Editor Note: Earlier this summer, Pierre Desrochers received the 2017 Julian L. Simon Memorial Award at the annual dinner of the Competitive Enterprise Institute in Washington, DC. For the community of scholars, it was a great choice. “Dr. Desrochers has carried the torch for Julian Simon’s legacy for more than two decades,” noted CEI President Kent Lassman. “His defense of modern large-scale agriculture and critique of the concept of ‘food miles,’ in The Locavore’s Dilemma informs any reasoned discussion on how to improve the health and wealth of people everywhere.”
Professor Desrochers extemporaneous remarks have been revised for publication.
Thank you all and particularly to CEI for this award.
Those of us in the tradition of Julian Simon try to produce work that is based on logic and facts and come up with a compelling narrative.
“Sadly, in Paul Sabin’s account, the main villain turns out to be the morally upstanding Simon who, fifteen years after his death, is blamed for creating policy logjams and fueling uncivil discourse. In the meantime, Paul Ehrlich keeps issuing ‘important warnings’ such as a recent prediction that humans might soon have to resort to cannibalism to survive the ecological apocalypse.”
The background and story of the famous bet between catastrophist biologist Paul R. Ehrlich and optimist economist Julian L. Simon was first told in some detail over twenty-five years ago by journalist John Tierney in the pages of the New York Times Magazine. The bet, ostensibly on the future prices of five commercially important metals – copper, chromium, nickel, tin, and tungsten – provided a platform upon which two opposing worldviews, that of Ehrlich’s depletionist catastrophism and Julian’s optimistic resourceship, confronted each other.…
Continue ReadingEditor Note: The post below, published at MasterResource in June 2009, has profound challenges for the notion that self-interested business underinvests in energy efficiency, giving a “market failure” rationale for government investments in and mandates for energy efficiency. This post introduced the term conservationism to differentiate government conservation from market conservation. It also documents the market failure of Joe Romm’s shuttered nonprofit, the Center for Energy and Climate Solutions.
… Continue Reading“Enter the energy outsourcing model of energy service companies (ESCOs) in the 1990s, widely heralded as a ‘new economy’ breakthrough and a new feature of ‘natural capitalism’. Enron Energy Services (EES), in particular, the energy outsourcing division of the late Enron, was the next great thing…. ‘ESCOs are DEFINITELY the future,’ exclaimed Joe Romm. ‘I intend to work with the big ones to transform the market, which I think will take about two or three years.’
A simple principle of economics is that value is subjective. Prices, and thus profit and loss, come from the (subjective) value that market participants place on goods and services. So if costs are greater than the revenues of a product, then economic value is lost; if revenues are greater than the cost, economic value is created.
Enter recycling, which has turned (even more so) into an economic loser in the current era of low commodity prices. What this means is that the cost of sorting and transforming trash into useful products is less than the revenue–and recycling should not be done.
And as the distinguished resource scholar Pierre Desrochers has explained, [1] recycling has been a loser for decades:
… Continue ReadingDomestic waste recycling has long been a money loser ever since plastics came along.