Should Government Provide Subsidies for Clean Energy?
On my piece about ARPA-E and government funding for the development of new, speculative technology, Larry Lemmert asks:
Why should the taxpayer be funding speculative projects? Why should the taxpayer be the first to take a hit when the speculative projects fail?
Why should close advisors to the president and others in Washington be able to pick projects promoted by their friends? There should be at least an arms-length separation from politicians and these projects folks.
The answer to your first question is that most people, me included, believe that the public sector needs to play a role in developing technologies that ultimately benefit large masses of people. That’s how we wound up with a phone system, an electrical grid, the highway system, a space program, an Internet, etc. And now, given the national security issues that surround oil, and the damage to our lungs that are associated with coal, most people argue that partnerships with government that develop energy efficiency and clean energy solutions in the 21st Century is perhaps the biggest no-brainer in the history of civilization. (more…)