Theory vs Reality

As I wrote before, solar power doesn't seem to be working out so well in Germany. And it looks like wind power isn't all it's cracked up to be in Denmark either:

Today, it is often remarked that Denmark is providing every third terrestrial wind turbine in the world, creating billions in income and jobs

A few years ago, however, the Danish Economic Council conducted a full evaluation of the wind turbine industry, taking into account not only its beneficial effects on jobs and production, but also the subsidies that it receives. The net effect for Denmark was found to be a small cost, not benefit.

Not surprisingly, the leading Danish wind producer is today urging strong action on climate change that would imply even more sales of wind turbines. The company sponsors the "Planet in Peril" show on CNN, which helps galvanize public pressure for action.

The crucial point is that many green technologies are not cost-effective, at least not yet. If they were, we wouldn't need to subsidize them.

This last point should be obvious, but it isn't. Remember, when we undertake activities that are a net cost we make ourselves poorer.

Maybe it's just me, but it seems wise to heed the lessons of Denmark and Germany and their respective experiences with alternative energy before we go ahead and turn the U.S. economy upside down.