Kellan,
I agree with you that we should endeavor to be good stewards of the environment. As more and more people come to understand this, I think the market will respond by giving people products that are produced in a more environmentally friendly manner, and are in themselves more environmentally friendly. After all, look how successful places like Whole Foods have been. Look at all the incredible choices you now have for organic foods. All those choices are the result of market demand and people meeting that demand.
TRUE education plays a key role in people making good choices. Mere propaganda for the sake of an agenda does not help. As you mention with the Ethanol issue, a higher demand for corn could result in the unintended and undesirable effects of even worse damage to the environment. The greater need for farm land might lead to more deforestation, which ironically would reduce the planet's ability to recycle carbon dioxide
The market will not be perfect and can also have unintended consequences. However, the market is usually much more responsive to the demand for change than our government. If a company is losing money because it's policies or actions are not widely supported by the market, they either change their behavior or go out of business. Government programs get a LOT of inertia behind them. Once rolling, they are darn near impossible to reverse, much less stop. For instance, the governments of the world banned DDT because of the hotly disputed potential for harm to the environment, which we now know to be false. Meanwhile, literally millions of people have died from Malaria and other Mosquito born diseases. Seems a sore trade off. Nonetheless, DDT remains banned...
I cannot help but see the same thing happening with respect to the Global Warming crisis. Int he name of preventing this potential crisis (as if we really could prevent it even if we wanted too), we will put up with the certain human disaster as a result of the retardation of the development of other countries.
With the market, real science matters. It matters because it will affect the bottom line. You can deny reality all you want, but when your products don't live up to their claims, people move on. Look at how the technologies in our products have changed in just the last 20 years! Now imagine if the government was controlling what new technologies could be used, which could be researched and developed, etc,... There would be so much political haggling over which technologies were more deserving of the support of government funding. Inevitably, we'd be getting lame products that many people might not even want and that are quite expensive. The real science would no longer matter. It would be a matter of political leverage. We see the same thing working out in the Global Warming "science". The real science is irrelevant. It is the money and power that can be leveraged in the name of Global Warming that matters!
There is no cost benefit to E85 over fossil fuels. Unsubsidized, it is vastly more expensive. If it were not for government subsidies, they would not even be considered for use because of the higher cost. We cannot even remotely produce enough to meet the growing demand for fuel, or even the current demand. It is more expensive to produce and handle because of the corrosive nature of the fuel. Hydrogen is not much better.
Oil is most likely a fixed resource. There are some that believe oil is produced by ongoing processes and thus the supply is not fixed, but I think they are in the minority. Even if it is a fixed resource that will eventually run out, this is not a problem. Left to themselves, the markets will change and adapt. As oil runs out, the price will go up drastically. No doubt the government will continue to confiscate and hoard reserves for its activities. As the prices rise, more expensive things like ethanol and hydrogen will become more feasible because the market will be willing to put up the money needed to make it profitable (without the need for subsidies!) The rise in prices will also stimulate research into other alternatives. This might include other sources of energy. It might include technologies that make better use of the resources we have. People WILL change their lifestyles because of the rising cost. It is impossible to predict all the ways in which our lives will change to adapt to the altering energy market. But we WILL adapt, and it does not require coercion and crazy government schemes, regulations, subsidies, etc,... Those will always be driven by political concerns that may or may not be based on sound reasoning and real science (most likely not...
). Rather than helping constructive change to occur, the government is more often an obstruction to the introduction of new technologies and changes.
Let me do some sci/fi speculating for a moment... Imagine if you will, someone develops a way to teleport stuff. Maybe not like the Star Trek where you can beam anything from anywhere to anywhere. It might require a transmission and receiver on each end. It might not even work with anything living. Still, just that one breakthrough would make a HUGE difference!! Think of all the non-living stuff that gets moved all over the world everyday. What if teleporting it requires less overall energy input than physically moving it by vehicle? Now imagine if it worked with people? All of a sudden, the automotive and shipping industries are effectively moot. The oil industry is relegated to providing lubricants, chemicals, and synthetic goods.
What if a new energy source is discovered? Recall that nuclear power has only been around a short time. Prior to that, people had no concept of something like nuclear power. Before that, there was steam power. Before that, animal, wind and water power... So who knows that other types of power might be discovered if there is money to drive the research? If fuel prices are allowed to soar and reflect true market conditions (which subsidies prevent), then there will be a LOT of investors seeking to cash in on those high prices! This is how we know where we need to be investing our wealth! If there is a shortage of anything that people need/want, the prices go up. When this happens, the potential to make money by relieving the shortage or finding a substitute goes up as well. When the government takes away our wealth and uses it for political purposes, it distorts and retards this market process. It disrupts the best mechanism for finding out what people REALLY need/want as reflected in the prices they are willing to pay for things. Worse yet, in some markets the government control creates barriers to new entrants into the markets and helps to keep prices artificially high. Think of any licensed profession: law, doctors, engineers, pilots, etc,... Look at the pharmaceutical industry with all the added cost of FDA approval that keeps many products out of the market and makes those that do make it very expensive.
The point is that yes, people do need to be environmentally sensitive with their choices and decisions. There can be no harm with people voluntarily doing this. Markets can and will respond the demands of consumers that are environmentally sensitive and they can do this much more rapidly, with much greater efficiency, and for far less cost than the government. This allows people to still remain free from any further intrusion into their lives by the government. It helps to keep the science real instead of it becoming subjugated into mindless propaganda for the sake of political purposes. Best of all, it is one less reason for the government to demand ever more money from us.