Megan Hansen, Utah State University
Economics
This research represents one chapter out of a larger book written with the help of fellow student researchers at Liberty Source under the direction of Dr. Randy Simmons. The book itself questions the notion common among environmentalists that a balance of nature exists and that governments should take steps to restore that balance when it is upset. This research in particular examines the effects of the Energy Policy Act of 2005, and the subsequent funding of alternative energy start-ups by the federal government in an effort to restore the balance of nature. It includes a detailed case study of Solyndra, a solar power manufacturing company that received a large federal loan from the Department of Energy under the Obama administration only to default a few years later. This case study questions the role of the government in “picking favorites” when it comes to alternative energy, and argues that failure is likely when this occurs due to imperfect information and the tendency for politics to play too large a role in decision-making.