Sunday, December 7, 2008

Economic Recovery and Energy

In terms of efficient use of government spending to spur the economy, let's look at renewable energy sources and energy conservation. When money is spent on such things as roads and bridges, jobs are created and, as a result, income tax revenues go up and  the nation's deficit can be reduced. That's good.

When money is spent on renewable energy sources such as solar and wind power, the same benefits derive, but there is an additional payoff in that these facilities then continue to produce money in the form of energy. (See previous blog, "Energy 101").

Energy conservation pays off similarly; i.e., it continues to save money indefinitely. Benjamin Franklin was right: a Watt-hour saved is a Watt-hour earned.

The fact that these measures also reduce air pollution and global warming is a further economic benefit since less money then needs to be spent on attacking those problems by other means.

So when it comes to spurring the economy, the biggest bang for the buck can be had by spending on energy conservation and energy generation by renewable sources.