William Nordhaus reviews Michael Graetz's book, The End of Energy, supporting the argument that U.S. energy policy has failed to serve the needs of both our country and environment.
Is energy our friend or our enemy? In their personal lives, most people regard energy as an essential friend. It powers our computers, warms our homes in the winter, fuels our cars and planes, and provides a necessary input to produce virtually everything we use. Modern life would be inconceivable without the friendly side of energy.
But in recent decades, energy has also become an enemy. Presidents have lamented our “addiction to oil,” we have gone to war to protect oil fields from hostile powers, and air pollution from fossil fuels kills tens of thousands of people every year. Perhaps most worrisome, the accumulation of greenhouse gases such as carbon dioxide threatens to change the earth's climate in ways that are unpredictable and potentially dangerous.