Billions of pounds each year is being spent on green transport and utility projects, when it would be better spent on improving roads and railways, according to a think tank.
Independent group Reform said the Government is too focused on "the green heat of technology", when the UK's infrastructure is what really needs attention.
Despite being ranked sixth in the world for gross domestic product, the UK ranks only 34th for the quality of its infrastructure.
Reform argues that the £4 billion being spent on projects like wind power and high speed railways should be spent on improving roads and nuclear power, which would reduce carbon emissions in the long run.
The group argues that focusing money away from green energy would create "a new culture of entrepreneurship in infrastructure", leading to better roads and railways being built for less money.
The report complained that the Government's plan to levy £2.8 billion on utility bills for new energy and broadband projects was "uneconomic".
Reform's deputy director Elizabeth Truss said: "The UK is on a road to nowhere. Vast amounts of taxpayers' money is being spent subsidising uneconomic activity. Meanwhile positive investments are blocked."
© Press Association 2009