Monday, December 10, 2007

If green tech is so great, why does it need subsidies?

Securing foreign oil dependency isn't a subsidy?

I was watching CNBC's energy bill coverage this morning when I wanted to throw my shoe at the TV. A view was presented on the segment which I often hear, 'If green technology, such as hybrid cars or solar power, is so great, why do these technologies need subsidies'?

As if oil, for example, is subsidy free. In the 1990's America spent, on average, about $10 billion per year on Persian Gulf oil, however, the costs to secure that oil (non-war costs), such as securing shipping channels, coast guard security, etc., cost between $50 billion and $150 billion PER YEAR depending upon the study. This cost, however, is not paid for at the pump, instead it is subsidized with hidden military taxes.

When the real costs of oil are accounted for, the oil energy paradigm has been the recipient of - almost certainly - more than a trillion $'s in subsidies. So, let's get real. Green tech is nowhere close to receiving, or needing, such subsidies. In fact, if Americans started paying the real costs of fuel at the pump, hybrids, for instance, wouldn't need ANY subsidies. PERIOD.

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3 Comments:

Blogger Melody said...

Great blog!

9:14 PM  
Blogger Thomas said...

I don't like to be crude I really don't but I apologize in advance. Whoever on CNBC made that comment is a complete jackass. We can only assume he either had done no research at all (elsewise he would have realized all the tax breaks and subsidies oil gets) or he is totally biased against green tech. Either way that sort of shit can't go unchallenged.

8:03 PM  
Blogger Dahcredyns said...

I can't tell you Thomas how many times I've heard such a statement from so-called free market capitalists.

9:59 AM  

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