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Stimulating Green Electric Dreams: Lobbying, Cronyism and Section 1705

December 3, 2013

This paper published by the Reason Foundation delves into the fiscally unwise and ostensibly virtuous process by which the Department of Energy systematically made loan guarantees to several failed renewable energy companies.

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This paper published by the Reason Foundation delves into the fiscally unwise and ostensibly virtuous process by which the Department of Energy systematically made loan guarantees to several failed renewable energy companies. Further investigation by the Reason Foundation found the DOE allocated funds in proportion to each of their lobbying expenditures, revealing merit was never considered before making poor "investment" decisions using taxpayer dollars.

Moreover, such cronyism misled genuine renewable energy investors away from more worthy companies to invest in companies that had false merit because of their involvment in the government-backed loan guarantee program, hurting investers and the renewable energy industry as a whole, in addition to taxpayers.

Article Tags
Energy Environment
Author
Julian Morris is executive director of International Policy Network (www.policynetwork.net), a London-based think-tank, and a visiting professor at the University of Buckingham.
julian@policynetwork.net
Author
Victor Nava is a policy anlyst for the Reason Foundation.
victor.nava@reasons.org