Should the Government invest in green energy? essay sample
Posted on June 26, 2017
Renewable energy is developing rapidly, and environmentalists expect that one day it will be able to compete with fossil fuels. Today, the overall investment in the renewable energy has visibly increased. Most investors come from the private sector as they are more likely to benefit from developing renewables than governments and public sector. Obviously, green energy is still a new industry which needs more investment to be competitive on the global market and survive in market economies, but who is supposed to give a push to this useful invention?
The Obama Administration is well-known for subsidizing green energy projects and initiatives. Grants and tax reductions have accelerated the activity of solar power businesses for a while, nevertheless, the Taxpayers Protection Alliance has recently reported that a generous governmental support created an artificial demand on the market and led to the waste of taxpayers’ money. Some companies supported by the government went bankrupt and left the country with nothing.
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To enhance the controversy around the investment in green energy, analysts provide the evidence that green business is not safe for private investors. The companies do not perform good enough to enrich their investors and are especially endangered to bankruptcy. Which is more, governmental incentives on supporting green energy are about to disappear which reduces the investors’ income even further.
Under the conditions of the market economy, all participants need to make sure that their business does bring income. The federal government is not a charity fund as well. Nevertheless, green energy is essential to sustainable social development. As long as the government provides backing for some social projects in the health care and other branches, manufacturers of solar and wind power shall receive some incentives too.
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