Policy Documents

The High Cost of Low-Value Wind Power

Jonathan A. Lesser –
March 26, 2013

Many arguments have been made against subsidies for energy production, and against subsidies in general. By their very nature, subsidies distort markets and are economically inefficient, driving out legitimate competitors and leading to higher prices in the long run. They reduce incentives to innovate and improve operating efficiency. Subsidies are also inequitable because their costs are borne by the many while their benefits accrue to the—often politically connected—few.