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The problem is that the market price of oil an coal don't reflect the long term costs of their use. Renewable energy has all of its costs right up front. Fossi
by ebbv 12y ago
The problem is that the market price of oil an coal don't reflect the long term costs of their use.
Renewable energy has all of its costs right up front. Fossil fuels have major deferred costs which allow the market to act without concern for the consequences.
Which is yet another reason that the market is dumb and should not be trusted with important decisions.
- rwallace 12y agoAnother way to look at it is that the market is smart, but like any other information processing system, can only make the right decisions if given the right inputs. For the market to make the right decisions about energy policy, the real costs of oil and coal need to be priced in, by applying pollution taxes.