Wind Energy Market 2008
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Why do Democrats believe that government must force/fund research for alternative energy?
In my Opinion Democrats aparently have no issue with the high price of energy.
http://ijustcannotshutup.typepad.com/my_weblog/2008/06/democrats-block-energy-solutions-again.html
They believe that if the price remains high they can accelerate the alternative energy initiative, weather the market demands it or not . They don’t believe that the market will fill this demand on it’s own. This simply isn’t true. For instance, coal is not the only resource used for our power. Oil, water, wind, and nuclear options are used and are available. Yet, while they scream to reduce the use of oil for energy they place huge restrictions on alternatives. Nuclear power is cheap and VERY clean.
Lets say the first cereal was oatmeal. The market didn’t go, “awe shucks! I guess there is no need to provide variety… we already have cereal.”
Point is, The market will always recognize the need and will fill the need. It will also make sure it is affordable. (very important)
Your thoughts?
As a Libertarian who works as a government contracter doing alternative energy research (and yes, I’m well aware of the irony) I think I might have a unique viewpoint on this matter. One thing that we’re seeing is that energy generation is not simply a matter of technology. It also requires an infrastructure, which necessitates a huge commitment of capital. Look at the Honda FCX as an example. Awesome technology, but because there’s no infrastructure in place they can only offer it in one specific part of the country. Do you think gas stations will be converted to hydrogen stations overnight, or the transportation and storage problems associated with hydrogen will be solved right away? What you end up with is a “lag time” between when the technology becomes available and when it can actually be implemented. And one thing we’ve seen is that serious effort isn’t spent on fundamental research and development by the private sector until there is a driving force supplied by the market. And that driving force hasn’t hit with full force yet. As such when the market forces actually demand something like better energy technology that technology is still born because there’s no way to take advantage of it. The lag time must be waited out, which creates an unnaturally high demand and hence higher prices. The government funds research as a loss leader, knowing that the market demand isn’t there yet, but developing that technology “early” so that the lag time can be minimized. Energy keeps the nation running smoothly. Government research is a buffer that keeps the supply/demand swings from getting too huge. It’s not that the private sector can’t develop these technologies faster, cheaper, and more efficiently. It’s that by the time the market says they should do so it’s often too late. There is a time element at work that justifies the government’s involvement. Just my thoughts.
2008 Introduction to the Midwest ISO
