In this recent appearance on PJTV’s Front Page with Allen Barton, I discuss:
- A123 Systems—the latest prominent green energy company to declare bankruptcy despite receiving $250 million dollars in federal subsidies,
- The recent spike in California gas prices, which I argue was clearly caused by government regulation especially the summer blend requirements that effectively mean that out-of-state gasoline cannot be sold in California, and
- The ominous threat imposed by California’s coming cap and trade measures, which mandates a 30% cut in carbon emissions from cars, trucks, utilities, and other businesses by 2020.
As a P.S. to my appearance, it is worth adding that we can already observe energy producers reacting to California’s cap and trade law. For instance, Valero is seeking to sell its two California oil refineries to exit the state before the increased emissions regulations take effect.
Ayn Rand described how socialized medicine caused a “brain drain” in Britain, where many of the brightest and most able doctors were leaving the country in search of freeing places to practice. With particularly stringent regulations on energy production, now California is encouraging a brain drain in its energy sector.