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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EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).


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