August 6, 2013
New energy-efficiency legislation “amounts to nothing more than handouts to companies in the energy-efficiency business at the taxpayers’ expense,” Heritage Foundation expert Nicolas Loris writes.
The legislation, authored by Sens. Jeanne Shaheen (D–NH) and Rob Portman (R–OH), would impose paternalistic new rules on Americans. It would also create new taxpayer-funded programs that “would benefit special-interest groups and promote corporate welfare.”
Lawmakers should avoid intervention in the markets, Loris explains:
When companies and consumers do not take full advantage of efficiency gains, it is because they are weighing other factors that influence their decision making. When the government attempts to improve energy efficiency with federal programs, it ignores the heterogeneous nature of producers and consumers and negatively impacts the majority of Americans. Markets have driven the energy economy in the right direction and Congress should refrain from more unnecessary and harmful intervention in the energy sector.
Decisions about efficiency upgrades should be left to families and businesses, Loris says.
Do you think the government should dictate energy-efficiency standards?