Thursday, May 31, 2012

Spain Ends Green Energy Subsidies

Hotair already nailed this post, so I'll just link them and comment a bit.

Spain scuttles clean-energy subsidies; promptly watches the industry go down like a sinking ship
Here’s the message that Spain’s green-subsidy policies sent out to the world: ‘Hey, if you’ve got an idea for a green-energy project that you don’t think can compete on its own merits and turn a profit in the free market, come on over to Spain and we’ll hook you up with some sweet subsidies!’ Ergo, it should hardly come as a surprise that fiscal emergency has forced Spain to put an indefinite hold on the subsidies, and the clean-energy companies are immediately flocking to greener pastures.

Yikes. Didn’t really think that one through, did you, Spain? Germany is often heralded as a world leader in clean energy development, but in 2009, Spain’s clean-energy consumer bill rose to 6 billion euros, ahead of Germany’s 5.6 billion bill — except that Germany’s economy is almost four times bigger than Spain’s. They rushed headfirst into that one, and with top-down large-scale policymaking like that, it isn’t happenstance that their unemployment rate is currently sitting at a miserable 24 percent.

Environmentalists may argue that our worldwide fossil fuel-based energy infrastructure isn’t sustainable in the long term — even though the evidence for imminent climate-change and peak-oil crises are extremely dodgy, at best — but fiscal insolvency is demonstrably unsustainable in the long term. While some of the eurozone members’ clean-energy ‘investments’ may not be the root cause of their present crisis, they are wildly indicative of the type of no-holds-barred, feel-good spending binges that have brought them down this road. Europe just keeps on proffering examples of precisely what governments shouldn’t do, but alas, will the United States ever listen?
That's beautifully written.  I'm a huge fan of getting off oil.  I think our future economy will be based on nuclear power once aging hippies get out of the way (and I'm a big fan Liquid Fluoride Thorium Reactors).  Electric cars will provide around the town transportation.  Hydrogen fuel cell vehicles will provide gas-and-go transportation solutions.  It's clean, it's sustainable and it can all be done right here in the U.S.  Here's the key:  to get off oil, alternative solutions need to be viable in the free market.  A heavily subsidized system is unsustainable, as Spain has neatly proved for us.

No comments: