More on Slicks and Risks
Because there is no way that companies could obtain insurance to compensate them for ALL liabilities in case of an accident, liability limits such as the one for offshore oil drilling (and the similar Price-Anderson Act limitations for nuclear power plants) represent massive taxpayer subsidies, and, by extension, massive market distortions.
David Roberts in Grist has a slightly different spin on the dangers of environmentally risky technologies (e.g. deep offshore drilling). Because there is no way that companies could obtain insurance to compensate them for ALL liabilities in case of an accident, liability limits such as the one for offshore oil drilling (and the similar Price-Anderson Act limitations for nuclear power plants) represent massive taxpayer subsidies, and, by extension, massive market distortions.
And while I wouldn’t go so far as to liken the situation to fascism, as Roberts does, the dynamic in which the owners or would-be builders of big, centralized energy solutions wield more power than advocates of smaller, decentralized solutions seems right. Just compare the political sway held by the nuclear industry – which hasn’t actually built anything in the U.S. for decades – and, say, the solar industry.
Authors
Tony Dutzik
Associate Director and Senior Policy Analyst, Frontier Group
Tony Dutzik is associate director and senior policy analyst with Frontier Group. His research and ideas on climate, energy and transportation policy have helped shape public policy debates across the U.S., and have earned coverage in media outlets from the New York Times to National Public Radio. A former journalist, Tony lives and works in Boston.