The U.S. currently derives about 83% of its energy from fossil fuels. The cost of energy is subsidized with tax dollars, with the majority going to fossil fuels. With sensible government policies and funding, renewable and sustainable energy sources, most notably wind and solar, could dominate the U.S. energy market by 2030, greatly reducing American's carbon footprint and alleviating the cost impacts of declining fossil fuel reserves. With no fuel costs to contend with, the main driver for sustainable energy costs is capital investment. With technologies still young, companies not fully capitalized and markets small, significant returns on investment are not expected for years. This is a significant barrier to entry for most potential investors.
By relying so heavily on fossil fuels, we are robbing Peter to Paul. It is time to fix the problem. The CTO can help drive this change. Subsidies for fossil fuels should be reduced, allowing the mature industry stand on their own. At the same time, significant increases in subsidies for sustainable energy investments are needed to offset current investment barriers. These subsidies should be directed at simultaneously developing less expensive technology, offsetting capital costs and encouraging market growth. The investment will not be small, but it will be less than what we have been spending on special appropriations for the wars in Iraq and Afghanistan, and the payoff will be more positive and more lasting.