And enacting the Kyoto Protocol would impose substantial restrictions on energy use, with dramatic repercussions for the American way of life. Fortunately, there is an alternative. Rather than creating new government programs and restrictions on energy use, we should eliminate government interventions in the marketplace that discourage emission reductions and the adoption of cleaner technologies. Such an approach would provide economic and environmental benefits whether or not climate change is serious threat. Removal of Barriers to Innovation In competitive markets, companies and entrepreneurs are constantly seeking to reduce their costs.
Energy use is a cost of production.
Unfortunately, environmental regulations are often a substantial barrier to energy-saving innovation. Once a technology is anointed as the preferred pollution control method, there is substantially less incentive to introduce newer technologies, even if they would improve environmental performance. These problems are compounded by the substantial paperwork and uncertainty that are inherent in the permitting processes mandated under various environmental statutes. While environmentalists rail against the use of fossil fuels, the federal government spends tens of millions of dollars every year subsidizing the use of fossil fuels. Even worse, while costing taxpayers dearly, these programs produce minimal benefits.