Natural Gas and Renewable Energy

Could Cheap Natural Gas Slow Growth of Renewable Energy?

Although natural gas is a cleaner and cheaper source of energy than coal, it may end up preventing the growth of renewable energy sources such as wind and solar energy. Natural gas may prove to be a boost for the economy, providing cheaper energy, and many are looking at natural gas as a 'bridge' to cleaner energy. However, Henry Jacoby, an economist at the Center for Energy and Environmental Policy Research at MIT, reminds us "You'd better be thinking about a landing of the bridge at the other end. If there's no landing at the other end, it's just a bridge to nowhere." But how do we ensure there is a landing at the other end? Jacoby says the main factor in continuing pursuit of renewable energy is policy, according to Trevor Houser, energy analyst for the Rhodium Group. There has to be concern about environmentalism in order to encourage politicians to enforce renewable energy policies.

This is capitalism at work, where immediate profit outweighs long term sustainability. Companies need to start adjusting their business models in order to promote more sustainability. And in order to get them there, government intervention may be necessary.