Ok. At least I didn't state that as a fact!

But, part of the argument still holds. How does the Danish government know that "Wind is better". Why is it "distorting" market signals to provide "fertile ground"? The Danish government HAS diverted resources from some part of their economy to another place, probably a different one the market would have chosen.

How is subsidizing wind energy different from subsidizing corn ethanol?

"How is subsidizing wind energy different from subsidizing corn ethanol?"

What the government (the public) should subsidize in our society is a pretty fundamental expression of our values I suppose.  We should ask this question honestly in a broader sense.

We seem to value mobility, in fact we have become dependent on being mobile in order to survive - in this way we are like the nomadic people, except that we return to the same bed every night.  Is it possible that we will every come back to seeing the value in living in place, without he need for so much mobility?  If that happened, I think then the questions over what the public should subsidize would change quite a bit.  

"We seem to value mobility, in fact we have become dependent on being mobile in order to survive - "

Are we dependent on independence?  What a conundrum!

  ('Conundrum' - this could be Canada's Oil Drum!)

As far as valuing mobility.  I don't really dispute that, but it makes me think about how much we seem to strive for 'safe isolation' .. gated communities, soundproof cars, personal entertainment systems, ..  there is a lot of great comradery in our culture, too, but I think of the millions of people sitting together or apart, and all watching TV.  When I was a little kid, I wasn't allowed to watch TV until my folks realized it was all the other kids in the carpool were talking about, and my brother and I were miserable outsiders..

I would change the title to 'Canundrum'.
Guess I didn't see an answer to this one..

Well for the direct answer, subsidizing Wind, I contend, is one, wise direction to move our energy resources towards.  There is a great return, simple proven technology, and the  likelihood of a long future for this abundant resource, without serious downsides like soil depletion, increased water dependency and need for signifigant inputs like NG or Oil to produce it.

From another side, many see the benefits of wind without the helping hand of a gov't grant, so it could be it'll move forward fine without it.. that is, unless it needs it just to Compete with other subsidies like Corn, Ethanol, life-supports for GM and Exxon and the Contras..  See how Amtrak's subsidy could hardly be expected to armwrestle with The Auto Industry's favors, sweetheart deals in Saudi, the Highway system and the Airports..

Who's grant buried Grant in Grant's tomb?

Bob Fiske

How is subsidizing wind energy different from subsidizing corn ethanol?

Apart from point 4 (The national grid was encouraged to take wind power, even when additional lines were required.) this doesn't look like a subsidy, rather, facilitation of the "market rules" (point 1), removing red tape (point 3) and having a general incentive to carbon free energy (point 2) NOT specifically wind.
And this last may even have covered the costs of point 4 at least in part.
While subsidizing corn ethanol means gobs of money, even more so for subsidizing nuclear.

Forgot that:

probably a different one the market would have chosen

Does this means you assume that "the market" choose wisely?
The market actually "choose" SUVs!

How is subsidizing wind energy different from subsidizing corn ethanol?

In my opinion the important choice is not what alt-energy you fund, but: do you fund just research, or also production?

I'd say fund a broad array of research, but stay out of production funding.  That messes up the market and prevents us from knowing what is working.

That messes up the market and prevents us from knowing what is working.

"The Market", as you refer to this construct anthromorphicly, is composed of advertisers (aka persuaders, mind manipulators). They are the ones who "mess" with our minds and thus determine what "works" in the market place (albeit to a limited extent) and what doesn't. Ultimately, the things that "work" are those that pander to the irrational, child like desires of the masses.

Do I have a solution?
Sorry, no.
That is why I revisit TOD so often.
I keep hoping some of the way smarter people here will offer insights.

"The market" contains all that and more.

But ah, you got an alternative other than central planning?

Distributed divine guidance.  :-)
Extra credit: has central planning ever spanned more than a few years without sprouting its own crony network?