Government Involvement in Alternative Fuels

The United States and other world governments have become heavily involved in the alternative fuels industry. Most of these countries implemented these programs in response to high gasoline prices, environmental concerns and energy independence issues. Government involvement in alternative fuels has both positive and negative effects on the economy and the world's well-being.

Function

The U.S. government supports the creation and implementation of alternative fuels across the country through a system of subsidies. According to the United Nations, the U.S. spends approximately $11 to $12 billion each year to stimulate the growth of the biofuel industry alone.

Significance

Government support for alternative fuels has strong impacts for the economy. With the rising costs of traditional fossil fuels, alternative options have provided solutions for car drivers by keeping costs at the pump down for vehicles that use these alternative fuels.

Features

Promises of government subsidies for various alternative fuels has stimulated the growth of this industry. Car manufacturers and designers have new options and more demand for vehicles that use these fuels.

Considerations

Alternative fuels generally produce less pollution than traditional fuels. According to the U.S. Environmental Protection Agency, greenhouse gases reached record levels in the early twenty-first century. Alternative fuels help the country meet new government regulations on air pollution.

Misconceptions

As governments continues to subsidize alternative fuels, such as biofuels, the costs for the food sources that the fuels are derived from will continue to rise. This rise in cost has triggered food shortages in many developing countries across the planet.

Resources

• Article on biofuel subsidies under attack
• Global subsidies initiative
• Alternative fuels and the government