This post by Richard Schlesinger of EnergyBizInsider is reproduced with permission. The problem of rent-seeking by corporations (political capitalism) has been explored previously at MasterResource.

Although the electric industry has endorsed the concept of cap-and-trade as the least onerous approach to carbon regulation, at least one major company endorses it with unalloyed enthusiasm. Exelon not only supports the idea, it stated in a second-quarter conference call to analysts, which it posted to its Web site, that it expects to see a “$1.1 billion and growing annual upside to Exelon revenues from implementation of Waxman-Markey.” Is that number real or simply wishful thinking? Does Exelon know something that’s escaped the rest of us?

Actually, if one makes a couple of assumptions, the potential earnings boost is very real. Here’s how it works.…

As projections of catastrophic climate changes are being beaten down by the far less than catastrophic actual climate response, other calamities that may result from our untoward use of fossil fuels are being offered up for our consideration. Besides the well-worn pitfalls of our failure to achieve energy independence, or to be the first to grasp green technologies, a new problem is being worked into the mix—ocean acidification.

Ocean acidification. Sounds bad doesn’t it. Much worse than say, “the oceans are becoming less basic” which is a more accurate, but less worrisome-sounding description. In either case, it is used to describe the situation in which the oceans absorb an increasing amount of carbon dioxide as the atmospheric partial pressure of CO2 increases. The dissolution of CO2 in the oceans has the net effect of increasing the hydrogen ion concentration which drives the ocean’s pH lower.…

The times are changing in the wake of Climategate. And more is to come as the polluted science embedded in the email exchanges gets reviewed by talented amateurs and pros alike on the blogosphere (see Climate Audit,  Roger Pielke Jr., and WattsUpWithThat, in particular).

Given time, the rethink will go mainstream. Scientists are truth seekers at heart, but an entrenched mainstream of climate scientists–so many of them friends and political allies–will need to be nudged out of their denialism.

Old voices are challenging their ‘mainstream’ colleagues, and new voices are coming forth. I have seen this clearly here in Houston (examples below), and I expect it is happening elsewhere.

Consider what Andy Revkin, the recently retired climate-change science writer at the New York Times, told the public editor at the Times regarding Climategate: “Our coverage, looked at in toto, has never bought the catastrophe conclusion and always aimed to examine the potential for both overstatement and understatement.”…

Matthew Curtin’s Heard on the Street in the December 22nd Wall Street Journal, Green Investments Are Being Clouded by Copenhagen, caught my eye. Copenhagen not so much failed as energy reality won. The 19th century British economist W. S. Jevons would have smiled as neo-Malthusian politics fell victim to old fashioned consumerism, economic growth, free trade, and energy economics 101.

Copenhagen also brings into review the risky political capitalism model where profit-making is tied to special political favor rather than underlying consumer demand. Enron’s core business model was tied to rent-seeking, part of the problems that brought down the company in spectacular fashion.

Here is what Mr. Curtin wrote:

The Copenhagen climate summit will do little to spur further investment in environmental technologies.

That is hardly surprising given the fundamental flaw at the heart of the process: Negotiations to reduce global carbon dioxide emissions were premised on how much of the gas nations produce, rather than what they consume.