Thursday, May 26, 2011

Understanding the Cost of Energy

Chris de Morsella, writing for The Green Economy Post:
When I hear anyone mention that nuclear or coal electricity is cheap they are ignoring the catastrophic potential costs that are associated with each of these energy systems. Just because our society chooses to try to ignore these costs and to sweep them under the carpet does not mean that they go away and cease to be a factor in reality. ... These costs should be factored into the price of this energy. ... Why can the nuclear sector as well as the coal, oil and gas sectors offload these costs onto our backs and force us to bear them while they continue to pocket the products from their artificially less expensive energy products? Shouldn’t the producer pay the true cost of the product that they produce?

It frustrates me to see such an important viewpoint argued pretty poorly. The article reads like a stream-of-consciousness high school essay. Nevertheless, Chris is exactly right. The answer to a more sustainable energy economy is not for government to pick winners and losers or to set up artificial incentives and barriers. The answer is for each industry to pay its own way. Their customers will choose among them based on their respective costs.

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