America’s energy policy is to reduce U.S. dependency on fossil fuels, and to promote an “all the above” approach with “green” renewable energy. Under the Obama Administration, green renewable energies would include “clean coal,” solar, wind, geothermal, biogas, biomass, and low-impact small hydroelectric (dams) sources.
Obama-favored renewable energy sources such as wind, solar and other unproven alternatives have received the lion's share of deficit-growing federal government subsidies while traditional petroleum, hydro-power, coal and nuclear sources that reliably provide 95% of American energy have been demonized by his administration.
World green energy investments are down 22% to the lowest level in four years. The $40.6 billion invested in green energy in the first three months of 2013 is the lowest invested since 2009.
These global declines in green energy investment have put downward pressure on wind and solar power manufacturers were prices have plunged due to increased competition and excess production capacity.
In the U.S., renewable energy investments fell by 54%. Europe’s renewable energy investments have fallen by 25% this year. Moreover, U.S. wind energy has stalled due to delayed extension of Obama’s Production Tax Credit – the primary government subsidy for renewable energy manufacturers. (Bloomberg, April 14, 2013)
The lesson consistently ignored by progressive green governments is that their vote-buying subsidies for unproven renewable energy sources ultimately must be proofed in the crucible of commercial capital markets. Cynical government subsidies in the areas of housing, interest rates, college loans, political nonprofits, ethanol, electric cars and other gratuitous green fetishes only cause distortions of capital markets, and ultimate business failures at taxpayer expense.
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