Thinking of this in terms of markets is the real ideologically driven inefficiency.

You can spend every euro or dollar only once. If you consider CO2 emissions a critical problem, then you should spend every single dollar as efficiently as possible. Obviously independence of fossil fuels has a value too, as the current situation in the middle east shows.

It would make much more sense to import (renewable) electricity from Spain to Germany than strawberries.

No this would not make more sense.

Grids are not set up to move significant percentages of national consumption over longer distances, and expansion is slow, expensive and prone to nimbyism.

Countries already struggle to move electrical energy inside their own borders (e.g. Germany: north=>south), shifting double digit percentages of national consumption across Europe is not gonna happen any time soon. Germany alone plans to spend at least ~€100bn over the next decade on this (internally, not on connecting Spain!).

Much more effective to focus on local generation first than to try and rely on slightly better conditions for solar panels half a continent away.

You shouldn't be spending euros or dollars at all. The economic system is the ideology holding us back.

If money ever starts looking particularly illusory, try thinking in terms of the underlying resources that markets allocate.

That's 'resources' viewed as expansively as possible, everything from the specialized labor-hours of people who know how to do quality control on bulk-manufactured photovoltaics to the ore used to make ball bearings in the factory all the way to the guy in charge of managing a grain elevator that was involved in making the bread for the sandwich one of the janitors had for lunch. The web of collaboration between all these far-flung people who mostly don't know each other, too vast and intricate to fit in any living mind, is how we currently get most of our material stuff.

... And in a conventional market system, the core of how those people coordinate their efforts is money. The price that each person is willing to buy something for or sell it for sends a signal about how much they care about it relative to other things. And markets are one popular way of aggregating that information, helping guide society's cooperative efforts in the direction of what people care about.

There are various allocation systems that don't involve money, both theoretical and historical. Community-based mutual reciprocity with a reputation mechanism to discourage freeloading, for example, can be found all over the place in pre-modern history because it worked – as long as your community was small enough that you can realistically all know each other. Or, back in the 20th century, there were a number of efforts to scale up operations research toward the level of nations, since suddenly we had computers fast enough to handle e.g. non-trivial linear programming. (The successes and failures were both instructive.)

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Coordination problems are hugely underrated in political discourse. So when I hear people say things like "The economic system is the ideology holding us back", I always have to wonder: how carefully has this person thought about a what a viable alternative would look like?

"I dislike the current system" is only the first and most trivial part of a real reform agenda; the next part has to be "... and here is how to meaningfully change it in a way that doesn't result in disaster, with a detailed discussion of mechanism design and a look at relevant historical prior attempts. [Insert essay or hyperlink here.]"

So...what should we be spending?

Gold coins? Pesos? Cows? Inferior-quality copper ingots?

It's entirely possible that you have a good point, but if so, it's gonna need a whole hell of a lot more context to elucidate.