We often hear the following: “We will always need coal and oil, no matter how important renewables are.” In the short run, it is no doubt true; however, to say that we will “always” need coal and oil is not accurate.
We already have strong reasons to reduce our dependence on coal and oil. There is great concern over Earth’s overheating climate and environmental degradation.
But we also need to remember the finite nature of fossil fuels. A fundamental lesson in economics is the relationship between value and scarcity. As finite resources are depleted, they become more valuable, and we pay more for them. As nonrenewable energy sources such as coal, oil and natural gas are consumed, they become more expensive.
In contrast, the sun never raises its rates, and the wind blows wherever it will. Sunlight and wind are “free goods,” which lack scarcity and are available to all. They cannot be monetized or depleted.
After initial infrastructure investments, the energy from renewables is essentially free. Importantly, the Inflation Reduction Act (IRA) provides tax incentives for such things as solar panels, heat pumps and electric vehicles.
Renewables become cheaper as nonrenewables grow more expensive. There is understandable resistance to this energy transition. We are familiar with coal and oil. Subsidizing coal plants and pushing for shale oil — even when it is not economically wise — is rooted in what we know and have built our lives around.
It is an obsolete assumption that “we will always need coal, oil and gas.” If it were true, we would be doomed, because we will run out of them. Thankfully, it is not true. The future will be renewable, even in Utah.
Tom Elder, Vernal
