Category Archives: Economics

Electric vehicles are unsustainable

“EV’s are hyped as being pollution free. Well, not necessarily so. Its true EV’s have no tailpipes, but the tailpipes are located at the power plants generating the electricity to charge the cars batteries, and at the refineries that provide all the derivatives from petroleum that make all the parts of the EV’s.” click here

Climate debate should be about science and economics

“Last year was the year the climate issue took a sharp turn towards extremism. Let’s hope 2020 is the year sanity makes a comeback.” click here

Concentrated solar power is unsustainable

“Crescent Dunes is a flop and taxpayers are set to lose $737 million on it, according to a new Bloomberg report. That is even more than the $535 million taxpayers lost on the corruption‐​soaked Solyndra solar project.” click here

Renewable energies lower income, increase risk of household poverty

Diogo Santos Pereira, António Cardoso Marques, José Alberto Fuinhas. Are renewables affecting income distribution and increasing the risk of household poverty? Energy, Volume 170, 1 March 2019, Pages 791-803

The worldwide electricity mix has become diversified, mainly through the exploitation of endogenous and green resources. However, doubt has been cast on the much-vaunted advantages of renewables due to some of their characteristics, such as availability, security and affordability. In fact, growth in the installed capacity of renewable energy has increased electricity prices, which raises the question of how households have withstood the cost of energy transition. The main aim of this study is to empirically assess and discuss: (i) whether different types of household have suffered dissimilar effects from the promotion of renewables; (ii) the consequences of promoting renewables on household income; and (iii) if the promotion of renewables has reduced the risk of poverty and social exclusion. A panel data of European countries has been analysed using Kao’s residual cointegration test, and an Autoregressive Distributed Lag approach, to assess the relationships. This paper proves that both income and risk of household poverty are directly linked with renewable energies, in both the short- and long-run. The energy transition to renewables has had negative consequences for households. Thus, the disadvantaged households should be helped to meet the increased cost arising from the energy transition.

Increases in agricultural productivity lower the social cost of carbon

Kevin D. Dayaratna, Ross McKitrick, Patrick J. Michaels Climate sensitivity, agricultural productivity and the social cost of carbon in FUND. Environmental Economics and Policy Studies. 2020

We explore the implications of recent empirical findings about CO2 fertilization and climate sensitivity on the social cost of carbon (SCC) in the FUND model. New compilations of satellite and experimental evidence suggest larger agricultural productivity gains due to CO2 growth are being experienced than are reflected in FUND parameterization. We also discuss recent studies applying empirical constraints to the probability distribution of equilibrium climate sensitivity and we argue that previous Monte Carlo analyses in IAMs have not adequately reflected the findings of this literature. Updating the distributions of these parameters under varying discount rates is influential on SCC estimates. The lower bound of the social cost of carbon is likely negative and the upper bound is much lower than previously claimed, at least through the mid-twenty-first century. Also the choice of discount rate becomes much less important under the updated parameter distributions.

President Trump speaks at the World Economic Forum

Decarbonization is economically unsustainable

“A prominent economist says that Britain’s climate and energy policies are ‘futile gesture politics’, and will fail to bring about any change to the climate.” click here