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Republicans (Sen. Lindsey Graham & others) give Dems a climate deal? In exchange for streamlining for nukes, "clean coal" subsidies, offshore drilling, carbon price ceiling & import taxes

October 12th, 2009 No comments

Senate Dems, who lack sufficient votes on their own to approve a cap-and-trade bill over a possible Republican fillibuster, have sought help from sympathetic Republicans, who have apparently used this leverage to broaden the bill and to extract key concessions on various issues; such  concessions are sure to please a wide range of lobbying groups, and it looks like there may be a good chance that they will be sufficient to slip a cap-and-trade bill past opposition from coal-producing and -burning states.

The framework of the bi-partisan package was spelled out on Sunday, October11, in a joint NYT op-ed, “Yes We Can (Pass Climate Change Legislation)”,  by liberal Senator John Kerry (D-Mass.) and conservative Senator Lindsey Graham (R-SC).

While details are sketchy (and details sure to still be fought over), it looks like Pres. Obama will have, if not final legislation, then at least high prospects for a cap-and-trade bill that he can use for the negotiations that will start in a few weeks in Copenhagen (over the shape of a global climate treaty to replace the expiring Kyoto Protocol).

Excerpts from the Kerry-Graham op-ed are here (emphasis added; with a few comments in brackets):

Many Democrats insist on tough new standards for curtailing the
carbon emissions
that cause global warming. Many Republicans remain
concerned about the cost to Americans relative to the environmental
benefit and are adamant about breaking our addiction to foreign sources
of oil
[Republicans are so easily jerked around over “energy security”].

However, we refuse to accept the argument that the
United States cannot lead the world in addressing global climate
change. [but do China, India and others want to follow?] We are also convinced that we have found both a framework for
climate legislation to pass Congress and the blueprint for a
clean-energy future that will revitalize our economy, protect current
jobs and create new ones, safeguard our national security and reduce
pollution. …

First, we agree that climate change is real and threatens our
economy and national security. That is why we are advocating aggressive
reductions in our emissions of the carbon gases
that cause climate
change. We will minimize the impact on major emitters through a
market-based system that will provide both flexibility and time for big
polluters to come into compliance without hindering global
competitiveness or driving more jobs overseas. [cap-and-trade]

Second, while we
invest in renewable energy sources like wind and solar, we must also
take advantage of nuclear power, our single largest contributor of
emissions-free power. Nuclear power needs to be a core component of
electricity generation if we are to meet our emission reduction
targets. We need to jettison cumbersome regulations that have stalled
the construction of nuclear plants in favor of a streamlined permit
system
that maintains vigorous safeguards while allowing utilities to
secure financing for more plants. We must also do more to encourage
serious investment in research and development to find solutions to our
nuclear waste problem
.

Third, climate change legislation is an
opportunity to get serious about breaking our dependence on foreign
oil
. For too long, we have ignored potential energy sources off our
coasts and underground. Even as we increase renewable electricity
generation, we must recognize that for the foreseeable future we will
continue to burn fossil fuels. To meet our environmental goals, we must
do this as cleanly as possible. The United States should aim to become
the Saudi Arabia of clean coal.
For this reason, we need to provide new
financial incentives for companies that develop carbon capture and
sequestration
technology.

In addition, we are committed to
seeking compromise on additional onshore and offshore oil and gas
exploration
— work that was started by a bipartisan group in the Senate
last Congress. Any exploration must be conducted in an environmentally
sensitive manner and protect the rights and interests of our coastal
states.

Fourth, we cannot sacrifice another job to competitors
overseas. China and India are among the many countries investing
heavily in clean-energy technologies that will produce millions of
jobs. There is no reason we should surrender our marketplace to
countries that do not accept environmental standards. For this reason,
we should consider a border tax on items produced in countries that
avoid these standards
. This is consistent with our obligations under
the World Trade Organization and creates strong incentives for other
countries to adopt tough environmental protections
.[probably just a signal to China & India; any bill would have to leave flexibility to the Administration.]

Finally, we
will develop a mechanism to protect businesses — and ultimately
consumers — from increases in energy prices. The central element is the
establishment of a floor and a ceiling for the cost of emission
allowances.
This will also safeguard important industries while they
make the investments necessary to join the clean-energy era. We
recognize there will be short-term transition costs associated with any
climate change legislation, costs that can be eased. But we also
believe strongly that the long-term gain will be enormous. …

If Congress does not pass legislation
dealing with climate change, the administration will use the
Environmental Protection Agency to impose new regulations. Imposed
regulations are likely to be tougher and they certainly will not
include the job protections and investment incentives we are proposing. 

The message to those who have stalled for years is clear:
killing a Senate bill is not success; indeed, given the threat of
agency regulation, those who have been content to make the legislative
process grind to a halt would later come running to Congress
in a panic
to secure the kinds of incentives and investments we can pass today.
Industry needs the certainty that comes with Congressional action.

Joe Romm on the left applauds the proposed deal (though there is sure to be disagreement about support for coal, nuclear power and offshore oil & gas exploration), and Bill Scher says “Sen. Lindsey Graham Crosses the Climate Rubicon” and thus “made a deal all but inevitable”.

On the right, Michelle Malkin reports that she was right to warn about Republican turn-coats, the National Review `s Gore-haters are dispirited, and MasterResource, the coal-funded “free market” energy blog by libertarian Rob Bradley, has nothing to say.

Political scientist Roger Pielke, Jr. notes the lack of precision and suggests that Republicans now have the upper hand in negotiating the bill.

More reaction and background that readers may find useful is here:

Let’s Try This Again: Are There GOP Senators Who Will Back The Climate Bill? (Bill Scher, Campaign for America`s Future, October 7, 2009)
Senators link drilling with cap-and-trade (Houston Chronicle, October 6, 2009)
Is Lieberman at it again? (Politico,

9/21/09)


On the Climate Bill Fence: How Sen. Graham Got There by Bill Chameides (Dean of Duke U`s school of the environment) | Aug 27, 2009

– More on other senators by Bill Chameides

From a libertarian perspective, I ask other libertarians and those on the right whether it is not too late to get a leaner climate/energy bill, that would:
  • instead of a cap-and-trade program (that hands out emissions permits free to existing fossil fuel users, with costs being borne regressively by energy users), use upstream carbon taxes, with the revenues rebated per capita to all Americans;
  • allow limited use of offsets in lieu of taxes (effectiveness of eligible offsets to be insured for a period of 50 years) by Lloyd`s of London);
  • eliminate subsidies for all energy technologies (including ethanol and biofuels)
  • provide that at least half of all revenues taken in by the federal
    government and state government for offshore oil & gas leases and for coal leases will be paid per capita to citizens (and state residents);
  • allow nuclear fuel reprocessing and breeder plants, while eliminating federal insurance for nuke plants;
  • eliminate the grandfathering of dirty coal-burning plants under the Clean Air Act;
  • allow immediate tax deduction of a ll capital expenditures (eliminating multi-year amortization limits);
  • eliminate mandates that public utilities increase use of green, renewable fuels, in favor of the removal of antitrust protection for the grant of local monopolies (and other measure that introduce real competition into the retail power sector), and application of Commerce Clause protection to those who want to sell power out-of-state;
  • establishes energy efficiency targets, as opposed to mandates, with awards to category winners, and publishes results;
  • privatize the TVA (by distributing shares per capita to all who are served by TVA);
  • publish information on the locations of coal fly-ash storage sites;
  • make it clear that federal and state licenses for energy facilities and mines are not licenses to pollute, do not extend any immunity for actual damages caused, and do not prevent injunctions for facilities identified as causing particular damage; and
  • to dampen NIMBYism, establish compensation schedules for federally-licensed facilities, and encourage states to do the same (based on distance and like wind and water flow).

Beyond zero-sum games: Instead of mandating "green power" and greater efficiency, why not mandate MORE COMPETITION in power markets?

October 11th, 2009 No comments

To my disappointment, it turns out that Joe Romm, who  maintains the Center for American Progress` Climate Progress blog, didn`t let through my prior comment about how our discussions about green/efficiency mandates ignore the 800 lb. gorilla in the room, namely, inefficiency stemming from the lack of competition in consumer electricity markets.

But I`m not so easily discouraged; on the heels of Google`s roll-out of software and a monitoring device specifically to enable consumers to more efficiently use electricity, I tried again (toned down so he would not have to see how guys like Steven Milloy mirror him).  Here`s the comment I submitted:

Joe, on the issuie of mandates, both you and Henderson fail to consider WHY our power system isn`t MUCH more efficient and doesn`t provide greater consumer choice – namely, grants by local governments of power monopolies and related regulatory balkanization.

Let`s not forget that the “ethical” argument for interfering with the market for electrical products is based on the fact that local governments have prevented competition in local markets for power generation and distribution.

That there are huge efficiency gains to be made in improving consumer electricity markets is precisely why Google is focussed on providing consumers with greater information about their electricity consumption.

Thus we see one of the continuing problems presented by the fight for control over the wheel of government: those who want to steer it their way are so sure they`re right – and convinced that the others are stupid or evil – that they can`t be bothered to try to notice or try to achieve shared objectives.

Statism & clear partisan blindness: Joe Romm, Steven Milloy and ethical certainty over problems stemming from lack of competition in power markets

October 5th, 2009 No comments

Joe Romm of Climate Progress has a new post up that lambasts a recent WaPo op-ed by “environmental ethicist” David Henderson. Romm provides useful information on the relative efficacy of government technology forcing efforts, but comes down like a ton of bricks on Henderson, all while ignoring the 800 lb. gorilla in the room – consumer frustration over, and energy inefficiency resulting from, the lack of competition in local power markets.

In this, Romm mirrors anti-enviro Steven Milloy, who has been raking GE over the coals for its actions to support “green mandates” for subsidies that benefit GE by stimulating markets for GE`s energy-efficient smart meters and smart water heaters

I left the following note at Joe`s that draws attention to the parallels:

Joe, you marginalize yourself and do the debate a disservice by continuing to mirror partisans like Steven Milloy, who`s so busy demonizing those who want more green power and greater efficiency that he forgets to examine WHY our power system isn`t MUCH more efficient and doesn`t provide greater consumer choice – namely, grants by local governments of power monopolies and related regulatory balkanization

Let`s not forget that the environmentalists` “ethical” argument for interfering with the market for electrical products is [based on the fact] that local governments have prevented competition in local markets for power generation and distribution.

[To comment, please visit this post at my main blog at the Ludwig von Mises Institute.]

Categories: Joe Romm, monopoly, power, Steven Milloy Tags:

A note to Joe Romm about big, bad, carbon-tax-supporting Exxon and the API

August 28th, 2009 No comments

Joe Romm has a post up at Climate Progress that is highly critical of the U.S. oil industry, his ire no doubt triggered by the news that the American Petroleum Institute (API) is coordinating a series of “Energy Citizen” rallies by oil industry employees that target U.S.
Senators in 21 states
.

Romm`s post largely focuses on past efforts by Exxon to influence the debate by emphasizing Exxon`s PAST role in funding others to cast doubt on the science of climate change – a campaign that Exxon appears to have abandoned – and the greater part of the post consists of a requote of a recent commentary by Bloomberg reporter Eric Pooley, “Exxon Works Up New Recipe for Frying the Planet“.  It seems to me that neither Romm nor Pooley has done a good job of establishing a case for laying their current ire at the foot of “carbon-tax” Exxon.

I left the following comment at Romm`s blog, and look forward to his response after it slips through moderation:

Joe, I understand your suspicions of Exxon, but even as they are convenient whipping boy, they are not coal firms, which I`m sure you understand are a much greater climate threat and which are treated so favorably under Waxman-Markey.

Moreover, you and Pooley paint over your lack of substantiation with very broad brush strokes that are more fairly directed to other members of the API. Granted Exxon is a bit late, but:

– they have expressly agreed that climate risks merit mitigation policies,

– CEO Rex Tillerson has specifically advocated carbon taxes (for which he is good company with Jim Hansen, most economists – and now even Margo Thorning of the ACCF!),

– they are making substantial investments in climate research and biofuels; and

– they are not supporting the API`s fake “citizens” meetings.

Why is Exxon still Public Enemy #1 for you, and not Peabody and other coals firms – and the states and US government, who are hooked on royalties?

I agree with the many economists who strongly prefer a rebated carbon tax. I would love to hear your scientific and political calculation that leads you to favor cap and trade.

Categories: carbon pricing, Exxon, Joe Romm Tags:

Fun with Partisanship and Self-Deception: the climate follies and Rob Bradley

August 25th, 2009 No comments

Political scientist and climate commenter Roger Pielke, Jr. and scientist and Climate Progress blogger Joe Romm had a heated little spat last month, with both trading accusations of lies and bad faith.  When I left comments with each suggesting that the other might have a legitimate complaint, each reflexively questioned my motive while dodging my comment, and both claimed the moral high ground while exercising editorial discretion to refuse to post some of my remarks.

This is not particularly surprising, given our cognitive predilections to see ourselves as right (and good), and those who disagree with us as wrong (and evil), as I have noted on any number of occasions.

But as this predilection hinders the ability of people to look in the mirror and see themselves even when they are complaining about how badly they are mistreated by others, it is not simply a continuing source of amusement, but also a serious vulnerability that rent-seekers frequently deliberately exploit to harness and distract us from their agendas.

A small case in point is Rob Bradley, bloggermeister at MasterResource and founder of the Institute for Energy Research, who wrote in to Roger Pielke to commiserate and complain about how he, too, was a victim of Joe Romm`s personal attacks, and how much more civil and “open-minded” the discourse was from “the free market side”. 

Given my own experience – including Rob`s banning me from his blog for questioning his support for fossil fuel rent-seekers – I felt that Rob`s complaint was too rich to go unaddressed,  I copy here (with slight changes to improve clarity) my response:

Rob Bradley says, “I certainly do not know anyone on my side of the debate who acts like he does, and I do not think that institutions on the free market side would tolerate what the Center for American Progress does with him.”

Come on, Rob, beauty may be in the mind of the beholder, but the right has always played a highly policized and personalized game on climate policy; just look at Marc Morano, Stephen Milloy, Chris Horner (and the whole “Planet Gore” ad hominem corner at NRO), and Noel Sheppard at NewsBusters.

“But these are desperate times for climate alarmism and policy activism on all fronts–physical science, political economy, and public policy.”

Sure they are, and not merely for the left. In any case, the right bears a great deal of responsibility, for refusing to provide any leadership over the past decade – except leadership on unending wars on terror, gays, enviros and our pocketbooks (which is one of the reasons we now have Dems in charge) – while engaging during that period in an orgy of self-righteous pork-barrel for their own special interests (some of whom even now are being fed at the public trough).

Good job! Maybe the right needs to hire Bob Luntz back again to give us more strategy memos of the same kind?

Like you, I`m hoping that “more and more open-minded people will come to see [TT: rent-seeking of all kinds – including by Old King Coal] as part of the climate-change problem, not the solution.”  But since surely you agree with me about open-mindedness and rent-seeking, maybe you`d care to share with the rest of the open-minded people here your reasons for BANNING me from commenting at MasterResource?

And inquiring minds would like to know if they are the same reasons you gave to your co-bloggers (Chip Knappenberger, Tom Tanton, Marlo Lewis, Bob Murphy) for pulling the plug in the middle of the public conversations that they were engaging me in on MR.

A further small irony, perhaps even now not realized by Bradley, is that Bradley, in a parallel post on his own blog designed to play up Roger’s complaints (with Joe’s of course going completely unnoticed), included a quote from Pielke’s blog where Roger notes that Romm could not provide a satisfactory response when questioned by a reader on one of the points of contention:

when a reader of both of our blogs called him on it he could not provide the goods (because there aren’t any).

The irony?  Rob, by including this quote from Roger, has linked to yours truly. I’m a leper as far as commenting on his blog, but I’m okay for him to link to, as long as he doesn’t know it’s me! (h/t to Bob Murphy)

Rob closes out his own post with a noble wish:  “May the climate debate become more civil and the best arguments win!”. 

Yes, and may Rob take his own advice, perhaps even on his own blog.

[Note: Bear with me, please.  I have a few similar thoughts to share on this topic, and thought this was a good place to start.]

Bob Murphy on James Hansen and the "Civil War on the Left" over Waxman-Markey; where is criticism of pork for coal?

July 15th, 2009 No comments

James Hansen, a leading climate scientist at NASA (head of NASA’s Goddard Institute for Space Studies) and Columbia University, last week`published a scathing criticism of the Waxman-Markey cap-and-trade bill in the Huffington Post, and Bob Murphy noticed.

Bob offers a rather schizophenic view, expressing both:

  • admiration of (a) Hansen`s insistence – despite pressure from others on the left to dampen his criticism – that, given the risks posed by emissions of greenhouse gases, the Waxman-Markey bill is far from adequate and (b) Hansen`s criticism of the driving role provided by rent-seeking fossil fuel interests; and
  • amusement at the “fireworks” on the left that Hansen`s criticims will set off.

Oddly, it doesn`t seem to occur to Bob that Hansen`s criticism, despite flack from others, that Waxman-Markey is too weak in in the face of the risks that Hansen perceives, lends further credibility to Hansen and his concerns.  If Hansen takes his concerns THIS seriously, then perhaps othes should take him more seriously as well.  (Though to his credit, Bob does link to Hansen`s latest attempt to explain his understanding of climate risks).

It`s also odd that Murphy completely fails to explore Hansen`s criticisms of all of the subsidies to coal that the Waxman-Markey bill gives away, and ignores Hansen`s strong recommendation of a much leaner carbon-pricing strategy, rebated carbon taxes, of the type actively supported by Exxon and many others (not solely on the left).  Why is that libertarians refuse to criticize the 800 lb. gorilla in the room, while refusing to support carbon taxes?  For some at least, it appears that there is a decided lack of interest in biting the hand that feeds them, but wouldn`t a push against subsidies for coal and for a more transparent and less-burdensome climate still be salutary?  In a blog post that addresses Hansen`s stance, the Wall Street Journal asks the same question.  The NYT covers Hansen`s position as a news story.

I copy below a few remarks that I left at Bob`s blog (light editing):

Bob, it`s nice to see you respect Hansen for sticking to his gunds, but
it sounds like you`re mainly expressing schadenfreude, with the hope
that he might forestall W-M.

But Hansen is not taking his own
“rhetoric” seriously, but his own views of the SCIENCE. And those
views, while they hopefully turn out to be wrong, are no laughing
matter. (Presumably you know how to check Hansen`s website directly for
his scientific publications.)

On policy, as I have pointed out a number of times, Hansen has come out strongly in favor of pork-lite, rebated carbon taxes;
too bad that libertarians have showed so little interest in pushing for
carbon policies that are least damaging, but instead, but fighting
everything tooth and nail have instead contributed (inadvertently?) to
massive subsidies for coal.

You might also enjoy the sight of Dennis Kucinich, for reasons similar to Hansen, voting against Waxman-Markey.

But pork aside, I think that Joe Romm, in his response to Hansen, has the better arguments. On the question of pork, I note the continuing lack of criticism of old King Coal [by yourself and by Rob Bradley].

Thorough defense by Joe Romm of Waxman-Markey against "carbon tax + dividend" James Hansen; where is "Principled Entrepreneurship" Bradley on fat subsidies for coal?

July 12th, 2009 No comments

Joe Romm`s defense of Waxman-Markey against climate scientist James Hansen (who prefers rebated carbon taxes and a faster phase-out of coal) is effective and worth a read.

Notably, however, Romm makes no attempt to justify all of the pork now in the bill, including the huge subsidies to coal (Congressman Ed Markey: “We have in huge subsidies for clean coal. Huge. Much more than we have in for renewables.”), which are one of the reasons why Greenpeace has wtihdrawn its support for the bill.

Hope springs eternal that Rob Bradley, in his “free-market” MasterResource energy blog, his Institute for Energy Research or their more blatant PR arms like “grass roots” American Energy Alliance (or side-kick Bob Murphy) will criticize past or ongoing rent-seeking  (“political capitalism”) by King Coal, but so far it looks very much like the piper is calling the tune – to the extent that Rob Bradley bans commentators who note the lack of balance in the application of “Principled Entrepreneurship” (which Bradley has trademarked!).

 

On Bob Murphy`s narrow attack on Krugman`s support for the Waxman-Markey climate bill

June 12th, 2009 No comments

I just stumbled into Bob Murphy`s June 8 post at the LvMI Daily site, and submitted a few comments.  As it looks like my links prevented my comments from posting, I`ve copied them here (with a few typo tweaks and links added):

Bob, I didn`t realize you had put a post up here.

Allow me first to copy here a few points that I made on your related post at MasterResource, but which freedom- and open-debate-loving Rob Bradley blocked (your truly has been banned there for the past few months):

“The below is copied from MasterResource, where I remain on permanent moderation – IOW, banned – even though Bob and the authors of various threads seem perfectly interested in engaging me.

“TokyoTom { 06.09.09 at 12:53 am }

A few comments, if I may (in the hope that springs eternal that even the “unclean” will be allowed to post): [Note to readers:  rest easy; that the final “I`ve been banned!” reference.]

1. “Cost/Benefit Analysis Cannot Justify Waxman-Markey’s Aggressive Targets”

Why this headline, which is completely unsupported in the post?

You do link to a prior post, where you try to draw the conclusion that “If the whole world adopted the stringent emission cutbacks in Waxman-Markey, then the costs to the global economy would far outweigh any reasonable estimate of the benefits (measured in avoided climate damage)”, but both there and here you fail to address Weitzman, much less more fundamental problems regarding the validity of CBA (aggregating preferences across persons situated vastly differently, ignoring the problems of frustrated preferences, enrtrenched rent-seeking and the continuing lack of property rights or other mechanisms to manage an important commons).

And far from “agree[ing] with you”, the RFF paper much more fairly illustrates some of the complexities in applying CBA to the moving ball of international negotiations.

2. “the costs to the global economy would far outweigh any reasonable estimate of the benefits (measured in avoided climate damage)”

“Yet mainstream models of the global economy and climate system show that worldwide adoption of Waxman-Markey would be foolish as well. It takes heroic assumptions both of lurking climate catastrophes and of international dipomacy to justify support for the current bill.”

Again, you offer conclusions not established here or elsewhere. You appear to acknowledge your overstatements when you say: “If proponents of aggressive government measures want to say the benefits justify such costs, fair enough; but let’s not kid ourselves that this is going to be cheap.”

3. “RFF study, which says the cumulative cost through 2050, expressed today in present-value terms, is up to $43 trillion worldwide.”

Actually, don`t the RFF authors make clear that this estimate is based on universal adoption worldwide and least-cost reductions – 70% of which would take place in developing countries – with a clear indication that such countries are not likely to act agressively for decades? Accordingly, the RFF study implies that global costs will fall below the straight estimate.

4. It is interesting to me that you ignore the dynamics of the international context of climate policy and negotiations. Why no comment on the observations in the RFF paper that likely “leakage” of carbon-heavy industry to developing countries and dampening Western demand for fossil fuels will constitute net subsidies that spur development in poorer parts of the globe?

Your comment is awaiting moderation.”

Thanks for putting these up at your own blog.

Further, let me note:

1.  Your criticism of W-M on conventional CBA grounds is limited to W-M, and doesn`t address the many CBA analyses that conclude (as Nordhaus has done weakly for decades) that carbon pricing mechanisms are now justified.  Economist Richard Tol last year summarized the economic literature as follows:

Firstly, greenhouse gas emission reduction today is justified. Even the most conservative assumption lead to positive estimates of the social cost of carbon (cf. Table 1) and the Pigou tax is thus greater than zero. Yohe et al. (2007) argue that there is reason to reduce greenhouse gas emissions further than recommended by cost-benefit analysis. The median of … peer-reviewed estimates with a 3% pure rate of time preference and without equity weights, is $20/tC. …. The case for intensification of climate policy outside the EU can be made with conservative assumptions. … Secondly, the uncertainty is so large that a considerable risk premium is warranted. With the conservative assumptions above, the mean equals $23/tC and the certainty-equivalent $25/tC. More importantly, there is a 1% probability that the social cost of carbon is greater than $78/tC. This number rapidly increases if we use a lower discount rate—as may well be appropriate for a problem with such a long time horizon—and if we allow for the possibility that there is some truth in the scare-mongering of the gray literature.  Thirdly, more research is needed into the economic impacts of climate change—to eliminate that part of the uncertainty that is due to lack of study, and to separate the truly scary impacts from the scare-mongering.”

[Cato`s Jerry Taylor has a good summary of Tol`s review here.]

2.  Granted that you focussed narrowly on W-M, but by doing so you completely fail (a) to acknowledge the atmosphere/climate system as an open-access commons under growing infuence by man, and (b) to put forward a “free market” agenda that would serve as a win-win response to the wide array of people, firms, institutions and nations that are concerned about man`s role in ongoing climate change and about the likelihood of future climate change stemming from the growing use of fossil fuels and other human activities.

Are you indeed interested in addressing people`s legitimate preferences regarding climate, and pushing for freer markets?  This is a question that I have asked Rob Bradley at his self-declared “free market” MasterResource blog any number of times.

Rob has stated there in response to me [before he banned me] that: “a free-market approach is not about “do nothing” but implementing a whole new energy approach to remove myriad regulation and subsidies that have built up over a century or more”, but he and his co-bloggers (including you) haven`t  seen fit yet to actually recommend ANY free market approaches to climate concerns!

Failing any effort to actually offer policy suggestions, is it unfair to wonder whether you guys are, consciously or not, simply providing cover for the rent-seekers who benefit most by generating pollution and other risks in the manner permitted by current regulations?  (Why did Exxon stop funding Rob`s Institute for Energy Research, BTW?) 

[It`s very clear that Joe Romm and others perceive you this way; are you not seeking to persuade them?]

Regards,

Tom

PS:  Your chief post doesn`t actually link to the comment thread, which readers have to search for.  You might want to fix that.

 

In the fight over climate policy, Jerry Taylor of Cato tries to stiffen the spines of the purist enviros (in order to limit the "Bootleggers")

February 4th, 2009 No comments

Jerry Taylor of Cato is one careful observer of the carbon follies who sees the handwriting on the wall for some type of carbon pricing system coming from the Congress during the Obama Administration.  Strikingly, in an interesting post up at MasterResource (a new self-styled “free market” energy blog spearheaded by former Enron speechwriter Robert Bradley), Jerry is cheering on environmental hard-liners!

It’s worth a gander to understand why.

Jerry’s post borrows the “Bootleggers and Baptists” lingo of Bruce Yandle to comment on the dynamics by which both  Baptists/moralists (in this case, the enviros) and the bootleggers/rent-seekers (in this case, the firms trying to reap benefits from government prohibitions) are seeking to come to terms on new carbon-related government policies.  Jerry  first explains and warns that the core of the mandatory cap-and-trade program proposed by the United States Climate Action Partnership (USCAP a coalition of big business and environmental groups) includes “a replay of the old-source/new-source standards incorporated in the Clean Air Act (CAA), which likewise established tough emissions standards for future power plants but much lighter rules for plants currently in operation”.

Because his concern over this replay of a costly aspect of the CAA, Jerry cheers on the criticism of this plan coming from other parts of the environmental community, in particular from Joe Romm, a former Acting Assistant Secretary of the U.S. Department of Energy who comments frequently on climate change policy issues at the ClimateProgress.org blog of the Center for American Progress.  Says Jerry:

Why should a libertarian skeptic about the dangers of climate change applaud environmental absolutism in this case? Several reasons.

First, the bifurcated old-source/new-source regulation makes no economic sense whatsoever. It distorts the power market by artificially advantaging older plants relative to newer plants. It spawns a huge legislative/legal-industry to fight over old-source/new-source distinctions until the end of time, creating substantial deadweight losses. It creates huge, unearned windfalls for politically clever corporations and thus encourages future market-rigging mischief. It would be far, far better to settle on one standard and apply it across the board to old sources and new sources alike.

Second, without corporate support, … that bill would likely be rendered economically toothless, with loopholes and timetables delaying serious emissions reductions until some time relatively far into the future. I am unaware of any significant environmental initiative that was successfully signed into law that didn’t manage to scare-up significant, widespread corporate support.

Third, there is a virtue in political honesty. If politicians want to argue for laws that will seriously reduce anthropogenic greenhouse gas emissions, then let’s have an honest discussion about the costs and benefits of those proposed laws. Symbolically potent gestures that are more empty than real feeds the public belief in free lunches. While one could argue that it’s better to get an empty gesture than a real one, when the latter has far more costs than the former, I can’t believe that any good will come from a culture of political dishonesty and voter illusion.

(emphasis added)

Well, I agree that casting a light on potential political deals may be a valuable way to influence the outcome in ways that improve policy, but it may very well be that voter “dis-illusion” with political dishonesty is just what the doctor ordered, in getting voters to demand both greater honesty and less government in general.

I appreciate that guys like Jerry Taylor are trying to point out how members of USCAP are trying to lock in advantages for themselves over competitors and new entrants, but why isn’t there now (and why wasn’t there during the Bush administration) any concerted focus by libertarians on less-costly and market-friendly alternatives that still address enviros concerns, like public utility deregulation and allowing immediate depreciation of investments in energy inffrastructure, prizes for carbon-capture and fusion technologies, and making sure that information about climate change (and corporate performance on various yardsticks) is widely disseminated? 

As I have previously noted,  Iain Murray of CEI, Bruce Yandle of Clemson and PERC, Gene Callahan and Jonathan Adler at Case Western have all made suggestions in this regard – to deafening silence from libertarians in general.  At Mises, scorn of enviros and of their preferences with respect to open-access commons seems to be the order of the day.  Let’s wave the white flag, shall we?

Chris Horner and neocons on climate change "alarmists": the pot calls the kettle black

November 28th, 2008 No comments

Chris Horner of CEI has long been a near one-man band in attacking the excesses of the left with respect to concerns about climate change (while appearing to forget concerns by some on the right, corporate heads, scientists and defense/intelligence analysts as well).  I think Horner from time to time has some astute observations, but think that his passion comes at a cost of balance and self-awareness. 

His screed yesterday on NRO’s Planet Gore about climate “alarmists” on the left caught my eye because it precisely because it mirrored my own perception of what I saw in the neocon right with respect to the invasion of Iraq, the “War on Terror” and fear of Islamofacists:

“What does it tell you that some people rush to lash out with (typically personal) nastiness at the public expression of ideas of which they do not approve?

“After all, while we’re used to the Left’s mindset — that every one of their ideas needs to be a law and tolerance only extends so far as it suits their ideology or biases — as I have demonstrated, there is a remarkable Gang Green that seizes upon all heretical thought or speech and seeks to teach its purveyor a painful lesson.

 

“This is indeed a movement premised on fear — fear of debate, democracy, and science.”

 

I am not sure of Chris’s politics with regard to the War on Terror – he seems to have kept his lip securely buttoned on that issue even as words continued to fly on climate change – but I have twice blogged about one neocon – Bret Stephens of the Wall Street Journal, who is very good at spotting what he thinks is unjustified fear-mongering by others even while ignoring his own.  Just as Chris Horner is quick to point to the nastiness of his opponents on climate change issues, while either ignoring his own or considering it perfectly justified.

 

Of course Joe Romm and others on the Left who fall into ad homs and demonization strategies with Chris are just as guilty; such we know is the predilection of those engaged in politicized struggles over resources that are either unowned, imperfectly owned or are “publicly” owned.  Behind each adversary lies someone seeking to obtain or protect a rent from the public. 

 

Does Austrian economics teach us to ignore the preferences of one rent-seeker in favor of another, or to strive to enable greater catallaxy by clarifying property rights or improving common-property institutions?  Are there any adults in the room, or simply squabblers?