Shift Key with Robinson Meyer and Jesse Jenkins cover image

Why a Climate Startup Is Building the World’s Biggest Airplane

Shift Key with Robinson Meyer and Jesse Jenkins

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Fiscal Regimes, Technology, and Resources in Energy Sector

The combination of resource, technology, and fiscal regime determines the cost-effectiveness of energy production. In the next decade, fiscal regimes will have a significant impact on where the cheapest energy will be generated. However, over time, the importance of fiscal regimes will diminish, giving more weight to superior technology and optimal resource locations. The United States currently benefits from a strong fiscal regime with Production Tax Credits (PTCs) but may eventually face competition from regions with better wind and solar resources. As a result, future industrial opportunities in the energy sector may shift from the US to countries with superior renewable energy resources.

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