There are thousands of examples of truly free markets producing the best decisions. ALL subsidies and artificial incentives should be removed. True costs of energy solutions are required for a truly free market that will arrive at good decisions. In order to get true costs, polutioin does need to be taxed for each energy source. Also, when there are geopolitical costs to acquisition (as in wars in the middle east and protecting tankers shipping with our militar), an estimate of those defensive costs should be applied as a tax for the transport and protection.

Now, once you have a level playing field with the actual cost of oil, and gas based energy sources, sun, wind, and alternative energy sources can compete directly in the market place. As the price of other conventional sources go up, alternatives will naturally fill the gap at the appropriate cost levels.

Everything is interrelated and if we could just quit mucking in every single aspect of the economy, I think things would go much smoother. For instance, oil, gas, roads, and trucks have been subsidized. If those subsidies were removed, then there would be less trucks (especially when they are not needed) resulting in less gas consumption and less polution. More things would be produced locally for local consumption (because there would be added cost to transport). Obviously, this could be a long discussion, but I have a special hatred for subsidies, because I believe they in general lower growth and quality of life, and add to bureaucracy.

WHEN YOU SUBSIDIZE EVERYTHING, WHAT IS THE POINT?! (Rhetorical question, because I know the point...govt acquires power through have everything filtered and controlled through them.)