Comments on Green Energy Tax Cuts: Europe Moves to Adopt Green Tax Cuts

Good question, Tim. I'll answer it as part of my ...

2008-12-14T04:04:00.000-05:00

Good question, Tim. I'll answer it as part of my next post.

It's in the text. Here's the relevant quo...

2008-12-12T20:00:00.000-05:00

It's in the text. Here's the relevant quote although definitely read the entire Q&A:
Q. What is your vote for the best role of government in shaping long-term efforts? (Is FutureGen the right kind of model? If not, what is..? is N.I.H. a good model? Is the Energy Department the wrong venue?) A lot of economists say industry is just not able to focus that far forward in R and D. Do you agree?

A. We need to alter the playing field with tax and fiscal polices (such as a carbon cap and trade with a minimum trading value so that companies could plan for sensible, long-term investments). This has to be done in order to account for the so-called “externalities” - real costs that are not yet included in the price of various forms of energy. Developed countries have made this step with air and water pollution by enacting outright regulations and installing a cap and trade system.

Once industry is assured that the bottom will not fall out (such as price of oil, gas, or the trading value of avoided carbon, etc., suddenly plummeting) long-term investments will be made. The wind industry in Denmark and Germany proceeded in this way. Off the top of my head, $70/avoided ton would work wonders in spurring long-term investments and innovation.

What do you think of this? Chu mentions improving...

2008-12-12T17:57:00.000-05:00

What do you think of this? Chu mentions improving the tax environment for green energy without specifics, then goes right on to carbon caps and trading.

http://dotearth.blogs.nytimes.com/2008/12/10/energy-choice-nobelist-with-climate-passion/

Tim

Last night (December 7th) the BBC Newshour on radi...

2008-12-08T10:33:00.000-05:00

Last night (December 7th) the BBC Newshour on radio had an extended report on the adoption of solar nergy in the former DDR (East Germany). Through a system of staged price supports and tax abatements, a large area of former industrial wasteland is now one of the heaviest users and manufacturers of solar power and panels. All in a country not known for its excessive sunniness.

I couldn't find a link to the radio report, but this somewhat older written report covers most of the bases.
http://news.bbc.co.uk/2/hi/business/7181866.stm

Great catch on a story the media seems to have mis...

2008-12-08T10:09:00.000-05:00

Great catch on a story the media seems to have missed! One possible reason for that omission may be that this aspect of the recovery plan was deliberately released without fanfare by the European Commission for political reasons, in order to downplay the role of Britain and France in proposing the policy. Possibly, the EC felt that other Member States would more willingly adopt the policy if it was not perceived as simply a British/French triumph.