Sandy asks…
Are deniers increasing the future price of energy by limiting investment in alternative energy companies?
Do deniers invest in alternative energy at the same rate as AGW realists? Would there be more alternative energy companies and more competition if deniers invested in alternative energy at a higher rate? On a strictly financial basis, is AGW denial a net benefit to shareholders of existing alternative energy companies?
Less supply and less competition means higher prices. Alternative energy companies benefit as much from higher prices as fossil fuel companies do.
I am interested in personal preferences, not government policies. I agree with Conservative that subsidies for production distort the market.
The Expert answers:
Are deniers increasing the future price of energy by limiting investment in alternative energy companies?
Yes! British companies like Pelamis and Wavegen have been a success despite rather than because of the current investment climate. Both are backed by venture capital from Triodos Bank, an ethical bank based in de Nederlands, and both are making a good profit now, although Pelamis had to go to Portugal for their first big contract. It winds me up, we invent stuff and other people get the benefit.
Do deniers invest in alternative energy at the same rate as AGW realists?
Nope, but luckily the people that really run things are not deniers.
Http://www.ft.com/cms/s/2/0b1fa95c-1d5e-11df-b12e-00144feab49a.html
On a strictly financial basis, is AGW denial a net benefit to shareholders of existing alternative energy companies?
No! They are loosing out, and many sussed CEO’s are starting to realise it.
Http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=52512&cat=30&IdSection=30&PageMem=&nbNews=&IdPub=192
And consider alternative strategies for established companies.
I heard on the radio tonight that Drax, the largest coal fired power station in Britain, is co-firing with biomass, but at a loss, because of the balance of the various grants. They have no incentive to switch to a higher proportion of biomass, which would be both more eco-friendly and give a better burn (the saving on abatement nowhere near covers the extra cost of the biofuels at the moment).
Jim, I gave you a thumbs up for ‘littlerobberbaron’. I just love it! I might start using it.
Seriously considering unblocking you for that…. Or maybe not.
Daniel asks…
Need list of alternative energy companies for investments?
I am looking for alternative energy companies for future investments; hydrogen fuel cells, battery, solar, wind, etc.
The Expert answers:
A list won´t help you a lot…
You mentioned hydrogen fuel cells… That is still very far away from real competitive applications.
I think you do not only need a list but experts to advise you in which concepts to invest.
Most companies are listed in London at the AIM (alternative Investment Market)
Paul asks…
Any links to Alternative Energy companies?
Are there any good links that have a directory of alternative energy companies? I know there are many emerging companies across America but are there any sites that have have alot of companies that promote the shift to a green collar economy?
The Expert answers:
Go to the link. It’s several hundred manufacturers and suppliers.
Links to Alternative Energy Web Sites
Updated: November 21, 2007
Laura asks…
Where can I find a website that give me information about alternative energy companies?
I am looking for any website which will give me information about companies who are doing well in alternative enery, and who will play a big part in our lives in the future. Please list some companies.
The Expert answers:
There is a magazine called Mother Earth News. Www.motherearthnews.com/Alternative-Energy/2005-06-01/Simpler-Solar-Power.aspx
I hope this helps
Mandy asks…
What’s the reason to subsidize alternative energy companies?
I’m not asking about raw research that occurs at universities – like discovering totally new technologies.
I’m wondering if there are any good reasons to subsidize existing solar, nuclear, wind, etc power companies. By reducing the price of nuclear power below the market equilibrium, people consume more nuclear power than they otherwise would, so there’s a deadweight loss.
If you just want to discourage gas consumption, wouldn’t a gas/petroleum tax be more efficient? That way private firms can optimally choose between other options.
The Expert answers:
Your question is essentially one that should be taken up as a question of economics and not the nuts and bolts of “alternate fuel vehicles.”
There are several reasons. One already mentioned is that most energy companies already get subsidies. But these are larger than the obvious grants and discounts, (credits on taxes.) In economics there is a concept of “externalities.” 1 Polution is cited as a prime example of an externality. It is part of the manufacturing/refining process but the cost of polution is not figured into the end product. (health issues, the costs of clean ups and filtration.) When I go out and buy an air filter I am to some extent paying for someone’s polution. The water treatment plant is a cost that taxpayers bear for polution that has been done upstream.
To the extent that some alternative energy options do not produce externalities they are being asked to compete against an unfair advantage. Subsidies attempt to level the playing field.
There is another aspect as well. To the extent that alternative energy development is a social benefit it may be something that we should socially promote ie: subsidies.
Last, any new company will have difficulties competing with an existing company where economies of scale, and product identification 2 are already in place.
Sometimes it is difficult to put a number on some of these costs/benefits. The alternative may be to start taxing companies for the polution that they produce and eliminating any subsidies that they currently get. Undoubtedly someone would complain when an existing benefit is taken away. Business as usual is hard to change.
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