Could Energy Innovation Create A 'Green Bubble'?

[steven johnson]

Economic bubbles as a rule lay a useful econmic framework for future infrastructure, whether you're talkkng about tulips or dot-coms. In the bursting, though, unsustainable entities collapse along with their investors capital. Will green energy follow the mania-burst bubble-useful remenants cycle?

One argument for a major overhaul of the U.S. electricity grid is to encourage the development of more renewable sources of energy, such as wind and solar. President Obama certainly has gotten behind green energy, and his administration is part of a concerted effort to help the industry grow.

In the wake of the housing bubble, that has some asking whether the country is headed for a renewable energy bubble.

He says bubbles start with a kernel of something good — say, homeownership or the development of the Internet or, in this case, energy that causes less pollution. But then, he says, outside forces come in and create a sort of mania.

But first, he says, a few things have to happen. There must be significant government involvement designed to focus energy and capital on the specific industry — and clearly that's already happening.

"To really make these things go, you need a new source of credit," he says.


http://www.npr.org/templates/story/story.php?storyId=103631430

[pscot]

1. It already has

http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1235791507280380.xml&coll=7

Pacific Ethanol said Friday that it is temporarily closing down its ethanol plants in Burley, Idaho, and Stockton, Calif., leaving only a partially owned plant in Colorado and its Boardman plant along the Columbia River to produce the corn-based fuel.

The Sacramento-based company, the West Coast's largest ethanol producer, also suspended operations at its Madera, Calif., plant in January.

The down economy, lower prices for petroleum gasoline, and a tighter spread between ethanol and corn prices have all hit ethanol hard, though mandates for ethanol content in gasoline still help the industry.


http://www.examiner.com/r-9908337~Nebraska_Ethanol_Plant_Closes.html

A southwest Nebraska ethanol plant has shut down, leaving about 20 people without jobs. Mid-America Agri Products closed the Cambridge plant in January due to unfavorable economic conditions in the ethanol industry

[NYC_SKP]

2. That was more of a burp. Ethanol dependent upon food crops was never a green industry.

So I consider this an example of an experiment that failed.

And, muddying the situation was the combination of so many other factors such as crop subsidies and regulatory shenanigans.

True sustainable green sector endeavors will thrive over time.

Proven examples include efficient lighting technologies, insulated windows, the renaissance (slow in coming) of passive solar design, etc.

:patriot: