2/6/2006

KUFM / KGPR

T. M. Power

 

Ending Our Addiction to Energy, Not Just Imported Oil

 

            President Bush, in his recent state of the union address, startled some by criticizing America’s “addiction to oil,” especially imported oil. He called for federal investments in technology that would allow us to displace three-quarters of our oil imports within the next 20 years.

            This negative characterization of our national commitment to consuming ever increasing amounts of petroleum products startled some because both the President and Vice-President have been closely and personally associated with the oil industry for much of their adult lives.

            But there is much less to Bush’s comments than some have read into them. First of all, Bush was worried primarily about our consumption of foreign oil because it often comes from relatively unstable nations and regions, thus putting our economy and security at risk.  Bush did not even hint at backing away from his emphasis on increasing oil and natural gas production within and off-shore of the United States by removing almost all restrictions on where and how drilling can take place. He still wants our nation to race towards the bottom of our aggregate petroleum well regardless of the environmental consequences.

            Bush’s overall emphasis was on increasing the production of new energy resources. His list of “new” resources contained all of the usual energy industry wish list items: “clean and safe nuclear” energy, “clean coal,” hydrogen, and ethanol, along with perfunctory nods towards solar and wind resources. There was no mention of improving the efficiency with which we use our energy resources even though, for instance, one of the primary sources of our demand for imported foreign oil is the appallingly low and falling gas mileage that our cars and trucks get. Bush’s proposals focus on further subsidizing the consumption of energy by investing federal dollars and our national lands and waters in the hungry pursuit of ever more energy resources.

            This is not a slight oversight. It is central to Bush’s view of our energy problems. To Bush and many other corporate energy officials, there are no problems with the level of our energy consumption. They do not believe, for instance, that carbon emissions are having any impact on global climate. They also do not believe that the other effluents from our energy production and consumption present serious health and environmental risks. So efforts to reduce carbon and mercury emissions, acid rain, water pollution, oil spills, toxic smogs, and the like, are weakened or stalled as energy production is emphasized and all of these problems exacerbated.

            The opportunities for major improvements in the efficiency with which we use energy in our vehicles, in lighting, heating, and cooling our homes and businesses, and in our industrial processes are huge. Technology is poised to revolutionize all of these major energy uses, if we get the prices and incentives right.

            But even the use of market-like mechanisms to make certain that Americans have to face up to the full costs associated with energy production and consumption are rejected by the Bush team. Placing taxes on energy consumption to reflect the damage done and the resources consumed by our extravagant use of energy of all sorts would take us in the opposite direction that Bush’s subsidies to the energy industries would carry us. Cost-based energy taxes could quickly change our energy use patterns. Energy conservation would be rewarded. Innovative energy saving technologies would blossom and quickly be adopted. We would begin to stretch out significantly the productivity and convenience we can wring out of the energy resources we already consume, reducing the burden our energy use places on our health, our communities, and the planet.

            Such energy taxes need not represent a net tax increase. Nor would such energy taxes need to fall heavily on middle and low income households. The revenue from the energy taxes could be used to reduce, for instance, the high payroll taxes that are taken out of all of our paychecks. They could also be used to reduce sales and property taxes on necessities like food and shelter. An energy tax could be part of an overall effort to begin to tax social “bads” such as pollution, climate change, and other damaging behavior while reducing the taxes on social “goods” like hard work, homes, raising children and medical care.

            Before we launch into every more costly public subsidies for new energy and chemical processes operated by the same companies that painted us into the corner in which we currently find ourselves, we should focus on the decentralized task of improving energy efficiency.  That is not to say that we should not be carefully exploring the development of a variety of more benign energy resources including renewables such as wind, solar, and biomass. Nor does it mean that we should not be seeking to make our coal and nuclear facilities as clean and safe as possible. But, if we follow Bush in simply seeking to replace imported oil with domestic oil and natural gas and a massively increased and subsidized coal and nuclear industry, we will simply have solved one threat to our health and security by creating equally threatening worldwide problems including irreversible climate change, proliferating nuclear materials, and a broad range of toxic effluents. That is not a comforting prospect.