From the Heritage Foundation comes a thoughtful list of things we should avoid with reference to the sharp increase in the price of gasoline/diesel. I don’t know that there is any order of importance in mind, but the first item is a good place to start:
1. Don’t increase subsidies for biofuels. The most popular subsidized biofuel, ethanol, produces less energy per unit volume than does gasoline, contributes to food price increases, costs taxpayers billions of dollars, and has dubious environmental effects. Despite the promise that cellulosic ethanol would be available by now in mass quantities, it’s not. A more prudent approach would be to remove the subsidies and mandates for domestically produced ethanol and remove the tariffs on imported ethanol.
While you may not agree with all of the items on the list, such a list is an excellent place to start. We got into our current energy situation because of a number of things, not the least of which was a knee-jerk reaction to the spill in the Gulf of Mexico. Reacting to, (rather than logically thinking through) our current difficulties would be a way to make things worse quickly.