Uncertain policy, uncertain outcomes

Bad policies are bad. Uncertain policies are worse.

Imagine you are in the business of putting up wind turbines. The cost of your turbines has been coming down dramatically for years, and is slated to do so for the foreseeable future.

You can almost compete with dirty coal and gas plants on price alone, but not quite. It would be much easier if coal and gas had to play the same game as you, alas no such luck. For the most part, the costs for the dirt they produce are socialized. So instead you rely on a production tax credit paid to anyone for the first ten years of a wind turbine's life. That's what's driving your business, except when it isn't.

The production tax credit was passed in 1992, but it was left to lapse at the end of 1999, 2001, and 2003.

The result? See for yourself:

Production tax credits are set to expire once again on December 31, 2012. The time to act is closing soon, if we don't want to have 2013 be 2000, 2002, or 2004 all over again.