WASHINGTON – Economists agree that the federal government should encourage the development of fossil-fuel alternatives, a Wall Street Journal Internet survey finds. However, they don't think President Bush's energy proposals are the way to accomplish that, The Wall Street Journal reports.
The majority of the economists surveyed said the government should tax fossil fuels as a way to encourage alternatives. Such a tax would increase fossil fuel prices, which would put alternative fuels at a more competitive advantage. "A tax puts pressure on the market, rather than forcing an artificial solution on it," David Wyss at Standard & Poor's Corp. told the newspaper.
During his State of the Union address, President Bush called for a 20 percent reduction in gasoline usage over the next decade. In addition, his budget proposal includes money for biofuel, clean coal and renewable energy programs.