by Shannon Courtney

Created on: September 02, 2007

Renewable energy alternatives such as solar panels, wind turbines and ethanol provide consumers, communities and countries with a viable way to reduce greenhouse gas emissions and dependence on non-renewable resources, particularly oil. At the same time, investing in renewable energy solutions could create an economic boom, as private enterprises are jumping onboard the 'green' wagon in a race to create the best renewable energy technologies at the lowest prices. It seems, then, that the free market alone should suffice in creating conditions that allow the best producers of alternative energy solutions to compete on a fair and level playing field with their long-standing competitors in the oil industry. Alas, this is not the case. At present, governments in the US, Canada and Britain (amongst many) subsidize the oil industry to the extent that it is extremely difficult for private enterprises engaged in R&D and product launches of new, unfamiliar energy alternatives to compete fairly.

Consumers are, in effect, not receiving a clear indication of the true costs of oil energy versus the emerging alternative energy solutions that are just coming to market. Further to subsidizing the oil industry, many governments make it even more challenging for consumers to invest in renewable energy solutions by slapping on taxes and allowing insurance companies to gauge homeowners who invest in wind or solar energy. It is a sad state of affairs when governments continue to subsidize an industry that is clearly contributing to the climate change issues that are affecting its own citizens.

Government's continued allegiance to the oil bigwigs will have no positive impacts on the nation as a whole. It is only a few men whose pockets will be lined with more money than they will ever be able to spend. Energy alternative startups will be drown out in a government subsidized marketplace that heavily favors the long-standing champions of cheap, non-renewable energy resources. Consumers will remain unaware of the good value, environmentally friendly energy alternatives available to them and, in turn, find themselves paying more and more for their oil addiction as time goes on.

There are two solutions that could see renewable energy providers competing on a level playing field. The first is for governments to subsidize renewable energy or provide incentives to consumers who purchase renewable energy. Subsidies and incentives can be a very effective way to encourage change amongst a reluctant

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