Report Says Clean Energy Gets Fewer Subsidies, Less Investment
Than Fossil Fuels
07, 2010 - Los Angeles Times
Energy from fossil fuel gets 12 times more in subsidies worldwide than sustainable
energy, says a new report from the USC Marshall School of Business.
That discrepancy, as well as other barriers including high clean-tech start-up
costs and low prices for products, keep green investment from booming, according
to a group of MBA students from the school.
Without clear global policies on how to regulate and incentivize green business
and technology, investors aren’t making any long-term bets on the industry,
which is also less lucrative than the fossil fuel market.
And without ways to store the energy created by renewable sources such as
solar or wind, companies may avoid innovating new generation technologies at
all, the students found.
“Inertia in the form of myopia, misperception, and dulled motivation,
at the economy, firm, and consumer levels creates resistance to change and
constrains solution-seeking to incremental improvements of known technologies
rather than disruptive breakthrough innovations needed,” they wrote in
their executive summary.
The team presented their findings recently in Yokohama, Japan, to an advisory
council of the Asia Pacific Economic Cooperation, a 21-nation group known as
APEC. The researchers made their conclusions based on nearly 200 interviews
with business leaders in 14 countries.
They encouraged governments to help make renewable energy attractive to consumers
and to support clean-tech research efforts.