Terence Corcoran, Financial Post
Thursday, March 11, 2010
That eerie hissing you hear may well be the air beginning to seep out of the green energy bubble. The sound is similar to the pfffffft and sshhhhsssssp noises we heard in the early days of the dot.combubble collapse or the subprime mortgage meltdown. If you can’t hear it, you are not alone. While investment analysts are telling their clients to get out of solar power firms and warning about the continuing risks in wind and bioenergy schemes, Ottawa and the provinces are on a mad populist stampede to throw billions of dollars at the green energy monster. The politicians don’t seem to be keeping up with the trends. “Don’t try to catch a falling knife,” warned J.P. Morgan this week in a report that told investors the market continues to fall out of the solar panel module market. It downgraded a bunch of solar companies that have already been in a tailspin since the fist signs of a solar crash back in 2008.
Needless to say, all this is being driven by the fantasy of reducing and even eliminating carbon emissions so as to save the planet from global warming. Leaving aside the growing probability that global warming science will prove to have been a false alarm, little or no work has been done on whether any of the alternative energy spending will reduce carbon emissions.