> Just look at the dispersion of prices across European electricity hubs.
Same Swedes were complaining (and still are!) about having to bail out the poorer members of the Union, should Sweden adopt the Euro and have a tighter integration with the Eurozone.
The common motivation of the EU is to smooth out these things across the countries, so we don't have these wild differences between countries. That might mean electricity gets more expensive for some members, and cheaper for others, but overall should lead to better usage across everyone. Basically socialism, applied to energy, so if you're OK with that for people, health and other things, maybe it makes sense to be fine with it for energy too?
What? Yes, it did work for the Euro, countries that are participating are now more equal than they were before, which is the goal. Who knows what will happen in the future, maybe Greece or someone else will truly sink the entire union, but it hasn't happened yet, so lets not confidently claim "it didn't work".
> my parents putting up solar panels to offset german fears of nuclear is far away from them paying taxes so their neighbor can get health care
That's been the thinking for a long time, but for how long can we continue thinking like this? If the world is fucked, it'll be fucked for all of us, not just for people in Sweden or Germany, so the faster we can realize we're all in the same boat, the better.
The same boat is actually a good metaphor, you tend to want many smaller ones and not one big, risk of losing everything vs something (to a point).
Yes, quite literally "hey lets suffer together", this is what we've signed up to, and want. Good for everyone and bad for everyone, we're linked and this helps us focus more on helping each other, rather than just focusing on ourselves.
> The same boat is actually a good metaphor, you tend to want many smaller ones and not one big, risk of losing everything vs something (to a point).
Yeah, that's probably the two mindsets that differ here. EU was created with the goal of "better one big boat than many small", because we've tried the "many small boats" approach for millennials, and somehow we in Europe always end up starting wars against each other. We've had (more or less) continent-wide peace now, for a good while (maybe the longest it's ever been? Not sure), and probably because of the reason that we're more connected now, instead of sitting alone in our tiny boats.
Currencies aren’t an asset. They don’t “outperform”.
If the Yuan had “outperformed” the Chinese economic system would have collapsed.
Unification needs to be real, including grids, not on paper only.
The solution to which is to generate even more power in Sweden (so you can sell it off cheap and have it cheap too) or that Germany produces power more cheaply so that it's not giving Sweden so much money for electricity. Both of these should happen if the market is set up well.
All this in a country where electricity was almost free (to be fair, our dismantling of nuclear doesn’t help here)
Previously Sweden was much tighter coupled to German prices, but since fossil fuels were cheap people didn’t really notice.
Today due to CO2 cap and trade fossil emissions are expensive. [1]
Couple it with a massive renewable buildout leading to a decoupling of the prices that didn’t happened before.
We now have maximum volatility. Jumping between expensive fossil prices and an absolutely mindbogglingly large surplus leading to essentially free energy.
As Germany, and the rest of Europe, transitions to renewables we will spend less and less time on fossil fuel marginal prices and see our energy systems stabilize on renewable and storage prices. Outside of emergency reserve style situations.
[1]: https://en.wikipedia.org/wiki/European_Union_Emissions_Tradi...
[1] https://www.iea.org/data-and-statistics/charts/annual-invest...
That doesn't mean we shouldn't still aim for the values we stand for.
I don't think it's a hard mindset to understand, giving up because others aren't taking it as seriously is the cowardly way to go about it. It's much more meaningful to show it can be done, help to scale technologies to become cheaper and more accessible for poorer countries, and inspire others with examples that it can be done so action can spread.
Someone doing something is always better than no one doing anything, can we at least agree on that?
With that said, more investments into other energy sources are totally welcome, and I don't think that should mean we also need to tax pollution less, we can have both :)
When the government says that the market should do something, people complain about government interference. When the government lets the market do something, but sets the right incentives, people are complaining about it again.
Co2 taxation is effectively internalizing the cost of co2 pollution. The price goes up the more we pollute, because we have less budget until we cannot reach our goals anymore.
Obviously there are many global actors but we can model it simply as a two-player game: Europe and the-Rest-of-the-World.
Its economic payoff matrix looks something like (oversimplified and with direction only; scale appropriately):
v Europe/RoW --> Cooperate Defect
|-----------------------------------------|
| Cooperate | (0,0) | (-1,0) |
|----------------+-------------+----------|
| Defect | (0,-1) | (-1,-1) |
|-----------------------------------------|
If Europe cooperates and the RoW defects, Europe loses relative economic advantage and our world still burns.
If Europe defects and RoW cooperates, Europe gains relative economic advantage and our world (maybe) still burns.
If Europe defects and RoW defects, nobody gains an economic advantage and our world burns to a RCP8.5 crisp.
Obviously the preferred siutation is everybody cooperating so our world doesn't burn and nobody gains or loses an economic advantage. But the Schelling point is everybody defecting and burning our world to a crisp.
Everyone ought to push for global cooperation; we've all gotta live here and it'd be nice not to burn our only planet. But if Europe cooperates while the rest of the world defects (i.e. the current situation today), you're an idiot.
Developing nations skip the fossil fuel stage entirely because Solar in particular and at a ceratain point wind is just cheaper than buying Oil and natural gas. Chinese EVs are also increasingly popular in emerging markets, not because they are more environmentally friendly, but because they are more cost effective to operate.
Wether or not it is because of environmental concerns or not, the world is moving towards cleaner technology, specifically it is also more efficient.
Considering that we in Europe have a remarkable absence of easily accessible fossil fuels, Europe should be continuing to push towards renewable technologies
If a person is taking lifesaving medicine that unfortunately makes their skin itch, you wouldn't call itchiness "a problem which they have created themselves in the first place"...
Our path forward are through renewables, which today are vastly cheaper than fossil fuels.
We decide the speed of the transition to green cheap energy by how much we tax fossil fuels. Low taxes = slow transition. High taxes = fast transition.
The faster we get off fossil fuels the better.
The growth in the US is much smaller than Europe, except a few cases like California.
> Which brings me to the second focus – investment and capital. We are now building the Savings and Investment Union. We need a large-scale, deep and liquid capital market that attracts a wide range of investors. This will allow businesses to find the funding they need – including equity – at lower cost here in Europe. We have made proposals on market integration and supervision to ensure our financial market is more integrated. This covers trading, post-trading, and asset management – as well as driving innovation and making our supervisory framework more efficient. This will help ensure that capital flows where it is needed – to scaleups, to SMEs, to innovation, to industry.
> Third priority: building an interconnected and affordable energy market – a true energy union. Energy is a chokepoint – for both companies and households. Just look at the dispersion of prices across European electricity hubs. Europe needs an energy blueprint that pulls together all the parts. This is our Affordable Energy Action Plan. For example, we are investing massively in our energy security and independence, with interconnectors and grids – this is for the homegrown energies that we are trying to promote as much as possible, nuclear and renewables. To bring down prices and cut dependencies. To put an end to price volatility, manipulation and supply shock. But we now need to speed up this transition. Because homegrown, reliable, resilient and cheaper energy will drive our economic growth, deliver for Europeans and secure our independence.