Posts tagged with: energy

frackingA new report by the Environmental Protection Agency finds that one of our cheapest sources of energy may be cleaner than we had previously thought:

The Environmental Protection Agency has dramatically lowered its estimate of how much of a potent heat-trapping gas leaks during natural gas production, in a shift with major implications for a debate that has divided environmentalists: Does the recent boom in fracking help or hurt the fight against climate change?

Oil and gas drilling companies had pushed for the change, but there have been differing scientific estimates of the amount of methane that leaks from wells, pipelines and other facilities during production and delivery. Methane is the main component of natural gas.

The new EPA data is “kind of an earthquake” in the debate over drilling, said Michael Shellenberger, the president of the Breakthrough Institute, an environmental group based in Oakland, Calif. “This is great news for anybody concerned about the climate and strong proof that existing technologies can be deployed to reduce methane leaks.”

The EPA credits stricter regulations, but as Erika Johnsen points out, we should not “overlook the overarching role of the free market in inspiring increased efficiency, innovation, and improved technology.”
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On National Review Online, Acton Research Director Samuel Gregg reflects on President Obama’s State of the Union address last night, and flags the “reality-denial” that is expressed by “a few token references to free enterprise and rewarding individual initiative (to reassure us we’re still living in America instead of just another declining European social democracy).” More:

Judging from the president’s remarks, you’d never guess we just had a negative quarter of economic growth; or that the unemployment rate just ticked up again; or that millions of Americans have simply given up looking for work; or that Obamacare is (as predicted) already driving up the health-care costs that the president claimed are falling (just ask those businesses busy shifting thousands of employees into part-time positions in order to cap their exploding health-care costs); or that . . . again, I fear I am belaboring the point.

What’s the plan from the White House?

… we hear the president tell us, yet again, that we need to pump more money into universities and colleges. Never mind the higher-education bubble, which is going to implode sooner than most people think. We’re also told that we need to develop high-speed rail. One wonders if anyone has asked people in the People’s Republic of California how that’s working out. Then there is the apparently endless promise of green energy, which, despite the billions of taxpayer dollars poured into it, hasn’t actually created that many jobs at all. In addition to all this, we are now informed we must raise the minimum wage. Never mind all the evidence underscoring just how much damage minimum-wage laws do to the job prospects of the poor and many young people, not to mention newly arrived immigrants who just want a chance to start working.

Read “Rhetoric versus Reality” by Samuel Gregg on NRO.

And pick up a copy of Gregg’s new book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future here.

Thanks to RealClearPolicy for linking.

Blog author: jcarter
Thursday, January 31, 2013
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In the 1880s America’s most flighty fad was fowl-bedecked fashion.

bird-hat“Trendy bonnets were piled high with feathers, birds, fruit, flowers, furs, even mice and small reptiles,” writes Jennifer Price, “Birds were by far the most popular accessory: Women sported egret plumes, owl heads, sparrow wings, and whole hummingbirds; a single hat could feature all that, plus four or five warblers.” The result was the killing of millions of birds, including many exotic and rare species. Reporting on the winter hat season in 1897, Harper’s Bazaar declared, “That there should be an owl or ostrich left with a single feather apiece hardly seems possible.”

Americans outraged by this senseless destruction of wildlife launched, as Price says, “the first first truly modern conservation campaign” in the 1890s—decades before John Muir, Teddy Roosevelt, and others made conservation efforts popular. Over the next two decades a flock of legislation began to be passed to protect birds, including the Migratory Bird Treaty Act of 1918 (MBTA).

Appearing 55 years before the Endangered Species Act, the statute made it unlawful to pursue, hunt, take, capture, kill or sell specific migratory birds, including bald eagles, barn owls, and mourning doves. The federal law became an important conservation tool, a means of preventing the wanton slaughter of wildlife for trivial commercial reasons.

But tools can often be used as weapons, and the Obama administration has used the MBTA as a bludgeon against the oil and gas industry. Last year the executive branch argued that the MBTA should be broadly interpreted to impose criminal liability for actions that indirectly result in a protected bird’s death, and used that reasoning to file criminal charges against three energy companies.
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Our friends at the Foundation for Research on Economics & the Environment (FREE) in Bozeman, Mont., have put together another strong slate of summer programs for clergy, seminary professors and other religious leaders with the aim of deepening their understanding of environmental policy. In its description of the program, FREE notes that many in faith communities “see an inherent conflict between a market economy and environmental stewardship.”

Major religious groups assert that pollution, deforestation, endangered species, and climate change demonstrate a failure of stewardship that requires reform. And of course they are correct—what, however, are the incentives and information generated by alternative reform policies? Some policies can have profoundly negative impacts on social well-being.

FREE’s goal is to help increase the understanding of religious leaders as they approach environmental policy. These leaders are influential nodes in a network of congregations, providing a conduit to disseminate market-based environmental ideas, potentially to millions of Americans.

FREE will help religious leaders understand the political economy dimensions of environmental policy reform. We will explain how basic economic principles can help achieve green goals with minimum sacrifice to social welfare. Together we will explore how a culture that values America’s founding ideals, secure property rights, and responsible prosperity, can also foster a healthy environment and promote social justice.

I’ve been to a number of these FREE events and have been impressed with the content — and that’s from someone who has grown “seminar averse” over the years. At FREE, faith leaders get the economic insights that are necessary for a deeper understanding of environmental stewardship. On the other side, policy analysts — including some of the FREE lecturers — get the faith insights that they do not ordinarily have access to in their own specialized fields. Yes, it is possible to bring together economic and moral thinking.

In a Bozeman Daily Chronicle piece titled “Environmental Stewardship and Social Justice,” FREE Chairman John Baden writes: (more…)

For PowerBlog readers, we’re posting the video from Andrew Morriss’ April 26 Acton Lecture Series talk in Grand Rapids, Mich., on “The False Promise of Green Energy.” Here’s the lecture description: “Green energy advocates claim that transforming America to an economy based on wind, solar, and biofuels will produce jobs for Americans, benefits for the environment, and restore American industry. Prof. Andrew Morriss, co-author of The False Promise of Green Energy (Cato, 2011), shows that these claims are based on unrealistic assumptions, poorly thought out models, and bad data. Rather than leading us to an eco-utopia, he argues that current green energy programs are crony capitalism that impoverishes American consumers and destroys American jobs.”

Morriss, an Orthodox Christian, begins with a quote from Ecumenical Patriarch Bartholomew I of Constantinople, the Istanbul, Turkey-based hierarch. Bartholomew said this in response to the March 2011 tsunami in Japan and the Fukushima Daiichi nuclear disaster that followed:

Our Creators granted us the gifts of the sun, wind, water and ocean, all of which may safely and sufficiently provide energy. Ecologically-friendly science and technology has discovered ways and means of producing sustainable forms of energy for our ecosystem. Therefore, we ask: Why do we persist in adopting such dangerous sources of energy?

“The Ecumenical Patriarch and I don’t see eye to eye on this,” Morriss said. “I think he’s asking the wrong questions.”

Also see the PowerBlog post “Green Patriarch: No Nukes.”

In his book, Morriss and his co-authors warn that “the concrete results of following [green energy] policies will be a decline in living standards around the globe, including for the world’s poorest; changes in lifestyle that Americans do not want; and a weakening of the technological progress that market forces have delivered, preventing us from finding real solutions to the real problems we face.” Many of those lifestyle changes will come from suddenly spending far more on energy than we’d like. Green technologies mean diverting production from cheap sources, such as coal and oil, to more expensive, highly subsidized ones, like wind and solar. These price spikes won’t be limited to our electricity bills either, the authors argue. “Anything that increases the price of energy will also increase the price of goods that use energy indirectly.”

The better solution to improving America’s energy economy, the book shows, is to let the market work by putting power in the hands of consumers. But “many environmental pressure groups don’t want to leave conservation to individuals, preferring government mandates to change energy use.” In other words, green-job proponents know they’re pushing a bad product. Rather than allow the market to expose the bad economics of green energy, they’d use the power of government to force expensive and unnecessary transformation.

Morriss is also an editor of the forthcoming Silent Spring at 50: The False Crises of Rachel Carson (Cato, September 2012) with Roger Meiners and Pierre Desroches. The blurb for the Carson book notes that she got a lot wrong:

Widely credited with launching the modern environmental movement when published 50 years ago, Rachel Carson’s Silent Spring had a profound impact on our society. As an iconic work, the book has often been shielded from critical inquiry, but this landmark anniversary provides an excellent opportunity to reassess its legacy and influence. In Silent Spring at 50: The False Crises of Rachel Carson a team of national experts explores the book’s historical context, the science it was built on, and the policy consequences of its core ideas. The conclusion makes it abundantly clear that the legacy of Silent Spring is highly problematic. While the book provided some clear benefits, a number of Carson’s major arguments rested on what can only be described as deliberate ignorance. Despite her reputation as a careful writer widely praised for building her arguments on science and facts, Carson’s best-seller contained significant errors and sins of omission. Much of what was presented as certainty then was slanted, and today we know much of it is simply wrong.

Morriss is the D. Paul Jones, Jr. & Charlene Angelich Jones Chairholder of Law at the University of Alabama School of Law. He is the author or coauthor of more than 60 book chapters, scholarly articles, and books. He is affiliated with a number of think tanks doing public policy work, including the Property & Environment Research Center in Bozeman, Montana, the Regulatory Studies Center at George Washington University, the Institute for Energy Research, and the Mercatus Center at George Mason University. In addition, he is a Research Fellow at the New York University Center for Labor and Employment Law. He is chair of the editorial board of the Cayman Financial Review. His scholarship focuses on regulatory issues involving environmental, energy, and offshore financial centers. Over the past ten years he has regularly taught and lectured in China, Greece, Guatemala, Hong Kong, and Nepal.

Morriss earned an A.B. from Princeton University and a J.D., as well as an M.A. in Public Affairs, from the University of Texas at Austin. He received a Ph.D. in economics from the Massachusetts Institute of Technology. After law school, Morriss clerked for U.S. District Judge Barefoot Sanders in the Northern District of Texas and worked for two years at Texas Rural Legal Aid in Hereford and Plainview, Texas.

He was formerly the H. Ross and Helen Workman Professor of Law & Professor of Business at the University of Illinois College of Law and the Galen J. Roush Profesor of Business Law & Regulation at Case Western Reserve University School of Law.

Andrew Morriss

Join us for the next Acton Lecture Series on Thursday, April 26, when Andrew Morriss, the D. Paul Jones, Jr. & Charlene Angelich Jones Chairholder of Law at the University of Alabama, will speak on “The False Promise of Green Energy.” Register online here.

Here’s the lecture description: “Green energy advocates claim that transforming America to an economy based on wind, solar, and biofuels will produce jobs for Americans, benefits for the environment, and restore American industry. Prof. Andrew Morriss, co-author of The False Promise of Green Energy (Cato, 2011), shows that these claims are based on unrealistic assumptions, poorly thought out models, and bad data. Rather than leading us to an eco-utopia, he argues that current green energy programs are crony capitalism that impoverishes American consumers and destroys American jobs.”

Morriss was recently on Zeeland, Mich.-based WJQK’s Common Sense Radio show where he talked energy issues with host Steve Redmond. Click on the audio player below to listen to a recording of the show:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

In his Cato book, Morriss and co-authors warn that “the concrete results of following [green energy] policies will be a decline in living standards around the globe, including for the world’s poorest; changes in lifestyle that Americans do not want; and a weakening of the technological progress that market forces have delivered, preventing us from finding real solutions to the real problems we face.” Many of those lifestyle changes will come from suddenly spending far more on energy than we’d like. Green technologies mean diverting production from cheap sources, such as coal and oil, to more expensive, highly subsidized ones, like wind and solar. These price spikes won’t be limited to our electricity bills either, the authors argue. “Anything that increases the price of energy will also increase the price of goods that use energy indirectly.”

The better solution to improving America’s energy economy, the book shows, is to let the market work by putting power in the hands of consumers. But “many environmental pressure groups don’t want to leave conservation to individuals, preferring government mandates to change energy use.” In other words, green-job proponents know they’re pushing a bad product. Rather than allow the market to expose the bad economics of green energy, they’d use the power of government to force expensive and unnecessary transformation.

Morris is also an editor of the forthcoming Silent Spring at 50: The False Crises of Rachel Carson (Cato, September 2012) with Roger Meiners and Pierre Desroches. The blurb for the Carson book notes that she got a lot wrong:

Widely credited with launching the modern environmental movement when published 50 years ago, Rachel Carson’s Silent Spring had a profound impact on our society. As an iconic work, the book has often been shielded from critical inquiry, but this landmark anniversary provides an excellent opportunity to reassess its legacy and influence. In Silent Spring at 50: The False Crises of Rachel Carson a team of national experts explores the book’s historical context, the science it was built on, and the policy consequences of its core ideas. The conclusion makes it abundantly clear that the legacy of Silent Spring is highly problematic. While the book provided some clear benefits, a number of Carson’s major arguments rested on what can only be described as deliberate ignorance. Despite her reputation as a careful writer widely praised for building her arguments on science and facts, Carson’s best-seller contained significant errors and sins of omission. Much of what was presented as certainty then was slanted, and today we know much of it is simply wrong.

Morriss is the author or coauthor of more than 60 book chapters, scholarly articles, and books. He is affiliated with a number of think tanks doing public policy work, including the Property & Environment Research Center, the Regulatory Studies Center at George Washington University, the Institute for Energy Research, and the Mercatus Center at George Mason University. Morriss earned an A.B. from Princeton University and a J.D., as well as an M.A. in Public Affairs, from the University of Texas at Austin. He received a Ph.D. in economics from the Massachusetts Institute of Technology. After law school, Morriss clerked for U.S. District Judge Barefoot Sanders in the Northern District of Texas.

[Note: This is the first in an occasional series on gleaner technology.]

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As citizens await state decisions on new state EPA “fracking” regulations, many are worried radical environmentalist may compromise a promising opportunity in the development of gas reserves.

Natural gas advocates say radical environmentalists have long demonized the oil industry in their fight against free enterprise. Environmental groups claim fracking techniques to extract natural gas threatens the cleanliness of ground water, but their attacks contradict EPA studies that report there are no proven cases where fracking has contaminated water.

Extreme environmental groups have teamed up with some in the media to push their anti-growth agenda. A Heritage Foundation blog reports,

Environmentalists [...] have hijacked media outlets like The New York Times to run biased reports against fracking’s key contributions to America’s current and future energy supplies that would be a tremendous catalyst for the country’s economic recovery.

Though more EPA fracking studies are currently underway, environmentalist accusations contradict solid facts and studies. With almost any human activity, there will be some sort of environmental effect, but the benefits of shale drilling blows the costs out of the water. According to experts, a typical Marcellus Shale well can generate up to $4 million in economic benefits while only creating $14,000 in environmental damage.

If given the chance, the Independent Petroleum Association of America suggests the oil industry has the potential to lift our economy back on its feet again:

Petroleum powers the economy of this nation overall, evidenced by [a] strong correlation between states that have high petroleum use and high output. Petroleum is integral in our daily lives, not just as a fuel, but because it is present in common objects that are crucial to living a high-quality life.

But radical environmental groups often stand in the way. Some of these groups insist on “biological egalitarianism” in which all life forms are considered equal. An Acton publication titled A Biblical Perspective on Environmental Stewardship explains the dangerous connotation of this faulty environmental philosophy:

Instead, this philosophy negates the biblical affirmation of the human person’s unique role as steward and eliminates the very rationale for human care for creation. The quest for the humane treatment of beasts by lowering people to the level of animals leads only to the beastly treatment of humans.

Extreme environmental groups should remember the oil industry is not evil. They fail to see that their radical ideology is hurting the nation’s poor. Increasing oil production can fuel economic growth and provide jobs for the unemployed. To attack the oil industry in such a way is indirectly attacking human development. Cited in Ray Nothstine’s commentary on high gas prices and its impact on the poor are these words from John Paul II,

Besides the earth, man’s principle resource is man himself. His intelligence enables him to discover the earth’s productive potential and the many different ways in which human needs can be satisfied.

Of course, any human action has some effect on the environment; and so we have the responsibility to exercise environmental stewardship rather than prioritizing the fish in the Chesapeake Bay over the welfare of the human person.

Blog author: lglinzak
Thursday, July 7, 2011
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Political news changes quickly, and now reports are coming out of Washington DC that Senator Dianne Feinstein, who has been leading the way in killing the ethanol subsidy and tariff, has struck a deal with Senators Amy Klobuchar and John Thune, two stalwarts for protecting ethanol. While the rumored deal does not indicate the repeal of the blending mandate it is a step in the right direction.

However, while we wait on Congress and the President for action, the Brazilian ethanol industry is eying the U.S. ethanol market. Repealing the tariff will allow Brazil to expand its ethanol industry. Many questions need to be answered before ethanol is imported into the U.S. from Brazil.

In a previous post I posed concerns about whether ethanol can meet both U.S. and Brazilian demands. Furthermore, what are the environmental consequences of ethanol? Reports are showing deforestation in the rainforest. Finally, what will happen to food prices?

It is unfortunate that there are even more questions that need to be answered.

Like the corn based ethanol in the U.S., Brazil’s sugar based ethanol is a false market created by the government. Brazil doesn’t subsidize ethanol; instead it resorts to high taxes. Brazilian gasoline taxes are at 53 percent while the tax placed on ethanol is much lower making ethanol cheaper than gasoline. The question is how long can an industry last and actually be sustainable when it is propped up by the government and is a false market?

It is also important to note that the Brazilian ethanol industry needs a large sum of new investment, about $80 billion worth in the next ten years, to meet global demand. In an industry that is heavily dependent on the government one must wonder, who will pay for these new investments?

Another potential hazard of relying on ethanol is crop shortages. Such crop shortages may occur for a variety of reasons, one of which is out of our control: the weather. What happens when fuel relies on crops, and there is actually a shortage in the harvest? How much of the crop goes to fuel and how much goes to the food supply? Both are important. Food nourishes, however, fuel gets people to their jobs where they earn a salary which they use to purchase food. Brazil may be forced to answer these questions this year as sugarcane production is currently down 25 percent as compared to last year. The lack of production is due to bad weather and aging plants.

However, because of the lack of production sugar prices are on the rise as they saw a 14 percent surge in June. While some are sounding the alarm, other analysts are remaining calm, such as Eli Mamoun Amrouk of the United Nations’ Food and Agriculture Organization:

El Mamoun Amrouk, sugar analyst at the Rome-based FAO, said: “It’s difficult to predict exactly what’s going to happen to the sugar price because the market’s so volatile and so any new information can have a big effect on price. The speculation is still there, exacerbating the trend and changes in the dollar also play a part.

“But the signs are that production is growing significantly and, especially in India and Thailand, the prospects are very positive, so we should see the price start coming down in the summer,” he said.

Whether sugar prices do come down or not, we still face a critical question. If we continue to pursue an energy plan based on biofuels, what happens when we do face a shortage in crop production? The world will be faced with not just rising food prices but also with rising fuel prices. How do people in developed countries, who already have a difficult time affording food, feed themselves when the food supply is actually going into the fuel supply?

The future of corn ethanol is up in the air, and while the Senate gave signs of repealing both the subsidy and the tariff on imported ethanol, the bill the repeal was attached to failed and Congress is back to square one in the ethanol debate. The uncertain future of corn ethanol has brought forth discussion on the possibility of importing sugar cane based ethanol from Brazil.

Before the U.S. begins importing ethanol from Brazil, a broad cost benefit analysis needs to be taken by the government to decide if it is actually a smart decision to begin importing and using sugar cane based ethanol from Brazil.

A concern of many critics of alternative fuels is whether or not alternative fuels can meet demand. According to the Energy Tribune, corn ethanol cannot meet U.S. demand whereas even the country turned all of its corn into ethanol only 6 percent of its total annual oil needs would be met.

This leaves ethanol supporters looking for another energy source to help close the gap. They may be looking no further than the sugar cane based ethanol produced in Brazil. However, even importing Brazilian ethanol will leave the U.S. looking for another energy resource.

In 2010 the U.S. consumed 138.6 billion gallons of gasoline and Brazil currently produces about 7.4 billion gallons of sugar cane based biofuels. Importing sugar cane based ethanol from Brazil while still consuming corn ethanol does not even get the U.S. close to meeting its energy demands especially when 75 percent of Brazil’s ethanol output is sold within its borders, and it experienced a shortage earlier this year.

And the simplistic answer to this problem, planting more sugar cane, may not be the best solution. The Brazilian government has been surprised by the deforestation of the Amazon rainforest. According to Brazil’s space research institute, deforestation of the Amazon rainforest increased from 103 sq km in March and April 2010 to 593 sq km during the same period this year. This surprised the Brazilian government which reported that deforestation had fallen to its lowest rate in 22 years when actually there was a 27 percent jump in deforestation from August 2010 to April 2011. The biggest rise in deforestation was in Mato Grosso, a state in Brazil, which produces more than a quarter of Brazil’s soybean harvest. However, what does that have to do with sugar cane causing deforestation?

A 2010 article by Foreign Policy explains how sugar cane based ethanol fosters “agricultural displacement” resulting in the deforestation of the rainforest:

Public officials declare that ethanol will not lead to deforestation in the Amazon or exacerbate climate change. They say that the particular soils and rainy weather characteristic of the rainforest are not suitable for the growth of sugar cane. Agriculture minister Reinhold Stephanes has been quoted as saying that “Cane does not exist in Amazonia.” In a withering blow to Stephanes’s credibility, however, authorities recently raided a sugar cane plantation in the state of Pará where 1,000 workers were laboring under appalling debt slavery conditions. In all, environmentalists claim, hundreds of thousands of acres of sugar cane have been planted in the Amazon.

Even if there are only a few cane plantations operating in the Amazon, ethanol may exert an indirect impact on the rainforest through a phenomenon known as “agricultural displacement.” Though the state of São Paulo is located far from the Amazon rainforest, the sugar cane there can drive other crops toward the agricultural frontier. In the state of São Paulo, sugar cane has been planted on former pastureland and this has pushed cattle into Mato Grosso. Hundreds of thousands of cattle are moving into the Amazon every year as a result of displacement by ethanol in the state of São Paulo alone, say environmentalists. This migration is becoming all the more likely since one can purchase 800 hectares of land in the Amazon for the price of just one hectare in São Paulo. Additionally, some soy plantations in the center of the country have been turned over to ethanol production, prompting concern among environmentalists that this will lead soy producers to move into the Amazon. And local observers say that sugar cane plantations are already pushing soy farmers and ranchers into the rainforest.

The same article by Foreign Policy states that sugar cane crops have also led to the deforestation in the Atlantic rainforest.

There are still many unintended consequences and factors the United States needs to take into account before importing sugar cane based ethanol. CNNMoney published an article stating that, “Some experts say the Brazilian formula gets even less gas mileage than its corn ethanol counterpart, which itself gets lower mileage generally than gasoline.” Furthermore, biofuels will have an adverse effect on food prices. According to the Organization for Economic Cooperation and Development, which is the UN’s Food and Agriculture Organization, biofuels will absorb 13 percent of global coarse grain production, 15 percent of vegetable oil, and some 30 percent of sugar by 2020. Again, what is more important, food or fuel? How are the poor and vulnerable expected to purchase food when it is being shipped to prosperous countries for fuel?

Just like corn based ethanol, sugar cane based ethanol also has its consequences. Experts continue to debate whether sugar cane based ethanol is a viable option. However, before jumping on the bandwagon, policy makers need to take a pragmatic approach when discussing the energy future of the U.S.