“‘People are willing to pay a premium for environmental goods,’ Mr. Dables said. “It’s one thing to buy a box of soap and pay 20 percent more; I don’t know anyone who wants to pay 20 percent more for a car.”
It has taken a basket of mandates and subsidies to get battery-driven vehicles (EVs) on the road in the last decade. Start with a $7,500 per vehicle tax credit. Continue with automobile dealers having to get credits from electrics to meet their corporate average fuel economy standards (CAFE) obligations. Add-in never-ending taxpayer-financed R&D from the US Department of Energy and a lot of jawboning by the Presidents from Clinton to Obama to Biden.
Think back to the 1990s, when natural gas vehicles and methanol-powered vehicles were in play. Electric vehicles had interest too.…
“In business and economic terms, what is physically ‘worse’ [with climate] today is actually better [than in the past]. Thus I would argue that social justice demands affordable A/C for many more or all rather than mitigation policies that make A/C less affordable or unaffordable.”
This exchange was with Susan Krumdieck, “Professor, Author and Leader in Energy Transition Engineering.” While I have criticized her approach to “transition engineering” as uneconomic in a true marketplace and thus government-driven, I appreciate her polite engagement toward mutual learning.
Our latest exchange began with her post comment:
Thanks everyone for sharing the news about the extreme weather. But I feel like we are on a run-away train. Here is a metaphor story. Maybe it will help.
Her article, “We Are All on Board a Speeding Train,” (August 17, 2020) followed.…
“The separation of government and electricity (six words) or, more precisely, the separation of government and the generation, transmission, and distribution of electricity (twelve words) is simple enough…. Why deny this Political Economy 101 definition between free-market reliance and government intervention?”
The separation of government and electricity is a straightforward, time-honored application of classical liberalism (or the free market). It has existed as long as I have been in the debate (the 1990s) and probably since the beginning of the industry. In contrast, restructuring, partial deregulation, or reregulation connotes the mixed-economy alternatives of market here-government there in this sector.
Deregulation as an escape from public utility regulation harks back to the Reason Foundation and Robert Poole Jr. in the early 1980s. In 1985, Poole’s Unnatural Monopolies: The Case for Deregulating Public Utilities (Lexington Books) challenged the “natural monopoly” case for franchise protection and rate-and-service government regulation in the different industries.…