Energy Externality Pseudoscience: Unmasking Krugman's Argument Against Fossil Fuels

By Alex Epstein -- November 15, 2011 17 Comments

Opponents of fossil fuels have long championed solar power and wind power as replacements. Unfortunately, there is no evidence that solar and wind can provide the cheap, plentiful, reliable energy that our standard of living requires. They have never come remotely close to competing economically on a free market. In fact, due to their low concentration and high intermittency, they have proven unable to provide substantial baseload power in any country, ever, even when exorbitantly subsidized.

When confronted with these facts, opponents of fossil fuels offer a seemingly scientific counterargument. Fossil fuels are only cheap, they say, because fossil fuel companies aren’t required to pay for the “hidden costs” or “negative externalities” of their product. These “hidden costs” are harms not reflected in the prices we pay–such as the presumed damage from future climate change.

Rent-Seeker Glee: It Did Not Begin with Solyndra (remembering Enron's triumphant Kyoto Memo)

By Robert Bradley Jr. -- November 14, 2011 8 Comments

“They about had an orgasm in Biden’s office when we mentioned Solyndra,” read a Feb. 27, 2010, email from [Ken] Levit to [Steve] Mitchell. A follow-up email from Mitchell to Levit later that day responded, “That’s awesome! Get us a [Department of Energy] loan.”

– Quoted in “Emails Reveal Biden Team’s Enthusiasm Over Solyndra Loans,” Fox News, November 9, 2011.

Kids in the taxpayer candy store. That describes the heady days when Solyndra executives and lobbyists gleefully found out that the politicians loved their speculative, defective product. It turns out that Solyndra was a photo-op for President Obama and his “dream ‘green’ team”–one that may well end up being their undoing. (Does Obama use the term ‘green jobs’ anymore?.)

Enron was the canary in the renewable-energy coal mine.…

ECONOMIST Debate on Renewable Energy (Part II: Climate Alarmism vs. the Environment)

By Robert Bradley Jr. -- November 11, 2011 7 Comments

The first of two rebuttal phases of the ECONOMIST’s online debate on renewable energy is up. My opening statement focused on energy density by resurrecting the timeless wisdom of William Stanley Jevons. My rebuttal below (against Matthias Fripp of Oxford University) expands the energy density argument to stress that environmentalists must reconsider (not assume) climate alarmism to stop the assault of government-enabled renewables on the environment.

With growing grassroot opposition against industrial wind parks, the supply-side strategy of forced energy transformation is in real trouble. Wind power is not much of a supply source, which raises the question about why anti-fossil-fuel types have not embraced nuclear power.

To play devil’s advocate, is the real strategy of anti-industrialists to purposefully restrict supply to force conservation via high prices? Is the real enemy cheap energy itself?…

Texas Wind Power (CREZ) Line Busts Its Budget (Blame Perry, not Obama)

By Kenneth Artz -- November 10, 2011 9 Comments

[Ed. note: Previous posts at MasterResource have documented the landowner and budgetary problems of the Competitive Renewable Energy Zone (CREZ) transmission line.]

The cost of building transmission for expensive wind power in Texas is coming in nearly 40 percent higher than initially promised. Instead of $4.9 billion, as estimated in 2008, the transmission lines are now expected to cost $6.8 billion, according to a report prepared by the RS&H infrastructure consulting firm for the Texas Public Utility Commission. This amounts to approximately $800 per household in the state, or at least $5 per month per ratepayer.

Cost Gaming

The report states several factors caused the initial underestimate of transmission line construction costs. For example, the initial estimate assumed transmission lines would be built in direct, straight lines from point to point.…