GREEN TECHNOLOGY: A LETTER TO THE ECONOMIST (November 11, 2008)

You are all over the place in your current issue when it comes to green technology. In one place you argue that it will suffer in the economic slowdown, primarily because of the sudden drop of oil prices at the onset of the economic downturn (“Gathering Clouds,” November 8, 2008). In another place you argue that oil prices may soon rise precipitously on account of the recent cut in production among the members of the Organization of the Petroleum Exporting Countries (“Well Prepared”). And in yet another place you argue against subsidies for green technology because markets know better than politicians (“Green, Easy, and Wrong”). If you put these three articles together, your own advice on this matter would surely be something like the following: subsidizing green technology makes long-term sense in view of short-term volatility of oil prices. Voila!