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Posts Tagged ‘external costs’

Carbon Fee and Dividend: Legislative Action Needed

Mon ,10/10/2016

Sen. Jerry Moran, R-Kan., was certainly right when he told a group of energy executives that cheap energy was necessary for our economy to be competitive and that legislation is needed to keep energy costs low (Wichita Eagle, Oct. 1 Business).

Fossil fuels provide cheap energy because they do not pay their external costs, which include cost to people’s health, the environment, and to the economy. Renewable energy is becoming less expensive and does not have the external costs that fossil fuels do.windmill4

The best solution is legislation that would favor a shift to renewable energy.

The effect of rising energy costs on the economy could be offset by a carbon fee and dividend system, in which a fee would be added to fossil fuels at the source to cover their external costs. All the money collected would be distributed equally to every household as an energy dividend. Those who switch to renewable energy or who save energy would have more to spend, which would stimulate the economy.

We should all hope that the legislation that Senator Moran is considering would be a carbon fee and dividend system, as it uses market principles to reduce air and water pollution while protecting the economy from rising energy costs.

 

(c) 2016  – J.C. Moore

Fossil Fuel Subsidies: The True Cost of Energy

Tue ,03/05/2016

The Wichita Eagle recently published an interesting  letter from Darrel Hart, president of the Wichita chapter the Citizens Climate Lobby. He pointed out that the House energy and water development bill , as it stands, provides subsidies of $95 million for wind, $632 million for fossil fuel and $1 billion for nuclear.

The letter goes on, “Clearly when it comes to winning subsidies, wind falls short. Legislators favoring carbon-based fuel spin the idea that if wind were economical, it could compete without government help. Well, what does that say about fossil fuel? It has been receiving billions in subsidies for decades.

Lopsided subsidies and favored treatment reveal the intent to pick winners and losers. A better solution is carbon fee and dividend legislation that cuts greenhouse gas emissions and corrects the artificially low price of fossil fuel created by tax dollars rigging the system against clean energy. Let markets reveal the true price of energy, and it will be the consumer who chooses the winner.”

Mr. Hart certainly has a good point, as carbon fuels are not paying their true cost.  windmill4Besides the $632 million subsidies to fossil fuels, we are also providing an even greater subsidy by allowing them to release their waste products into the air without paying the external costs, i.e., the costs indirectly borne by society.

The external costs for fossil fuels include health and environmental damage from particulates, nitrogen oxides, sulfur oxides, chromium, mercury, arsenic, and carbon emissions. An EU funded research study, Externalities of Energys ,  found that including external costs would increase the cost of producing electricity from fossil fuels by 30% for natural gas to 90% for coal, if costs to the environment and to human health were included.

The carbon fee and dividend system Mr. Hart is recommending would put a fee on carbon at the source, which would require the fossil fuels to include their external costs.This would allow renewable energy sources to compete with fossil fuels on an even basis, and would greatly favor a switch to renewable energy.

(c) 2016 J.C. Moore

Bits and Pieces: Two Misguided Attacks on Wind Turbines and Electric Cars

Sun ,25/05/2014

There were two op-ed pieces in the May 25, 2014 Tulsa World which were misguided attacks on renewable energy and electric cars.

The first was titled “The Killing Fields”, with the subheading “Perverse federal energy incentive is a threat to birds, bats.” The article was written by Dr. George Fenwick who is the president of the American Bird Conservancy. The article was illustrated by an Associated Press photo which shows cattle standing in front of a windfarm in a drought prone area of Texas. It well illustrated flaws in Dr. Fenwick’s reasoning, he is more concerned about the wind turbines than about a much greater threat to bird populations.

While Dr. Fenwick had some good points in the article about the value of birds and our need to conserve them, the sensationalized article missed the greatest threat to birds. He complained about the federal production tax credit which encourages the development of wind energy, about allowing exception to the Endangered Species Act, and about siting of wind farms in sensitive areas. Wind developers are already avoiding sensitive areas and they have changed the design of wind turbines so they would be less of a threat to birds. He should have been more concerned about the bigger threats to bird populations, which are severe weather and the destruction of habitat, both made worse by global warming. Delaying the construction of wind turbines will certainly lead to more carbon emissions, making global warming more of a problem

Research shows that wind turbines are not among the top 10 human causes of bird mortality – and windfarms are likely saving HPIM2053amany more birds than they are killing. A comprehensive study of bird mortality in Canada found most human-related bird deaths (about 99%) are caused by feral and domestic cats, collisions with buildings and vehicles, and electricity transmission and distribution lines.  A related peer reviewed Canadian study of bird mortality found that less than 0.2% of the population of any bird species is currently affected by mortality or displacement by wind turbine development. They concluded that even though the number of windmills are projected to grow ten times over the next two decades, “population level impacts on bird populations are unlikely, provided that highly sensitive or rare habitats, as well as concentration areas for species at risk, are avoided.”

The fifth IPCC report says that the most important thing we can do to mitigate global warming is to switch to renewable energy as quickly as possible. If Dr. Fenwick’s sensationalized articles about “The Killing Fields” keeps us from developing renewable energy as quickly as possible, then he is working against the birds, and his own, best interest.

The second article, “Driving greener cars won’t save the Earth” by Megan McArdle essentially says efforts are futile to reduce our carbon emissions. She belittles her friend for buying an electric car and goes on that Americans are likely to do nothing significant to reduce our carbon emissions. She well documents all the ways that we waste energy and claims we are unlikely to change. She also points out that getting other countries, particularly China, to to reduce their carbon emissions is also futile. She concluded that if we want to get serious about reducing our carbon emissions then we need to find cheap renewable resources to replace our energy needs, to find a way to take greenhouse gases out of the air, or to keep the planet from warming because of those gasses that we have already put their .

Her last two suggestions show she does not have a good grasp of the scientific issues, but she is certainly right that we need cheap renewable resources. We have already found those in wind and solar, but they are not yet cheaper than fossil fuels because fossil fuels do not pay their external costs. The external costs for fossil fuels do not include health and environmental damage from particulates, nitrogen oxides, sulfur oxides, chromium, mercury, arsenic, and carbon emissions. An EU funded research study, Externalities of Energys ,  found that including externalities would increase the cost of producing electricity from fossil fuels by a factor of 30% for natural gas to about 90% for coal –  if costs to the environment and to human health were included. If we include those  costs, then sustainable energy sources have a big cost advantage. If we wish to be serious, then we need to remove subsidies to fossil fuels, require fossil fuels to pay their external costs, and to  subsidize renewable energy sources at the same level for several decades.

This falls into a long list of defeatist articles, such as that by Robert Bryce, which says that we are not going to be able to do anything about global warming, so why try. Yes, driving greener cars alone won’t save the Earth, but conserving energy, developing renewable energy sources, changing the energy sources we subsidize, and having fossil fuels pay their external costs, will certainly help more than writing articles discouraging us from trying.

  (c) 2014  J.C. Moore