Last week I was on John Stossel’s (most excellent) new show on Fox Business News to discuss energy policy — in particular, popular myths that Republicans have about energy markets. One of the topics I touched upon was nuclear power.
My argument was the same that I have offered in print: Nuclear power is a swell technology but, given the high construction costs associated with building nuclear reactors, it’s a technology that cannot compete in free markets without a massive amount of government support. If one believes in free markets, then one should look askance at such policies.
As expected, the atomic cult has taken offense.
Regulation to Blame?
Now, it is reasonable to argue that excessive regulatory oversight has driven up the cost of nuclear power and that a “better” regulatory regime would reduce costs. …
Continue ReadingThe U.S. Environmental Protection Agency (EPA) has proposed to effect a reduction in CO2 releases in the U.S. by raising the required fuel economy standards for new cars in 2014 and again in 2016. The current standard, now at 30.2 mpg for passenger cars (everything here is about passenger cars, the analysis of light trucks will have to wait) will rise to 35.5 mpg in 2016.
EPA claims that they used a carbon price of $21/tonne to establish the appropriate increase in fuel economy. The EPA also claims that these standards will reduce CO2 releases from the vehicle sector by 21%. Well, at least they are not using the number 19. This proposal will have a minute effect on CO2 levels and is unlikely to come in at the very low or “negative” cost per tonne of CO2 claimed by its proponents.…
Continue ReadingPart I of this two-part post reviewed most of the considerations that must be understood in evaluating analyses of wind power.
Part II completes this analysis by focusing on one of the most important considerations in the wind utility debate, wind’s capacity value. To this end, I review a paper by Gross et al, which is relied on by Komanoff, and conveniently provides an opportunity for the review of a second paper.
Wind’s Capacity Value
Komanoff uses a flawed analogy by claiming that a backup quarterback contributes value to a team even if he never plays. First, the concept of “never playing” is arguably a reasonable notion with respect to industrial wind power. Second, the analogy applies more correctly to operating reserves, which are needed to fill in for the other generation means if, and when, needed.…
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