“Intermittent generation may be consistent with a liberalized market, as long as generators are required to bear all the direct and indirect costs of their production. Otherwise, competition is doomed to become an irrelevant feature of a system that becomes more and more politically driven.”

Can an intermittent source be integrated into a liberalized electricity market?

Yes, it is technically feasible, but no otherwise. If subsidies enter into play, intermittent generation might undermine the very design of the market. This is what happened in Italy with the boom of solar power, which last year alone skyrocketed from 3.47 GW to 12.75 GW, with the annual cost of subsidies increasing from 800 million euro in 2010 to 3.9 billion euro in 2011 (about $975 million to $4.75 billion at today’s exchange rate).…

“The scientific modeling of climate change, and its possible impacts on human welfare, are very technical…. When experts try to summarize the fields for the layperson, they sometimes present matters in misleading ways, however inadvertent. William Nordhaus’s treatment of the economics literature, and RealClimate’s discussion of the accuracy of climate models’ temperature predictions, are good examples.”

At the Institute for Energy Research (IER) blog, I rebutted Yale economist William Nordhaus’s New York Review of Books criticism of a Wall Street Journal editorial by 16 “global warming skeptic” scientists, including MIT’s Richard Lindzen.

To understand the full point-counterpoint, the interested reader should consult the above links chronologically. Elsewhere I have challenged the entire case for a carbon tax. However, in the present post I want to focus on just two issues in the overall debate, that were raised in the wake of my initial IER post:

(1) the timing and amount of net damages from climate change, according to the best economic models, and

(2) what the climate scientists mean when they talk of a “confidence interval” in temperature projections.

“AWEA’s job figures, dating back to at least 2009, may be nothing more than figures pulled from thin air.”

The numero uno goal of the American Wind Energy Association (AWEA) is extending the Production Tax Credit (PTC) beyond its current expiration date of December 31, 2012. Documents available on the trade group’s website show that about $4 million of AWEA’s 2012 budget ($30 million) was directed toward PTC lobbying.

With job growth the top political issue in this election season, AWEA’s strategic plan calls for rebranding of the wind industry as an economic engine that will produce steady job growth, particularly in the manufacturing sector. But therein lies a problem: the wind industry’s own record on job growth lacks credibility.

Public information suggests that AWEA has inflated its overall job numbers.…

“When government undertakes tasks for which it is ill equipped it squanders the authority necessary for carrying out its core responsibilities. Pervasive rent-seeking, bad for our economy and worse for our republic, should be discouraged instead of rewarded. If government becomes integral to securing every advantage and assuaging every grievance, then governance becomes impossible.”

– Richard Voegeli, “Reclaiming Democratic Capitalism,” Claremont Review of Books, Spring 2012, p. 46.

Governments around the world are having buyers’ remorse with their bets that solar and wind could effectively diminish oil, gas, coal, and nuclear. So much cost, so little energy. So much cost, so little reliability, and so much need for backup power.

The story is the same for the U.S. Department of Energy. The Obama administration’s rocky road with green-energy boosterism is no secret.…