Blog Watch: Environmental Capital

The Wall Street Journal's Environmental Capital blog looks at the business of the environment: how companies and investors are adapting to a shift in the energy landscape triggered by growing green concerns. Here are parts of two recent posts.

Environmental Capital

Environmental Capital: Read daily analysis of the business of the environment by The Wall Street Journal.

Does Renewable Energy Still Need Tax Credits?

While Congress was grappling with the financial bailout plan, it left another big, controversial piece of legislation to wither on the vine: the tax package that includes federal support for clean energy. But even if Congress doesn't extend the tax credits, the renewable-energy industry may not see the sky fall.

America's renewables industry has historically depended on the tax credits, because they help make things like wind and solar power cost-competitive with traditional sources of power. But the business is growing up quickly: Despite (or because of) the threat that the tax credits would expire at the end of this year, both the wind- and solar-power industries have chalked up record levels of power installations in 2008.

What's changed? The economics of more mature clean technologies like wind power, for starters. Newer, bigger turbines produce electricity more cheaply than turbines a few years ago. Higher prices for coal and natural gas also make wind power more compelling.

The Journal Report

• See the complete Environment report.

Compact Light Bulbs Could Do Harm

A new study in the journal Environmental Science and Technology concludes that the shift from old, incandescent light bulbs to more-efficient compact fluorescent bulbs has plenty of environmental trade-offs.

The upshot: Making the switch is an environmental win for states and countries that generate most of their power from coal, because the new bulbs mean less electricity generation, and thus fewer emissions of mercury into the atmosphere. But for places that don't rely on coal power, the shift toward CFLs will probably mean more mercury pollution, due to the mercury content in the bulbs themselves.

Among the potential losers? California, an early pioneer in banning old-fashioned bulbs. That's because California gets very little of its electricity from coal. Other regions that can expect to see more pollution include South America, Africa and Scandinavia, the study says.