Green Energy Will Win With Government Subsidies and Tax Incentives

The renewable energy sector needs assistance from the federal government in order to survive. This should be made a top priority by the federal government, because if it is not, millions of jobs would be lost, investors would lose millions of dollars, and our national security will be severely compromised.

According to a study by the Brookings Institution, the World Resources Institute, and the Breakthrough Institute, virtually all federal support for the renewable energy sector will be gone by 2014, if no action is taken. Approximately 70% of the federal programs that support renewable energy are set to expire in 2014, as they were enacted through economic stimulus programs in 2009. Thanks in large part to federal subsidies programs, energy derived from clean, renewable sources is now as cheap as energy from natural gas in some locations. When these subsidies and tax breaks go away, research and development will stagnate, prices will not get lower and the technology will not improve. The energy consumer will no longer have an incentive to choose clean alternative energy over fossil fuels.

Another adverse effect which a bust in the renewable energy sector will have is our own national security interests. Without government assistance in the renewable energy space, fossil fuels will continue to be the top choice amongst energy consumers. The Department of Defense is the nation’s top consumer of fossil fuel. With the volatility of the oil markets, this is hard to budget for. In addition, without government assistance, clean energy will price itself out of Defense Department contracts and our fighting forces will still depend on oil.  The enemy knows how much the military depends on oil. They frequently attack fuel convoys in Pakistan and in Afghanistan. Switching over to renewable energy will reduce these deadly attacks. But without subsidies and tax incentives, a green energy producer will lose the market to a deeply entrenched fossil fuel entity.

Government assistance is needed in this fledgling industry. Without assistance it will go into a bust cycle.  Goldman Sachs is planning on investing billions of dollars in green energy, but without subsidies and tax breaks, millions of investors will lose out. To protect jobs, investments and our troops overseas, the federal government still needs to support this fast growing industry.

How much do you trust the information in this article?

Jeff Danovich

Jeff is currently a student at The George Washington University. He is currently working to earn a B.A. in Political Science (and a double minor in International Affairs and Sustainability). Also a veteran, Jeff has served in Northern Iraq in 2003 and 2004. His experiences in Iraq as a Civil Affairs Operator has shown the direct affects of "Soft Power" in the war zone. He believes the keys to overcoming terrorist threats overseas is to win the hearts and minds of the local population. Jeff also is a strong advocate for the environment and is very enthusiastic about what the Department of Defense is currently doing to create a more sustainable and eco-friendly fighting force. A fun fact about Jeff is that his first day of Basic Training in the U.S. Army was September 10, 2001.

MORE FROM

Amid new revelations, here’s what we’ve learned about the Russian lawyer who met with Trump Jr.

The picture of Natalia Veselnitskaya is coming into clearer focus.

Republican Senator urges whoever leaked Russia/Sessions phone calls to release whole conversation

Sen. Chuck Grassley wants the person who leaked intelligence about Attorney General Jeff Sessions and Russian ambassador Sergey Kislyak to come forward with more information.

Donald Trump Jr. and Paul Manafort now to testify before Senate committee behind closed doors

Trump Jr. and Manafort have avoided a subpoena and will testify behind closed doors — for now.

Hope Hicks reportedly tried to rein Trump in during explosive ‘Times’ interview. It didn’t work.

The low-profile Trump Whisperer is one of the few in the president's orbit to enjoy job security.

Scaramucci once asked Obama if he’d be softer on Wall Street. It didn’t end well.

The exchange came during a CNBC town hall on the financial crisis, two years into Obama’s presidency.

Trump blasts Hilary Clinton, Comey and ‘Amazon Washington Post’ in tweet storm

He also defended Don Jr. and called Democrats "obstructionists" with "no ideas."

Amid new revelations, here’s what we’ve learned about the Russian lawyer who met with Trump Jr.

The picture of Natalia Veselnitskaya is coming into clearer focus.

Republican Senator urges whoever leaked Russia/Sessions phone calls to release whole conversation

Sen. Chuck Grassley wants the person who leaked intelligence about Attorney General Jeff Sessions and Russian ambassador Sergey Kislyak to come forward with more information.

Donald Trump Jr. and Paul Manafort now to testify before Senate committee behind closed doors

Trump Jr. and Manafort have avoided a subpoena and will testify behind closed doors — for now.

Hope Hicks reportedly tried to rein Trump in during explosive ‘Times’ interview. It didn’t work.

The low-profile Trump Whisperer is one of the few in the president's orbit to enjoy job security.

Scaramucci once asked Obama if he’d be softer on Wall Street. It didn’t end well.

The exchange came during a CNBC town hall on the financial crisis, two years into Obama’s presidency.

Trump blasts Hilary Clinton, Comey and ‘Amazon Washington Post’ in tweet storm

He also defended Don Jr. and called Democrats "obstructionists" with "no ideas."