If wind energy is competitive, why does it need a tax credit subsidy from the government? Isn this government interference in the free market?
The energy market has never been free — large energy producers such as coal and oil have always been able to win government subsidies of various kinds. To take just one example, the federal government has paid out $35 billion over the past 30 years to cover the medical expenses of coal miners who suffer from “black lung disease.” These subsidies mean that the true cost of coal is not reflected in its market price. As the previous answer indicates, the wind PTC was passed by Congress to give wind a “level playing field” compared with other subsidized energy sources. More information on energy subsidies is available from the Renewable Energy Policy Project, More generally, coal receives a huge hidden subsidy resulting from the fact that its full environmental and health costs are not accounted for. The hidden environmental and health costs of coal and other fossil fuels are also confirmed by a major 10-year study by the European Union. More information on the findings of this study is av