RE: WIND TURBINES ARE SPROUTING OFF EUROPE'S SHORES
By MARLISE SIMONS, The New York Times Travel December 8, 2002
Harry, thanks for this article. It has some good updates. Your comment
about wishing to see what prices looked like without gov't interferences/
interventions prompts another reply.
Unfortunately, if government policy does not encourage it, many independent
manufacturers cannot afford or will not bring innovative energy-efficient
products to the market without some initial subsidy.
As a minor example, the US government subsidized safer, more
energy-efficient manufactured housing for almost ten years (c. 1985-95) so
that the industry would redesign to meet new electrical codes and install
energy-efficient insulation and appliances in this inexpensive (but horribly
financed) housing alternative. Dealers were given assistance in marketing
their product at energy fairs around the country plus a DOE hotline and
publications service for interested buyers. Too many deaths in dangerously
outmoded models and too many people freezing in others.
Prices have increased now that the subsidy is over, but this industry would
not have made the changes without the government in the first place - this
product is not a mortgage lending asset since they are financed like cars
and boats and depreciate as soon as you drive them off the lot (unless, I'm
told, you park it in a side-walk and-driveway subdivision designed for them
or even better, on your own property). You can really see the difference as
you drive by older trailer parks and newer MH 'subdivisions'. I see a lot
of 'doublewides' used on rural property up here, where they are not in
danger of periodic flooding and tornadoes, as elsewhere.
I know that some city housing agencies have considered building senior
neighborhoods of new MH to entice older residents who cannot afford their
home and its upkeep but don't want to move into group facilities away from
their friends and longtime neighborhoods. The Portland Development
Commission has a program to assist low-income homeowners with major repairs
at a 3% loan (I wonder if that's been lowered now?) because whole
neighborhoods (and thus real estate values and property tax revenues) are
threatened when impoverished seniors who live on pennies cannot afford to
fix the hole in the roof, replace a dangerous furnace or drain the leaky
basement. PDC annually targets neighborhoods based on data from the city
tax rolls. There is a critical need for affordable housing everywhere and
it's not getting any better - but I'm getting off-topic.
A similar process from the US DOE brought European energy-efficient
refrigerators, water heaters, furnaces, washers and dryers to the stodgy
American market, which has finally encouraged our domestic makers to be more
competitive. They didn't do this on their own market foresight or sense of
environmentalism. Government policy created the market incentive for them.
Too bad Detroit is not as agile. As I recall from past notes, you and I
drive Toyotas and get great gas mileage. To me it is sheer stupidity of
those dinosaurs to complain that it'll be hard work for them to comply with
the new 1.5 mpg improvements by 2005. Have they given up competing with the
Japanese and Europeans altogether? Here's a recent story on that:
BUSH OKAYS NEW FUEL ECONOMY STANDARDS FOR SUVs @
http://www.washingtonpost.com/wp-dyn/articles/A47253-2002Dec12.html
Excerpt:
"Automakers now must meet a fleet average fuel economy of 20.7 mpg for SUVs,
minivans and pickups, a standard that has been in place since 1996. The
proposed requirement will gradually ratchet that up to 22.2 mpg between the
2005 and 2007 model years.
The mileage requirement for other passenger vehicles will remain 27.5 miles
per gallon, where it has been since 1990.
The rule mirrors a proposal sent to the White House for review last month by
the National Highway Traffic Safety Administration, the Transportation
Department agency that administers the program. Spokesmen for the
automakers said a 1.5 mpg increase was "a significant increase" and a
"daunting" challenge if producers are to continue to provide customers with
a wide range of SUVs, including the larger models.
"Achieving this standard depends on consumers buying our fuel-efficient
vehicles in large numbers," said Gloria Bergquist, spokeswoman for the
Alliance of Automobile Manufacturers, which represents the major automakers.
End of Excerpt.
Both Honda and Toyota took a price loss on every new hybrid vehicle they
sold in the US last year just so they could get the model introduced to
buyers and others would see it on the road. Apple and Microsoft were
similarly insightful when they donated countless computers to schools, thus
ensuring kids asked their parents for their brand at home. Gates and Jobs
obviously weren't mimicking Detroit. - KWC
Outgoing Mail Scanned by NAV 2002
