Articles filed under Impact on Economy from Europe

Germany’s energy policy is expensive, harmful and short-sighted

Germany is an example of how not to do green energy. Instead the solution is to research and develop better green energy technology. A study by some of the world’s top climate economists including three Nobel Laureates for the Copenhagen Consensus Center shows that subsidising existing renewables does so little good that for every euro spent, 97 cents are wasted. However, every euro spent on green innovation could avoid €11 in long-term damages from global warming.
16 Mar 2014

Assessing the extent of Germany’s energy dilemma

Germans pay the highest electricity prices in Europe. Residential electricity prices, including taxes, are 60% higher in Berlin than in London, and are 40% above the euro-zone average. Germany’s energy minister, Sigmar Gabriel, recently estimated that the push to renewables is costing Germans €24 billion euros per year in higher bills. Were this to continue, Germany risked facing a “dramatic deindustrialization,” he said.
13 Feb 2014

Sunny, windy, costly and dirty

This subsidy is costly. The difference between the market price for electricity and the higher fixed price for renewables is passed on to consumers, whose bills have been rising for years. An average household now pays an extra €260 ($355) a year to subsidise renewables: the total cost of renewable subsidies in 2013 was €16 billion. Costs are also going up for companies, making them less competitive than rivals from America, where energy prices are falling thanks to the fracking boom.
17 Jan 2014

Case for wind must be proven on costs

The wind industry lobby has managed to persuade Irish politicians that wind energy is not merely low on carbon emissions, which is true, but also cheap, which is not true at all. Wind energy companies enjoy a price guarantee, whose cost falls on consumers. This is a subsidy, plain and simple. But there are additional subsidies that are hidden. Extra transmission costs not borne by the wind companies are an additional burden.
1 Dec 2013

Energy costs widen gap in competitiveness

Consumers are less willing to foot the whole bill for policies to mitigate global warming. The shift in the debate is most conspicuous in Germany, where the Energiewende – Chancellor Angela Merkel’s historic drive wind and solar ­– has left German consumers with among the highest prices for electricity in Europe. The German environment ministry says the total cost of the Energiewende could reach about €1tn.
14 Oct 2013
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