3 ms·
So energy in Spain is cheap because they produce a lot but can't sell a lot easily, and Austria/Central Europe is expensive because they sell their domestic ene
by joe_mamba 6mo ago
So energy in Spain is cheap because they produce a lot but can't sell a lot easily, and Austria/Central Europe is expensive because they sell their domestic energy too easily?
If this is what you meant, then it sounds like an argument against free trade, if it means you keep ending up with the short stick.
- ZeroGravitas 6mo agoEconomists would say that the money coming in outweighs the higher costs and therefore you could redistribute that money and everyone comes out ahead. Whether that happens in real life is a different question.
- joe_mamba 6mo ago>Economists would say that the money coming in Does that money go directly into my pocket so I can afford the more expensive energy? Or does it go into the pocket of private energy companies? Because I feel like there's some faults with this "free market", which is mostly just socializing losses and privatizing profits.
- HPsquared 6mo agoAnd what if the energy companies are owned by foreign investors?
- joe_mamba 6mo agoThat would be economic colonialism with extra steps. But for the end user, whether you're being ripped off by a local or a foreign energy oligarch, it doesn't really matter, people just want to pay less.
- HPsquared 6mo agoFree trade doesn't always benefit everyone equally, only a net benefit overall. It's a bit like how people often misinterpret the second law of thermodynamics "but the entropy decreased when the ice froze!"
- joe_mamba 6mo ago>Free trade doesn't always benefit everyone equally, only a net benefit overall. Yeah but everyone has an equal right to vote. If they don;'t benefit, why would they agree to get screwed for the "net benefit" of others?
- ViewTrick1002 6mo agoElectricity is expensive in Central Europe because the ETS system (carbon trading) has made fossil based production expensive. We’re right in the middle of the transition with maximum volatility swinging between extremely cheap renewables and expensive fossil plants.
- MakersF 6mo agoI checked and it looks like ETS are increasing prices of gas produced electricity 20-30€/MWh. So not little (although peaks are around 140€/MWh). But these are taxes that can be used to reduce the reliance on gas (actually, it's mandatory to use them for transition projects).