Look at 4K TV sets, for example.
Just about any luxury of the rich that can be produced more efficiently over time makes its way to the average consumer.
People who are installing $40,000+ roofs on 2000+ sqft homes are not rich by your standards? Or do you truly believe these panels will "print money"?
This is a magnificently out of touch comment.
You think the difference between an asphalt shingle roof vs a 100-year slate tile roof is a "small factor"?
Production of early versions is always more expensive because of the research & development, creation/configuration of the machines, etc, etc but the marginal cost goes down drastically. The numbers work out even better as you can amortize those early costs over a larger and larger production run. This means v2 and later editions are cheaper.
It's text book "economies of scale"
For example, look at prices of flights. Before there was no "first class" everything was first class, now there are cabin options.
While that example is a service, more proliferation of service == wider adaption == increased scale of economies == eventually prices come down for everyone.
This is not true. Trickle down economics is the theory that money given to rich people will enrich poor people because the rich people will use the money to buy goods and services the production of which will require the labor of poor people. That is, this extra money at the disposal of rich people will create an economic domino effect such that money will ultimately end up at the disposal of poor people. In a trivial sense this is true. The theory is only interesting if this is an efficient way to increase economic activity generally without deleterious side effects.
But it never was the theory that giving money to rich people would spur research and development such that services ultimately were cheaper.
As to whether it's a scam, that is another matter. The allegation then is that the boosters of trickle down economics do not believe their own claims as to the efficiency of this process. That is, they believe, because it is tautologically true, that this will enrich those who are already rich, and they desire this, and the story about the efficiency of this process is a tall tale to salve consciences or win over rubes.
"[I]f the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. In contrast, an increase in the income share of the bottom 20 percent (the poor) is associated with higher GDP growth. [1]"
[1] https://www.imf.org/en/Publications/Staff-Discussion-Notes/I...
Your analogy is more appropriate for space tourism.
This presumes rich people never have good motives and any appearance of morality or civic-mindedness they might show is a self-aggrandizing sham. This seems unlikely.
Ah yes, trickle down never fails.
Is this based off an SV mindset? There are plenty of homeowners that aren't rich around the country.
Plus less pollution in the air helps the masses too, with fewer health issues and less extreme weather on a long term basis.
But for the working class/lower middle saving up 10k pounds for a deposit is real work.
64% of Americans own the home they live in.
https://en.m.wikipedia.org/wiki/Home-ownership_in_the_United...
When computers were new, only rich organizations like governments, banks, and large corporations could afford them. Now you can buy a raspberry pi for close to nothing.
Adopt the existing, proven and cost-effective implementation of PV (~3’ x ~5’ aluminum framed panels).
Waiting on Elon to figure out boutique solar so the affluent can all install it first and drive mass adoption (decade?) stalls PV development as much as the US tariff on Chinese-made solar!
Denser housing isn't built because our local land use policymaking paradigms give the power to block it to the people who don't want it, not because of a lack of federal subsidies.
If anything, the infrastructure built with that money would be road infrastructure to support further sprawl.
It makes no sense to pay somebody $7500 to buy a new car to drive to work, but not to switch to cycling or telecommuting.
In this case, it's not necessarily clear that this is a product that needs to happen. Grid scale solar is significantly cheaper due to the economies of scale.
Were there a carbon tax, there'd be the same encouragement of environmental solutions while leaving the market some flexibility in achieving that goal.
With that said - I'll take the politically feasible solution rather than nothing.
Utility scale solar has met the same ardent opposition in land use decisionmaking fora as denser housing, including from 'environmental' organizations.
Some examples from around here:
https://fredericksburg.com/news/local/culpeper/culpeper-coun...
http://lakegastongazette-observer.com/news/article_8f621d6e-...
https://richmond.com/news/local/central-virginia/powhatan/po...
https://starexponent.com/news/county-committee-backs--acre-c...
https://www.pecva.org/library/documents/Our-Mission/Energy/E...
fredericksburg.com - application cancelled - "He, like other neighbors of the project and another larger one south of Stevensburg, have consistently expressed concerns about impact to their property values ... Orye said he didn’t think solar fit anywhere in Culpeper County, emphasizing its rich historic resources related to the Civil War and early American history."
lakegastongazette-observer.com "Opponents of the project ... turned out in droves at last week’s community meeting", "Many residents expressed concerns about the project’s effects on the ecology and their view", "the commission’s reasons for the denial were fivefold. They said the proposed facility develops more than 500 acres, is removing more than 1,100 acres of agricultural property from production, is proposed to be located in a populated residential area, is located on real estate that is located on the Virginia Scenic Byway and that setbacks and buffers on the proposed project do not adequately address the need to visually block the project from the view of its neighbors"
richmond.com - "a solar project that had significant community opposition", "plans to build a solar energy farm on 1090 acres of a 2998 acre property", "400 acres of the project would [become] a conservation easement" , "The planning commission determined that the proposed use is not in accord with recommendations made in the 2010 Long-Range Comprehensive Plan, in particular since part of the project would fall into the area designated Priority Conservation Area and Protected Land.", "Among the citizen comments that were made, most were in stringent opposition because of the negative ecological impact the project would have on protected wetlands in the area, the only remaining wildlife corridor connecting the James and Appomattox rivers, and on rare and endangered species."
starexponent.com - "Culpeper County will consider placing a cap on 'utility scale solar sprawl' equal to the amount of the renewable energy its residents could actually consume.", "In October, the board approved the county’s first-ever solar farm on 1,000 acres near Stevensburg to the dismay of neighbors, who have since filed a civil suit in the matter asking the circuit court to reverse the approval."
www.pecva.org - looks like last link just shows planning details and doesn't show opposition.
They oppose utility-scale solar anywhere except existing industrial land, in favor of the "low hanging fruit" of rooftop solar.
>PEC is an advocate for solar energy, especially distributed solar power generation - small scale solar (usually rooftop) primarily designed to meet the immediate demands of the property in which it is located. In comparison, the size and nature of USS Facilities create challenges for any locality to protect important resources and the public health, safety, and welfare of the community. Virginia has thousands of acres of rooftops, parking lots, and landfills devoid of solar panels in areas of moderate to high energy demand, in addition to contaminated and/or underutilized industrial sites. It is PEC’s belief that we should be looking to these developed areas as the low hanging fruit of future solar sites.
>Utility-Scale Solar (USS) Facilities are industrial facilities and should not be allowed by-right on agriculturally zoned lands. Given their size and nature, they should be:
>● Subject to a Conditional or Special Use Permit in agriculturally zoned areas with maximum acreage allowed per project and possibly per the entire County; and/or
>● Limited to existing industrial zoned areas.
> ○ Agricultural land should not be spot zoned to create additional industrial zoned areas for USS Facilities.
I, too, believe that taxing actual atmospheric carbon impact would be great, but how would you measure such a thing fairly?
The subsidies are terrible. They are way too narrow and don’t address the root cause of the issue. Climate change is not happening because we don’t have enough renewables, climate change is happening because our GHG emissions are too high.
Tax the emissions and all activities which generate emissions become less appealing, while all opportunities to reduce the emissions become more lucrative. The example of riding a bike instead of buying an EV fits into this as well. With a carbon tax, using a bike would be equally accounted for.
By using subsidies, the government gets to pick the winner and doesn’t let people think. Renewables especially as they are now are a terrible way to tackle the problem. If we used taxes instead of subsidies, I’m afraid that not many renewable power plants would be built, because other alternatives are way more effective at curbing emissions.
Solutions like rooftop solar – and by extension, these Tesla tiles - wouldn’t make a lot of financial sense if people were billed for their electricity appropriately based on costs. The cost of electricity distribution is primarily a fixed cost in the infrastructure and its upkeep. The variable cost of generating the electricity is small in comparison. People, however, are generally billed more in variable cost based on use of electricity rather than with a larger, fixed fee. It’s set up in this way because it makes sense; the poor can afford connecting themselves to the grid and keep the necessities powered, while reckless use of energy i.e. having AC on 24/7 is disincentivized by the cost.
But once people start pushing rooftop solar on their grid and selling the energy back to the grid at the retail price, not the wholesale price, they are being massively subsidized in their electricity generation, as part of the fixed cost of operating the grid was baked into the variable cost of electricity prices. The pushback from utilities comes from exactly this perspective; if more and more people start net-metering their own bills lower with the rooftop solar, then it means that fewer and fewer people will be responsible for appropriately funding the grid.
In an extreme scenario where everyone net-metered their bills down to zero, it would mean that nobody would be paying for the grid. Obviously, such a situation is unsustainable. And even though there’d be plenty of solar to go by in such a situation, the grid would still be a necessity, as is all the generation which functions as a back-up. And somehow, it would all still need to be paid for.
But there’s more to it, too. Net-metering creates a reverse-incentive. Electricity prices in the wholesale market can even go negative if there is overgeneration, because overgeneration is harmful, and it needs to be dealt with. If net-metering practices are in place, and people start doing more and more rooftop solar to the point of more and more frequent overgeneration, the costs of operating the grid go up. Consequently, so would price of electricity. With a net-metering scheme still in place, everyone else is further incentivized to build solar panels on their roof and do the same to avoid paying the high prices.
If the compensation for the electricity fed back into the grid was based on wholesale price instead, then, once average price (and value) of solar-generated electricity goes down, so do the incentives to build more solar panels.
Adding insult to injury, the back-up issue is generally solved by using gas-fired power generation, as batteries cannot address the issue at this scale. Batteries are useful for bridging the gaps in between switching power generation sources, but the kind of quantity of capacity you’d need for a battery-only backup solution is not feasible.
For back-up, gas is the primary back-up solution in California as well as in Australia, and the Russians are building a pipe to supply Germany. Ironically this makes solar generation - when the whole power generation solution is inspected at the grid-level - not all that green. And while this aspect of solar is ignored by subsidies, a carbon tax would still take it into account.
The point being, subsidies can not only be ineffective, they can also be counterproductive in addition to ignoring all the alternatives.
> I, too, believe that taxing actual atmospheric carbon impact would be great, but how would you measure such a thing fairly?
You can measure emissions at sources and impose heavy fines on anyone who tries to circumvent them. The common problem in globalization, though, is defining and applying these standards universally and fairly. If you can’t trust the Germans to not fumble their numbers, what you’d think would happen in some other countries? Still, with a coordinated effort and systems to ensure transparency, it would be possible.
Another method would be to subsidize more effective alternatives or for the government to build the more effective solutions by themselves. While this wouldn’t have the direction-changing impact of the carbon tax, it would be more straightforward to implement without the requirement of tracking pollution. Targets of subsidies could be selected by their impact on emissions per $ invested. Of course, the numbers could be fumbled here as well, but at least the calculations could be made public and be subject to scrutiny.
Subsidies are woefully inaccurate, but can be applied locally on most political climates. Carbon emission taxes would be better, but global competition makes that difficult.
You can't say that!!!
That may be sort of true for traditional solar panels. There is scant data on whether a solar roof will ever be cost-effective. They are an unproven technology at this point.
There are several differences between solar panels and solar roofs:
1) Solar roof is more expensive and less efficient. You're trading efficiency for something that looks nice. Is that something a government should subsidize? Rich people getting subsidies for aesthetic reasons?
2) Solar roof panels are not as durable as solar panels, are not as scalable, and the market for them is tiny - limited to people who want to get solar panels and a new roof. V1 and V2 versions of Tesla roof was a disaster.
3) Installation is much much harder and requires specialized professionals. Installing solar panels is already fraught with challenges (safety and otherwise), and all those need to do is collect sunshine. A solar roof also needs to take into account protection from the elements and therefore needs increased durability.
Good writeup: https://www.greentechmedia.com/articles/read/5-reasons-to-no...
FWIW: newly built dense housing is actually cheaper than the more typical sprawl. In fact it's much cheaper if you factor in (heh) infrastructure savings due to the reduced road and utility lengths.
Local non-monetary regulations mandate low-rises or single-family houses, huge parking lots, etc. If money could solve that, it may be by spending it on political campaigning, public education, or may be even bribing, to get the regulations out of the way.
There's lots of other tax write offs.
In California you can get solar installed for free if you are low income.
I'm pretty sure that even the people benefitting for the wealth cities produce would prefer not to live there, and I think the development of rich people's houses along the CT coast attest to that, they try to balance the wealth of the city and low density housing.
I had a colleague who had to travel frequently between Stanford and Berkeley (slightly unusual); it’s a sub-hour drive, but easily takes ~3 hours or more via public transit.
P.S. At least the Valley is fairly bike-friendly by U.S. standard.
that's not the motivation of many people who don't want tall buildings. Many of them don't want them because they don't like living near them.
I can drive to work in 15 minutes. The bus takes over an hour including 30 minutes of walking. There are no bike lanes between home and work, its possible to bike it but really not safe - I'd guess the bike would take about 40 minutes.
If it was that pointless, this sort of deal could never add up, for either party.
This didn't happen because the numbers added up. The government mandated it for political reasons and all parties had to go along.
With current solar pricing, it would be better for everyone if they simply moved a requirement for solar into the building regs. Like they've steadily done with insulation levels- though these are not yet adequate.
Installing solar panels can pay off in the long run, but the big draw is to reduce your carbon footprint. Even if you are a rich asshole it's not a bad thing for you to be less polluting.
Also not sure about a Model 3 being safer than a Camry, they weigh a similar amount and are both IIHS TSP+. (And a hybrid Camry weighs close to 1000 lb more than a Model 3.)
Weight of Model 3 is 3627 minimum up to 4,072 (extended range, extra batteries, which are heavy.) [1]
Model 3 has the lowest probability of injury in a crash of any car tested by NHTSA since 2011.[0]
[0] https://cleantechnica.com/2019/03/14/tesla-model-3-vs-toyota...
[1] Google Camry weight; Model 3 weight
Though the NHTSA thing you're citing is specifically what the NHTSA told Tesla they weren't allowed to claim.
The amount of incentives spent by the US government for electric cars in the last 8 years is maybe $6bn.
So that might buy a new span of the Bay Bridge.
How will an 8K subsidy per home help increase housing supply? Will that subsidy also automatically take care of global warming? 64% if Americans own a roof, FYI.
What is truly detrimental to society is not the promotion of carbon neutrality, but this kind of crab mentality where some people benefiting more hurts more than the fact that this is a positive step for the planet as a whole.
* https://ttlc.intuit.com/community/tax-credits-deductions/dis...
You do if you're a family, with a 24K standard deduction, a family HSA ($7K), and any number of 401Ks for retirement. A group of people who would benefit significantly from an electric vehicle.
As I said, I don't qualify for the full amount and I earn well above the state's average.
It does seem like money that could be spent making dwellings more energy efficient.
If you have a spare 40K does 8K really matter? They would probably buy it anyway.
Ha! This one made me laugh. In America nobody will let you build either of those things anymore. At least not where they are needed.
OP is not saying rich people should pay more; He’s saying get rid of the tax incentives. Yes, they end up paying more, but then poor people are paying the same as the rich.
"Rich" (which is a relative term anyway) people are, by and large, the same. Get rid of the incentive and you'll get rid of the progress that comes with it. Saying "oh take away the incentive because not everyone pays the same amount" is a great way to get people to stop investing in it at all. It's not like poor people are going to say "oh wow, the rich people won't get a tax break for investing in this, now I'll definitely invest!" right? So poor people still won't be able to invest and now rich people will have less of a reason to overcome their ambivalence. Shockingly enough, taking away incentives will deincentivize people. Who knew?
Initiatives that make carbon emissions more expensive are really unpopular. Direct government investment is "picking winners" or "socialism" (?).
There is something absolutely astonishing about the fact that in America the way we have go about being eco-friendly is to give huge tax breaks to rich people to buy solar panels and electric vehicles. To think with all that money we could build better infrastructure and denser housing. Really boggles the mind.