You're right - government officials (not necessarily corrupt even) write legislation influenced by lobbyists who are hired by the big guys to protect their own interests. All legislation is influenced by lobbyists. It's just the name of the game. More legislation and regulation generally has the opposite effect of getting in the way of innovation and market efficiency.

Regarding sustainable energy - a lot of government funding is already going to that in the form of research grants awarded to people in academia looking at those things. We can increase funding, but that's already happening. The surest way to kill those chances would be, for example, create a carbon tax which has the effects of getting government dependent on revenue coming from fossil fuel emissions, and introduces incentives to ensure that revenue source continues.

Regarding your last question - I don't know. Haven't done the research. But I have read enough of classical economics to know that it's probably not a big deal - or if it is an issue that it will be short-lived. If the consumer is sufficiently fucked then it is the corporation who will have shot themselves in the foot. Law of supply and demand in action