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	<title>Residential Power &#187; Deadweight Loss</title>
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		<title>What&#8217;s the reason to subsidize alternative energy companies?</title>
		<link>http://www.residentialpower.net/residentialwindpower/whats-the-reason-to-subsidize-alternative-energy-companies-348</link>
		<comments>http://www.residentialpower.net/residentialwindpower/whats-the-reason-to-subsidize-alternative-energy-companies-348#comments</comments>
		<pubDate>Fri, 31 Jul 2009 14:12:41 +0000</pubDate>
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				<category><![CDATA[Residential Wind Power]]></category>
		<category><![CDATA[Deadweight Loss]]></category>
		<category><![CDATA[Reason]]></category>
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		<guid isPermaLink="false">http://www.residentialpower.net/residentialwindpower/whats-the-reason-to-subsidize-alternative-energy-companies-348</guid>
		<description><![CDATA[bob135 asked: I&#8217;m not asking about raw research that occurs at universities &#8211; like discovering totally new technologies. I&#8217;m wondering if there are any good reasons to subsidize existing solar, nuclear, wind, etc power companies. By reducing the price of nuclear power below the market equilibrium, people consume more nuclear power than they otherwise would, [...]<p><a href="http://www.residentialpower.net/residentialwindpower/whats-the-reason-to-subsidize-alternative-energy-companies-348">What&#8217;s the reason to subsidize alternative energy companies?</a> is a post from: <a href="http://www.residentialpower.net">Residential Power</a></p>
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<p><span id="more-348"></span></p>
<div><em><strong>bob135</strong> asked: </em><br/><br/><br/>I&#8217;m not asking about raw research that occurs at universities &#8211; like discovering totally new technologies.</p>
<p>I&#8217;m wondering if there are any good reasons to subsidize existing solar, nuclear, wind, etc power companies. By reducing the price of nuclear power below the market equilibrium, people consume more nuclear power than they otherwise would, so there&#8217;s a deadweight loss.</p>
<p>If you just want to discourage gas consumption, wouldn&#8217;t a gas/petroleum tax be more efficient? That way private firms can optimally choose between other options.<br/><br/></div>
<p><a href="http://www.residentialpower.net/residentialwindpower/whats-the-reason-to-subsidize-alternative-energy-companies-348">What&#8217;s the reason to subsidize alternative energy companies?</a> is a post from: <a href="http://www.residentialpower.net">Residential Power</a></p>
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