The “green revolution” is creating fiscal issues in Germany, which is looking for ways to reign in over $1.34 trillion in “green” energy reform expenses.
Meanwhile, the Bulgarian government resigned this week over protests about high electricity prices.
Undaunted, new Secretary of State John Kerry says that combating global warming is a key priority for the State Department.
As the Weekly Standard notes, Kerry recently championed green energy in a speech:
"We as a nation must have the foresight and courage to make the investments necessary to safeguard the most sacred trust we keep for our children and grandchildren: an environment not ravaged by rising seas, deadly superstorms, devastating droughts, and the other hallmarks of a dramatically changing climate," said Kerry, according to prepared remarks.
Does Kerry not recognize that these “investments” come with major fiscal and economic costs? Since energy prices impact the whole economy, regulations and policies that favor more expensive, “green” energy producers hurt job creation, innovation, manufacturing, and, subsequently, tax revenue. Kerry went on:
"And let’s face it – we are all in this one together. No nation can stand alone. We share nothing so completely as our planet. When we work with others – large and small – to develop and deploy the clean technologies that will power a new world, we’re also helping create new markets and new opportunities for America’s second-to-none innovators and entrepreneurs to succeed in the next great revolution."
Kerry should at least recognize this speech is ill timed, when European households and governments are confronting rising energy costs. And European countries are not the only ones dealing with increasing electricity costs.
New England’s electricity prices are four to eight times higher than normal for two reasons: one, there is greater demand for energy right now during a colder season, and two, New England relies excessively on one electricity source – natural gas.
You see, the administration’s efforts to “kill coal” are working, and it is virtually impossible to start a coal plant. This has created an overreliance on natural gas, and, according to the New York Times, “a vulnerability heightened by a shortage of natural gas pipeline capacity.“ One expert claims New England’s energy prices could raise 10 percent next year, and some experts fear this same reliance will spread to the Midwest.
International distortion of energy markets is the wrong direction. Instead, we must focus on freeing up energy markets to meet electricity demand.
But is the State Department the right place to set energy policies?