Down Economy Threatens Alt. Energy Projects

As the world’s economies continue to struggle and the price of oil and coal falls further by the day, alternative energy projects are in jeopardy of being scaled back significantly, according to a report in today’s New York Times (www.nytimes.com).

The American automakers in particular, which currently face collapsing sales, have been hamstrung by current economic conditions in their efforts to develop more fuel-efficient vehicles. Meanwhile, China, which has been under pressure to reduce emissions since overtaking the United States in 2007 as the world’s largest producer of greenhouse gases, may be less likely to pursue alternative energy sources as its economy retracts. Likewise, in the United States, wind farm construction and other alternative energy projects are being put on hold, as these projects have become less attractive with fossil fuel prices falling, according to the Times. In Europe, the Times reports that fossil fuel prices have reached such a low point that carbon tax programs that were designed to discourage companies from polluting have been rendered irrelevant in many cases, as it is often less expensive for companies to buy carbon permits rather than invest in clean energy sources.

To read the New York Times report in its entirety, visit
www.nytimes.com/2008/11/25/world/25climate.html?th&emc=th (registration required).