Clean energy is expensive, will the next gen pick up the tab?
One of the biggest misconceptions about the post-crash economy is that capital is scarce. This could hardly be more true. America alone has essentially invented (aka 'quantitative easing') about $4.5 trillion out of thin air. Add in Japan, China, the EU, and the UK, all of which have done likewise to varying degrees, and we're left with a global economy that is absolutely swimming in cash with no place to go.
The reason why the central banks did this was to stimulate the economy following the crash. The theory was that banks and government would take the money and invest it in productive ends, like rebuilding high streets, modernising infrastructure like inner-city transit or the trains, and especially, funding the transition to a non-carbon economy.
Instead, our economic elders in America and especially the EU and UK decided to deliberately contract the economy, at the height of the worst recession in eighty years. Rather than invest the QE money, and the Central Banks intended, they instead extracted funds from local councils, hospitals, schools, transit, the police - the works - in the EU's case to hoard pointless surpluses in Germany and the Nordic states, and in Britain's case to reduce taxes for corporations and wealthy donors. In doing so, they ignored the advice of just about every macroeconomist in the field, and created the conditions that enabled Brexit and Trump. Our politics may never recover from their error.
The combination of a) conjuring unprecedented piles of capital (slashing interest rates and effectively printing trillions) and b) contracting the public sector, has been an unrelenting disaster, with enormous piles of capital sloshing around, and no productive place to go. So we have staggering global asset bubbles in real estate (google 'Dar Es Salaam real estate bubble' if you want to know how out of control it has become), and in equities: Price-to-earning ratios have never been more distorted, and British and American corporations are sitting on enormous heaps of cash and no idea what to do with it, save buying back their own shares.
In other words, we could have dramatically improved inequality, transit, quality of life - and the environment. But we created WeWork instead.
All that needs to happen to fund renewable energy is to summon up the political will to take back the QE money from its hiding places in Ireland and Luxembourg and Delaware and Bermuda, and invest - reducing inequality and underemployment and reviving 'left-behind towns' in the process. There is overwhelming political support from everyday people for policies along these lines.
But unfortunately, our elites are fiscal zombies, their brains infected by an economic orthodoxy which ceased to be relevant at least 50 years ago. And even painfully modest reforms like restoring taxation to 2010 levels prompt incoherent shrieking about Venezuela.
The problem has never been financial; it has always been entirely political - hence the street demonstrations.