What Higher Energy Prices Mean to A Prosperous Economy

Many people who do not consider that rapid climate change is a threat  argue that those measures taken to prevent or slow down rapid climate change are damaging to our economy, because they would make renewable energy more expensive and add a burden of cost to our economy.

I have never understood why this argument is accepted. Energy cost is just one constituent part of a complex modern economy. If energy costs are made ridiculously high that could paralyse a great deal of economic activity, but subsidising renewable energy does not increase energy costs that the subsidies we have seen in place for decades that have been given to fossil fuel burning production of energy and the nuclear energy industry.

Economists may claim that i am writing nonsense and I am anxious to avoid giving the impression of writing nonsense so I shall agree that energy costs are increased by all subsidies whether the obvious subsidies that are given to the renewable energy industry or the more discrete but just as large subsidies given to the fossil fuel and nuclear energy industries., particularly the latter, which has provided about a quarter of our electricity over the past few decades.

In the European Union the most successful economy over the past ten years has been Germany. Even the most patriotic Briton would admit that.  In the past ten years Germany has by means of subsidy from taxpayers significantly increased its renewable energy, either on a per capita comparison or on a production comparison with the United Kingdom. Over the past decade Germany has had energy prices in terms of kWh that are significantly higher than those that apply in the United Kingdom. Germany has improved its economy while increasing energy costs.

So perhaps those that argue that higher energy prices would damage our British economy should look to Germany where higher energy prices have not damaged the German economy, which has prospered, relative to the British economy.

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