BREAKING: Leaked Doc Proves Spain’s ‘Green’ Policies — the Basis for Obama’s — an Economic Disaster (PJM Exclusive)
We use government regulation to internalize some external costs, such as environmental impacts. We also used governent policy and tax policy to create the US oil industry via the oil depletion allowance (which cost about $140 billion to taxcpayers). http://educationforum.ipbhost.com/index.php?showtopic=3704&mode=threaded&pid=56558
http://www.allbusiness.com/business-finance/equity-funding-private-equity-venture/111252-1.html
So it is a straw man to say that the government has not interfered with the energy market. Maybe one of the least informed statements that someone could make on the subject.
If we can create our impressive oil industry with government stimuli, then it is logical that we should consider (at far lower cost) creating alternative energy sources and technology in the US. Otherwise, when oil hits $200 a barrel again, we will be buying those Spanish windmills and German solar panels instead of having US firms in that market as players. 1% is not a big price for a jump start….
The portfolio system sets a maximum energy price for each unit of renewable, so there is a cap and this creates competition to produce the energy within the limits. Solar, right now, cannot compete with other forms of renewable electricity, for example. It is a way to use market forces to get alternative energy into the mix.
Other than selective ideological rigidity, it is difficult to argue with the result or the price.
Randy Mott
