The Exclusively Green Community

Exclusively Green, LLC online community will be a place where people in the USA can go to get information on environmental news. This will include the latest information about laws politicians are creating or have passed. Group events and on-line chat forums will also be posted on this site. The more people talk about the issues the more people will realize the importance of buying earth friendly and socially conscious products.

Thursday, January 3, 2008

Green Technology

A question for all of the GW deniers. Lets assume you are correct and GW is not real. What is the harm in going to wind and solar power and raising the CAFEE standards for our cars? To me is makes perfect sense to spend a little extra now to save five years from now. At current prices and energy rates you will start to see a return in investment in 5-7 years on most of the environmentally friendly technology. In other words you have two options

Option A: You give me $100, every year I give you back $40 After 5 years you will have made $100 in profits After 10 years you will have made $300 in profits
(40 x 5 = 200) (200-100=100)
(40 x 10 = 400) (400-100=300)

Option B: You give me $200, every year I give you back $60 After 5 years you will have made $100 in profits After 10 years you will have made $400 in profits
(60 x 5 = 300) (300-200=100)
(60 x 10 = 600) (600-200=400)

From a purely economic stand point it makes no sense to me to fight and argue against this new technology. In the long term it will be a good investment. And if we consider supply and demand as more people demand these products the price will be higher (this is the current situation) but as the free market starts to see this demand the supply will increase which will lower the price dramatically. Once that happens the return on investment will be lowered to 1-2 years and eventually to an immediate return. Germany is doing some great things with solar and wind power.

sfgate.com
"Germany's policy is a more mixed and balanced strategy than to look under the sands of the Arabian peninsula," Trittin said, referring to U.S. reliance on Persian Gulf oil. "This is more the European way. There are 6 billion people on this globe. You will not solve our need for energy with fossil fuels or nuclear plants. You will do it by substituting with renewables. "

But Germany's experience suggests that the profit motive is the key -- alternative energy sectors grow fastest when users are able to make money on the energy they generate.

No comments: