Ten Don’ts for Our Government on Gas Prices
Nicolas Loris /
As gas prices in the United States continue to soar, policymakers in Washington are eager to point fingers and offer solutions. Most of the ideas are not new, and some are certainly much better than others, but they will inevitably be part of the debate. As legislators turn their attention to gas prices, here’s a straightforward list of what not to do.
1. Don’t increase subsidies for biofuels. The most popular subsidized biofuel, ethanol, produces less energy per unit volume than does gasoline, contributes to food price increases, costs taxpayers billions of dollars, and has dubious environmental effects. Despite the promise that cellulosic ethanol would be available by now in mass quantities, it’s not. A more prudent approach would be to remove the subsidies and mandates for domestically produced ethanol and remove the tariffs on imported ethanol.
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