[Ed. Note: This post, pays tribute to William Niskanen, a principled classical liberal born on this day ninety-one years ago. His view on climate change, in particular, refute the current views of the Niskanen Center, funded by foes of classical liberalism. (The peculiar, revengeful story of founder Jerry Taylor is told here and here.)

The longtime chairman of the Cato Institute, William N. Niskanen (1933–2011), was an academic at the University of California at Berkeley and UCLA; chief economist at Ford Motor Company; noted Public Choice economist; an influential member of President Reagan’s Council of Economic Advisors (1981–85), and chair of the Cato Institute (1985–2008).

Bill and I shared the podium a few times on energy issues, and I admired his Enron project at Cato that resulted in two books, Corporate Aftershock: Lessons from the Collapse of Enron and Other Major Corporations (2003) and After Enron: Lessons for Public Policy (2005).…

Ed note: The extract below from a Joint Economic Committee Staff Report briefly describes the end of oil price and allocation regulation in 1981, righting one of the worst energy fiascos in U.S. history. This experience has taken price controls off the political table ever since with petroleum, including today with the Iran War. [“President Reagan’s Economic Legacy,” Section C: Energy Shortages and Regulatory Failures]

In the 1970s, OPEC (the Organization of Petroleum Exporting Countries) was temporarily successful in driving up energy prices and hitting consumer wallets worldwide. OPEC’s manipulations of oil supplies were turned into a full-scale energy crisis in the United States because of price controls in energy markets.

Rising oil prices hurt consumers, but long lines at gas stations and shortages of heating oil were the work of bad policy, not of markets.…

“Many [green] philanthropists who are willing to step up are looking around and saying, ‘DOE is stepping back and Catalyst doesn’t exist. I can’t solve this on my own.’” – Lara Pierpoint, Trellis Climate at Prime Coalition (below)

For decades, energy realists have explained why the stock energy created by the sun — fossil fuels — are inherently more economical than the dilute, intermittent flow from the sun. The concept of energy density has been explained ceaselessly in articles and books by Vaclav Smil. Political Economy 101 — markets pick winners, leaving losers for government — also comes into play as experimental technologies enabled by special government favor face the political winds of change.

Evidence? Start with the recent demise of the rooftop solar industry and the EV industry here in the U.S.…

Ed Note: The Great Texas Blackout five years ago, the worst energy debacle in US history, was misinterpreted as a ‘market failure’ by the mainstream press (and faux classical liberal Lynne Kiesling). This repost stands today as it was written three years ago.

Electricity specialists at the University of Texas at Austin recently revisited the Great Texas Blackout of February 2021. The op-ed, “Two years after its historic deep freeze, Texas is increasingly vulnerable to cold snaps – and there are more solutions than just building power plants” (The Conversation), spreads the blame and recommends more government planning, not less.

The authors want to let wind and solar continue to “saturate” the market and regulate (via “smart meters”) usage in your home and business to save the grid.…