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Non-Tech : Alternative energy
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To: Big Bucks who wrote (2719)2/13/2006 2:41:51 PM
From: Rock_nj  Read Replies (1) of 16955
 
Most of these "economists" in organizations like AEI and Cato are just apologists for the status-quo oil trade. Their economic arguements fall flat on their faces when held to actual economic supply/demand standards. For example, they always mention minor government subsidies for renewables like ethanol, but never mention major government subsidies for the oil trade and nuclear. Oil receives at least $100 Billion per year in U.S. government military protection, probably more these days, and nuclear wouldn't even exist if the federal government did not step in and provide tax-payer insurance for the industry.

I think oil would be trading at least $100/barrel without the U.S. government's agressive military policy of protection of that trade, which would translate into a price at the pump for gasoline around $3.75 ($75 oil would only push the price to about $2.75). Nuclear would not even exist as an industry in the United States without the sugar daddy federal government insuring their operations. No private insurer would risk their company on insuring a nuclear plant, even with their satisfactory safety record.

The fact is renewables like ethanol are at a competitive market disadvantage due to decades of public policy that have greatly favored established energy sources like oil and nuclear. So, it is not fair to pick on ethanol. Besides, one has to ask if they are taking into account the solar energy necessary to grow the plant from which ethanol is made? That is a lot of energy and by some people's calculations, the solar input makes ethanol a net positive energy medium.
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