Alternative Energy Funding Drying Up
The New York Times reports that a casualty of lower oil and gas prices: interest in funding renewable energy projects. Among the Times’ laundry list of programs hurting for money: Tesla (duh), corn ethanol (hooray), other biofuels, and wind and solar power. The financial troubles are the consequence of a pretty simple financial concept – that there’s only so much money to go around. And we hear there’s a credit crunch in progress. So with gas and oil coming down in price, renewable energy isn’t where opportunistic investors want to be risking their somewhat-limited resources. The depressing part of the story is this all-too-obvious observation from Times writer Clifford Kraus:
In the 1970s, just as in recent years, high prices for fossil fuels led to rising interest in renewables … Advocates are concerned that if the prices for oil and gas keep falling, the incentive for utilities and consumers to buy expensive renewable energy will shrink. That is what happened in the 1980s when a decade of advances for alternative energy collapsed amid falling prices for conventional fuels.
Immensely bored law student. I've also got 3 dogs.
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