Don't Control, Innovate!

Ted Nordhaus and Michael Shellenberger:

The most influential environmental groups in Washington -- the Natural Resources Defense Council and the Environmental Defense Fund -- are continuing to bet the farm on a strategy that relies on emissions limits and other regulations aimed at making fossil fuels more expensive in order to encourage conservation, efficiency and renewable energy. But with an economic recession likely, and energy prices sure to remain high for years to come thanks to expanding demand in China and other developing countries, any strategy predicated centrally on making fossil fuels more expensive is doomed to failure.

A better approach is to make clean energy cheap through technology innovation funded directly by the federal government. In contrast to raising energy prices, investing somewhere between $30 billion and $50 billion annually in technology R&D, infrastructure and transmission lines to bring power from windy and sunny places to cities is overwhelmingly popular with voters. Instead of embracing this big investment, greens and Democrats push instead for tiny tax credits for renewable energy -- nothing approaching the national commitment that's needed.