People can then buy fuels solely on the basis of price and performance. This minimizes costs for families, businesses and the economy, which, in turn, strengthens competitiveness, living standards and job growth. Proponents of subsidies and mandates say that they're needed to improve the environment, enhance energy security, spur economic development and replace dwindling supplies of oil. However, subsidies and mandates for alternatives, which are usually more expensive than conventional petroleum fuels, raise costs and reduce economic well-being. In addition, they have little impact on the environment, produce limited energy security benefits, and aren't justified by the fact that oil supplies are finite.
Many states also have laws or regulations that promote alternatives.
There are better approaches to achieve the ostensible goals of energy subsidies and mandates Clean air. According to the U.S. Environmental Protection Agency, air quality is improving, thanks largely to advances in petroleum fuels and automobile technology. Performance standards give businesses the flexibility to reduce pollution the most sensible, affordable way possible. That's better for consumers. Reduced dependence on oil imports.