Monday, June 23, 2008

McCain's Energy Proposal

McCain's Energy Proposal

About a month ago, I explained why if the government is going to do something about energy, it should work on encouraging innovation with a prize, not with subsidies for ongoing production. I guess Senator McCain has been listening to me. (Yeah, right.) From June 23, 2008 AP:


FRESNO, Calif. (AP) - Republican presidential candidate John McCain said Monday that the search for alternatives to the country's dependence on foreign oil is so urgent that he's willing to throw money at it.
The Arizona senator proposed a $300 million prize for whoever can develop a better automobile battery, and $5,000 tax credits for consumers who buy new zero-emission vehicles. The latest proposal is in addition to his support for overturning the federal ban on offshore oil drilling.
"In the quest for alternatives to oil, our government has thrown around enough money subsidizing special interests and excusing failure. From now on, we will encourage heroic efforts in engineering, and we will reward the greatest success," McCain said in a speech at Fresno State University.
Okay, I'm not happy about the $5,000 tax credits. But the $300 million prize for a better battery sounds like something that could really motivate the venture capitalists to pony up some money for research.

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