With a coalition consisting of all but one party, Liberal Alliance, Denmark's parliament had reached an agreement through 2050 to develop wind energy production, so 50% of electricity is produced by wind farms in Denmark by 2050 and financed through 2020 with excise taxes on central heating. This sets the stage for a transformation of Denmark's industries, providing a huge boost for companies like Vestas, who produce windmills and fulfill a large portion of the worlds demand in wind energy, but face competition from companies in China and India. Denmark will become a world leader, not in production of the windmills, but in taking the leap from coal and oil to renewable and independence from foreign energy. That last 50% will not seem like a major hurdle afterward. This article is however critical of the agreement and will cover two points; how this agreement will be financed and the mystic influence the Red-Green Party, Enheds Listen (Literal translation: The Unity Party).
While this seems like an ambitious plan for Denmark and should benefit everyone, the burden of finance is carried by the lower class, because the transport sector, cars and trucks, and furnaces, typically of the wood burning variety found in upper middle class and on the way up homes, are exempt. Central heating is more common in apartments, small town homes in the incorporated part of a city and the public sector. Collective energy production is more often used, and financed, by the lower class in Denmark. In effect, exempting private energy from any taxes, including cars, taxes specifically the people who already are economically stressed.
There are two dangers in financing such a reformation with revenue solely from the lower class. If unemployment goes up again, capital to finance this energy reformation will dry up and work will come to a halt. While everyone needs to heat their homes, people will turn down the radiator to save a little money here and there. The effects on local economies can also be traced directly back to funding short falls.
Wind farms are a collection of windmills in an area considered prime for wind energy production and put to the side specifically for that purpose. Wind farms can be found out at sea or on land and sometimes on agricultural farms. Projects to construct windmill installations can create hundreds of jobs in the local economy for years. This breath of life in the local economy can lift the standard of living for the area and continued growth after the project is completed can be expected. However, if funding for a project is cut before it is complete and people are suddenly and unexpectedly out of a job, investments made in the local economy can be lost. This lost investment, which could have gone to other projects that return the investment, adds insult to injury. Along with the lost jobs, further funding for the transformation evaporates and other projects will come to a halt. It is called an economic bubble.
The second point of this post is a question. What did the Red-Green party do exactly? They have participated in the negotiations, but kept their contribution behind closed doors. Why?
While this seems like an ambitious plan for Denmark and should benefit everyone, the burden of finance is carried by the lower class, because the transport sector, cars and trucks, and furnaces, typically of the wood burning variety found in upper middle class and on the way up homes, are exempt. Central heating is more common in apartments, small town homes in the incorporated part of a city and the public sector. Collective energy production is more often used, and financed, by the lower class in Denmark. In effect, exempting private energy from any taxes, including cars, taxes specifically the people who already are economically stressed.
There are two dangers in financing such a reformation with revenue solely from the lower class. If unemployment goes up again, capital to finance this energy reformation will dry up and work will come to a halt. While everyone needs to heat their homes, people will turn down the radiator to save a little money here and there. The effects on local economies can also be traced directly back to funding short falls.
Wind farms are a collection of windmills in an area considered prime for wind energy production and put to the side specifically for that purpose. Wind farms can be found out at sea or on land and sometimes on agricultural farms. Projects to construct windmill installations can create hundreds of jobs in the local economy for years. This breath of life in the local economy can lift the standard of living for the area and continued growth after the project is completed can be expected. However, if funding for a project is cut before it is complete and people are suddenly and unexpectedly out of a job, investments made in the local economy can be lost. This lost investment, which could have gone to other projects that return the investment, adds insult to injury. Along with the lost jobs, further funding for the transformation evaporates and other projects will come to a halt. It is called an economic bubble.
The second point of this post is a question. What did the Red-Green party do exactly? They have participated in the negotiations, but kept their contribution behind closed doors. Why?