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Bob Murphy spins shallow "Blockbuster study" by coal lobby on cap and trade bill

October 2nd, 2009 No comments

The coal- and utility-funded “free-market think tank” Institute of Energy Research has a just released another study that tells us the obvious about the regressive consequences of the Waxman-Markey cap-and-trade bill and the benefits likely to flow to its corporate supporters, while masking its own agenda. As an added benefit, the press release includes some one-sided and unsupportable over-statements by Bob Murphy.

A few points:

IER:  “cap-and-trade would precipitate a financial windfall for well-connected
special interests and politically-favored companies.”

me:  No dispute here. It`s perfectly fair to point out who will benefit from the cap-and-trade bills.  But let`s not ignore that coal investors have long benefitted from being able to shift pollution costs to people downstream, under the perverse “rights to pollute” enabled under the Clean Air Act, and under state and federal mining licenses that allow mining firms to force out local residents.

IER:  “The study … details how shareholders,
not ratepayers, will be the primary beneficiaries of cap-and-trade’s
largess.”

me:  Sure, just like how it was shareholders in coal producers and utilities who are the primary beneficiaries of the externalities permitted by the status quo.

Bob Murphy[The] analysis … illustrates just how flawed and skewed this
legislation is toward rent-seeking special interests.

me:  Sure, but the interest of the coal lobby is that the legislation doesn`t benefit them enough. Do coal investors care MORE about what`s good for the average Joe than do other “rent-seeking special interests”?

Bob Murphy:  “secondly, and more important, [the analysis] shows that cap-and-trade, as
outlined in Waxman-Markey, is nothing more than a transfer of wealth
from the poorest to the richest among us.

me:  Oh really?  Does the analysis really conclude that Waxman-Markey does “nothing more” than transfer wealth? You mean Waxman-Markey wouldn`t actually raise prices of carbon-based energy or affect consumption and investment decisions by industry, businesses and consumers?

Bob Murphy:  “These new findings should send a clear message to the American people cap-and-trade helps the powerful and hurts the rest of us.

me: The message is fine and important. But are coal firms and investors “the rest of us”, not powerful and only concerned about the average Joe, or are they trying to protect their own privileged position? Further, are there any alternatives to cap-and-trade that coal investors support, such as carbon taxes, or even undoing their favored treatment under federal clean air laws and mining laws?

Bob Murphy:  And as Congress’ corporate allies receive the bulk of the benefits
Waxman-Markey has to offer, our environment, along with our struggling
economy, will suffer for years to come. Congress needs to get out of
the business of picking winners and losers and allow the market to
determine which energy and electricity sources should power our
economy.”

me: Ahh yes, forgive me; I forgot that coal firms were a part of the enviro lobby!  But aside from that, I agree strongly that Waxman-Markey is poor policy.  Do coal investors agree with Exxon that rebated carbon taxes would keep Congress “out of the business of picking winners and losers and allow the market to determine which energy and electricity sources should power our economy”?

Thanks, IER for showing us how “political capitalism” works!

 

* “Political capitalism” is Rob Bradley`s term for “rent-seeking”

Bob Murphy on climate change at Antiwar Radio; a puppet for the "King Coal" hand that feeds him?

October 2nd, 2009 11 comments

The following is an email message that I sent to Scott Horton, host of Antiwar Radio, regarding his September 18 interview with Bob Murphy. The exchange regarding Bob`s thoughts on the cap and trade bill monstrosity appears at 24:14 to 29:47. (Minor edits and link added.)

Scott, I listened with interest to your interview with Bob Murphy
(http://www.scotthortonshow.com/2009/09/18/antiwar-radio-robert-murphy-6/),
whom I generally like, but feel compelled to point out that Bob was
not being fully honest with you – on an important point – when he
discussed his role in studying and commenting on cap and trade and
energy policy as an economist at the “Institute for Energy Research”.
This group is a part of a lobbying front for big coal and the
utilities that rely on coal – not “big oil”, such as Exxon, which has
specifically stopped funding IER because of its anti-climate change
message and which now expressly supports carbon taxes!

More on IER and Murphy`s involvement with it here:
http://mises.org/Community/blogs/tokyotom/search.aspx?q=IER+murphy

In other words, the legitimate criticisms that Murphy can make of cap
and trade (note that Exxon, Jim Hansen and most economists prefer rebated carbon
taxes) – such as existing bills are a way for government to give
favors to insiders – have to be balanced by an awareness that, for the
past few decades, government policy has been heavily skewed in favor
of investors in and consumers of fossil fuels. Murphy talks on this
topic only because he is paid to by the lobbying group that is getting
the shortest end of the stick – big coal.  If only he were honestly
even-handed, instead of in the pay of lobbyists, we might make some
progress in addressing a range of real problems in the energy sector.

Sincerely,

Tom

Categories: Bob Murphy, cap and trade, Coal, IER, Scott Horton Tags:

[Updated] Bob Murphy: Rob Bradley's "IER Calls for End to All Energy Subsidies" – Not

July 6th, 2009 No comments

[Update at bottom.]

Bob Murphy, Austrian economist and part-time consultant for Rob Bradley`s Institute for Energy Research, asserted in a recent blog post that “IER [has] Call[ed]  For End to All Energy Subsidies”.  I took a closer look at the recent commentary at IER that Bob pointed to as support for his position, and came away unimpressed.

I posted the following comments to Bob in response a week ago; since I have heard nothing further from Bob, I think it`s worth copying them here (with editorial comments in brackets):

Bob, I`m sorry, but where does IER (or MasterResource) actually CALL “for an end to all energy subsidies”? They certainly don`t do so expressly in this op-ed. I`d be thrilled if you could point the way to other places where Bradley`s various enterprises specifically call for an end to subsidies and other regulatory favors for coal.

By bashing WaPo`s inconsistent concerns about “clean coal” subsidies [in an interesting editorial about rent-seeking by coal firms that ignores other rent-seekers] – and bashing clean energy interests while refusing to criticize rent-seeking by coal – it seems fairly apparent that IER remains a friend of big coal, and of the big thumb that government has long placed on the scales in its favor.

“That would at least make them intellectually consistent. But it appears there is no room for logic and consistency when you have an agenda to advance.” [from Rob Bradley`s commentary]

Such apt words!

Categories: Bob Murphy, Coal, IER, Rob Bradley Tags:

Rent-seekers at the Core: Rob Bradley is anxious to defend his role at Enron, but is uninterested in balance, open debate or correcting his own misstatements about EXXON's support for carbon taxes

May 10th, 2009 No comments

Apparently Rob Bradley`s self-proclaimed “free-market” energy blog, “MasterResource”, has experienced a recent increased flow of traffic, so Rob is busy patting himself on the back and spinning his blog to his new readers.

But what`s the reason for the increased traffic?  Is MasterResource finding more success at putting out a message of “free-market” energy and “principled entrepreneurship“?*

* This is a purportedly trademarked(!) phrase that encapsulates Bradley`s laudable professed beliefs that (i) “businesses, big or small, should not seek special favors from government but create private wealth via the economic means rather than the political means” and that (ii) “government activism, not consumer choice in a free society, is the major threat to energy sustainability”.

Far from it – in the face of the growing stream of unbalanced (pro-fossil fuels and “clean” coal), partisan, thinly argued, and some surprisingly not pro-free-market posts from MasterResource and its related sites, the Institute for Energy Research (of which Bradley is founder and CEO) and IER`s “independent grassroots affiliate”, the newly re-founded energy front group American Energy Alliance (which calls IER its “partner”), these groups and blogs have basically simply been earning negative attention from those they see as their opposition in a classic rent-seekers` battle over using government (via public opinion tools) to achieve economic and other ends.  IER has been busy pushing for greater energy production on “public” lands, while AEA, with the help of Burston-Marsteller, has created affliliates in every state, and is running a large “integrated education and advocacy campaign” against the Waxman-Markey cap and trade bill (which AEA prefers to misleadingly call simply an “energy tax bill”).

As I noted in another post and in comments regarding a puzzled reaction by Bob Murphy (who has found himself the target of attacks as a result of speaking on behalf of IER against Obama`s green jobs program), this is too bad, not only because one of the first casualties in a war of words is truth and reason.  MasterResource and the folks Bradley runs with at IER and AEA are assembling their own “Baptists and Bootleggers” coalition, where market principles are given lip service (along with patriotism, energy independence and the like), but the funders appear to all have rather more common-place and less lofty motives.  The descent into partisan bickering (while Bradley tries to maintain a lofty tone, it`s easily seen elsewhere by those who pick up posts from his blog, IER and AEA) is too bad, but the natural consequence when one acts as a spokesman for particular classes of rent-seekers.

That this state of affairs – professing the high ground while fronting for rent-seekers (or “political capitalists”, to use a term that Bradley prefers) – is what Rob Bradley actually desires, seems to be attested to:

– (1) by the alacrity by which Bradley has rushed to defend himself and IER against criticisms that were generated in response to commentary from Master Resource and IER, while deliberately obfuscating and refusing to correct the record about ExxonMobil`s fairly dramatic change in position – from opposition to government action on climate financial support to cutting off funding for IER and to actively supporting carbon taxes (Exxon CEO Rex Tillerson: “It is rare that a business lends its support to new taxes. But in this case, given the risk-management challenges we face and the alternatives under consideration, it is my judgment that a carbon tax is the best course of public policy action. And it is a judgment I hope others in the business community and beyond will come to share.”); and

– (2) of course, by the fact that, despite Bradley`s professed call to “Let the analysis and debate continue–and assume the best of intentions and civil discourse from all of us at MasterResource,” he banned me from the site, without explanation, and without the knowledge or consent of his “volunteer” co-bloggers in mid-conversations (Tom Tanton carried the conversation to my blog, while Chip Knappenberger responded by email, and I just discovered that Marlo Lewis, weeks after I was banned, posted a rejoinder).

Sure, Rob, let the “high-level” discourse continue, with nary an acknowledgement of the legitimacy of others`s preferences, of the role of government in frustrating such preferences so far, and of the firms and investors that continue to benefit from government interventions at the expense of consumers and the public weal. 

Heaven forbid anyone call for greater competition in power markets, for finding ways to rein in the mismanagement of the federal lands that your friends are itching to drill/mine, or for a frank acknowledgment that the world faces a number of “environmental” problems as a result of a lack of clear or enforceable private or communal property rights in important shared resources.

It`s the Austrian/libertarian/Objectivist way, after all.

Do actions speak louder than words?