The much touted benefits of wind come with a fatal caveat: industrial wind turbines–suffering from intermittency, low average-usage factors, remote siting, relatively high (and all-up-front) costs–are uneconomic. So the fact that the Wind industry creates jobs and can piggyback on consumer-chosen, taxpayer-neutral, baseload power is no consolation.
The starting point of economics is that wants exceed resources. Market prices are therefore needed to allocate resources. Out of a wide range of technical possibilities (including wind-produced electricity), only a small subset is economic desirable as well. Think of a bullet train from Los Angeles to New York City–technically possible but uneconomic when compared to air travel. Only freely acting consumers in a government-neutral marketplace can decide the difference.
The new study cosponsored by the American Wind Energy Association, Electricity Markets, Reliability, and the Evolving U.S.
…“Markets are not perfect, inspiring some to devise and champion government intervention. But political solutions must contend with analytic failure, implementation problems, and public-sector (taxpayer) costs. Imperfect markets, in other words, may well be better than “perfect” regulation in the real world. The burden of proof, therefore, should be on government intervention, rather than on voluntary transactions premised on private property and governed by the rule of law.”
[Editor’s Note: Ad Hominem attacks on free-market organizations espousing industry positions are a regular occurrence, even though the same organizations oppose the same companies when they seek special government favors. Part I yesterday, reposted from April 2012, explains the philosophy behind the Institute for Energy Research.]
“In the U.S. energy sector, market reliance has produced economic coordination, fostered economic growth, and democratized wealth.
…“IER [and AEA] would like to work itself out of a job by depoliticizing energy so that lobbying monies can be retained by individuals, foundations, and corporations for nonpolitical purposes, thank you. With the help of the New York Times, we can do so and get the saved money to other uses.”
[Editor’s Note: Ad Hominem attacks on free-market organizations espousing industry positions are a regular occurrence, even though the same organizations oppose the same companies when they seek special government favors. This repost from five years ago remains as relevant today as then. Part II tomorrow, also a repost from April 2012, explains the philosophy behind the Institute for Energy Research/American Energy Alliance.]
The New York Times is upset with “Big Oil,” including the advocacy group American Energy Alliance (AEA).
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