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Tax Breaks & Subsidies and Energy Policy
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Pickens' plan is basically a couple of pie charts showing how he'd like to see the U.S. energy economy work. ...He gives no specifics publicly, but he's made it clear that it's up to Congress, not consumers or investors, to make this vision become reality.
Because Pickens has announced his gambit in the name of the environment, the media have dropped the skepticism they usually apply to the claims of businessmen trying to make a buck. Because his plan involves government - meaning you and I pay the costs - that skepticism ought to be even greater.
Also filed under [
USA]
If wind energy were a sensible economic investment, it would not need federal and state subsidies already in place or the additional subsidies inherently needed in the wind power expansion directly and inferentially sought after by Pickens. Similarly, if compressed natural gas (CNG) vehicles are really an economically viable alternative to conventional gasoline-powered vehicles, they would have succeeded in the market place and no government subsidy would be necessary.
We can wish T. Boone Pickens well in his wind energy business, but there is no reason for taxpayers, ratepayers or consumers to pay him for his investments.
As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax. ...If Congress is really going to impose this carbon tax in the name of saving mankind, the least it should do is forego all of this political largesse. In return for this new tax, Congress should cut taxes elsewhere to make the bill revenue neutral.
Also filed under [
USA]
Watermelons - people who are "green on the outside and Red on the inside" - refuse to believe renewable-energy technologies may never be capable of replacing oil and natural gas, but it doesn't stop them from sowing their fantasy seeds. ...Even with massive subsidies, renewables can't come close to competing with oil and gas; without them, they'd be dead in the water. Though wind and solar have been on the "subsidy take" for decades, the Journal notes, they produce less than 1 percent of America's electricity; nuclear, meanwhile, generates 20 percent but is subsidized 15 times less.
Believing all renewables, let alone just wind, will produce 20 percent of America's power anytime soon requires a leap of faith only fools would attempt.
Only George Orwell could have invented - and named - the British Government's Renewable Transport Fuel Obligation (RTFO) that came into operation yesterday. It is the latest in a long line of measures intended to ease the conscience of the rich while keeping the poor miserable, in this case spectacularly so. ...The British Government has been persuaded by the wind turbine manufacturers to commit a third of its annual renewables subsidy to this uniquely inefficient energy source, advertising over hill and dale the cabinet's horror of making a decision on nuclear power. ...If all these fancy subsidies and market manipulations were withdrawn tomorrow and government action confined to energy-saving regulation, I am convinced the world would be a cheaper and a safer place, and the poor would not be threatened with starvation.
Just now, for reasons not all of which are "green", commodity prices are soaring. Leave them. Send food parcels to the starving, but let demand evoke supply and stop curbing trade. The marketplace is never perfect, but in this matter it could not be worse than government action. Playing these games has so far made a few people very rich at the cost of the taxpayer. Now the cost is in famine and starvation. This is no longer a game.
"While renewable energy technologies can be more expensive than conventional sources in the first instance, the environmental, economic growth and public health benefits from their use justify the public investment," the Paterson report states flat-out.
I would argue that this statement should be viewed as a working hypothesis, and doesn't deserve yet to be considered a proven fact. How expensive is too expensive? Which conventional sources? Some are far more polluting than others, for example.
That quote from the report shows us the zeal of the alternative energies movement. With that zeal comes a touch of arrogance, because if you read through the Paterson report recommendations, there are thinly veiled justifications for running roughshod over local zoning and the opinions of those who actually have to live with solar panels, wind turbines or whatever. "The greater good" argument is just beneath the surface, and that makes me very nervous.
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Zoning/Planning|
New York]
Few might guess, from the two-dimensional reporting of these plans in the media, just what a gamble with Europe's future we are undertaking - spending trillions of pounds for a highly dubious return, at a devastating cost to all our economies.
The targets Britain will be legally committed to reach within 12 years fall under three main headings. Firstly, that 15 per cent of our energy should come from renewable sources such as wind (currently 1 per cent). Secondly, that 10 per cent of our transport fuel should be biofuels. Thirdly, that we accept a more draconian version of the "emissions trading scheme" that is already adding up to 12 per cent to our electricity bills. The most prominent proposal is that which will require Britain to build up to 20,000 more wind turbines, including the 7,000 offshore giants announced by the Government before Christmas. To build two turbines a day, nearly as high as the Eiffel Tower, is inconceivable. What is also never explained is their astronomic cost.
Also filed under [
UK]
If you thought the 2008 presidential race was shattering all records for windy rhetoric, it's nothing compared to the political eco-rhetoric being spun to US taxpayers -- to get them to cough up billions of dollars to fuel a renewable wind power industry boom sensible investors won't touch with a turbine's rotor blade. ...Wind power sounds a great European success story -- one to be echoed in the US, it seems, as 2008 is set to see wind power developments shatter records for the fourth consecutive year. However, a closer look at the European "success" story reveals that all is not quite as it seems. Wind seems to be blowing in the mind of the politically correct and those on the recent environmentalist bandwagon but the cost is going to be huge, no companies will plunge into it without massive government subsidies and, if actually built, power reliability will take a nosedive. ...The bottom line is that the renewables debate, and investment in it, is as much about ideology and political belief as it is about economics and environmental issues. When the real cost of turbine power as a major player toward our future power needs is assessed, the answer just ain't "blowing in the wind".
Democrats in Congress are huddling in their low-carbon-footprint backroom in search of a compromise energy bill, and all eyes have been on the issue of raising fuel-economy standards. ...the bill undermines energy independence by raising taxes on domestic production and throwing up new barriers to exploration. ...But its worst (and little noticed) provision may be a requirement that 15% of U.S. electricity be generated from "renewable" sources by 2020. Utilities that can't meet these goals are fined -- taxed, really -- based on how far short of this Eden they fall. Currently, only about 3% is provided by such renewables as wind, solar or "biofuels." ...The "renewables" mandate in the House energy bill, by contrast, is a multibillion-dollar stealth tax on electrical utilities, and ultimately on electricity users. The danger is that, with all eyes on car-mileage standards, this tax could become law without many people even noticing.
Driven by concerns about climate change and security of electricity supply, public and political commitment to renewable energy has never been stronger.
Generous financial support and market interventions have encouraged extremely rapid deployment in many European states and it is now a commonplace of the financial press that environmental business has become mainstream.
And so it should. But some are now asking whether this rapid growth, and politically-driven target setting at local and national level, is creating a secure position for environmental technologies, one grounded in the realistic perspectives of engineering and science, or, on the other hand, a mere flash in the pan caused by speculative, subsidy-hunting developments.
A wealth of data about the renewable energy experiment worldwide, and particularly in Europe, is now slowly emerging, allowing decision makers to evaluate the success of their policies. These results, as you would expect of real-world data, are mixed, and as we all get to grips with the implications, a change in the way the renewable energy sector operates is likely.
RALEIGH - It's hard to run a business when nobody wants to buy what you're selling. Some businesses have found a way around this obstacle: Get the government on your side.
This is the reality in the renewable energy industry, where excessively high prices keep the industry from being competitive. North Carolina has a voluntary program, called NC GreenPower, which allows the public to voluntarily support renewable energy. The participation rate has been dismal. Renewable energy sold through the program accounts for only about .01 percent of all electricity sold in the state.
The state Senate passed Senate Bill 3 since North Carolinians won't voluntarily support renewable energy. Apparently, the state Senate thinks people must be forced to support renewable energy against their will.
Also filed under [
General|
North Carolina]
RALEIGH - Are you willing to pay higher electricity rates to support renewable energy? If so, you're one of only about 10,000 people in North Carolina who is.
That's because the well-publicized N.C. Green Power program has given state residents an ample opportunity to buy power derived from sources such as solar, wind and hog waste. Yet only 10,000 have signed up, or about .01 percent of the population. As a referendum on renewable energy, N.C. Green Power is a pretty clear indication North Carolinians aren't interested.
Yet legislators are gearing up to force people to buy energy from renewable sources ($10 per month worth, phased in to as much as $30 per month later). So in what has become business-as-usual, the General Assembly is set to introduce yet another hidden tax that, if passed, will mandate that 8-plus million of us buy what we have elected not to buy -- expensive energy with negligible environmental benefits.
Also filed under [
General|
North Carolina]
Consumers are paying some of the highest electricity rates in the nation, which severely limits the ability to attract and retain good jobs. Yet we add further costs to every electric consumer's bill to fund programs that, though intended to promote energy efficiency and the use of renewables, lack proportion, rationality, accountability, and oversight.
It's time to stop piling on these added charges to our electric bills and start examining and coordinating the myriad programs we have.........Consumers also pay about $25 million annually into a fund disbursed by the Massachusetts Technology Collaborative to site and encourage projects using renewable power. Renewable power is a good thing, when it is economically viable, but for now electricity from sources such as wind and solar power is much more expensive than existing sources. We should not levy new taxes to fund more expensive power.
Also filed under [
General|
Massachusetts]
This reminds me of the situation in the late 70's. The government had created an artificial energy shortage. To combat it they created a plethora of programs that did help. It took Ronald Reagan almost no time at all to fix the problem by getting the government out of the way of those people that are producing what you and I need.
Instead the Senate is considering imposing a massive new tax which will be added to the fuel we buy AND the products we buy. And they'll be giving that money out in politically expedient but economically wasteful ways just like Jimmy Carter did.
This is crazy. We have people that are professionals in the energy field and they are being shut out of the debate. Instead the Senate's listening to the tinkerbells who probably can't handle the self-service pumps at the gas station.
We applaud any effort to offer incentives to increase the use of renewable and alternative energy sources to power Michigan.
But we hope the 25-percent goal can be reached by offering incentives, not by issuing mandates. The cheapest source of energy in the United States is coal. For the time being, at least, renewable sources of energy are a more expensive alternative. It would not bode well for economic development in Michigan if the state had astronomical energy costs.
Thanks for publishing Congressman Molohan's rebuttal to your article. He is right. I find it hard to believe that, after all the facts and truths about wind energy that have been revealed during the past 2-3 years, that somebody at HNN would approve the initial story that you published.
Also filed under [
General|
West Virginia]
Declaring that climate change is a real and serious threat won't raise too many eyebrows these days. But where the debate really starts to warm up is in asking how much energy consumers should pay towards eradicating the threat of climate change.
Soundings by Ofgem suggest that most people expect a reduction in emissions to come at a price. What's not clear is whether the amount people anticipate paying will match what they may be asked to pay.
Much of upstate New York, from north of Albany to Buffalo, from the Catskills to the Adirondacks, is in danger of being transformed beyond recognition by industrial wind parks. Some 50 of these wind parks are being planned and even built.
All of this is being done in the name of clean energy and saving the planet. But it isn't clear that wind power is such a panacea in the battle against global warming that developers of these wind parks should be allowed to run roughshod over some of our loveliest land. What we need are statewide siting guidelines that take other environmental factors, including visual impacts, into consideration.
In the Williams/Whitcomb world of tabloid journalism, there is no room for thoughtful discussion, for weighing costs against benefits, for understanding that self-interest is at work on both sides of the issue or for any kind of honest discussion. Such thoughts would get in the way of the facile thinking and cynical blather that fills their book and that is now commonplace on TV, radio and the Internet. Do you find yourself bored now that Don Imus and Rosie O'Donnell are off the air? Does the Internet no longer meet your need for trash talk? Then read this book. You won't learn anything substantive from it, but it'll be great entertainment.
Also filed under [
General|
Impact on Economy|
Property Values|
Tourism|
Zoning/Planning|
Massachusetts]
Energy has a price - as consumers we are painfully aware of it when the gas bill surges or the cost of a litre of petrol catches us by surprise.
When it bites our wallets we tend to blame oil companies, Middle Eastern sheikhs or Russian oligarchs, depending on prejudice or the last news headline.
Less understood is the political price of energy, but it was the hidden message in the reams of paper published yesterday by Alastair Darling, the Secretary of State for Trade and Industry.
For years the Government ignored the warnings about crumbling nuclear plants and the need to scrap dirty coal power stations.
Finally someone has grasped the uranium fuel rod.