2013-06-04

Cato: After Billions of Taxpayer Dollars, Green Transportation Is a Bust

Ethanol as government energy policy has been an economic and environmental bust. There’s little debate: it inflates motor fuel prices, while compromising the environment. And that was before this summer’s drought reduced corn and wheat supply. President Obama is under pressure from all sides to waive the ethanol requirement for less expensive fueland food.
What about future alternatives to oil-based transportation? As it turns out, a new study by the National Petroleum Council (NPC) provides more sobering news for government-knows-best energy policy.
At the request of U.S. Energy Secretary Stephen Chu, NPC representatives from government, industry, and academia conducted a multi-year, wide-ranging analysis to determine what technologies could enable “alternative” energy sources, including solar and wind, to play a more substantial role in the American transportation sector by 2050.
The NPC researchers use muted language in their report. After all, they’re chiefly financed by the government, and their conclusions are meant to have an impartial, scientific air. But beneath the coded language and caveats, the NPC’s key finding is clear: Clean tech has a long way to go before it becomes economically viable. Even after a solid decade of massive government financing and favors, the industry still faces significant technological hurdles.
The NPC report identifies no less than 250 major barriers that must be overcome before alternative fuels can reach “wide-scale commercialization.”
The changes researchers consider necessary before green tech can really catch on include: major improvements to electric car batteries; more advanced hydrogen storage technologies; and genetic engineering to boost feedstock yields and thereby drive down biofuel costs.

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