I seriously doubt that the editor of the journal Public Choice (Munger) would suggest that government resources be "applied" to renewables. The question of whether private resources go to alternative energy is not his to make. So, am I reading this N&R editorial wrong (as it doesn’t specify government resources)?
The only candidate for governor not mindful of public opinion is Libertarian Mike Munger, a Duke University economics professor. He calls the offshore drilling issue a "gimmick" that won’t impact oil prices and says resources should be applied to the development of alternative energy.
Surely, too, Munger’s "gimmick" line was taken out of context, as those oft-derided speculators would very likely affect gas prices (yes, in the short term). With the prospect of new supplies eventually coming online (a context in which N.C.’s drilling would be a part of a wider domestic oil portfolio approved by Congress), speculators would probably adjust their estimates about future supplies.
Anyway, resources being "applied" to "alternative energy" isn’t a decision for governments or would-be governors, but of entrepreneurs, to make. So, Munger is either really becoming a politician in the perjorative sense (and un-becoming a libertarian, which is unbecoming of a libertarian), or someone at the N&R has some more ‘splaining to do about Munger’s position on energy. I’d guess probably the latter.
-Max Borders
Well, yes.
If I recall, my answer was given to this question:
“What would you do to bring down gas prices, which are too high?”
My answer was: Nothing! Because high gas prices make other forms of energy production possible, AND because it makes people conserve. The idea that anyone should take tax money to subsidize Max Borders’ Hummer 1 (okay, he doesn’t have one, but you know what I mean) sounds a bit much.
I *never* said, or meant, that anyone should subsidize gas prices, or alternatives. But I do think that we should let the market make choices on which alternatives to invest in. Government is not going to be able to figure it out.
If I only had a Hummer. I’d sell for two Scions and a motorcycle.
On the issue of subsidies: I agree with you that no industry should be subsidized, much less oil. But then again, we have to wonder whether any extant oil subsidies make up for the excessive costs imposed by the regulatory state (boutique gasoline mandates, regs, etc etc) even assuming any Pigovian benefits of said regs.
In any case, I’m glad you cleared this up. Suffice it to say the subtleties of your point have been misses by the soundbiters. May the most cost-effective energy source win!