So-called "clean and renewable energy" makes investors poorer
The Australian has this:
There seems to be a simple explanation for why these investments have become less attractive, as the price of gasoline has fallen the returns to investing in these alternative forms of energy has fallen. I don't expect the media to draw this obvious connection, but the point is that having the government make investments in areas that are not profitable makes us poorer.
PRESIDENT-elect Barack Obama has vowed to promote clean and renewable energy, reiterating this week that his presidency will mark a new chapter in America's leadership on climate change.
But the nation's power companies suddenly are struggling to turn that promise into reality.
"Funding has stalled," says Ezra Green, chief executive of Clear Skies Solar. The New York company recently cancelled plans to build a one-megawatt solar plant in California's Mojave Desert, unable to get financing even though a California utility agreed to buy all the output.
"We've cancelled the solar-panel order," Mr Green says. . . .
There seems to be a simple explanation for why these investments have become less attractive, as the price of gasoline has fallen the returns to investing in these alternative forms of energy has fallen. I don't expect the media to draw this obvious connection, but the point is that having the government make investments in areas that are not profitable makes us poorer.
Labels: Economics, Environment, GlobalWarming
posted by John Lott at 3:44 AM
3 Comments:
Idiots. Pure and simple. Make something that will WORK, and we'll use it.
Free market forces will only prevail here, if there is a good return upon investment. To be subsidized by taxpayers signals failure.
Then again, without a source of money for capital investments, no progress shall occur until the current market becomes stabilized.
As a rule of physics, as well as economics. Does not the expenditure of time and money have to be less than the gains realized?
Yes, I did repeat myself...
Again, Lott shows that he cannot present the facts in a balanced way. The title of his post, as is often the case, is misleading. Also notice where he cuts off the quote.... The next paragraph says
Hobbled by the financial crisis, power companies across the US are slashing capital budgets and cancelling projects for clean electricity. Financing for new nuclear power plants appears shaky. And some energy companies are even having trouble satisfying their short-term needs for cash.
So an far more accurate title to this post would be "Financial Crisis makes investors poorer," but that wouldn't fit with Lott's narrow agenda.
Clearly Lott is not interested in discovering solutions to complex problems. He is far more content to reduce the issues to their most absurd level and point the finger of blame at others, regardless of what the facts may be. He willfully distorts data in the service of a personal agenda. He would rather foment destructive rage and partisanship than engage in dialog and address the problems that we all are faced with.
The energy security of this country is a very real problem, and it is not my intention to advocate one solution or another. Rather, I am simply trying to point out, dear readers, that Lott's actions are deceptive and destructive and create far more problems than they solve.
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