The much touted benefits of wind come with a fatal caveat: industrial wind turbines–suffering from intermittency, low average-usage factors, remote siting, relatively high (and all-up-front) costs–are uneconomic. So the fact that the Wind industry creates jobs and can piggyback on consumer-chosen, taxpayer-neutral, baseload power is no consolation.
The starting point of economics is that wants exceed resources. Market prices are therefore needed to allocate resources. Out of a wide range of technical possibilities (including wind-produced electricity), only a small subset is economic desirable as well. Think of a bullet train from Los Angeles to New York City–technically possible but uneconomic when compared to air travel. Only freely acting consumers in a government-neutral marketplace can decide the difference.
The new study cosponsored by the American Wind Energy Association, Electricity Markets, Reliability, and the Evolving U.S.…
“[William] Baumol was worried, however, by a very different sort of entrepreneur: the ‘unproductive’ ones, who exploit special relationships with the government to construct regulatory moats, secure public spending for their own benefit, or bend specific rules to their will, in the process stifling competition to create advantage for their firms. Economists call this rent-seeking behavior.”
– Robert Litan and Ian Hathaway. “Is America Encouraging the Wrong Kind of Entrepreneurship?” Harvard Business Review, June 13, 2017.
MasterResource covers business entrepreneurship, not only the in’s and out’s of energy history and energy policy.
Good entrepreneurship is about serving consumers in a private property, voluntary exchange, rule-of-law setting. Bad entrepreneurship is about a business receiving special government favor to advantage itself at the expense of consumers and (free market) competitors.…
“Will Ms. Lavelle admit that global lukewarming is a valid area of scientific inquiry and conclusion; there are benefits, not only costs, to the human influence on climate; and ‘government failure’ exists alongside ‘market failure’ in the quest to ‘do something’? Adaptation to realistic scenarios, private sector as well as public, is an alternative to–and opportunity cost of–mitigation.”
The article by Marianne Lavelle, “5 Shades of Climate Denial, All on Display in the Trump White House,” a feature at Instide Climate News (June 9, 2017), deserves a second look. The good news is that a much more useful categorization that has been offered (by Richard Mueller, below) can be used to correct the unstudied, biased five categories presented in ICN.
Here are Lavelle’s five categories: