[Editor note: This introduction was given on March 28 at the University of Rochester where Dr. Rizzo is assistant professor of economics. An increasing number of colleges and universities are becoming ‘freedom friendly,’ creating opportunities for free-market guest speakers such as Robert Bradley on energy.]

Welcome to Liberty Week at the University of Rochester hosted by the Alexander Hamilton Institute for the Study of Western Civilization. We want to again thank the College Democrats for co-sponsoring the opening event with Robert McNamara of the Institute for Justice. His sobering and inspiring presentation was on the fight to protect the right to freely choose to enter into occupations and consume from businesses of their choosing, to pursue their own destinies, in the face of overreaching by governments and interest groups.…

While campaigning in San Francisco in early 2008 during the Democratic primaries, Barack Obama got a little too candid.  “So if somebody wants to build a coal-powered plant, they can,” he opined to the San Francisco Chronicle editorial board. “It’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted.”

Waxman-Markey: Never Forget

Elected, President Obama tried to keep his promise by way of the American Clean Energy and Security Act of 2009 (aka Waxman-Markey, H.R. 2454), which narrowly passed the House in June 2009 by a vote of 219 to 212.

Among the many features in the 1,437-page bill, cap-and-trade of carbon dioxide (CO2) emissions was designed to price (cap-and-tax, to critics) and thus reduce such emissions down to 17 percent of the 2005 level by 2050.…

[Editor’s Note: This post concludes a two-part series on counter-productive regulation passed in the name of addressing man-made climate change.]

In Part One yesterday, I summarized the recent research by U.C. Berkeley researcher Margaret Taylor, which found that cap-and-trade programs (CTP) impede technological innovation. Not only do they stifle future technological improvements, CTP often erase past improvements.

California’s Global Warming Solutions Act (AB32) and the Air Resources Board’s implementation of that law to date provide a sobering example of the Taylor Thesis.

California Improvements before Cap-and-Trade

California is the only state insisting on implementing economy wide cap-and-trade. The climate impact, if the programs (unrealistic) goals are achieved, are miniscule. Nonetheless, the program is to start later this year, according to the California Air Resources Board (CARB). Not acknowledged by these uber-bureaucrats, California has the third BEST carbon intensity in the U.S.,…

“In the U.S. energy sector, market reliance has produced economic coordination, fostered economic growth, and democratized wealth. Government intervention, on the other hand, such as oil and natural gas price controls in the 1970s, has produced shortages, civil strife, and bureaucratic waste.”

Energy is the master resource. Without energy, other resources could neither be produced nor consumed. Even energy requires energy: There would not be usable oil, gas, or coal without the energy to manufacture and power the requisite tools and machinery. Nor would there be wind turbines or solar panels, which are monuments to embedded fossil-fuel energy.

Just how important are fossil fuels relative to so-called renewable energies? Oil, gas, and coal generate the electricity needed to fill in for intermittent wind and solar power to ensure moment-to-moment reliability.…