Re:Japan building 1GW, $21bn solar power station in space
by CWuestefeld on Wednesday September 02, 2009 @02:33PM
(#800808)
I upvoted you, because you're generally correct, so much so that it's worth saying.
However, it is an oversimplification. As stated, it doesn't account for externalized costs, that is, costs of the product that are not borne by the seller.
For example, the energy industry has historically benefited because part of the cost of their product -- that is, the damage done by pollution -- is not paid for in the sale of the energy, but is borne by the public at large. Thus, the cost of pollution has gone into the coffers of the energy suppliers (and their stockholders). This is the inequity that legislation such as cap-and-trade try to alleviate (not that I'm a fan of this legislation by any means, the gov't is just as bad).
However, it is an oversimplification. As stated, it doesn't account for externalized costs, that is, costs of the product that are not borne by the seller.
For example, the energy industry has historically benefited because part of the cost of their product -- that is, the damage done by pollution -- is not paid for in the sale of the energy, but is borne by the public at large. Thus, the cost of pollution has gone into the coffers of the energy suppliers (and their stockholders). This is the inequity that legislation such as cap-and-trade try to alleviate (not that I'm a fan of this legislation by any means, the gov't is just as bad).