Green cronyism

This is interesting:

A lawsuit recently filed in the United States Court of Claims may shed further light on the corruption of the Obama administration’s “green energy” programs. The lawsuit was filed on behalf of XP Vehicles, Inc. and Limnia, Inc., companies that competed for Department of Energy loans under a Congressionally-authorized program. The owners of XP eventually realized that there was no real competition, and that the whole Department of Energy program was a scam intended to funnel money to Obama and Democratic Party campaign contributors and political allies. They allege in addition that DOE misappropriated proprietary technology that they submitted in connection with their loan applications, and gave that technology to Obama administration cronies.

If the allegations are accurate (and I suspect they are), they are a terrific example of the wastefulness of the government’s efforts to build a green economy. In a free, competitive economy, price signals guide the allocation of resources, achieving what economists call “resource allocative efficiency”, in which the price of every commodity reflects its marginal cost of production. Thus, individual purchasing decisions reflect the actual resource costs of the product.

The government’s efforts (especially under Obama) to alter the allocation of resources to a “greener” set of choices, disrupts that efficient outcome. The entire effort is wasteful, and as this lawsuit seems likely to illustrate, sometimes egregiously so.

The irony is that all this waste is carried out under the banner of “conservation”. That’s right, waste is called conservation. George Orwell would be proud.

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