Signal 2: How to make everyone happy in a tug-of-war.
To protect the earth, we need to move from fossil fuel energy to clean energy. According to a research [1], wind and solar can power most of the United States.
But what about the old traditional energy companies? In fact, they might pose threats to new energy programs and lobby commissions. In San Jose, Mayor Sam Liccardo launched a new program to provide a cleaner power alternative than PG&E currently provides. When residents and businesses exit PG&E, PG&E will charge “an exit” fee. The war between PG&E and the mayor was intense [2]. However, essentially, the new program buys energy on the wholesale market, in some cases from PG&E. What is more, about 80% of the electricity PG&E delivered came from clean energy. Although the new program is set to be entirely greenhouse gas-free, is launching a new program worthwhile? Especially when a lot of people rely on traditional energy companies to make ends meet.
Our president is going to the other extreme. As the Trump administration has battled internally over a lot of issues, there’s no issue where it’s been more consistent and emphatic than its support for coal [3]. Should we revive the coal industry? Apparently, coal will continue its slump despite any support [4].
Instead of simply helping one side in this tug-of-war, regulators should pull companies out of the “traditional energy” team and push them into the “new energy” team. In other words, regulators should help traditional companies transform. In this way, we can combat climate change without hurting the interest of any party.
Regulators must ensure that traditional companies have every access to new technologies and new equipment. They must also reward traditional companies properly. For example, regulators could give transforming companies a tax abatement based on the reduction in carbon emissions and provide subsidies for small transforming companies.
[1] Shaner, M. R., Davis, S. J., Lewis, N. S., & Caldeira, K. (2018). Geophysical constraints on the reliability of solar and wind power in the United States. Energy & Environmental Science, 11(4), 914–925. doi:10.1039/C7EE03029K
[2] DeRuy, E. (2018, September 13). New San Jose energy program under threat as PG&E pushes higher exit charge. Retrieved from https://www.mercurynews.com/2018/09/12/new-san-jose-energy-program-under-threat-as-pge-pushes-higher-exit-charge/
[3] Grunwald, M., Dovere, E., Malley, R., Pomper, S., & Finley, A. (2017, October 15). Trump’s Love Affair with Coal. Retrieved from https://www.politico.com/magazine/story/2017/10/15/trumps-love-affair-with-coal-215710
[4] Holmes, F. (2017, June 21). Does Coal Stand a Chance Against Renewable Energy? Retrieved from https://www.forbes.com/sites/greatspeculations/2017/06/21/does-coal-stand-a-chance-against-renewable-energy/#481a54fc3686
