How Subsidies Can Drive Energy Innovation

The other day, a friend referred to the $70 billion provided annually to the fossil fuel industries as a “mosquito bite,” i.e., a negligible bit in the scheme of things. That is certainly one way of looking at it.

But here’s another. $70 billion is 7000 times $10 million. What seems like a better way to drive energy innovation in a world in such desperate need? Transfer $70 billion in wealth each year from U.S. taxpayers to the oil companies? Or give 7000 deserving clean energy entrepreneurs a $10 million head-start in developing their technologies?