There is a high cost to using subsidies to promote renewable energy to mitigate climate change

With the threat posed by climate change becoming more and more apparent, many are pushing for greater use of more sustainable energy sources, such as wind power. While these ‘green’ energy sources can attract generous subsidies from government, can this investment be justified in comparison to their reductions of greenhouse gas emissions? Joseph Cullen takes an in-depth look at the cost of wind power, compared with the value of emissions avoided. He finds that given the current social cost of carbon, subsidies are not the most cost-efficient way to mitigate climate change.