Energy: Government Vs. Market Solutions

 |  Includes: CNQ, ECA, VLKAY
by: Mark J. Perry

Coercive, government solutions to high energy prices:

1. Investigate oil companies for "price gouging."
2. Impose windfall profits taxes on oil companies.
3. Keep plentiful domestic energy resources off-limits.
4. Pressure (beg) Saudi Arabia to increase output.
5. Regulate stricter CAFE standards for fuel efficiency.
6. Waste taxpayer money to subsidize "demon ethanol."

Voluntary, market solutions to high energy prices:

1. Producers develop fuel-efficient cars like the 300 mpg Aptera (watch CNN video) that can go cross country on one tank of gas, and the 230 mpg Volkswagen (OTCPK:VLKAY) coming in 2010, WITH NO GOVERNMENT SUBSIDIES.
2. Consumers drive less voluntarily and buy more fuel-efficient cars to conserve gas.
3. Producers attempt to find more oil in Canada, North Dakota, the Outer Continental Shelf and ANWR, subject to government restrictions.
4. Oil refiners attempt to build more, energy-efficient, environmentally-safe oil refineries, subject to government restrictions.

Future government solutions?

1. Impose windfall profits taxes on Aptera and other energy-efficient vehicle makers if they start making "windfall profits" from booming sales of small cars.
2. Investigate "price gouging" if consumer demand for the Aptera and other small cars results in "excessive prices."