The Heritage Foundation assembled a panel of experts to talk about the Wind Energy Tax Credit, which is scheduled to expire at the end of this year. Participating in the discussion were Dr. Jonathan A. Lesser of Continental Economics, David C. Brown, Senior Vice President Exelon Corporation, and Dr. David W. Kreutzer of the Heritage Foundation. Part of the wide ranging discussion included the financial and economic implications of the tax credit in its current form as well the efficiency and science of wind energy. The panel agreed that the wind energy tax credit should expire but also that there is a future for wind energy in the market place.
Top Myths Surrounding Wind Energy Subsidies as told by Dr. David Kreutzer
Myth: Need to subsidize wind to stay competitive with international countries
Fact: Germany and Spain, the so-called models of wind energy, have cut their wind subsidies because of cost and because they had trouble integrating it as renewable power.
Myth: Stimulates Economy and Creates Jobs
Fact: You don’t subsidize something whose economic output is less than the value of its input. If the output is greater than the input, you don’t need to subsidize it.
Myth: Running Out of Fossil Fuels and Need Energy Security
Fact: Oil and Electricity are not related in the United States. Wind generates electricity but doesn’t substitute for petroleum. The United States is not running out of fossil fuels
Myth: Wind Energy is Cheap
Fact: If wind is so competitive you don’t need to subsidize it.
Myth: Businesses Need Certainty
Fact: The subsidy ends on December 31st, 2012.
Heritage Panel Discussion Video: http://www.heritage.org/events/2012/11/wind