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The subsidy tease, part IIIA solar grand planPosted by Joseph Romm (Guest Contributor) at 3:14 PM on 15 Feb 2008This post is by ClimateProgress guest blogger Bill Becker, executive director of the Presidential Climate Action Project. -----
U.S. carbon emissions would be reduced 62 percent from their 2005 levels. Some 600 coal and gas-fired power plants would be displaced. The federal investment would be $400 billion over the next 40 years ($10 billion a year) to deploy renewable technologies and suitable transmission infrastructure. If that future seems too good to be true, then look at two other studies during the past 13 months that have reached similar conclusions: one sponsored by the American Solar Energy Society (PDF), the other by the Nuclear Policy Research Institute and the Institute for Energy and Environmental Research. All three concur that energy efficiency and renewable energy technologies can satisfy the nation's demand for power without additional nuclear or fossil-fueled power plants. If $400 billion seems unaffordable, consider: It's less money than the federal government already has spent on the Iraq war, only a third of the $1.2 trillion that some experts now predict the war will cost, and only a sixth of the federal government's current annual subsidies for fossil and nuclear energy. And if a Solar Grand Plan seems politically implausible, read the newspaper. Last November, the Intergovernmental Panel on Climate Change said we have until 2020 to make major changes in greenhouse-gas emissions. Two weeks ago, the chief executive of Royal Dutch Shell told his staff that world oil demand will outpace supply within seven years. That means rapidly rising oil prices, more recession (the last five recessions in the U.S. were preceded by high oil prices), more power for oil-producing nations like Iran and Russia, and more likelihood of international conflicts. The more practical -- and certainly the more survivable -- of these two futures is the Solar Grand Plan, an aggressive national effort to rebuild the economy on a foundation of efficiency and sustainable energy supplies. To get to that future, national energy and climate policy must have a few key ingredients. First, as I argued in the first two parts of this series, we need sensible federal incentives to overcome the array of market imperfections that stand in the way of energy security. Those incentives must be large enough and sustained enough to allow renewable energy industries to become viable and to allow beneficiaries to use them. Second, the industries need a substantial, assured market to spur investment. A national Renewable Energy Portfolio Standard would help, along with firm commitments by federal, state, and local governments to purchase solar collectors, wind turbines, plug-in hybrid vehicles, energy efficient equipment, and so on. Third, the federal government must stop subsidizing the energy technologies that are causing climate change and economic instability -- coal, oil, and gas. They are mature industries that can and should stand on their own two feet. Instead, they received nearly $50 billion in federal support in 2006, according to subsidy expert Doug Koplow (PDF). As a result, global warming remains a tax-supported enterprise in the United States even though, thanks to the work of the world's scientists, we should know better. As for the nuclear power industry, it receives about $9 billion in taxpayer subsidies each year, according to Koplow. Taxpayers have been subsidizing it since 1948. The industry still hasn't figured out how to permanently store its wastes, protect its plants from terrorists, guard effectively against nonproliferation or compete in the marketplace without help. How do we turn federal subsidies from pork into tools of good public policy -- public policy, in other words, that truly enhances the security, prosperity and opportunity available to the American people?
As we all know, the American people face several urgent issues without a lot of money to address them. Climate change and energy security are among them and are connected with many others, including health care costs and defense spending. We need to invest in our future far more carefully than we are doing today. We need to stop paying one another to destabilize the atmosphere. This post was created for ClimateProgress.org, a project of the Center for American Progress Action Fund.
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