[This exploration into the theory of regulation was inspired by the role of the mixed economy in the rise and fall of Enron. The analysis applies to many current issues, such as the negative environmental effects of the supply/demand for used batteries, the lead story in today’s New York Times.] 

Political economists have long recognized the challenge of getting regulation right in a mixed economy.

“A scheme of state interference for the attainment of some social or economic benefit,” stated Hubert Smith back in 1887, “will in general succeed or fail according as it is able or unable to cause a change in the nature, habits, and disposition of those whom it affects.”

A century later, regulatory economist Sanford Ikeda reached a like conclusion:

Interventionism is really a process of entrepreneurial adjustments in both the private and public sectors, where these adjustments tend to be both unanticipated and undesirable (from the viewpoint of the interveners) owing to radical ignorance, complexity, and dispersed information.

Robert Bryce of Austin, Texas, as he himself will tell you, is a reformed Leftie/greenie. The solar array he installed on his roof was a bust, and he followed the logic of energy density to conclude that wind, solar, water, crops, plants, and wood would not allow energy to be mankind’s master resource.

And as did Julian Simon in his day, Bryce looks at the data and science before he makes up his mind. And like Simon, he changed his mind away from neo-Malthusian notions of resource depletion and climate pessimism.

Energy Views

Bryce’s views took shape on the oil/transportation side with Gusher of Lies: The Dangerous Delusions of “Energy Independence” (2008) and on electricity with Power Hungry: The Myths of ‘Green’ Energy and the Real Fuels of the Future (2010).…

[Ed. note: This is Bradley’s final statement to: “This house believes that subsidising renewable energy is a good way to wean the world off fossil fuels.” After nine days and thousands of votes cast from around the world, the opposition is polling very close.]

“A reliable and affordable supply of energy is absolutely critical to maintaining and expanding economic prosperity where such prosperity already exists and to creating it where it does not.” – John Holdren (2000)

“Suggesting that renewables will let us phase rapidly off fossil fuels in the United States, China, India, or the world as a whole is almost the equivalent of believing in the Easter Bunny and Tooth Fairy.” – James Hansen (2011)

Energy density (think energy efficiency) is the most important concept for the House Proposition.…

The first of two rebuttal phases of the ECONOMIST’s online debate on renewable energy is up. My opening statement focused on energy density by resurrecting the timeless wisdom of William Stanley Jevons. My rebuttal below (against Matthias Fripp of Oxford University) expands the energy density argument to stress that environmentalists must reconsider (not assume) climate alarmism to stop the assault of government-enabled renewables on the environment.

With growing grassroot opposition against industrial wind parks, the supply-side strategy of forced energy transformation is in real trouble. Wind power is not much of a supply source, which raises the question about why anti-fossil-fuel types have not embraced nuclear power.

To play devil’s advocate, is the real strategy of anti-industrialists to purposefully restrict supply to force conservation via high prices? Is the real enemy cheap energy itself?…