Posts Tagged ‘energy’


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wuc14-01-27jpg_605 mike4feb

90 companies


A new study, published in Climatic Change, has found that 63 percent of cumulative worldwide emissions of industrial CO2 and methane between 1751 and 2010 to 90 “carbon major” entities.

In my view, this study puts the focus not on countries or individual decisions (which has upset Andrew Revkin, who wants to place the blame on “those of us driving & flipping switches”) but on companies and industries—and therefore on a particular set of institutions that serve as the basis of the current carbon-intensive economic model, which of course can be changed.


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mike4july Martin Rowson 01.07.13


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stuartcarlson-RTW 123608_600

It’s not often that I write admitting the validity of the mainstream story about markets. But the case of the Big Sandy power plant is a good example of how that story is supposed to work. The relative price of coal rises, based on environmental regulations and the declining price of alternative sources of energy, and the owners of Big Sandy decide to switch from coal to natural gas.

The decline is largely because new pollution rules have made coal plants more costly, while a surge in production of natural gas through the process of hydraulic fracturing, known as fracking, has sent gas prices plummeting. Together, the economics of coal have been transformed after a century of dominance in Washington, state capitals and the board rooms of electric utilities.

“The math screams at you to do gas,” said Mr. Morris, whose company is the nation’s largest consumer of coal.

Price-induced substitution among inputs in action!

But then there are all the other parts of the story that are usually missing from the mainstream account. Litigation, lobbying, contributions (to politicians and environmental groups), and advertising by both Big Coal and the natural gas industry. The attempt to pass on the cost of environmental retrofitting to electricity consumers. The negative effects of coal mining on miners and local communities and the negative effects of fracking on a different set of local communities. And so on.

In other words, what the mainstream story misses is perhaps more important than what it captures: poverty and unemployment make it difficult for miners and local landowners to survive without coal or natural gas, while large corporations vie for control over markets and energy policy.

That’s how a market works in the real world.

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We’re gambling with our planet—but not everyone is losing the bet.

According to Joseph Stiglitz, we’re gambling on three “black swan” events: finance, nuclear power, and global warming.

In the end, those gambling in Las Vegas lose more than they gain. As a society, we are gambling – with our big banks, with our nuclear power facilities, with our planet. As in Las Vegas, the lucky few – the bankers that put our economy at risk and the owners of energy companies that put our planet at risk – may walk off with a mint. But on average and almost certainly, we as a society, like all gamblers, will lose.

That, unfortunately, is a lesson of Japan’s disaster that we continue to ignore at our peril.

This is how Badtux the Ruminant Penguin [ht: lmb] sees it:

In the future there will be two kinds of people: The filthy rich (the top 1%), and the rest of us, who will make our living as gleaners upon whatever junk they’ve thrown out. Perhaps I should have been making an effort to talk to some of the people gleaning stuff off my street and get some tips, given that I was looking at the future of America, and indeed probably my own future at some point, right outside my front door. . .

In both cases, those in the top 1 percent are making the bets and walking away with the winnings, while  the rest of us will end up picking up the scraps and losing our shirts to the house.