12/4/08: Could solar be cheaper than coal soon?

For environmental economics the focus is on the cots of generating energy from coal, oil, solar, wind, and other alternative energies. Currently, coal and oil are still cheaper. Oil is currently artificially low because the price is reflecting decreased output due to decreased demand. In economics this low price is supposed to encourage people to buy more so more production can occur so more can be charged for the product. The only problem with this traditional equation is that the Long-term costs of oil production and the environmental costs are not calculated into the equation. But, remember in the end it is many governments that control the selling of oil, so just raising prices to drastically reduce demand would bankrupt many countries (Venezuala, Saudia Arabia), and low oil prices will bankrupt them too.

Solar energy in particular needs to rise to the challange. Solar energy needs to become cheaper than coal. Once solar is cheaper than coal then we can power our power stations with solar and then can use electric cars. Electric cars powered by a power system that feeds off of solar would rid us of a dependence on coal and oil.

But, we must remember the pain that comes with creative destructionism. It kills jobs, profits, industries and companies. But, our system is based off of innovation and adaption.