Matt Collins
10-09-2009, 11:32 PM
Ask Dr. Ruwart
Dr. Mary Ruwart is a leading expert in libertarian communication. In this column she offers short answers to real questions about libertarianism. To submit questions to Dr. Ruwart, see end of column.
What is the libertarian approach to developing alternative energy sources?
QUESTION: What is the libertarian approach to developing alternative energy sources?
MY SHORT ANSWER: Alternative energy sources have been stifled by government regulations and by subsidies to traditional energy sources. For example, early in the twentieth century, virtually all municipal power plants were made government monopolies; competition was outlawed. People were prohibited from forming companies to compete with the government-approved local energy monopolies. Though some of this has changed in recent years, competition in the production, distribution and sale of energy is still severely restricted.
Utility subsidies make some forms of energy artificially less expensive than they otherwise would be, thus discouraging entrepreneurs from exploring or marketing solar or other alternative power sources. Ironically, consumers are made to pay more in taxes to limit their energy choices! [EDITOR'S NOTE: For example, the government heavily subsidizes nuclear power with the Price-Anderson Act, which severely limits the liability of nuclear plants in case of disaster -- even in cases of gross negligence and willful misconduct.]
A libertarian society wouldn't have these and other policies that favor established energy sources over alternative ones. Letting market competition set the prices of different energy sources would enable consumers to make rational choices about which to support. Competition would bring innovation, choice and lower prices. Consumers would quickly beat a path to any alternative energy source that proved to be the "better mousetrap."
Finally, a libertarian society would be a richer society. People would be able to keep the money they earn; they wouldn't be forced to hand it over to the government for dubious and wasteful programs. As a result, far more money would be available for consumers to purchase energy, and for companies to explore and develop innovative new ways to meet our energy needs.
LEARN MORE: "Economists agree that as long as energy prices are accurate (that is, as long as prices reflect total costs), the 'right' (optimal) amount of investment in alternative energy will occur because capitalists like profits. If alternative energy makes economic sense, market actors will quickly figure that out from the price signals they receive and invest accordingly." So begins a short and informative Cato Institute article (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fw-bW3cH9aKD5a-Oxlv5p75vM_01WhHOi-MVvpMu-nJuyx69iV79VzI2xDBXnT6a4Kzw0Yv4BE6KbrLMMZQ7rflnUFm yyOXKIScHERU6Vodin4PKOfjAW2a_SoLMacoYUa9cqUidFUqQg ==), "The Case against Government Support for Alternative Energy," by Peter Van Doren and Jerry Taylor.
Also from the Cato Institute, some valuable background information on the Price-Anderson Act is in this 1984 article (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fyYV3ryxq34fEPjfGYgbrDJKBaLxRuPGjcGx bWL-9TCnwtkLDE0dzpG7OUiKNNor7-UebeB25m_3sULkhOI89ryk6877wGG6tB-Tc4x6QAeESGEItK7Zzn558xSLFGJuhI=): "The Price-Anderson Act: Is It Consistent with a Sound Energy Policy?" by Barry P. Brownstein.
* * * * * * * *
Got questions? Dr. Ruwart has answers! If you'd like answers to YOUR "tough questions" on libertarian issues, email Dr. Ruwart at: ruwart@theAdvocates.org
Due to volume, Dr. Ruwart can't personally acknowledge all emails. But we'll run the best questions and answers in upcoming issues.
Dr. Ruwart's previous Liberator Online answers are archived in searchable form. (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fyd7h9dhq43RAccKs9Wi_1qRNDCdjwXAkKOM NO8-ZP0rokcgS7ArL76tlQDVhdEuGJTtq2Kx574yWA5m44ghV0ZYQy-49Ad6WLY0p3Lq5oHKB3FWSJ0u83Z5HDud3r_OY3xE0_HM9uMFr BEnkytu_zu)
Dr. Ruwart's outstanding books Healing Our World (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fy_rRS8fUe0PIlP7QIFVEsz7VBi4sb5ZDDiX 6JIgcj6Q3YEcqEEhmGmrjV47eztYhbZqdEOe9wNb64JlbJhHqB g6CVQ-KOnFtiOuMm34Fl0Xmz9mAHnMyT6R_jlCIGM8o69ijvoxigbOie VEDnHgD7m8q8fCtfR85qsWzrKCuiMkzWsJz43AmAf1jOo1n5aV VtE8_qwYJzD7rpAlajS-l57_JzH3I1Y4m4oGb2EULlung==) and Short Answers to the Tough Questions (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fy_7G-DbtvqeCV5pBZEf8jz3XhVsaEFO1vlENykWe5d1k6IvFwHRMwpZ OJ2W80PKwkJL7DxpyaXXHVzpkobtGckq-HTHa33sfKz7fQWYEFpTXposjdirKp8J1g9zK_bTYYtEswh0_sR 3PuTTyADzYgpnuPU3MkJ_RnN-XLLvQWGTMHbwgIxQSQGSAmpGTs5LNIKNEsPU78eHeGamvBEIZH _8sxiKZAvXM5oRsPQE43Vsg==) are available from the Advocates.
Dr. Mary Ruwart is a leading expert in libertarian communication. In this column she offers short answers to real questions about libertarianism. To submit questions to Dr. Ruwart, see end of column.
What is the libertarian approach to developing alternative energy sources?
QUESTION: What is the libertarian approach to developing alternative energy sources?
MY SHORT ANSWER: Alternative energy sources have been stifled by government regulations and by subsidies to traditional energy sources. For example, early in the twentieth century, virtually all municipal power plants were made government monopolies; competition was outlawed. People were prohibited from forming companies to compete with the government-approved local energy monopolies. Though some of this has changed in recent years, competition in the production, distribution and sale of energy is still severely restricted.
Utility subsidies make some forms of energy artificially less expensive than they otherwise would be, thus discouraging entrepreneurs from exploring or marketing solar or other alternative power sources. Ironically, consumers are made to pay more in taxes to limit their energy choices! [EDITOR'S NOTE: For example, the government heavily subsidizes nuclear power with the Price-Anderson Act, which severely limits the liability of nuclear plants in case of disaster -- even in cases of gross negligence and willful misconduct.]
A libertarian society wouldn't have these and other policies that favor established energy sources over alternative ones. Letting market competition set the prices of different energy sources would enable consumers to make rational choices about which to support. Competition would bring innovation, choice and lower prices. Consumers would quickly beat a path to any alternative energy source that proved to be the "better mousetrap."
Finally, a libertarian society would be a richer society. People would be able to keep the money they earn; they wouldn't be forced to hand it over to the government for dubious and wasteful programs. As a result, far more money would be available for consumers to purchase energy, and for companies to explore and develop innovative new ways to meet our energy needs.
LEARN MORE: "Economists agree that as long as energy prices are accurate (that is, as long as prices reflect total costs), the 'right' (optimal) amount of investment in alternative energy will occur because capitalists like profits. If alternative energy makes economic sense, market actors will quickly figure that out from the price signals they receive and invest accordingly." So begins a short and informative Cato Institute article (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fw-bW3cH9aKD5a-Oxlv5p75vM_01WhHOi-MVvpMu-nJuyx69iV79VzI2xDBXnT6a4Kzw0Yv4BE6KbrLMMZQ7rflnUFm yyOXKIScHERU6Vodin4PKOfjAW2a_SoLMacoYUa9cqUidFUqQg ==), "The Case against Government Support for Alternative Energy," by Peter Van Doren and Jerry Taylor.
Also from the Cato Institute, some valuable background information on the Price-Anderson Act is in this 1984 article (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fyYV3ryxq34fEPjfGYgbrDJKBaLxRuPGjcGx bWL-9TCnwtkLDE0dzpG7OUiKNNor7-UebeB25m_3sULkhOI89ryk6877wGG6tB-Tc4x6QAeESGEItK7Zzn558xSLFGJuhI=): "The Price-Anderson Act: Is It Consistent with a Sound Energy Policy?" by Barry P. Brownstein.
* * * * * * * *
Got questions? Dr. Ruwart has answers! If you'd like answers to YOUR "tough questions" on libertarian issues, email Dr. Ruwart at: ruwart@theAdvocates.org
Due to volume, Dr. Ruwart can't personally acknowledge all emails. But we'll run the best questions and answers in upcoming issues.
Dr. Ruwart's previous Liberator Online answers are archived in searchable form. (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fyd7h9dhq43RAccKs9Wi_1qRNDCdjwXAkKOM NO8-ZP0rokcgS7ArL76tlQDVhdEuGJTtq2Kx574yWA5m44ghV0ZYQy-49Ad6WLY0p3Lq5oHKB3FWSJ0u83Z5HDud3r_OY3xE0_HM9uMFr BEnkytu_zu)
Dr. Ruwart's outstanding books Healing Our World (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fy_rRS8fUe0PIlP7QIFVEsz7VBi4sb5ZDDiX 6JIgcj6Q3YEcqEEhmGmrjV47eztYhbZqdEOe9wNb64JlbJhHqB g6CVQ-KOnFtiOuMm34Fl0Xmz9mAHnMyT6R_jlCIGM8o69ijvoxigbOie VEDnHgD7m8q8fCtfR85qsWzrKCuiMkzWsJz43AmAf1jOo1n5aV VtE8_qwYJzD7rpAlajS-l57_JzH3I1Y4m4oGb2EULlung==) and Short Answers to the Tough Questions (http://rs6.net/tn.jsp?et=1102754039782&s=57420&e=001D5jZdGpo2fy_7G-DbtvqeCV5pBZEf8jz3XhVsaEFO1vlENykWe5d1k6IvFwHRMwpZ OJ2W80PKwkJL7DxpyaXXHVzpkobtGckq-HTHa33sfKz7fQWYEFpTXposjdirKp8J1g9zK_bTYYtEswh0_sR 3PuTTyADzYgpnuPU3MkJ_RnN-XLLvQWGTMHbwgIxQSQGSAmpGTs5LNIKNEsPU78eHeGamvBEIZH _8sxiKZAvXM5oRsPQE43Vsg==) are available from the Advocates.