Some industry observers like to indicate there is a natural regulatory cycle: the perception of market failures results in to regulation, and the impression of regulatory failures guides us to deregulation. Although the 1990s were ruled by free trade principles and economic deregulation, some political observers see broader tolerance of regulation now, in light of investor malfeasance and our latest financial downturn.
It is plausibly fair to suppose that the anti-regulatory excitement of the 90s preceded the great concern about the hardships of climate change. From an environmental viewpoint, however, are independent markets more part of the trouble, or part of the solution?
When pushing for electrical laxity in regulation, many argued that contention on the creation side would permit green energy providers to grab a bigger market percentage, and that rivalry for retail service would permit consumers to vote with their pocketbooks and choose ecologically friendly power. Nevertheless, the growth of green energy has been motivated by industry mandates, not consumer selection.
Now, what about any of the free trade guidelines? While shipping commodities to China to be shipped back to the U.S. as completed commodities may promote financial efficiency, the trade-offs are bad from a green house gas emissions view point.
The verdict may be less clear, however, when it comes to encouraging the growth of clean energy technologies. As E&E Daily verifies, many experts have told a U.S. House Energy and Commerce subcommittee that tariffs and political restrictions would curtail the countries' capability to meet its eco-friendly utility goals.
Production of most important new energy technologies has moved international, pulled by abundant funding for green energy sources. As a result, buying eco-friendly in the short-to-medium term requires importing expensive commodities.
Others contributed that the means to bring productivity back to the United States is to stimulate invention through national green energy platforms and government-funded research and development.
Current government programs seem to be providing investing and manufacturing bonuses. Legislation could show the required commitment by introducing a strong national renewable energy goal.
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