“Stephen H. Schneider, a climate researcher and Stanford professor who wrote the first popular book on global warming, said [that Browne’s] speech was a welcome change of direction for an industry that has, until now, denied that global warming is a problem. ‘They’re out of climate denial,’ Schneider said.”
– Quoted in Glennda Chui, “BP Official Takes Global Warming Seriously,” San Jose Mercury News, May 20, 1997, sec. A. 20.
Then BP CEO John Browne’s speech at Stanford University in May 1997 marked the beginning of the company’s “green” (or to critics, greenwashing) approach to product differentiation and corporate governance. Left environmentalists applauded heartily–and would continue to do so until the Deepwater Horizon accident of April 2010.
Browne’s speech began by begging the question and proceeded to a non sequitur.…
Continue Reading“If America can put a man on the moon, why should we stay in servitude to the first and second laws of thermodynamics? What we plainly need is a Manhattan Project–like the one that gave us the atomic bomb but not like the one that narrowly missed finding a cure for cancer.”
– Paul Samuelson, “Tragicomedy of the Energy Crisis,” Newsweek, July 2, 1979, p. 62.
“A group of industry leaders, including Microsoft chairman Bill Gates and General Electric boss Jeff Immelt, stepped up calls for a Manhattan project for low carbon energy last week urging the US government to significantly increase investment in energy research and development.”
– Danny Bradbury, “Gates and Co Demand Manhattan Project for Energy.” BusinessGreen.com, June 14, 2010.
Just as as the polls start finding that nobody thinks global warming matters much, and just as hockey stick predictions of catastrophe fall apart in a scientific scandal, guess who turns up at the White House?…
Continue Reading[Editor’s note: Mr. Graf’s cash flow analysis of wind power projects is presented as another view of the inappropriateness of planned public policy in the electricity sector. The economics of wind power is a broad topic; previous posts at MasterResource are listed at the end of this post. For general problems of industrial wind, see here.]
There are many arguments to be made against government subsidization of industrial wind power, some objective and others subjective. We hear about noise, shadow flicker, disruption of wildlife, lack of consistent energy output (intermittency), questionable performance with respect to pollution reduction, and undesirable aesthetic appearance.
It occurs to me, however, with regard to subsidies for energy ventures and technology, three things must be kept in mind:
… Continue Reading(1) any good investment must be made in worthwhile ventures that can show a reasonable return;
(2) arbitrarily subsidizing some ventures may cause inadvertent (or advertent) exclusion of others; and
(3) jobs cannot be created by subsidizing ventures that do not provide a viable return.