The one meaningful response to the BP oil spill

Thomas Friedman has a valid point in his latest article No Fooling Mother Nature.

There is only one meaningful response to the horrific oil spill in the Gulf of Mexico and that is for America to stop messing around when it comes to designing its energy and environmental future.

We do need to stop messing around, but I differ with him on exactly how we are currently messing around and what we need to do to stop messing around. He thinks more government regulation and taxation is the answer to change behavior and to push the markets toward green technology. Rather than Yet Another energy bill from Congress loaded with taxation, regulation, and tax breaks that skew the market, Congress should pass an energy bill that removes tax breaks for the oil industry and keeps only regulation that guards against large-scale disasters (rather than, for example, worrying about caribou in ANWR or fish in California).

We will eventually get off oil (we will run out or some other fuel source will become more economical), but without perverse government policies in place, the market can drive what technologies can be introduced and when. The past ten years should have proven definitively the absolute inability of government bureaucrats to competently orchestrate big systems with lots of moving parts.