Environment Technology

Environment Technology

Why can’t the Federal Govt increase subsidies to renewable energy companies instead of passing Cap and Trade?

Posted by admin on November 27, 2012 in Renewable Energy with 2 Comments


All they have to do is increase their subsidies and incentives to companies in the Renewable Energy industry, create an easy to entry barrier with full Govt support, these Co.s will then invest the money in R&D and very soon there will be the advent of a new breakthrough in technology which will be cheaper than the current energy sources we have today.

This, in place of taxing CO2 and every molecule out there with out including H2O and O2.

The cost of developing renewable technology at the moment if far greater than developing the current technology of coal, oil and gas. Because of these high cost the returns for developing renewable energy are not there yet. There are some renewable energy companies but the energy market is dominated by oil and gas companies.

Giving the firms subsidies will not solve the problem because the firms will still not get the return they want and it would be very costly for the government. We don’t know how long it would take to develop a reliable renewable energy technology that could replace oil, coal and gas.

Necessity is the mother of invention and we do not require large and expensive R&D projects in renewable technology yet. When it becomes economically viable they will all be jumping to renewable energy. In the not to distant future energy companies will find it more difficult in securing energy resources and it will be these companies that will invest money and develop renewable energy that can be sustainable.

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  1. SDDNovember 27, 2012 - 7:37 am #1

    You mean invest money in things that have no return on the investment. Yes, that is what government does a lot, and why the more of your money the government "invests", the lower is economic growth.
    References :

  2. londondogs123November 27, 2012 - 8:04 am #2

    The cost of developing renewable technology at the moment if far greater than developing the current technology of coal, oil and gas. Because of these high cost the returns for developing renewable energy are not there yet. There are some renewable energy companies but the energy market is dominated by oil and gas companies.

    Giving the firms subsidies will not solve the problem because the firms will still not get the return they want and it would be very costly for the government. We don’t know how long it would take to develop a reliable renewable energy technology that could replace oil, coal and gas.

    Necessity is the mother of invention and we do not require large and expensive R&D projects in renewable technology yet. When it becomes economically viable they will all be jumping to renewable energy. In the not to distant future energy companies will find it more difficult in securing energy resources and it will be these companies that will invest money and develop renewable energy that can be sustainable.
    References :

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