Environmental politics expressed through “manmade global warming” or now revamped as “climate change” has basically the same intent: promote political favored energy, as well as, establish social controls to supposedly protect the climate.
Yet the public hardly realizes that when government intervenes the result has always been the same: imbalances emerge and the laws of economics ventilated through markets will correct them. This is simply the law of unintended consequence.
The renewable energy industry, which has been the principal beneficiary from climate change policies, have been thrashed by marketplace. Moreover politicization has led to unethical practices or has exposed cronyism such as the Solyndra scandal.
The chart above consisting of the market cap of the 30 of the world’s largest renewable energy companies has plummeted by more than 90% since the 2008 peak.
From oversupply or to a build up of high capacity, to high energy prices, to the realization of fiscal realities and the European debt crisis, and to the stalemate in global climate negotiations, as explained by the Washington Times (chart also from them, hat tip AEI’s Mark Perry), has brought such politically hyped-to-the-firmament expectations back to earth.
Such outcome has been diametric to the largely free market based Shale gas revolution.
Bottom line: the market eventually explodes the illusions brought upon by politically inflated bubbles.