The Green Bubble: How good intentions led to giddy speculation

 

Per Wimmer, Timbro, June 2014

 

We need clean energy if we are to meet the world’s growing energy needs while avoiding an environmental disaster. But a large part of the subsidies go to projects that will never be profitable. What happens to the highly indebted projects when interest rates rise? Or when politicians decide to reduce subsidies? A crash in green energy can send ripples across the economy and delay the transition to sustainable energy by several years.

 

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