Green new deal

Week 9–Discussion topic for the week.

Discussion Topic

Several renewable energy companies have gone bankrupt in recent years. Several ethanol companies have gone out of business and others have reduced capacity.

If we are at the mercy of foreign oil suppliers OPEC, etc.), should the government step in to provide funding for these bankrupt alternative energy companies?

Note that there have been some interesting developments in terms of oil production and oil reserves, basically the oil that can be pumped in the future.

It would also be good to look at actual oil use in the US. In looking at the statistics, please use an eagle eye. The country is pulling out of a recession and last winter was warm. So, don’t be fooled by some interpretations of oil usage.

So, what do you think?

 

Funding to energy company which is about to bankrupt wouldn’t be good idea even if U.S. economy actually needs huge amount of oil.

As oil market history, it seems now is the time to clean global environment by green new deal policy. Obama is trying to take an opposite position of Bush because of his bad reputation due to his family business. Bush senior protected U.S. from threat of Soviet Union which intended to interrupt oil line between Middle East and U.S. and Bush junior succeed his father’s business and tried to get oil from Middle East through some wars. However, the family couldn’t make good job. In 1930s, United States used to make amount of oil in Texas but gradually it ceased to exist. Moreover, middle east countries hated their ethnocentric attitude and stopped providing oil into U.S. at the time. The one thing I can say is that the reason why Obama is insisting “Green new deal” is just U.S. cannot find any more opportunities within country and needs to rely on other resources.

Above all, it looks funding to clean energy company is better than funding to oil company in this situation. However, emission trade hasn’t been so popular yet in U.S. U.S. was not interested in Kyoto protocol too. Their environmental business problems piled up. There is almost no market such as financial derivatives for environmental problem such as Eco-fund.

In conclusion, we cant choose which company deserves to get funding. Government should spend money for global business structure and rule such as emission trade, which induce investor’s incentive.