Why does the Government need to promote alternate fuel sources?

Question

It would be very profitable for anyone to develop an alternate energy source. I’m sure there are many people working on it now. The government can’t really make alternate energy any more sought-after.

Answer 1

The problem with a new fuel source is that developement is likely to be expensive, but if done properly, the product will not be. The new fuel certainly has to be cheaper than the present ones or there is no incentive for people to change.

Also, even if it is significantly cheaper, the developer will not make any money initially, because the prohibitive cost of switching the oil and gas burning equipment over to whatever new equipment is necessary will make the changeover slow.

So the governments role in promoting a new fuel source would be in offering grants to large industrial companies that are willing to switch, and in subsidizing the research so that nobody has to take the risk of spending a billion dollars developing Newfuel, then making 1,000$ a year for five years because nobody uses it except Cameron Diaz, simply because they don't want to change equipment.

Answer 2

Oh, yes they can. They have to. They need to prepare the country for when oil is no longer cheap, or even available. These days may come in your lifetime. I have started converting my household over to compact fluorescent bulbs and rechargeable batteries, and I stepped up to a more fuel-efficient car. If everyone would do this, we would greatly reduce our dependence on unstable sources of power.

Answer 3

Environmental issues. Save the green planet!