Davey says, however, that there are huge opportunities for the British economy from investment in low-carbon energy infrastructure projects, including wind and solar energy, carbon capture storage and new nuclear power, all of which make up a large part of projected spending of £118bn in the sector over the next decade. Last year alone £12.7bn was invested in this country by the renewable energy industry, creating 20,000 jobs.
Davey says he fears these opportunities will be lost if the pre-election consensus on climate change and green policies continues to be questioned. \”If there is not seen to be that consensus investors are going to balk. When you hear all that noise on the right of politics that worries investors. They think, \’Well if I am going to put all this money in – it is a 30-year investment – I need to know that if the government changes we are not going to have some rightwing Tea Party tendency taking over.\’ \”
You can spray money around all you like, government has never been shy of doing that.
But the important thing is \”what are you investing in?\” not \”how much are you investing?\”*
And by definition what you are trying to get people to invest in is a very bad idea indeed. No, not particularly green stuff, some of that\’s just great. No, the definition is that in order to get people to stick the cash in you\’re having to rig the market. You\’re having to insist that investors get to rook consumers.
And that\’s not something that\’s sustainable. Even the proles wake up sometimes. That\’s why it is, by definition, a bad investment. One\’s that depend upon government screwing people always are.
You could, and should, achieve the same goal – the optimal reaction of the British economy to the threat of climate change – simply by instituting a proper, economy wide, carbon tax at $80 per tonne CO2-e.
What entirely beggars belief is that we\’ve got the sodding Liberal party refusing to support something so wonderfully both liberal and correct. Externalities: intervene once, through the price system, then leave well alone. For the market is the only method we actually have of calculating how the market should react.
* Please leave the short term Keynes stuff out of this.