Congress recently passed, and the President signed, a terrible energy bill.
The fundamental flawed premise behind the bill is that we need to use less energy. But our standard of living requires energy use. Thus using less energy means increasing poverty.
The bill is full of regulations that increase conservation, or increase efficiency. One will effectively ban traditional light bulbs. This looks like a boondoggle in the making.
The bill mandates more ethanol use. This will increase oil usage, as oil is required for farm equipment, fertilizer, and other parts of the process of making ethanol. It will decrease fuel efficiency, as ethanol is less efficient than gasoline. It will of course increase corn prices. It will also increase prices for most other types of food, since many animals eat corn, and demand for farm land will increase.
The bill also mandates use of cellulosic biofuels, despite the fact that they don't exist.
Last and worst is the mandate to increase fuel efficiency. John Lott confirms what I wrote earlier--that this will kill thousands of drivers by forcing them into smaller, more dangerous cars. It also won't do much to reduce gas consumption, since decreasing demand reduces price, which increases demand. In other words, people will drive more. This will also hurt Detroit automakers and their employees, as they make more SUVs than their foreign competitors.
A positive energy bill would eliminate government regulations and allow the free market to function. This would encourage more oil drilling and nuclear energy production in America, decreasing prices and increasing energy independence.
Alternative Energy Inanity
Gouging by Government