Photo Credit chefranden
I was talking to Tom last night, and it struck me that a bubble won’t be all bad. There are a couple of reasons why. First off, unlike the last time a green bubble popped when oil prices collapsed in the 1980s, this time around we have China and India to sustain demand, and oil prices.
So why would a bubble be good? For one, we need the inward investment to create an infrastructure capable of serious lobbying, to be able to create favourable Green Tape (the rules, regulations and tax regimes surrounding renewable investments). At the moment energy lobbying is clearly in the hands of the oil and gas companies. This balance needs some redress, and massive capital injections are going to help.
Finally lets not also forget that bubbles can and do change the world. The first internet “bubble” popped, but you’re not about to tell me the transformation is over, and or has even started, yet…Innovation is discontinuous, and that’s why I am not afraid of some bubble tendencies. We just need to make sure some of the gum sticks when it bursts…