Denmark - grow your economy and reduce energy consumption

Thomas Friedman wrote an excellent Op-Ed piece in New York times - on his visit to Denmark and their energy infrastructure...

Basically Denmark, like California has successfully grown it's economy while at the same time reducing or keeping it's energy consumption steady...while at the same time building a world class wind industry - far ahead of the US, and only rivaled by China.

He writes -

"There is little whining here about Denmark having $10-a-gallon gasoline because of high energy taxes. The shaping of the market with high energy standards and taxes on fossil fuels by the Danish government has actually had 'a positive impact on job creation,' added Hedegaard. 'For example, the wind industry — it was nothing in the 1970s. Today, one-third of all terrestrial wind turbines in the world come from Denmark.' In the last 10 years, Denmark’s exports of energy efficiency products have tripled. Energy technology exports rose 8 percent in 2007 to more than $10.5 billion in 2006, compared with a 2 percent rise in 2007 for Danish exports as a whole."

"Frankly, when you compare how America has responded to the 1973 oil shock and how Denmark has responded, we look pathetic."

“'I have observed that in all other countries, including in America, people are complaining about how prices of [gasoline] are going up,' Denmark’s prime minister, Anders Fogh Rasmussen, told me. 'The cure is not to reduce the price, but, on the contrary, to raise it even higher to break our addiction to oil. We are going to introduce a new tax reform in the direction of even higher taxation on energy and the revenue generated on that will be used to cut taxes on personal income — so we will improve incentives to work and improve incentives to save energy and develop renewable energy.'"

"Because it was smart taxes and incentives that spurred Danish energy companies to innovate, Ditlev Engel, the president of Vestas — Denmark’s and the world’s biggest wind turbine company — told me that he simply can’t understand how the U.S. Congress could have just failed to extend the production tax credits for wind development in America."

"Why should you care?"

“We’ve had 35 new competitors coming out of China in the last 18 months,” said Engel, “and not one out of the U.S.”