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Thursday, October 22, 2009

Will Green Energy Help Businesses?

By Gavin King

Some industry observers like to indicate there is a natural regulatory cycle: the perception of market failures results in to regulation, and the impression of regulatory failures guides us to deregulation. Although the 1990s were ruled by free trade principles and economic deregulation, some political observers see broader tolerance of regulation now, in light of investor malfeasance and our latest financial downturn.

It is likely fair to say that the anti-regulatory ardor of the 90s predated the current high concern about the challenges of climate dynamism. From an environmental position, however, are free markets part of the trouble, or part of the solution?

When pushing for electrical laxity in regulation, many argued that contention on the creation side would permit green energy providers to grab a bigger market percentage, and that rivalry for retail service would permit consumers to vote with their pocketbooks and choose ecologically friendly power. Nevertheless, the growth of green energy has been motivated by industry mandates, not consumer selection.

Now, what about any of the free trade guidelines? While shipping materials to China to be returned to the U.S. as packaged goods may encourage financial efficiency, the trade-offs are poor from a carbon emissions standpoint.

The facts may be less sharp, however, when it comes to encouraging the utilization of clean energy sources. As E&E Daily verifies, some scholars have told a U.S. House Energy and Commerce subcommittee that financial fees and other trade boundaries would damage the U.S.s' capability to achieve its eco-friendly power goals.

Creation of many important new energy applications has went abroad, attracted by generous backing for eco-friendly energy sources. As a result, buying green in the short-to-medium term requires importing expensive commodities.

Others contributed that the means to bring productivity back to the United States is to stimulate invention through national green energy platforms and government-funded research and development.

Present national programs seem to be providing investment and manufacturing bonuses. Legislation could show the essential commitment by passing a productive national green energy goal. - 23305

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