government mandated energy conservation is unnecessary and wastful study finds government mandated energy conservation is unnecessary and wastful study finds washington dc the energy tax and subsidized energy efficiency measures supported by president clinton and energy secretary hazel o leary are based on faulty assumptions a new study from the cato institute points out according to jerry taylor cato s director of natural resource studies we are not running out of sources of energy the world now has almost times the proven oil reserves it had in and twice the reserves of proven reserves of coal and natural gas have increased just as dramatically when standards of living population densities and industrial structures are controlled for the united states is no less energy efficient than japan and more energy efficient than many of the group of seven nations energy independence provides little protection against domestic oil price shocks because the energy economy is global moreover since the cost of oil represents only about percent of gross national product even large increases in the price of oil would have little impact on the overall u s economy market economies are on average times more energy efficient per of gnp than are centrally planned economies utilities subsidized energy efficiency measurs known as demand side management programs encourage free riders overuse of competing resource inputs an competitive inequities furthermore dsm programs do not reduce demand taylor concludes that government mandated energy conservation imposes unnecessary costs on consumers and wastes not conserves energy that subsidizing energy conservation technologies will stymie not advance gains in energy conservation and that central control over the lifeblood of modern society energy would transfer tremendous power to the state at the expense of the individual energy conservation and efficiency the case against coercion is no in the policy analysis series published by the cato institute an independent public policy research organization in washington dc available from cato institute second street se washington dc the cato institute founded in the cato institute is a public policy research foundation dedicated to broadening the parameters of policy debate to allow consideration of more options that are consistent with the traditional american principles of limited government individual liberty and peace to that end the institute strives to achieve greater involvement of the intelligent concerned lay public in questions of policy and the proper role of government the institute is named for cato s letters libertarian pamphlets that were widely read in the american colonies in the early th century and played a major role in laying the philosophical foundation of the american revolution despite the achievement of the nation s founders today virtually no aspect of life is free from government encroachment a pervasive intolerance for individual rights is shown by government s arbitrary intrusions into private economic transactions and its disregard for civil liberties to counter that trend the cato institute undertakes an extensive publications program that addresses the complete spectrum of policy issues books monographs and shorter studies are commissioned to examine the federal budget social security regulation military spending international trade and myriad other issues major policy conferences are held throughout the year from which papers are published thrice yearly in the cato journal in order to maintain its independence the cato institute accepts no government funding contributions are received from foundations corporations and individuals and other revenue is generated from the sale of publications the institute is a nonprofit tax exempt educational foundation under section c of the internal revenue code the cato institute second street s e washington dc
