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The right argument on renewables

By | November 24, 2009, 11:50 AM PST

I am a fan of Al Gore. I do not doubt global warming.

But the wrong arguments have been made on renewables all along.

The current Climate Bill is, in fact, a jobs bill.

Whatever you think of climate change the fact is we’re subsidizing a market sector in hydrocarbons that is not growing, and not producing jobs.

Our Department of Energy still pays for oil and gas research. Corporate taxes are kept low in states with heavy concentrations of hydrocarbons. Energy companies still enjoy accelerated depreciation.

This despite decades of enormous profit, and increased efficiencies which mean that oil, gas and coal don’t really create many jobs. And the cost of using hydrocarbons, pollution and habitat damage, are never accounted for at all.

In contrast, our economic rivals are passing all sorts of incentives for renewable development. China now leads in solar cell production. Germans have used market incentives to construct nearly 24,000 megawatts of wind power.

Energy for the Sun, from the wind, and from the tides is a growth industry. It increases the self-sufficiency of any country that uses these resources. It creates thousands of new jobs. So Germany’s economy is recovering and China’s is back to rocketing along, while we deal with unemployment over 10%.

Transferring market incentives from hydrocarbons to renewables is national security, and it’s sound economic policy. What excuse can there be for continuing to subsidize a failing sector? Next you’ll want to hand money to newspaper barons or the owners of soccer franchises.

Skeptics claim, using hacked e-mails, that all climate science is biased. So what if it is. Anyone think smoke is good for you? Anyone like having mercury in their groundwater? Is there any chance at all that this is good for you?

But ignore that for a moment. Ignore the picture of Mt. Kilmanjaro above, which is visibly losing its ice cap, meaning central Africa loses its last natural climate moderator. Forget that the Arctic Ice will be gone in 10 years, that the seas are visibly rising. Stick your fingers in your ears and go “na na na na” all day long.

What about our national security? What about our economic competitiveness? What about jobs?

Right now, in Auburn Hills, Michigan, in the shadow of the Silverdome that sold for less than a Manhattan apartment this week, a company called United Solar Ovonic is making flexible solar modules. It brought in $100 million last year.

You really think America should be investing in Sunoco instead?

Nothing against Sunoco. I went to college with its CEO. But tax law and market incentives represent investments in our economy.

I’d rather America had its money on Stan Ovshinsky, the CEO of United Solar. I think we’ll get a better bang for our tax deferment buck with him. And with thousands of other entrepreneurs like him.

It doesn’t matter whether we disagree on global warming. We’re talking economics here. Lynn Elsenhans is a great lady, but as a taxpayer I’d rather have my money on Stan.

That’s what the issue should be.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

Follow him on Twitter.

Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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RE: The right argument on renewables
The CO2 augment is made on very arbitrary data and methods.
See here (and the links) for how poor the CRU methods were. http://blogs.zdnet.com/Murphy/?p=1732&tag=wrapper;col1
Yes the planet is warming but what is needed is more and better (more open?) research. We don't need free wheeling Al Gore jetting around the world proselytizing a view that is NOT a fact - humans started global warming; humans can stop global warming.
Posted by Agnostic_OS
29th Nov 2009
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The grass is greener on this side of the fence...
Not sure where to start but you seem to have cause/effect and symptom/problem all mixed up. I'll start with your claim that the government supports the oil/coal industries with tax dollars. In addition to corporate taxes and gasoline taxes, state and federal government get royalty revenue on every resource harvested from government owned land (and offshore production). So when you stop using hydrocarbons a huge chunk of the their budget goes bye bye. With that in mind its pretty easy to see why oil/coal producing states might have lower taxes on their residents/businesses. These states might also see the logic in keeping their corporate taxes low to attract and keep business in their state.

You seem to be ignoring the very largest corporations always get better tax breaks than smaller ones. Your argument about unfair tax breaks for oil/coal firms ignores their relative size versus that of solar/wind firms. Should bicycle shops get the same tax breaks as railroads?

If you want to keep the USA competitive today and ready for the future then support research for solar/wind/nuclear (the other green energy which works for France) and let the science mature to the point where market forces take over. The current climate bill does the opposite in that it artificially increases price of hydrocarbons to allow the "renewables" to be competive. This can only cause a net negative to the economy because of the inherent dead weight loss.
Posted by gbryantiv
30th Nov 2009
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