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Page added on June 15, 2009

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The U.S. government offers a lot of subsidies to expand renewable energy. Should it be doing more to subsidize conservation?

The U.S. government is committing billions of dollars to support renewable energy such as wind- and solar-power plants. Some say it should use more of that financial clout to encourage less energy consumption in the first place.

Advocates of conservation, including businesses that help homeowners and companies save energy, think there should be more subsidies and tax incentives for basics like insulation and window shading, and for newer, more costly products like light-emitting-diode lamps and building-automation systems. LEDs cost more but use less energy than incandescent bulbs. The new automation systems help buildings waste less energy on cooling, heating and lighting.

Projects that improve efficiency pay for themselves quickly, the advocates say, and help people and businesses save money. Renewables, meanwhile, cost more money to achieve the same reductions in carbon-dioxide emissions.

WSJ



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