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Thursday, May 28, 2009

"Green investment" = "lousy investment"?

Cafe Hayek's Russ Roberts reads a WaPo story about President Obama giving a speech at an Air Force base near Las Vegas, "pointing to the base's vast array of solar panels as a model for the nation as it seeks to reduce its dependence on foreign oil." Obama said that the plant, which cost $100 million, "will save the Air Force nearly $1 million a year". Here's Russ's response:
A project that costs $100 million (though I'd guess this number probably doesn't include the land costs) to save almost $1 million a year? There's a name for that—a lousy investment.
-- from "Touting Failure" by Russell Roberts at http://www.cafehayek.com/hayek/2009/05/touting-failure.html.

And why are so many Americans and politicians worried about our "dependence" on foreign oil when no one seems to be worried about our "dependence" on, say, foreign coffee? Can you imagine what would happen to the U. S. economy if the Organization of Coffee Exporting Countries ("OCEC") imposed a coffee embargo on the U. S.? Industry, academia, and government would "grind" to a halt! (Well, if government ground to a halt, that wouldn't be so bad!)


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