In class we examined the United State’s history of natural resource consumption and extraction. During this discussion we looked at two arguments in particular, the “favorite by fortune” and “favorite by design” argument. We tried to discern whether the US gained a lead in resource extraction, in comparison to the rest of the world, due to luck or institutional design. This article is a relevant modern example of “favorite by design” when it discusses how financial incentives in the form of subsides will shape the country’s future resource consumption. Today’s subsidies for clean energy are similar to the Federal Mining Law of 1872 in the sense that entrepreneurs now have more to gain and a lower market entrance cost thanks to changes in government regulation. Compare and contrast this to The Federal Mining Law of 1872, which also made market entrance easier by allowing free exploration and purchase, and improved miner returns by giving exclusive right of possession and enjoyment. Please view the New York Times article below for more details!
http://www.nytimes.com/2011/11/12/business/energy-environment/a-cornucopia-of-help-for-renewable-energy.html?_r=1&hp
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