Gaines: Subsidies save some—but in reality, they’re just wealth transfers

By Cory Gaines | Commentary, Colorado Accountability Project

Let me start with a couple non-contiguous quotes from the article linked at bottom.

“’By better using the heat beneath our feet to help us, we are leading the nation in innovative clean energy technologies that save Coloradans money, and protect our air quality. Investing in Geothermal heating technology increases energy reliability and serves as a low-cost energy source,’ Polis said.”

“’Geothermal heating technology plays a huge role in helping Colorado reduce emissions from homes and buildings while saving Coloradans money on heating and cooling costs,’ said CEO Executive Director Will Toor. ‘It’s exciting to see so many innovative geothermal initiatives being made possible due to Colorado’s investment in this technology, and we look forward to seeing more geothermal adoption across the state as these projects set the example of what’s possible.’”

Anyone that has paid attention to politics in Colorado over the last few years has likely noted similar rhetoric from both Mr. Toor and our governor: that their policy directions save Coloradans money.

In one sense this is true. If you have a geothermal system, you are able to take heat from the earth (which is free) and put it inside your house, school, performing arts center, what have you. You’ll pay for the energy to operate the machine that moves the energy around, but that’s peanuts compared to the cost of the heat itself.

Stripped of talking points (talking points unexamined by the reporter by the way), what you have here is nothing new for Colorado’s policy. You see it in our transportation sector, our energy sector, our healthcare sector: some people pay so that others save money. Your tax dollars subsidize special favors for others.

Geothermal is only a “low-cost energy source”, it’s only “saving Coloradans money on heating and cooling costs”, for the people that got their exploratory wells, geologic surveys, and/or equipment paid for by others.

I’m going to make a bold claim here by way of cementing what I said above. Geothermal, absent government subsidy, is not cheaper that traditional heating and cooling methods in almost every application. Why would I say that? Because if it were cheaper, companies would have adopted it en masse prior to government intervention in the market. Business owners are not dumb. They are not (by and large) stubborn.

It is, rather, some elected officials and bureaucrats that fawn over the gee-whiz technology and want it because they’re spending someone else’s money.

READ THE FULL COMMENTARY AT THE COLORADO ACCOUNTABILITY PROJECT

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