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Tuesday, January 05, 2016

'The Conservative Case for Solar Subsidies'

Ben Ho, a member of the Council of Economic Advisers under George W. Bush:

The Conservative Case for Solar Subsidies: To many skeptics, particularly on the right, the spectacular failure of the solar-panel manufacturer Solyndra ... demonstrated the industry’s shaky future and the danger of government efforts to subsidize it to success.
Fast forward to today. Solar energy prices have continued to fall rapidly, twice as many Americans work in the solar industry as in coal mining, and last year one-third of new electricity generation came from solar power. ...
Conservatives ... need to take another look at solar. The case for solar isn’t limited to prices and jobs. Consumers want choice..., electricity is still one of the few areas where we have virtually no choice over our supplier. ...
Solar also solves an efficiency challenge..., demand peaks during the daytime... To meet demand, we have invested in a great deal of spare capacity. ... Fortunately, we need energy most during the daytime — making rooftop solar a smart choice...
And there’s nothing in free-market economic theory that precludes government support. Markets tend to underproduce what economists call positive externalities... Solar panels ... are replete with such benefits...
The kerfuffle over the Solyndra collapse aside, many conservatives already agree, and have for years. When I was at the Council of Economic Advisers under President George W. Bush, we believed that an across-the-board energy policy was by far the best approach — and that included solar. From both a market and an environmental point of view, supporting the solar industry should make sense, no matter which side of the aisle you come from.

    Posted by on Tuesday, January 5, 2016 at 09:03 AM in Economics, Environment, Politics | Permalink  Comments (56)


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