Governments are pulling on Green Energy Support
Feb 1st, 2011
Thanks to the recession, it appears that the wonderful “green world” of incentives is vanishing. Indeed, this occurs to many other government-created artificial heavens. The reason is, of course, the Recession. The one that was declared finished by many politicians a while ago, but mind you, not by us!
Spanish and Germans governments are indeed withdrawing their “green” incentives, together with the French. British might have to do it as well. Because European austerity is rolling back subsidies for renewable energy in a late attempt to bring back some sanity to the scene.
But in the mean time, photo-voltaic fields already smear Europe. Not the prettiest view indeed. Indeed many are starting to find wind turbines ugly, and they are, noisy as they can be. Another perception is they are damaging (sliced birds for dinner anyone?) and visually killing a lot of beautiful landscapes. Have you been to Tuscany as of late? Or have you seen some Alpine slopes punctuated by cute chalets overloaded with solar panels that seem the design of a three years old child?
The renewable energy and clean-tech bubble, like all the prior bubbles’ crises, will leave a trail of eco-monsters. In addition, bruised investors, and jobless people will complete the consequences. Nothing very different from any other bubble, but what leaves a bad after-taste is that it did not have to end that way.
It is paramount to think before acting, with a clear and transparent approach including risks and other non deterministic factor, to enhance the survivability and return on investment just as we wrote in the recently published post on Decision Making
To conclude, as we wrote some times ago, we need to keep a level head when confronted to highly incentivated areas such as “going green”.
The instruments to keep a level head exist and do work. An Example can be found here.
Tagged with: bubble, clean-tech, cleantech, crisis, decision making, holistic, incentives, risk, risk based decision making
Category: Risk analysis, Risk management