Acton Institute Powerblog

Speaking of Oil

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Arnold Kling at the excellent EconLog says that “the government should empty its strategic petroleum reserve and buy energy futures contracts instead. At some point, the futures market has to be taken seriously.”

He concludes, “The government has all sorts of subsidies for alternative energy. However, the most efficient subsidy would be to buy oil futures contracts. If we must have an energy policy, it should consist solely of strategic futures market purchases.”

This on the heels of the announcement by Whole Foods Market Inc. that “the company is buying enough wind power credits to cover energy use at all of its U.S. stores, bakeries, distribution centers, regional offices and its Austin headquarters.” For Acton research fellow Anthony Bradley’s take on wind power, click here (and listen here for a radio interview [mp3] with Bradley on the subject). Read here about offshore wind farms.

I’m all in favor of the market determining what alternative energy sources there are and who decides to use them. Good for Whole Foods, I wish them luck. I’m not convinced, however, that I need to help pay for their switch to wind power, which government subsidies for such ensure that I do. Nuclear energy deserves a second look, and the harsh realities of energy markets is forcing even Europe to recognize this, as various European nations slate the construction of new nuclear reactors.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty. He is also a postdoctoral researcher in theology and economics at the VU University Amsterdam as part of the "What Good Markets Are Good For" project. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary.

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