Gresham's Law Of Green Energy: High-Cost Subsidized Renewable Resources Destroy Jobs And Hurt Consumers

from The Heritage Foundation:


Natural Resources, Environment, and Science

Gresham’s Law of Green Energy: High-cost Subsidized Renewable Resources Destroy Jobs and Hurt Consumers

by Jonathan A. Lesser

Cato Institute

December 13, 2010

Regulation

While the U. S. economy continues to struggle, politicians, green energy advocates, and energy regulators have adopted a “green jobs” mantra. They espouse the view that policies mandating renewable resources will provide not only environmental benefits, but economic salvation as well. Industries that require never ending subsidies simply cannot increase overall economic welfare. To conclude otherwise is to believe in “free-lunch” economics of the worst kind. Yet, free lunch economics are driving the push for renewable energy.



URL: www.cato.org/pubs/regulation/regv33n4/regv33n4-3.pdf