Friday, February 27, 2009

Energy Policy

With the recent passing of the stimulus package and the focus of alternative energy, the driving force of energy policy seems to have shifted to be more "green." The success of the administration will depend upon the economics of the situation. From the previous in class speakers, the central issue of their effectiveness was the economics. Is green living cheaper? It would seem using renewable sources, a common thread in the stimulas package would do so. All of the speakers we have heard addressed this and concluded that their various methods. As a Delaware resident, one policy that has shifted, at least in my region, is higher environmental standards on recycling and energy effeicent homes. Companies like Dupont have capitlized on this and begun seeling products to reduce energy output of homes. Other companies like wastemangement have done similar things for recycling. What this translates to, at least for me, is that energy policy is "green" becasue it reflects the economic climate of saving money. No policy with be successful, especially in the recession, if it does not save money nad provide a benefit. Maybe for grad school or for a project, I would like to do a study to see how much more people are willing to pay for alterntive energy vs. fossil fuels. Would people/companes be so encouraging and supportive if people paid more? My guess would be it depends on your income bracket.

1 comment:

  1. Would be a good project, but there are a lot of angles to take. Following your interest in energy-efficient homes, I wonder about the extent to which home owners are willing to undertake potentially expensive alternative energy or efficiency enhancement projects.

    One hypothesis is that, independent of other factors, the degree to which home owners undertake such projects depends on how long they expect to live in the home. In the previous housing boom, I assume (I have no data) that the average time owners expected to be in homes was relatively short, driven presumably by the expectation that owners could sell for profit after only a few years. Now, I would presume that owners are expecting to be in their homes longer. If correct, it is reasonable to hypothesize that home owners may be more willing to undertake more green building projects. E.g., the geothermal heat pump is said to pay for itself relative to conventional HVAC over the course of 5 years. This system presumably becomes more attractive.

    ReplyDelete