Can clean energy be achieved without mandates and incentives?
Unfortunately, there’s very little evidence that cleaner energy technology will take hold without mandates and incentives. Suppliers and consumers are comfortable with the status-quo of fossil fuel dependency when the alternative would mean a large upfront cost. The near-sighted vision prevails that places more importance on next quarter’s bottom line over long-term cost savings with an investment in more efficient operations and energy choice.
Where the true cost of energy is factored in, including environmental impacts, then there is progress. Slapping fines on emissions or taxing high-emission fuels provides the necessary incentive to make better choices for the long term.
It’s hard to fathom how the U.S. Chamber of Commerce can make claims that mandates and incentives “distort the market,” when they provide an across-the-board incentive for more efficient operations and provide real business opportunity for countless suppliers and service companies. When all companies share the burden, then the move to more efficient operations stands to stimulate the markets while driving down operations cost.
It’s the nature of shared burdens that makes good business sense here, as no one company or region is singled out with higher burdens, thus evening the playing field for all to make the necessary changes. In businesses where change would harm operations, they can choose to pay fines or transfer their impact through such mechanisms as cap and trade. The choice is up to the business, with options that stand to benefit all.
While in the U.S. the states have set standards for a certain percentage of renewable energy by a specific date (20% by 2020 in Colorado where I live), it makes the most sense to have a national standard. The push for energy companies to buy energy from consumers greatly stimulates the local market with solar and wind installers working with home owners and driving down the cost of these alternatives due the increasing demand.
Mandates and incentives on energy have far-reaching positive impacts — mitigating global warming, saving individuals and corporations money by reducing energy costs, and increasing global security by reducing the reliance on foreign oil. Let’s bring on more mandates and incentives for quicker green rewards.



