Quite

Let the drilling companies try extracting shale gas. If they fail, that’s their look-out. If they succeed, we will all benefit, because the price of energy will come down. In America they have driven down the cost so far that many shale gas companies are in trouble – too successful for their own good. The same thing happened with railways in the 1840s – most entrepreneurs went bust, but the travelling public got a railway system. As Joseph Schumpeter explained, that is how the market works – the consumer gets most of the benefit of innovation, not the producer.

We really don\’t care how well the producer does. It\’s the effect on the consumer that matters.

4 thoughts on “Quite”

  1. So Much For Subtlety

    Excellent article. But this can’t be true can it:

    Britain’s subsidised dash for renewable energy has had no such result: wind power is still making a trivial contribution to total energy use (0.4 per cent) while most renewable energy comes from wood, the highest-carbon fuel of all.

    Most renewable energy is wood and not, say, hydro-electric power?

  2. But what about the children?

    There is a slight chance that something horrible will happen if we drill for shale gas, so we should ban it indefinitely.

    …..This environmental message has been brought to you courtesy of Gazprom…..

  3. Too busy to read the news in depth at the moment.

    Any idea if the autumn statement did indeed “approve the building of 30 gas-fired power stations, simplify the regulatory process for fracking and provide tax breaks for shale gas production in Lancashire” as the article suggested?

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