In this episode, we sit down with geographer and political economist Brett Christophers to discuss his new book The Price is Wrong, which explores the profitability challenges of renewable energy businesses and the economic obstacles to decarbonisation. We explore the role of subsidies, profitability, and market design in renewable energy investment. For Christophers, there are clear limitations of relying solely on free markets to address climate change.
Takeaways
- The profitability challenges of renewable energy businesses pose economic obstacles to decarbonisation.
- Subsidies play a crucial role in incentivising renewable energy investment; and removing them too soon can lead to a decline in investment.
- Market design is essential in facilitating the transition to renewable energy, and simply relying on market forces may not be sufficient.
- State intervention, either through compelling investment or state-owned companies, can be effective in driving renewable energy development.
- Public sector ownership should operate differently from the private sector to achieve the desired outcomes in renewable energy.
Adam Smith's Panmure House:
https://panmurehouse.org/
Buy Brett's book:
https://www.versobooks.com/products/3069-the-price-is-wrong
