I couldn't resist sharing this post to see what others think. Apparently on of the <a href= http://www.slate.com/articles/business/moneybox/2014/10/renewable_energy_projects_the_private_sector_not_the_government_is_funding.html>most ambitious</a> wind energy projects in history is going to be privately funded without any sort of government loan program and little expectation of continuing tax breaks on the federal or state level.
This is a good example of how renewable energy can start out as a project needing public subsidies, but then once it takes advantage of better technology and economies of scale, become an efficiently private venture. Then again, can we take public pride in a great infrastructure project that's completely privatized? It's worth remembering the truth of that great 2012 campaign line, "you didn't build that" even as publicly funded projects move into the private sector.
Also I think that the public will still take pride in projects even if they are privatized. Many people have a sense of belonging to the city where they are from and would still be willing to boast about living in a renewable energy city, even if it was a private project. Often times when people gloat over where they are from it is over what the city has achieved and not necessarily "I paid taxes that funded this project."
ReplyDeleteThe first part of my comment got cut off but it should have read:
ReplyDeleteI think this article does a great job of showing how the renewable energy market has evolved over time. I think this is a direct cause of the increased consumer suport which has allowed corporations to supply larger and larger projects such as the wind farms. This is important because it will lead to a reduction in coal and natural gas production and help to limit the negative externalities associated with the production and use of these forms of energy.
I agree with Scott that the public can still take pride in a private venture. This project would also be a breakthrough project regarding private renewable energy ventures. Technology is advancing at a rapid pace, allowing renewable energy ventures to start becoming profitable. If this project is successful many more private investors and firms will want to take advantage of renewable energy, leading to a reduction in our carbon footprint, while simultaneously transitioning us away from fossil fuel dependency.
ReplyDeleteI agree with you all that people would still be proud of the projects if they would built by private companies. However, I think that is necessary to mention that the companies hired to build must be American companies. No one will be proud of having something in their city that was built by foreigners. I also think that if the companies hired were local companies or at least nearby companies, that would help the pride factor immensely.
ReplyDeleteI think as the wealth and income distributions become more skewed, the role of government in providing large capital-intense infrastructure projects will wane. That leaves two primary roles for government: national defense and regulation. The problem with private provision of infrastructure goes back to the fact that most people are unhappy with the location or characteristics of the "public good." If provided privately, it is hard for the public to have a voice.
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