Green Planet

Subsidization is, effectively, when you pay for something, and part of the cost of what you’re getting actually gets put towards a different use altogether. Generally, subsidization costs are used to expense something that wouldn’t be possible otherwise. For example, gas tax subsidization is used to help build and maintain roadways, which are VERY expensive. In fact, most tax revenue is used to subsidize some type of pubicly consumed good or service (to make it possible, or at least not prohibitively expensive). There are plenty of examples of subsidization in the private sector as well – for example, you usually buy cable channels by tier, which effectively allows smaller channels with less universal appeal to exist. This is likely in the interest of most cable customers, as program diversity and choice leads to a more valuable product.With public subsidization of programs and goods, there should definitely be a real need or opportunity for the subsidized product in order to justify the subsidization cost. There are plenty of examples of poor subsidization, but the one I want to focus on is a very positive, very forward looking subsidization. I was watching Nova on PBS the other week, the subject of which was the subsidization of solar electricity generation by the German government.

Essentially, Germany has created a solar electicity fund. This fund is contributed to through a special tax on traditional electricity sources. The funds, then, are used to buy surplus solar electricity back from German citizens and corporations at a very generous fixed rate (fixed for the next 20 years). So, aside from the obvious green planet benefits that this program has, what else has it done for Germany? Well, first of all, Germany is now the leader in the solar research and development, effectively creating a new industry that will provide profits and employment for a lot of German citizens over the coming years. Energy dollars are starying inside Germany, instead of to the fossil fuel producing countries of the world. Even if you’re a German who doesn’t benefit monetarily, you still get cleaner air (from less coal and oil emissions) and less dependence upon foreign oil. Plus, you know that the part of the money you’re paying now as part of your electricity bill is actually working towards a sustainable energy future rather than furthering an eco-unfriendly industry.

This German initiative shows how a little forward thinking and public subsidization can go a long way. The benefits of such a program so tremendously outweigh the cost that it seems ignorant not to do so. That’s not to say that solar power subsidization is right for every one, but more that the right idea can open possibilities everywhere.