Comments on: Why "The Economist" Is Wrong on Green Subsidies http://www.brightgreentalent.com/blog/2008/11/28/why-the-economist-is-wrong-on-green-jobs/ Green Jobs Advice from Bright Green Talent Mon, 02 Jan 2012 13:37:35 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Peter Kazanjy http://www.brightgreentalent.com/blog/2008/11/28/why-the-economist-is-wrong-on-green-jobs/comment-page-1/#comment-104 Peter Kazanjy Sun, 07 Dec 2008 21:27:48 +0000 http://brightestgreen.wordpress.com/2008/11/28/why-the-economist-is-wrong-on-green-jobs/#comment-104 Great point Nick. It's easy to argue against subsidies when they're brand new, but when you compare green tech against, say, petroleum tech that has *so* many subsidies, it's tough. I mean, there are so many subsidies that make the incremental cost, say, of a gallon of gas incredibly different than it's true cost, the mind spins. All things being equal, it would likely be better to get market clearing prices communicating the best information possible. However, couldn't one argue that if the government is unwilling to subsidize green tech, shouldn't there be investors willing to do so? Great point Nick. It’s easy to argue against subsidies when they’re brand new, but when you compare green tech against, say, petroleum tech that has *so* many subsidies, it’s tough.

I mean, there are so many subsidies that make the incremental cost, say, of a gallon of gas incredibly different than it’s true cost, the mind spins.

All things being equal, it would likely be better to get market clearing prices communicating the best information possible.

However, couldn’t one argue that if the government is unwilling to subsidize green tech, shouldn’t there be investors willing to do so?

]]> By: Kathleen Connell http://www.brightgreentalent.com/blog/2008/11/28/why-the-economist-is-wrong-on-green-jobs/comment-page-1/#comment-103 Kathleen Connell Thu, 04 Dec 2008 18:35:32 +0000 http://brightestgreen.wordpress.com/2008/11/28/why-the-economist-is-wrong-on-green-jobs/#comment-103 I agree with Nick. Another way to describe the early phase of taxpayer investment is to frame it as retiring the risk so that private capital ventures are more likely to succeed as the Green sector matures. As public capital does not need to see ROI immediately, it is more risk-tolerant. I would rather use public funds for global warming mitigation and job creation, creating clean exports as a matter of public policy choice than exporting,say, subsidized arms and war. Also, it is Ok to experiment, to fail, to learn, and to evolve our thinking. What is interesting to me is how quickly we learned the unintended consequences of food stock as biofuel, not that we attempted it in the first place. I agree with Nick. Another way to describe the early phase of taxpayer investment is to frame it as retiring the risk so that private capital ventures are more likely to succeed as the Green sector matures. As public capital does not need to see ROI immediately, it is more risk-tolerant. I would rather use public funds for global warming mitigation and job creation, creating clean exports as a matter of public policy choice than exporting,say, subsidized arms and war. Also, it is Ok to experiment, to fail, to learn, and to evolve our thinking. What is interesting to me is how quickly we learned the unintended consequences of food stock as biofuel, not that we attempted it in the first place.

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