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It's a bit off-topic, but Spain is kind of a sad case, like Ireland. They did everything right, and used European money to fix their infrastructure. They needed that. Spain was a third world country 35 years ago. And now they get smacked down in a massive real estate bust. It is sad but unsurprising that they're now killing virtually all subsidies they were giving out. They can not do anything else with their massive unemployment.

It does not prove anything though. I am not a big fan of business subsidies. In the US, in stead of subsidizing Solyndra, it would be much more effective to kill all the subsidies and tax loop holes that the oil and gas industry get. States should also not give away fossil fuel permits, but demand a significant cut from all proceeds. Alaska's got that down well. That would level the playing field.

It is really true that renewable energy is pretty much competitive with "old school" energy. The problem is that "old school" energy already has a (largely government-provided or subsidized) infrastructure for delivering that energy, and a lot of acquired benefits from decades of lobbying. If those advantages were taken away, renewable energy would be pretty competitive.

Simple example. Electric cars exist. They run well. The problem is that there is no infrastructure to charge them, as opposed to thousands of gas stations. Charging a car is easier than pumping gas, because you can do it at home, at work and while shopping. The problem is that the plugs and meters do not exist (yet).

by Jasper on May 31, 2012 2:41 pm • link • report