Oil prices are on the rise and this is great for alternative energy. If owners of companies can rely on a stable and permanent increase in real oil prices then they can justify investing in alternative energy. The Economist comments on the price increase and the effect on macroeconomics, it gives good context to our economy and oil prices and shows how integrated all of our modern issues are.
Governments can fund alternative energy projects and can subsidize alternative energy companies but it will be the market that makes the large scale changes that environmentalism seeks. The government does not fix the economy, rather it creates context and the market responds- Increase the real price of oil and people will use substitutes.
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