Sustainable economy 101: Lessons from Europe and Japan

[marmar]

from Grist Magazine's Gristmill blog:





Sustainable economy 101
Lessons from Europe and Japan
Posted by Jon Rynn (Guest Contributor) at 2:24 PM on 23 Jun 2008



The following article appeared in Foreign Policy in Focus, and was reposted at commondreams.org.

When New York City wanted to make the biggest purchase of subway cars in U.S. history in the late 1990s -- more than $3 billion worth -- the only companies that were able to bid on the contract were foreign. The same problem applies to high-speed rail today: Only European or Japanese companies can build any of the proposed rail networks in the United States. The U.S. has also ceded the high ground to Europe and Japan in a broad range of other sustainable technologies. For instance, 11 companies produce 96 percent of medium to large wind turbines (PDF); only one, GE, is based in the United States, with a 16 percent share of the global market. The differences in market penetration come down to two factors: European and Japanese companies have become more competent producers for these markets, and their governments have helped them to develop both this competence and the markets themselves.

Let's take Germany as an example. Even though the sun is not so shiny in that part of Europe, Germany has put up 88 percent of the photovoltaics for solar power in Europe. Partly, this was the result of a feed-in tariff (FIT); that is, Germany guarantees that it will pay about 0.1 Euro per kilowatt/hour of electricity to whomever produces wind or solar electricity. The average for electricity that is paid for nonrenewable sources is about .05 Euro per kwh, so Germany is effectively paying double for its renewable electricity in a successful effort to encourage its production. Every year, the guaranteed price is lowered, so that the renewable sector can eventually compete on its own, having gotten over the "hump" of introducing new technology.

But Germany's other advantage is that it is a world leader in manufacturing renewable technology equipment. Thirty-two percent of the solar equipment manufacturers in the world are located in Germany. In addition, almost 30 percent of global wind turbine manufacturing capacity is German.

In Denmark we can see the advantages of good policy plus competence in building machinery. The world's largest wind turbine manufacturer, Vestas, is Danish. According to the Earth Policy Institute, "Denmark's 3,100 megawatts of wind capacity meet 20 percent of its electricity needs, the largest share in any country." The Danes have created a fascinating experiment in democracy by building most of their wind turbines through the agency of wind cooperatives, which may be joined by individuals and families. .....(more)

The complete piece is at: http://gristmill.grist.org/story/2008/6/23/103929/699

[Arctic Dave]

1. When I read articles like this it makes me happy,

then I think of the US energy policy and I want to go postal.

[Raster]

2. Postal indeed! US energy policy has always been geared toward one thing:

to make the energy companies as much money as possible.