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Richmans' Trade and Taxes Blog
Global panic as green energy sector collapses due to fading government subsidies
John Sullivan has the story. He writes that England has decided to cut off its subsidies for wind and solar energy in April 12 and that this is just the last in a chain of countries to reduce their subsidies:
The problem is that solar energy is only profitable to produce if the price is subsidized by the government. Meanwhile, back in the United States, Rep. Hal Rodgers, Chairman of the House Appropriations Committee, wants to cut $1.4 billion from the Department of Energy’s loan guarantees budget. Doing so would not only help reduce our national debt, but it would also lower energy costs.
The Department of Energy is wasting economic recovery funds, including a $1.75 billion loan to a Spanish company Abengoa Solar Inc.to construct Solana, a 250-megawatt, concentrated solar power (CSP) facility located near Gila Bend, Arizona. If the Spanish experience is any guide, the energy produced by this project will be more expensive to produce than energy produced by non-subsidized means.
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