Two layers of cost

Americans curious about the costs of misguided energy policy should watch Europe, where governments aggressively promote energy from the sun, wind, and biomaterial. In the many countries where consumers pay the subsidies those energy forms need, electricity costs have become painful. The US government is making comparable mistakes—and others. While European governments have laden their economies with one layer of pain, the US would impose two. In the US, costs are less clear, taking the form not of surcharges on energy bills but of diminished taxation of producers of favored energy. The costs of energy subsidization hit taxpayers rather than consumers and get lost in discussions of broade...

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