“The modern history of wind power and on-grid solar power can be summarized in four words: economically incorrect, politically correct. U.S. companies invested heavily in renewable energy technologies in the 1970s/80s only to suffer losses and, in most cases, to exit. Only massive taxpayer and consumer subsidies in the 1990s reversed these market verdicts, leading to today’s government dependence.”

Last week, the Texas Public Policy Foundation (TPPF) published my research paper, The Economic Fall and Political Rise of Renewable Energy. This study is drawn from chapter 13 of Enron Ascending: The Forgotten Years, 1984–1996, which reviewed Enron Corp.’s game-changing forays into solar power (1995), wind power (1997), as well as in other alternative energies.

Major Points

The Press Release made these five points:

• Renewable energy had almost a 100% market share throughout human history until it was replaced by more affordable and efficient mineral, carbon-based energies that powered the industrial revolution and vastly increased living standards.

“I have applied Simon’s framework to the issue of climate change, although my historical perspective allowed me to see more of the forest rather than obsess about a few trees. Try as I might, I just cannot ignore the unique and large-scale benefits brought to humanity by the ever increasing use of carbon fuels (e.g., from longer lives and better health to cleaner air and water, more abundant food and reforestation).”

Yesterday, Pierre Desrochers and Joanna Szurmak, summarized their new book, Population Bombed! Exploding the Link Between Overpopulation and Climate Change. Today, MasterResource is pleased to interview Professor Desrochers about his latest book.

Q. In his 1981 classic, The Ultimate Resource, Julian Simon decoupled population growth from resource depletion, rising pollution, food supply, and other popularly believed barriers to progress.…

“The tendency to exaggerate the appeal of renewables is hardly new…. Except that renewables seem to fare poorly in the real world.”

“The much-hyped ‘mass market’ Tesla Model 3 is still appearing only in the more expensive versions, from $50,000 to $85,000, rather than the $35,000 promised sticker price that was promised to appeal to the average consumer, not the luxury car driver.”

Yet another study has appeared warning of peak fossil fuel demand, which is certainly a popular topic with the media as the heavy fire season in the Southwest and hot European summer convince many that global warming is more threatening (and urgent) than it appeared to be last summer.

Unfortunately, this attention is not the result of reasoned analysis so much as the sexiness of the issue—at least in the minds of the public and the media.…

“Under [Ken] Lay’s direction, Enron would restart the solar industry [in 1995], rescue the US wind industry [in 1997], and help legitimize the climate issue.”

“Enron saw green in green energy. Wind and solar as primary energies had new public policy rationales and powerful political constituencies. Specifically, global warming from fossil-fuel usage (via the enhanced greenhouse effect) was the new neo-Malthusian scare, and post–Gulf War concerns over energy security put petroleum on the defensive. Even more than this, renewables had public cachet for an energy company, particularly one that prized publicity and promoted a momentum stock.”

– Bradley, Enron Ascending: The Forgotten Years, pp. 530, 528, respectively.

Rent-seeking … strategic uses of government intervention…. corporativism. Many terms have described business lobbying within political capitalism where the political means replaces the economic means to financial success The result is bad profit, defined by classical-liberal entrepreneur Charles Koch as corporate income not created but politically obtained and thereby lost to the creators in the economic system.…