Green Energy Boom/Bubble
Following up on yesterday's poll:
link: http://www.scott-edwards.com/2007/04/30/new-investment-bubble-forms-in-green-ventures/
excerpt:There were several side effects from the first dot com crash that shaped the way the internet evolved. The first and most important trend was the over-investment in fiber-optic cables. This over-investment sent transmission prices plunging, resulting in prices being so low that today they are almost nonexistant. While this was a disaster for investors, consumers and everyone who uses the internet benefited from the vast increase of bandwidth available to them at rock bottom prices.
The same thing will happen when the green energy bubble bursts in a few months or few years. While investors in those companies will be hurt, the stock market will decline, and employees in green companies will be laid off, the over-investment will drive the cost of green technologies lower than previously thought possible. This means solar and wind power will be truly competitive on the energy market. Adoption of alternative energy will skyrocket because it will likely be cheaper and more efficient than traditional sources. All this has nothing to do with environmental concerns and everything to do with economic concerns. The side effects of the bubble in this case have tremendous positive effects for the environment and for green energy. As someone who has no investments in green energy and who would love to see the country more rapidly adopt clean energy solutions, I see this VC boom in green energy as a good thing, rather than as something which should be feared.
Not a bad outcome. I hope it pans out that way.
link: http://www.scott-edwards.com/2007/04/30/new-investment-bubble-forms-in-green-ventures/
excerpt:There were several side effects from the first dot com crash that shaped the way the internet evolved. The first and most important trend was the over-investment in fiber-optic cables. This over-investment sent transmission prices plunging, resulting in prices being so low that today they are almost nonexistant. While this was a disaster for investors, consumers and everyone who uses the internet benefited from the vast increase of bandwidth available to them at rock bottom prices.
The same thing will happen when the green energy bubble bursts in a few months or few years. While investors in those companies will be hurt, the stock market will decline, and employees in green companies will be laid off, the over-investment will drive the cost of green technologies lower than previously thought possible. This means solar and wind power will be truly competitive on the energy market. Adoption of alternative energy will skyrocket because it will likely be cheaper and more efficient than traditional sources. All this has nothing to do with environmental concerns and everything to do with economic concerns. The side effects of the bubble in this case have tremendous positive effects for the environment and for green energy. As someone who has no investments in green energy and who would love to see the country more rapidly adopt clean energy solutions, I see this VC boom in green energy as a good thing, rather than as something which should be feared.
Not a bad outcome. I hope it pans out that way.