Like the case of safety, insulated, & low-e glasses, government law mandates most effective use of product acceptance. Unfortunately, the stagnant growth of wage roll employees & pandering politicians in developed economies are inspiring outcries of protectionism from globalization.
Certainly the most affected segment of the population is those with limited skills & tenure. However, public policies addressing the advantages to adding millions of consumers & disadvantaged people in poverty & terrorist regions far outweigh the shortcomings. There is more. This issue should be focused on retraining.
If you go green, what will it look like? Will it be solar? Will it be clean coal? Will it be ethanol or biodiesel? Are government subsidies required to supplement technology to make it economical to develop? How fickle is the public to taxation to promote subsidies? In the U.S., clean energy is gobbling up ten percent of America’s venture capital. It’s estimated that investment into this activity has doubled between 2004 & 2006 to $63 billion.
As an example, a detailed analysis on the real cost of gasoline, done by the International Center of Technology Assessment, estimates the indirect costs of subsidies, tax breaks, depletion allowances, security costs, climate change, & health care costs of treating respiratory illnesses amounts to about $9 per gallon?in addition to the current price of $3 to $6 in world prices. There is more. This additional cost to the state could be offset by a significant reduction in individual tax rates instead of being spent on excessive social & medical programs.
Currently almost all clean energy relies on government subsidies to make it competitive with fossil fuels. For this reason voters pay either way in direct subsidies or higher prices. Unfortunately, government subsidies are an unstable foundation on which to build a business since politicians are a vacillating lot.
This is especially true because people look at green products & technology as a bonus with bragging rights for owners.
But these same people are less willing to pay the difference in price since future savings is a non-starter. This tendency will change, of course, as energy prices rise & the price of technology falls. There is more. The cost of generating wind power, for example, has come down to less than ½ per kwh.
The first solar powered cells were over sixty-five times more expensive than they’re today. While people may see a three-year payback, they can not see beyond the benefits because people in the U.S. often move every five to seven years. Convincing data isn’t enough since final decisions are wallet driven. Even with the law of diminishing returns consumers will have a pecking order of upgrades that they’re willing to pay for because green is still the color of money.
The price of oil hits the pocket of consumers in every non-energy producing country in the world. This influences greatly both manufacturing & transportation costs in Europe & the United States & will soon have an impact on China, India, & other oil-dependent regions. So… So something has to yield. In our industry, we have the real opportunity to make a contribution ? & it’s the issues we discuss at meetings like this that set the tone & direction for solutions.
Are we in the glass business or are we in the environmental business & we just happen to make glass? The answer to this question will impact the future of our industry.
Guardian is a diversified global manufacturing company headquartered in Auburn Hills, Michigan, with leading positions in float glass, fabricated glass products, fiberglass insulation & other building materials for commercial, residential & automotive markets. There is more. Through its Science & Technology Center, Guardian is at the forefront of innovation including development of high performance glass coatings & other advanced products. Guardian, its subsidiaries & affiliates employ 19,000 people & operate facilities throughout North America, Europe, South America, Asia, Africa & the Middle East. To see the full text of the speech visit http://www.guardian.com
Guardian is a diversified global manufacturing company headquartered in Auburn Hills, Michigan, with leading positions in float glass, fabricated glass products, fiberglass insulation & other building materials for commercial, residential & automotive markets. There is more. Through its Science & Technology Center, Guardian is at the forefront of innovation including development of high performance glass coatings & other advanced products. Guardian, its subsidiaries & affiliates employ 19,000 people & operate facilities throughout North America, Europe, South America, Asia, Africa & the Middle East. Please direct all media inquiries to Amy Hennes by phone at (248) 340-2109