I see that the CEO of Dow Chemical is blaming the government for the rising cost of energy. A good CEO in the MBA/ bureaucratic mold, he complains about our lack of industrial policy: "The government’s failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."
Is that a fair characterization? It is true that we don’t have a "comprehensive" energy policy. We do, however, have a variety of policies that shape and direct the market for energy in the U.S. We have rules regulating the kinds of plants that may be built in the U.S., and where they may be built. We have policies regulating what we may import, how, and at what cost.
In short, the vast array of EPA, zoning, trade, and other such regulations keep us from having a free market in energy, which would allow us to liberty to figure out how to get more energy more inexpensively. Perhaps the best energy policy we can have is to open up these markets. We don’t need the government to guess which types of plants should be build where. But we could use some help allowing us to find our own way without a maze of regulations complicating the process.