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Your point is that regulation is needed for people to make decisions that will save them more money. Basic econ/finance will tell you this isn't how the world w
by common_sense123 8y ago
Your point is that regulation is needed for people to make decisions that will save them more money. Basic econ/finance will tell you this isn't how the world works.
- dragonwriter 8y agoWell, the simplified Econ 101 models (which might be described as “basic econ”) will tell you that, but actual studies of human behavior will tell you those models don't represent reality in broad swathes of real economic activity.
- common_sense123 8y agoCan you link some studies that prove people in broad swathes of the economy need to be forced to make profitable decisions on an individual case-by-case basis?
- floatrock 8y agohttps://en.wikipedia.org/wiki/Behavioral_economics https://en.wikipedia.org/wiki/Behavioral_economics
- common_sense123 8y agoI've studied behavioral economics. Not what I asked for
- Dylan16807 8y agoIf you can't get a mortgage for your solar installation, all the basic econ in the world won't help you pay the upfront cost. Bundling it into construction fixes that gap.
- common_sense123 8y agoIf it were cheaper to pay back the principal and interest on your solar installation than continue paying your present electricity costs, then it would be profitable to take out the loan and you'd do it. Lenders would be willing to make this loan... they'd make money here versus utility companies. "Bundling it into construction" as in whoever builds the house pays the upfront cost of the solar installation? This would inevitably pass the cost on through increasing the value of the home. So homes in CA will be harder to afford and mortgages will carry larger payments. Sure electricity costs will go down some amount to marginally offset the increased mortgage payment. But to definitively claim they will go down _more_ than mortgage payments rise is a ridiculous claim in my opinion because implicit in that claim is the assumption that everyone is missing out on this way to save money and needs the government to impose this mandate for them to realize it.
- Dylan16807 8y ago> Lenders would be willing to make this loan I think that is an unfounded assumption. It's hard to get an extra loan on top of a mortgage, even if you have a very good use for it. That's why passing the cost on through is not a neutral effect, but a helpful one.
- common_sense123 8y agoYour argument is unfounded. There are plenty of solar power lenders willing to finance such purchases. Saying that passing the cost through a single larger loan makes it significantly easier to swallow is completely illogical and implies people don't like making/saving money.