Dutch Windmills Pay Landlords More Due to Freebies
|May 24, 2014||Posted by Staff under Economic Principles, Subsidies & Waste & Public Debt|
This is a 2014 excerpt of DutchNews, Apr 24.
Charges for renting the land on which wind farms are built is up to 10 times that of coal-fired power stations.
Wind turbine owners pay private land owners between €35,000 and €50,000 ground rent a year per turbine for contracts of between 15 and 20 years. This takes the total ground rent over the full contract to around €1m.
Millions of euros in government subsidies are disappearing into the pockets of land owners, forcing up the price of wind energy.
Currently just 4% of Dutch energy comes from sustainable sources.
The amount of solar power generated in the Netherlands by companies and private households has almost doubled over the past year.
Ed. Notes: Should we even have any economic policy? Politicians don’t know the first thing about economics. They don’t know that subsidies do very little in the way of benefitting the needy new industry (or whatever) and do very much in the way of benefitting whoever owns the land that the needy need. Long ago Winston Churchill pointed this out with his story about the do-gooders of his day who got the tolls for using bridge reduced — which resulted in the rent for apartments going up by the same amount.
Better than letting politicians subsidize anything, even good things like clean energy, is to instead pay everyone a dividend from society’s surplus, which is society’s spending for the land and nature it uses. Better than letting politicians tax anything, even bad things like pollution, is to instead charge everyone a fee or fine or rent for the values they take (doing that is what would redirect our spending for land, etc, into the public treasury).
If government made polluters pay, there’d be no supposed need to let non-polluters take handouts. And economies could operate as efficiently as nature designed them to. And politicians? They’d have to amuse themselves some other way.