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A failure of economic strategy and leadership lies behind the near simultaneous collapse of market confidence in the eurozone and US economies. No need to blame the ratings agencies: governments in Europe and America have been unable to cope with the realities of global capital markets and competition from Asia – and deserve the lion’s share of the blame.



I’ve watched dozens of financial crises up close, and know that success means showing the public a way out that is bold, technically sound and built on social values. Transatlantic leadership is falling short on all counts. Neither the US nor Europe have even properly diagnosed the core problem, namely that both regions are being whipsawed by globalisation.



Jobs for low-skilled workers in manufacturing, and new investments in large swaths of industry, have been lost to international competition. Employment in the US and Europe during the 2000s was held up only by housing construction stoked by low interest rates and reckless deregulation – until the construction bubble collapsed. The path to recovery now lies not in a new housing bubble, but in upgraded skills, increased exports, and public investments in infrastructure and low-carbon energy. Instead, the US and Europe have veered between dead-end, consumption-oriented stimulus packages and austerity without a vision for investment.



Macroeconomic policy has not only failed to create jobs, but also to respond to basic social values too. Let me be clear: good social policy does not mean running big deficits. Public debts are already too large in both Europe and the US. But it does mean a completely different balance between cuts to social services and tax increases on the rich.



The simple fact is that globalisation has not only hit the unskilled hard but has also proved a bonanza for the global super-rich. They have been able to invest in new and highly profitable projects in emerging economies. Meanwhile, as Warren Buffett argued this week, they have been able to convince their home governments to cut tax rates on profits and high incomes in the name of global tax competition. Tax havens have proliferated even as the politicians have occasionally railed against them. In the end the poor are doubly hit, first by global market forces, then by the ability of the rich to park money at low taxes in hideaways around the world.



An improved fiscal policy in the transatlantic economies would therefore be based on three realities. First, it would expand investments in human and infrastructure capital. Second, it would cut wasteful spending, for instance in misguided military engagements in places such as Iraq, Afghanistan, and Yemen. Third, it would balance budgets in the medium-term, in no small part through tax increases on high personal incomes and international corporate profits that are shielded by loopholes and overseas tax havens.

Renewable sources such as biomass and hydro participate to a significant extent of France’s energy mix. However, France is developing policies aimed at a more diversified mix which includes increasing wind and photovoltaic electricity, solar energy for heat and biofuels. France also has the second largest potential in the European Union in terms of wind energy and a very good potential in terms of solar and geothermal energy.

Learn more about renewable energy in France here.

Policies

Tax Credits – In 2005, tax credits were set up (50% since 2006) for equipments using renewable energy source. This is now called the sustainable development tax credit regime and is extended to 2012.

The level of production of large-scale and small-scale hydropower installations combined to represent 59,712 gigawatt-hours (GWh) of the total 64,439 GWh.

The second and third principal sources are biowaste (1,671 GWh) and solid biomass (1,371 GWh).

Solar power demonstrates an average annual growth of 90% (between 1997 and 2004), and for onshore wind power this figure is 58%.

The most important renewable energy source in Italy is hydropower which contributes to roughly 16.6% of total gross electricity production of the country. Italy also has large geothermal resources, both high and low temperature.  Italy is considered the most important producer of geothermal electricity in Europe.

Policies

Here are some ways that Italy is trying to increase development in regards to renewable energy:

Introduced new provisions for renewable power generators. Small generators (up to 1 megawatts) will have the choice between selling their green certificates on the market and receiving a feed-in tariff.

Motives 

Renewable Energy Availability

 

In the Czech Republic, renewable energy is supported through either a guaranteed feed-in tariff or a green bonus paid on top of the market price. System operators are free to choose either option. Furthermore, renewable energy is promoted through several subsidies and an exemption from the tax on income gained from the sale of electricity from renewable sources.

Policies

Motives

The share of renewable energy sources has also been increasing, although still below EU average.

Renewable Energy Availability

Click to see larger image and for more information.

Policies designed to minimise and redefine dependence upon oil for transportation have been the talk of many towns around the world over the past several years, leading Navigant Research to posit that gasoline consumption for road transportation will fall by 4% from 2014 to 2035.

Policies intended to reduce fuel consumption have ranged from subsidising alternative fuels and alternative-fuel vehicles, making the development of new and economic biofuels a priority, as well as higher fuel-economy requirements for new vehicles. Each policy has been one step in a cleaner future, and another nail in the coffin of traditional fuel-oriented transportation.

“The anticipated effects of climate change are driving international cooperation on mitigation efforts, including reducing oil consumption in the transportation sector,” says Scott Shepard, research analyst with Navigant Research. “Markets for both vehicles and fuels have gradually begun to respond to these efforts, and alternative fuels ‑ including electricity, natural gas, and biodiesel ‑ are beginning to have an impact on global oil demand.”

On Friday, I discussed the BP statistics for global solar installations. Today, I compare that to the wind installation capacity from the same source. As you can see above, the world has installed significantly more wind than solar capacity.

Before we go further, a reminder that both these sets of numbers are for nameplate capacity, and all renewables suffer from intermittency issues meaning that the fraction of full power they produce, averaged over time, is a lot less than 100%. Several readers corrected me on Friday that my assumption of solar capacity factor of 30% is probably too high. I still havent found any good global statistics, but it does seem likely they are right, and solar capacity factors are probably more like 15-20%. Wind capacity factors are in the range 20-40%. So in terms of actual delivered energy, the difference is probably greater than the capacity graph above would suggest.

However, in recent years, solar has been growing much faster ...

Wind has been growing in the range 20-35% for 15 years now, and had a not so great 2010 (weve already discussed the collapse of US wind installation last year). Solar was growing in the same range until the early 2000s, but has lately taken off and had an unbelievable 2010.

Last month was a scorcher for global temperatures with warmth over land and sea breaking records for June while sea-surface temperatures posted their largest departure from long-term averages for any month.

Combined average temperatures over land and sea were 0.72 degrees above the 20th century average of 15.5 degrees, making it the hottest June and adding to the record May and equal record April, according to the US National Oceanic and Atmospheric Administration (NOAA).

More striking for climatologists, though, were the sea-surface temperatures. These came in 0.64 degrees above the 20th century average of 16.4 degrees – the first time any month had exceeded the long-run norm by more than 0.6 degrees.

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