Cost Works Against Alternative and Renewable Energy Sources in Time of Recession

Windmills and solar panel arrays have become symbols of America’s growing interest in alternative energy. Yet as Congress begins debating new rules to restrict carbon dioxide emissions and promote electricity produced from renewable sources, an underlying question is how much more Americans will be willing to pay to harness the wind and the sun. Curbing carbon dioxide emissions — a central part of tackling climate change — will almost certainly raise electricity prices, experts say. And increasing the nation’s reliance on renewable energy will in itself raise costs. Federal efforts to rein in carbon dioxide emissions are starting to seem inevitable. The Environmental Protection Agency last week moved to regulate heat-trapping gases as harmful pollutants. And the Obama administration and Democratic leaders in Congress are hoping to push through a cap-and-trade bill that would force polluters to curb their emissions or buy permits from cleaner producers. Congress is also discussing whether to require that a certain percentage of the nation’s electricity come from renewable sources. The effect of any these measures will be to increase the cost of electricity. Regulation of carbon dioxide emissions will increase the cost of burning coal, a carbon-heavy energy source and currently the cheapest form of fossil fuel. Higher production costs will result in higher electricity rates. A quota for renewable energy sources will also raise rates because utilities will pass on increased costs to consumers. And wind and solar power are generally more expensive than the fossil fuels they are meant to supplant...NY Times