Sure, the Obama administration has made strides on the energy front, especially by spearheading higher fuel efficiency standards for the American vehicle fleet. But if Americans are serious about making energy security a moon shot for this generation, the president and Congress must create an integrated rather than piecemeal approach for meeting this goal.
Here's a plan to consider.
- Steve Yetiv, August 15, 2012
1. Gradually tax carbon and reduce other taxes
If carbon pollution continues to carry no cost, the market will be hampered in going green. That's why America needs to increase the gas tax. Of course, many people object, saying that taxes hurt economic growth. But there's no reason taxes can't be fully or partly "revenue neutral" - offset by cuts in the payroll tax, for instance. That's not an overall tax increase, though individual states might want to tax gas for revenue generation as well.
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2. Mandate a stronger national renewable-energy standard
Instead of persisting with the uneven patchwork of state-by-state standards, a new standard would require that a certain percentage of power sold by utilities be generated via renewable (nonfossil-fuel) energy such as wind, solar, biomass, and geothermal. The standard could be phased in slowly.
3. Connect and develop a national electric grid
National and state governments, working with utilities and businesses, need to connect America's three electric grids, so that we can carry renewable power from where it's produced - concentrated solar energy in the desert Southwest, wind energy in the Great Plains - to where it's needed in the Northeast, Midwest, and so on. Otherwise, we won't be able to use our renewable resources effectively.
4. Make electric cars more convenient
A connected electric grid could also help run electric cars on a mass scale, which would decrease oil use in transportation where most oil is burned. Electric and hybrid cars can't succeed on the notion of "build it and they will come" - which seems to be today's nonstrategy. The US needs an updated "smart" grid and plug-in stations so people don't get "range anxiety," and America needs to make those cars cheaper, one way or the other, or they won't be bought en masse.
5. Exploit natural gas
Let's start by running government-owned trucks on natural gas or its derivatives instead of oil and then include more types of vehicles. The M.I.T. Energy Initiative recently released a report identifying methanol as the fuel "most efficiently and inexpensively produced from natural gas," costing around $3 per gallon today.
Natural gas can also help run the electricity grid. Yes, natural gas is a dirty fossil fuel, but it's cleaner than coal, and, we need all the energy we can get to meet rising needs.
6. Build high-speed rail
Not all passenger rail is created equal. Careful studies should figure out where building high-speed rail makes sense and how to do it most efficiently. If France, China, and Japan can do it, so can America.
7. Reward efficient consumers
Now, the profits of utilities are tied to how much energy they sell. So they have an incentive to sell a lot, even if a lot of it is wasted. Consumers certainly play along, using far more energy than they need. Instead, utilities should do far more to reward conservation. For instance, they can allow customers to sell energy back to the utility that they conserve or produce through green technologies. This is already done in the US but in a limited way.
8. Engage China and India more
Energy is a global problem and no matter what measures the US takes, countries like China and India will still impact us. These countries are also on the wrong energy track by relying too heavily on fossil fuels. So, among other things, Washington needs to work better with industrializing countries to get as many first-time car buyers into efficient vehicles rather than gas-guzzlers, and to help them avoid building coal-fired plants by the hundreds.
Obviously, achieving these steps will take time and cooperation but they're doable. And, as long as they are executed sensibly, they could create lots of jobs that can't be outsourced. They can help jump-start the US economy, while also enhancing American national security and decreasing the chances for severe climate change effects across the world.
Steve Yetiv is a professor of political science at Old Dominion University in Norfolk, Va. He is the author of "The Petroleum Triangle" and "Crude Awakenings," both by Cornell University Press.
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