[Part II by Mr. Droz looks at North Carolina’s onshore wind development.]
The Governor of North Carolina recently selected a Scientific Advisory Panel on Offshore Energy to make recommendations regarding offshore energy. At the official state site, information is given about who is on the panel, submissions received, and so on.
Three public hearings have been held regarding coastal Carolina. I spoke in the Morehead City hearing. My brief (two minutes allowed) comments were aimed at the proper process that North Carolina should take to resolve which energy options should be implemented. Not surprisingly the majority of inputs received at these meeting were people and organizations advocating offshore wind energy. (What is that political science insight about concentrated benefits and diffuse costs?)
The Panel is now digesting the inputs received.…
Continue Reading[Ed. note: This post, taken from Robert Bradley’s Oil, Gas and Government: The U.S. Experience, rebutes the textbook criticisms of the business practices and economic consequences of the Standard Oil Trust. Part I summarized the manifold contributions of John D. Rockefeller to a fledgling, powerhouse industry. Part II provided a critical interpretation of rebate and other ‘unfair’ practices of Rockefeller’s Trust. (Documentation for this post can be found on pp. 1099–1103.)]
If Standard is labeled a monopoly because of its large market share, a liberal application of the “single seller” criterion, it should be recognized that outside of oil tariffs that Standard neither wanted nor needed, Standard was a free-market, not a governmental, monopoly. Standard had to continually offer quality products at competitive prices to gain and keep its dominant market share.…
Continue Reading[Ed. note: This post, taken from Robert Bradley’s Oil, Gas and Government: The U.S. Experience, rebutes the textbook criticisms of the business practices and economic consequences of the Standard Oil Trust. Part I yesterday summarized the manifold contributions of John D. Rockefeller to a fledgling, powerhouse industry. (Documentation for this post can be found on pp. 1094–1099.)]
Critics of Standard Oil, while conceding many of the aforementioned points about how Standard Oil advanced consumer service and resource efficiencies, might accuse the author of painting the picture with only bright colors. What about the other side of Standard’s drive to power? Did the ends justify the means – preferential treatment from third parties over competitors, monopsony power to purchase crude at prices detrimental to producers, predatory pricing to eliminate rivals and raise prices, and excess profits gained at the expense of consumers?…
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