“It is precisely the fact that the market does not respect vested interests that makes the people concerned ask for government interference.”

– Ludwig von Mises, Human Action (1940), p. 334 [4th Edition, 1966, p. 337].

Government goes to those who show up. The wind industry got there first (concentrated benefits, diffused costs). But the pro-consumer, pro-taxpayer, pro-freedom movement has staged an impressive counter attack against government-dependent cronyism. Energy politics dates from the mid-nineteenth century in the United States–but never has more than one hundred pro-liberty groups spoken with one voice before.

Will the wind Production Tax Credit expire as scheduled at the end of this year? The American Wind Energy Association (AWEA) hopes not. Why? Because continued expansion depends on the timing of this huge subsidy (see this graph by the editors of Real Clear Energy).…

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• California Cap and Trade Accused of Double Counting Emissions
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Morro Bay Power Plant Mothballed by California Valley Solar Ranch – Trading Fish Larvae Kills for Bird and Insect Kills

“Another giant Dinosaur has gone extinct.
An ugly power plant that looks like one, I think.
For 58 years, it has been unnecessary.
Sucking all the fish out of my Estuary.
It took a bank of people who were not afraid to fight.
We punched it in the nose and sent it off into the night.

“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousand fold by a factor that is insignificant in, say, physics, mathematics or medicine – the special pleading of selfish interests.”

– Henry Hazlitt, Economics in One Lesson (1946)

A year ago, the American Wind Energy Association (AWEA) was desperately fighting against the scheduled expiration of its most prized federal subsidy, the wind production tax credit (PTC). As I wrote at that time, AWEA’s argument–please government, keep our activity going for job creation and other economic gain–rested on a basic, long-debunked fallacy of economics.

AWEA believes that wind’s “is” equals “ought”–that recorded activity is a per se good.…

“The combination of the federal PTC and state RPS policies has shielded wind developers from the basic supply and demand forces present in a healthy competitive market. As a result, we are fast-tracking the construction of expensive renewable resources that are variable, operating largely off-peak, off-season and located long distances from where the energy is needed.”

As IER’s recent study found, the wind Production Tax Credit (PTC) disproportionately benefits States with renewable energy mandates by distributing the high cost of their policies to taxpayers at large. And the benefit is enormous — at $23/MWh, the PTC’s pre-tax value of $35/MWh equals or exceeds the wholesale price of electricity in many parts of the country.

No traditional source of electric generation receives a federal subsidy as generous and condition-free as the PTC.…