Subsidising Global Warming

We hear much about the large subsidies paid for renewable energy. In Many countries a feed in tariff system have been developed to subsidise the production of electricity from photovoltaic panels and large subsidies are paid to landowners and electricity generators who install wind turbines. Both PV and wind turbines do produce electricity but what they produce cannot be stored easily and the production is intermittent. Nevertheless governments, who regard energy as electricity, are happy to spend taxpayers’ money on these measures, rather than on measures, such as solar water heating, which can produce renewable heat at a cheap cost; unlike electricity heat can be stored.

Subsidies come in different guises. In essence any measure or favourable tax treatment which distorts the market or provides an un-level playing field is a subsidy. The Overseas Development Institute thinks that as a whole the governments of the world spend half a trillion dollars in subsidising…fossil fuel! Continue reading