Jorge Velasco writes in Reason about how subsidies distort energy markets.
- Energy subsidies allow politicians, not markets, to pick energy winners and losers.
- Market-distorting subsidies also stifle innovation by crowding out crucial capital for emerging technologies that do not yet receive preferential treatment from the government.
- Instead of extending harmful subsidies, lawmakers should implement technology-neutral policies to accelerate energy innovation.
“Energy subsidies are wasteful at best and cronyist at worst, and they don’t even accomplish their stated aims. Policymakers should be removing the obstacles that keep creative entrepreneurs from developing cheaper alternatives, not giving specific products an unfair edge.”
Read the full article here.
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