georgeob1 wrote:old europe wrote:How did I distort what you said? You specifically stated that, in your opinion, the market price for petroleum was inflated and should be brought down.
That seems to be in direct contradiction to a point that you have made a while ago, arguing that CAFE standards are artificially imposed, and that it would be much more effective to let the market take care of fuel efficiency by imposing gasoline taxes that would change consumer behaviour.
No, what I wrote - or at least intended - was that the current market price for petroleum is likely a bit inflated (though still undergoing a secular rise due to growing demand worldwide) and likely will come down some of its own accord, in a natural process that will likely be accelerated by our actions (and those of others) to uncrease domestic production & extraction. However the core problem for this country is the massive wealth transfer that is resulting from our excessive (and growing) dependence on imported petroleum.
Okay, fair enough. I'm with you on the issue of petroleum market prices.
I'm not sure where you're going with the point of "massive wealth transfer". Is this the argument that has come up more often recently that America shouldn't bankroll repressive regimes? Or are you saying that the money spent on oil imports would be better invested domestically?
georgeob1 wrote:I do believe we are in an era of lasting higher relative prices for petroleum, and that it will indeed stimulate beneficial responses here and elsewhere to increase efficiency and the beneficial use of alternative fuels. I also believe that government action in response to these new conditions should focus on the economic aspects of the situation (and not the AGW frenzy) and on enabling - not leading or directing - the needed response.
I'm mostly with you right up to this point. Thing is that we probably disagree about what constitutes "enabling" and what constitutes "leading or directing".
I would describe the German Renewable Energy Sources Act as government action that was enabling increased development of renewables. It allows private citizens to sell back energy into the grid (previously difficult due to the dominance of big providers) and sets a guaranteed tariff. The tariffs go down every year to encourage more efficient production. At the same time, it allows people to invest a rather large sum into renewables, as it gives them a dependable timeframe for amortisation.
I think this is an excellent example of "smart subsidies" that will come down over time and thereby spur growth in the free market, rather than hampering development by having people depend on subsidies.
I'm sure you're example for "enabling" energy independence would be the government stepping aside and opening up protected areas for drilling...
georgeob1 wrote:Again, if we have abundant, cheap energy we can solve all the other problems, environmental, social and otherwise. If we don't have that, we won't be able to do anything.
Mhm. Thanks for the empty rhetoric, george...
georgeob1 wrote:In the first place, I believe that most government programs designed to "stimulate" beneficial behaviors (or at least behaviors desired by often misguided politicians) usually either backfire or end up dominated by unanticipated second order effects. Worse still, they usually remain in effect long after the problem they were designed to correct goes away.
Sure. Has happened. However, I'd argue that the
inaction of a government can also have very negative effects. See, for reference, the current situation of US automakers who, for years, where developing and selling cars based on the assumption that oil would be plentiful and cheap, and that the government wouldn't do anything to artificially increase the price of gas in the future.
Compare that to European or Asian automakers who are operating in markets that forced them early on, based on heavy taxation of gas in those countries, to develop more fuel efficient cars.
I'd say that the Bush admin's "the American economy first, worries about the climate later" stance has backfired and ended up dominated by unanticipated second order effects.
georgeob1 wrote:There is ample evidence around us all that points to the gathering interest and investment in renewable sources of energy and the application of more energy efficient ways to maintain modern lifestyles and economies. These (here at least) are largely the result of natural market forces - certainly nothing our government has done.
Certainly, but I don't think the situation is very different in Europe. The development in the sector of renewable energy was and is largely driven by market forces. However, the market is indirectly influenced by government action - taxation of gas on the one hand, incentives to invest into renewables on the other hand.
georgeob1 wrote:I believe these spontaneous reactions to new economic conditions will do the job of getting us economically feasible alternative energy far quicker and more effectively than will any government program. On the contrary, I believe the government programs advocated by the self-styled "progressive" political forces here will impeded the process, not advance it. Worse they show the possibility of seriously injuring the economy that ultimately we will depend on to advance and sustain the needed changes.
I don't think that an entirely free, unregulated market is the best way to get things done in a short amount of time. Just as you're (rightfully) not willing to completely rely on the government, I think it's rather obvious that there's no reason to blindly trust the free market, either. A look at the current situation of the "free market" should be enough to reach that conclusion...
georgeob1 wrote:I oppose a carbon tax (or any of the largely equivalent emissions rights trading schemes) simply because they - in my view - will suppress beneficial economic activity more effectively than they will accelerate a transformation process that is already underway and doesn't require them.
I don't understand. Are you using the term "carbon tax" as a synonym for a cap-and-trade plan? Well, yeah, those haven't been too effective so far.
That's different from old-style taxes, though. Specifically taxing behaviour that is undesirable (even though I guess you take issue with the "carbon" part of any kind of carbon tax), and subsidizing/giving tax breaks for behaviour that is desirable.
And yes, the trick is in deciding what we deem desirable or undesirable.
georgeob1 wrote:Moreover, I am concerned about the irrational contradictions that infect the political actors involved in the process here. Opposition to nuclear power (even that carefully hidden behind unattainable preconditions, such as Obama's) is a completely irrational component of a strategy that would impose the heavy hand of government to punish the current pillars of our economy, leaving us only the "alternative" fantasies so earnestly embraced by people who are largely illiterate when it comes to the engineering and scientific realities involved.
That's some heavy rhetoric again.
I'll have to admit that I don't come down in favour of nuclear energy. However, I can see the point where it might be necessary as a technology to bridge the gap between current technologies and a situation where we could rely more effectively on renewables.
I see that point of view reflected in Obama's energy plan and I'm quite happy with that. It's not as radical as Edward's stance on nuclear power, it acknowledges the value nuclear power has, but also addresses the issues.
For me, the whole debate about Yucca Mountain doesn't seem to be as central as it seems to be in the States. That's probably due to the long history of that particular project, and also a clear case of "not in my backyard".
I do understand those concerns, and I admit that the same reasons are the basis for my tentative opposition to nuclear power.
America has the luxury of building these facilities in areas that are, essentially, nobody's immediate backyard. I'd assume that opposition would just for that reason would be much lower than in densely populated countries.
At the same time, it would seem honest to acknowledge that the billions of dollars of investments into e.g. Yucca Mountain represent, at least partly, a direct subsidy of nuclear power (the other part being paid for by those who would store nuclear waste in those facilities and therefore, ultimately, by the consumer).