Economics of Hydrogen
By Arnold Kling
Gregg Easterbrook lets a lot of the air out of the hydrogen balloon.
Pure hydrogen is not an energy source, except to stars. As it will be used in cars or to power homes and offices, hydrogen–like a battery–is an energy medium, a way to store power that has been obtained in some other way…hydrogen is going to be an expensive energy medium and, in the early decades at least, will be a medium either for natural gas, a fossil fuel, or for atomic power.
For Discussion. What are some of the reasons that economists would advocate taxes and subsidies related to outcomes, such as pollution, rather than means of achieving outcomes, such as hydrogen power?