The Jones Act, a protectionist law dating back to 1789, is hindering the United States’ ability to reach its wind power targets. The law, which requires goods transported between US ports to be carried on American-built and -operated ships, increases costs and slows down the country’s development of offshore wind power. However, the Jones Act remains in place due to the limited number of beneficiaries and the fact that the increased costs are spread out among many payers, making it less noticeable.
Colin Grabow, a research fellow at the Cato Institute, explains that most Americans are unaware of the Jones Act’s existence. While it may not have a significant impact on many people’s lives, it negatively affects all Americans by impeding the country’s progress in meeting its wind power goals. Those who benefit from the law, such as shipbuilders and operators, are typically the most vocal supporters of its continuation.
The slow rollout of offshore wind power in the United States can also be attributed to various other factors, including rising interest rates and inflation. These macroeconomic factors have inflated construction costs, making projects less financially viable. Despite these setbacks, the potential for offshore wind power generation in the country is vast, with estimates suggesting that fixed-bottom offshore wind farms could generate around 1,500 gigawatts of power.
To make the expansion into offshore wind more efficient, the United States can take several steps. This includes streamlining the regulatory process, investing in infrastructure, and providing financial incentives for developers. By addressing these issues and potentially reforming or repealing the Jones Act, the country can accelerate its transition to clean and renewable energy sources, contributing to both environmental sustainability and energy independence.
