In the arena of energy alternatives, the operative word should be alternatives; ensuring that public money isn’t solely dedicated to one source of potential alternative energy as this recent decision around electric automobiles appears to have done.
Options work when they are freely explored and the capitalistic market has proven itself best able to provide the environment for that exploration, and it should be supported across the board by government.
This article explores that decision.
An excerpt.
“With the support of Governor Schwarzenegger, the mayors of San Francisco, Oakland, and San Jose last week announced a $1-billion joint plan to make the Bay Area “the electric-vehicle capital of the world.” The announcement follows President-elect Obama’s pledge to reinvigorate the nation’s economy with millions of “green collar” jobs. Such well-intentioned government policies, however, could turn the “green collar” into a “green noose.”
“Mayors Gavin Newsom, Ron Dellums, and Chuck Reed established a partnership with Better Place, a Palo Alto-based startup backed by $200 million in venture capital investment. Rather than manufacture or market electric cars, Better Place will build the infrastructure to support them. According to the company, this will include 250,000 charging stations across the Bay Area by 2012. Though the cities will not offer a direct subsidy, they will provide Better Place with significant advantages over rival technologies.
“This “public-private partnership” will prop up electric vehicles through tax incentives, favorable regulations, and rights to build on public land, as well as exclusive contracts for public transportation, city-owned vehicles, and government buildings. Despite the economic downturn, private investments in a diverse array of competing clean technologies surged to a record $1.6 billion last quarter. Declaring plug-in vehicles the only game in town rigs the competition and throws many promising Bay Area startups under the electric bus.
“Companies such as South San Francisco-based Solazyme and LS9, and Emeryville-based Amyris Biotechnologies, are using advanced genetic engineering to create a new generation of clean, renewable biofuels. Silicon Valley startups including PolyFuel and Bloom Energy are building revolutionary hydrogen and natural gas fuel cells. Other ventures aim to harness solar power efficiently, or develop cleaner diesel engines. Unfair privileges for the electric-vehicle industry will make it harder for these companies to compete.”
