, the grocery store and our military cemeteries, a consensus of thought – if not action - appears to be forming. People in rapidly growing numbers want to live less wasteful lives, and we want renewable energy technology to help us.
Everyone seems to like the idea of renewable energy sources such as solar, wind and biofuels. Well, everyone except OPEC, oil companies, munitions manufacturers and Congress. Congress presents the biggest obstacle right now, because energy policy requires governance, not political self-interest. Self-interest is the reason renewable energy tax credits expire each year. Apparently, the health, safety and prosperity of the nation matter little until the two parties can figure out how to leverage their action into a theatrical political victory.
Legislators need to see beyond the next election. They need to stop campaigning 24/7 and start governing by providing incentives for entrepreneurs to solve America’s energy shortage. Investors will pour a lot more money into renewable energy when their risk is mitigated by long-term tax credits. Today it is much safer to invest in non-renewable resources like oil, which become more valuable as reserves dwindle, rewarding waste and penalizing conservation.
By the way, when my friend counseled his sister against the economics of a hybrid vehicle, gasoline cost about half its current price. He should redo his spreadsheet, and send it to Congress.