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I'm no eco nut putting up wind power because its fashionable. I agree with you on market dynamics being the key. Even subsidies (if done for solid reasons) should be done to use market dynamics. Like setting a market floor on oil, below which it is taxed. Thus all alternatives are on equal footing. I'm pretty busy now, but if I have time I'll try to find the numbers for you.

The key to alternatives has always been making them market ably wise. The instability of the oil market has always been a problem in setting a business model.

The instability of the oil market has always been a problem in setting a business model.

I'm not sure about things like setting a market floor on oil, with a tax penalty (which is in effect a negative subsidy) or any other type of subsidy. I guess I'm not sure there is a 'solid reason' for a subsidy, barring only maintaining an essential industrial capability which is not normally needed. I think - if the government got out of the game - that the oil market would be a lot more stable unless there were some special case like a Katrina that interfered with normal oil production. And in that case, prices are going to go up so a floor is not relevant.