Subsidized wind generates the least amount of power when it is most needed.
By Jonathan A. Lesser
Many arguments have been made against subsidies for energy production, and against subsidies in general. By their very nature, subsidies distort markets and are economically inefficient, driving out legitimate competitors and leading to higher prices in the long run. They reduce incentives to innovate and improve operating efficiency. Subsidies are also inequitable because their costs are borne by the many while their benefits accrue to the—often politically connected—few.
Despite their obvious failings, energy subsidies—most notably for renewable sources like wind-propelled generation—continue to be justified in a number of ways. The most commonly heard arguments from renewable energy proponents have been, “We just need a little more time to become fully competitive,” and, “Two wrongs do, in fact, make a right.” More recently, proponents have added “green jobs” and economic development arguments, as if subsidized renewable energy could provide economic salvation. None of those arguments are valid…..To Read More….
Post a Comment