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Rare earths for green energy trades-off with those for critical military technology

Burnett, 11 --- senior fellow with the National Center for Policy Analysis (November 01, 2011, H. Sterling Burnett, Energy and Natural Resources | Issue Briefs, “Will Green Energy Make the United States Less Secure?” http://www.ncpathinktank.org/pub/ib103, recut by JMP))

Needed Response: Reducing Demand by Ending Green Energy Subsidies and Mandates. The more the United States embraces green energy technologies, the worse off it will be geopolitically and economically. Demand for green energy would fall if there were not huge government subsidies, grants and mandates, because green energy is more expensive and less reliable than traditional energy production.

As the push to adopt rare earth-intensive energy technologies intensifies, those concerned about U. S. energy security could find that the tradeoff involves swapping one form of dependence for a much more perilous one. In addition, the diversion of scarce rare earths to green energy technologies means that there is less available for critical aerospace and military technologies.

The U.S. government should stop interfering in energy markets, and end all energy mandates and subsidies. China’s dominance of rare earths supplies would no longer be an issue because green energy technologies would largely fade from the scene without government support until entrepreneurs figure out a way to make them cost competitive and more reliable. Nor would environmentalists have reason for complaint, since fossil fuels would no longer receive subsidies either. This would be a win-win for both fiscal hawks and green doves.

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