To Subsidize or Not To Subsidize?

 Climate Change: it's all the rage these days. Despite years of debate over it's existence, I think that this years overactive hurricane says a lot about how threatening it actually is. Over three-hundred fatalities were reported this year as a direct result of hurricanes, with billions of dollars (or more) in damage. So, what are we going to do about it?


These days, there many options for the production of energy. Coal, which has been widely used all across the world for centuries, is cheap and abundant, but emits large amounts of sulfur and nitrous oxides into the air. It is dangerous to mine, and it contaminates groundwater. Also commonly used is natural gas, which is essentially a byproduct of crude oil. It is clean-burning, abundant, accessible and affordable, but it is also highly combustible, and the hydraulic fracturing which produces it is dangerous to the environment, releasing methane and contaminating groundwater. (Fracking has also been accused of causing earthquakes, but we will save that for a different blog.) Hydrogen has also been found to be an alternative, and the only emissions it produces are water and heat. But, it is extremely explosive at room temperature, making it dangerous to distribute and store.

Renewable forms of energy are also on the rise, and are becoming more and more affordable. Solar fields are becoming more common, and produce no emissions, or noise. The sun is an infinite source of energy, but only produces during the day. Although it is infinite, it is only able to be used in some places. It just wouldn't make sense to put a solar farm in Seattle, where it's cloudy most of the time. Hydroelectric energy is also a great source of renewable energy, but it also has it's drawbacks. The production of dams is expensive, threatens aquatic ecosystems, and what if there's a drought? Is it worth it to use this renewable, reliable, and green form of energy production? Wind farms are also appearing across the country. Wind energy is an infinite, clean source of energy, but requires a certain amount of wind to keep going. Not only that, windmills are extremely expensive, however, expenses are somewhat offset by subsidies. Some people are concerned about collisions with birds, but this is actually a very rare occurrence.

So it would seem, with renewable energy, there is a time and a place for each specific type.

There is a great debate over whether or not to subsidize renewable energy resources. Personally, I think it's a great idea. Fossil fuels are subsidized so why not renewable energy? Subsidizing renewable energy production has many benefits. Not only does it encourage people to explore the possibilities of renewable energy resources, subsidizing also allows the industry itself to be more innovative. With subsidies, more people would implement the use of wind, solar, and hydro power, increasing competition within the renewable industry, which could theoretically drive down the price over time. With this incentive, more individuals and companies are more likely to explore their renewable energy options.

When choosing a subsidy rate, there are a number of factors to consider. Of course, it is important to think about who and what this subsidy is going to be assisting. Does this individual or business make enough money that they don't require a subsidy? Will providing too large a subsidy halt innovation? Will it be wasteful to spend this money on renewable energy resources when it would be better spent somewhere else? Exactly how much is enough? How much is too much? Sometimes, it may take some trial and error to calculate the best subsidy rate.

Currently, in the United States, wind and solar receive the more subsidies than any other renewable energy source. There is one source that I believe is overlooked. Geothermal energy. While the use of geothermal energy is, in fact, increasing, it's one source of energy that is abundant and accessible to everyone. Geothermal heat can be used for a great variety of purposes, and as long as the core of the Earth continues to radiate heat, it's an infinite source of energy. What's not to love?

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