Editor Note: This commentary is reproduced, with slight revision, from the December 2009 issue of POWER magazine.
As director of public policy analysis in my last seven years at Enron, I participated in many legislative and regulatory debates involving electricity, although the public policy thrust of the company was the opposite of what I personally believed was good social policy.
While I favored free markets, the business model of Ken Lay (a PhD economist with years of Washington regulatory experience) centered on special government favor. Enron, for example, had seven profit centers geared to government pricing/rationing of carbon dioxide (CO 2) emissions. And in the 1990s, the company was squarely behind a Btu tax. Today, Enron would be pushing cap and trade and a federal renewables mandate–and a lot of mandated energy efficiency with its profit centers in mind.…
“The fraudulence of the Copenhagen approach – ‘goals’ for emission reductions, ‘offsets’ that render even iron-clad goals almost meaningless, an ineffectual ‘cap-and-trade’ mechanism – must be exposed. We must rebel against such politics-as-usual.”
– James Hansen, “Never-Give-Up Fighting Spirit,” November 30, 2009
There is a civil war on the Left against cap-and-trade as the centerpiece of a U.S. climate bill. Among the leading critics is NASA scientist and Al Gore mentor James Hansen, who reiterated his opposition in Sunday’s The Observer with Copenhagen’s climate summit in mind:
…“Cap and trade with offsets … is astoundingly ineffective. Global emissions rose rapidly in response to Kyoto, as expected, because fossil fuels remained the cheapest energy.
Cap and trade is an inefficient compromise, paying off numerous special interests. It must be replaced with an honest approach, raising the price of carbon emissions and leaving the dirtiest fossil fuels in the ground.”
My ‘Left’ friends are mad at me now that the climate debate/ discussion has shifted, at least temporarily, from Save the World to Why Did We Fail? Here is what a former Enron executive (his name will remain confidential) emailed me a few days ago:
Rob- shame on you. The [Breakthrough Institute] article [Apocalypse Fatigue: Losing the Public on Climate Change] names only 3 reasons why the U.S. will not address climate mitigation: far off threat, greed, and telling them what they don’t want to hear. It ignores the real reason: the constant effort from people like yourself to undermine the case for action with its ancillary affect of dividing the country and paralyzing the system.
Then the sarcasm comes in:
…I am not being facetious: you should pat yourself on that back for helping create an atmosphere that will prevent any meaningful action on the false threat of climate change from happening in this country.