Subsidies for our Future, Not Oil

It is surprising to see some of the stances of environmental groups concerning these subsidies. The leaders of the Global Environmental Fund and Earth Track both stand against subsidies in all their forms. From Douglas Koplow, founder of Earth Track, comes the opinion that “the country is better off on having a neutral playing field for all forms of energy.” These two organizations seem to be holding onto the market liberal idea of environmentalism that people will switch to more environmentally friendly energy sources when they are on a level playing field and shown to be more cost-effective. I do not have the same rosy view of this situation. “Green” energy is substantially far behind in terms of technology, earning power, and influence from the fossil fuel companies. Even without subsidies, these fossil fuel corporations would still hold a substantial advantage. Further, I am surprised by the laid back approach of the environment groups presented in this article. While I do not necessarily buy the Bill McKibben end is imminent approach, allowing the market (without subsidies) to decide to shift toward more environmentally sustainable energy sources is leaving things too late.

I stand by the opinions Michael Levi who sees the need to support the new energy technologies from the dominance of fossil fuels. Subsidies in their present format do not work to this end. They should be scraped as they presently exist.

However, rather than aiding the “green” technology sector against the fossil fuel companies, subsidies should be offered to integrate these two groups. I am not supportive of the profit-mongering executives at Exxon and the like, but pragmatically, these companies have the greatest potential to develop green technology. Subsidies and tax breaks should exist to promote oil and other fossil fuel companies toward innovating and developing new “green” energy. These companies have capital to burn, and as fossil fuels begin to dry up and people begin become more inclined to use renewable energy, these companies have the most to gain from cornering these emerging markets.

Energy is energy, and profit is profit, so giving incentives to Chevron and Exxon to develop the future wind turbines and solar panels will ensure that we have energy and they have profit.