To sell a Waterfall

"Don't go chasing waterfalls, please stick to the rivers

and the lakes that you're used to

I know you're gonna have it your way or nothing at all" - TLC

The leader of Centerpartiet, Maud Olofsson said in an article in Dagens Nyheter on August 1 that she wants the government to sell a minority share of the partly state owned energy company Vattenfall. She wants to use the money, SEK 10 billion, to start a new state-owned high technology energy company called Framtidsenergi AB (Future Energy Ltd.) which would have one clear goal to; "together with the private sector invest in future energy solutions and new green jobs in Sweden" She points out that some important areas of investments would be "electric cars (see DJ:ing Economics' post below), the next generations biofuel, new super efficient energy technology, wave energy, intelligent electric grids and more efficient usage of energy in construction, housing and industries"

I have to say that this is a really great idea coming from Centerpartiet. Why is not this idea coming from Peter Eriksson or Maria Wetterstrand of the Green Party? Peter Eriksson did mention selling parts of Vattenfall earlier however.


Why is this such a great idea then?

Firstly, as I wrote in the post about electric cars I truly believe that future growth will depend on new highly technological and environmentally friendly inventions and solutions. Why? Because I believe this is what is going to be demanded more and more and the one being first to supply the demand will have a huge advantage over other countries.

Secondly, this is exactly the role that a government is supposed to take in my opinion. A government is supposed to help create a demand for this type of technology when the markets do not (the ghost of Keynes ones again) because of profits being to far away or because of risk aversion. The horizon for a government is and should be far greater then for a company and that is why it is the role of the government to support new inventions and solutions way before the market do so to help speed up the process.

Thirdly, this needs to happen now, not tomorrow.

This is why I think it is a good idea to sell a minority share in Vattenfall, because not only does government seem to do a pretty bad job as owners, but the influence that the Swedish government is able to have on Vattenfall's operations outside of Sweden seems very small, considering the company's investment in coal and gas energy in Germany for example.

At least we got good commercials in cinemas right?
http://www.youtube.com/watch?v=ZxrlXio4NRM


On a another note; Lars Ohly is of course against this as well. As he is so many other things. What is his problem? He claims that the current government is privatizing out of pure principle. Well he seems to not want to privatize anything just out principle as well. Principles you refuse to change are bad principles and only make you blind and inflexible. I do not really know which kind of world he wants to live in, but it does not seem to be a very modern one. I would rather see the red-green alliance without the Left Party and I suspect so would the Socialists and The Green Party as well, if it was possible.