Ideal Taxes Association

Raymond Richman       -       Jesse Richman       -       Howard Richman

 Richmans' Trade and Taxes Blog

"Green" Energy Is an Economic Disaster in the Making
Raymond Richman, 4/29/2011

Increasingly, questions are being raised about the “science” of anthropogenic global warming. For all practical purposes, there is no dissent at American universities. What little there is has been and continues to be stifled. Billions of dollars of research is being funded by the U.S. government but none of it goes to any scientist who challenges the notion that man’s consumption of fossil fuels is responsible for global warming.   Some physicists have protested and a Senate committee has listed the names of a couple of hundred academicians who believe the theory to be baseless. There is a growing awareness among what is a small band of scientists that we have a lot to learn about the causes of climate change.

A novel experiment known as CLOUD, is being conducted at CERN in Geneva, Switzerland  under the direction of  Prof. Jasper Kirkby ( The CLOUD project is an attempt to ascertain whether and how cosmic rays from outer space may be affecting the earth’s climate.  It includes among its collaborators, besides CERN, such institutions as Caltech, U Frankfurt,  FMI  Helsinki, U Helsinki, U Innsbruck, UEF Kuopio, U Leeds, Ift Leipzig, U Lisbon, LPI Moscow, PSI, RAL, U Reading, INRNE Sofia, U Tampere, and U Vienna. The experiment is taking place at the CERN Proton Synchrotron and aims to study, under controlled conditions, the effects of cosmic rays on aerosol nucleation and growth, cloud droplets and ice particles. In earlier studies, Prof. Kirkby made some palaeoclimatic reconstructions which showed that the climate has frequently varied during the last 10,000 years by amounts comparable to the past century’s warming. Since man was not burning fossil fuels until the last two centuries, his studies have cast doubt on the current theory that anthropogenic greenhouse gases are responsible for global warming. 

While the world awaits the results of the CLOUD experiment, many  political leaders around the world have become aware of the enormous government subsidies required to induce production of “green energy”, its few benefits, and its negative economic effects. It requires enormous government subsidies that will have to be paid by taxpayers and/or most governments force electricity producers to pay a price far above the cost of electricity produced from fossil fuels, uranium, or hydro. It raises the price of electricity to households and business. It thus amounts to a highly regressive tax on households, makes domestic production of manufactured goods more costly and encourages outsourcing of the production of manufactured goods. 

Although his conclusions have been challenged, Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, estimates that Spain has lost 2.2 jobs on average for every job green created in its solar and wind powered electricity generating plants. A report from Scotland, reported by Jack Markowitz, former business editor of the Pittsburgh Trib-Review 4-28-2011 (Europe learns costly lessons of going green), says renewable energy causes the loss of 3.7 traditional jobs for every “green” job created.

What makes these reports believable are the costs associated with two plants, one wind and the other solar, partly financed and guaranteed by the U.S. government, each costing over $200 million and both selling electricity at prices much higher than it costs the power companies to produce electricity from fossil fuels. To make the economics worse, these plants will have only about 40 permanent employees each when finished, indicating a cost per job created of $5 million, will import a substantial percentage of parts and materials estimated at 30 percent, and impose a great burden on consumers equivalent to a highly regressive sales tax, and put factories at a competitive disadvantage. Moreover, these plants will require the expansion of new electricity networks to link them to existing networks which will have to be paid for by the users of electricity or by taxpayers.

The Netherlands recently cut subsidies to wind power by 60 percent. And Spain earlier cut its subsidies to wind and solar plants. It brought the Spanish government to the brink of bankruptcy.

Regardless of what the science of climate change eventually concludes, these so-called green plants should not have been constructed until they could be built without government subsidies.

Your Name:

Post a Comment:

  • Richmans' Blog    RSS
  • Our New Book - Balanced Trade
  • Buy Trading Away Our Future
  • Read Trading Away Our Future
  • Richmans' Commentaries
  • ITA Working Papers
  • ITA on Facebook
  • Contact Us

    Sep 2021
    May 2021
    Apr 2021
    Feb 2021
    Jan 2021
    Dec 2020
    Nov 2020
    Oct 2020
    Jul 2020
    Jun 2020
    May 2020
    Apr 2020
    Mar 2020
    Dec 2019
    Nov 2019
    Oct 2019
    Sep 2019
    Aug 2019
    Jun 2019
    May 2019
    Apr 2019
    Mar 2019
    Feb 2019
    Jan 2019
    Dec 2018
    Nov 2018
    Aug 2018
    Jul 2018
    Jun 2018
    May 2018
    Apr 2018
    Mar 2018
    Feb 2018
    Dec 2017
    Nov 2017
    Oct 2017
    Sep 2017
    Aug 2017
    Jul 2017
    Jun 2017
    May 2017
    Apr 2017
    Mar 2017
    Feb 2017
    Jan 2017
    Dec 2016
    Nov 2016
    Oct 2016
    Sep 2016
    Aug 2016
    Jul 2016
    Jun 2016
    May 2016
    Apr 2016
    Mar 2016
    Feb 2016
    Jan 2016
    Dec 2015
    Nov 2015
    Oct 2015
    Sep 2015
    Aug 2015
    Jul 2015
    Jun 2015
    May 2015
    Apr 2015
    Mar 2015
    Feb 2015
    Jan 2015
    Dec 2014
    Nov 2014
    Oct 2014
    Sep 2014
    Aug 2014
    Jul 2014
    Jun 2014
    May 2014
    Apr 2014
    Mar 2014
    Feb 2014
    Jan 2014
    Dec 2013
    Nov 2013
    Oct 2013
    Sep 2013
    Aug 2013
    Jul 2013
    Jun 2013
    May 2013
    Apr 2013
    Mar 2013
    Feb 2013
    Jan 2013
    Dec 2012
    Nov 2012
    Oct 2012
    Sep 2012
    Aug 2012
    Jul 2012
    Jun 2012
    May 2012
    Apr 2012
    Mar 2012
    Feb 2012
    Jan 2012
    Dec 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011

    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Book Reviews
    Capital Gains Taxation
    Corporate Income Tax
    Consumption Taxes
    Economy - Long Term

    Economy - Short Term
    Environmental Regulation
    Last 100 Years
    Real Estate Taxation

    Outside Links:

  • American Economic Alert
  • American Jobs Alliance
  • Angry Bear Blog
  • Economy in Crisis
  • Econbrowser
  • Emmanuel Goldstein's Blog
  • Levy Economics Institute
  • McKeever Institute
  • Michael Pettis Blog
  • Naked Capitalism
  • Natural Born Conservative
  • Science & Public Policy Inst.
  • Votersway Blog
  • Watt's Up With That


  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]