High energy prices and incentives

Environmental Economics

US solar power will compete on price with conventional generation within three years without subsidy thanks to plummeting costs, industry leaders say. Env-Econ 101: Rising energy prices due to exhaustible resources create incentives for R&D and technological advances in alternatives In a breakthrough for renewable generation that will lessen the dependence on fossil fuels, the cost of solar power in California is near that of gas-fired plants at times of peak demand.

"With Energy Prices Down, Western States See Recession-Like Cuts"

Environmental Economics

Hmm, it seems like there could be a way for the universities to avoid the boom-bust cycle of energy: N ationwide, things are looking up — or at least stable — for institutions dependent on state funding, which is up for the fourth year in a row. Thanks to a boom in energy production several years ago, states such as Alaska, North Dakota, and Wyoming were among the leaders in post-recession higher-education spending, according to the Center on Budget and Policy Priorities.

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Watchdog Ofgem warns of UK energy price rise

Green (Living) Review

UK faces rising energy prices in 2013 caused by an increased reliance on imported energy and closure of many UK power plants and generation capacity could fall by 10% as soon as April by Michael Smith (Veshengro) Bolton, Lancs., UK: Alistair Buchanan, head of Ofgem the consumer energy watchdog, has said the UK is facing a rise in energy prices over the next few years caused by an increased reliance on imported energy and closure of many UK power plants.

Ofgem to inquire into energy prices

Green (Living) Review

by Michael Smith (Veshengro) Ofgem, the British energy watchdog, has announced that it is to begin an investigation into energy companies after a 38% increase in prices since September. The watchdog has said it will review the effectiveness of the retail energy market to see if action is needed to protect consumers. The latest analysis of retail prices by Ofgem shows that the margin on a standard dual fuel tariff has risen from £65 to around £90.

Household energy bills on the rise and up due to gas not green policies

Green (Living) Review

by Michael Smith (Veshengro) Energy bills are rising due to the increased cost of gas and not due to green polices, according to the influential Committee on Climate Change (CCC). The Committee on Climate Change has mid-December 2011 published its first comprehensive analysis of the impact of meeting carbon budgets on household energy bills. It also found further increases will be required to support grid investment and may also be required depending on gas price movements.

One thing [on-topic] that bothered me about the second debate

Environmental Economics

Hillary Clinton: you know that we are now for the first time ever energy-independent. But the Middle East still controls a lot of the prices. So the price of oil has been way down. If the Middle East controlled energy prices they would be high instead of low. High prices on a good with inelastic demand (consumption is not very sensitive to price changes) leads to higher profits. Energy prices are low because supply in the U.S.

2016 118

AERE Publication of Enduring Quality Award

Environmental Economics

This year, AERE recognized two influential empirical papers on induced innovation in environmental economics: "The Induced Innovation Hypothesis and Energy-Saving Technological Change," by Richard G. 941–975; and "Induced Innovation and Energy Prices," by David Popp, American Economic Review , Vol.

2017 109

Politicians and gas prices

Environmental Economics

NY Times : White House officials are preparing for Republicans to use consumer angst about the cost of oil and gas to condemn his energy programs and buttress their argument that his economic policies are not working. They want higher energy prices. We need a president who is on the side of affordable energy.”. Newt Gingrich wrote on Twitter on Friday that “gasoline prices are unacceptable. That said, we're on the record as favoring higher taxes on energy.

2012 152

The Keystone Pipeline may not be so apocalyptic after all

Environmental Economics

Thank goodness: But most energy and policy experts say the battle over Keystone overshadows the importance of the project as an environmental threat or an engine of the economy. The pipeline will have little effect, they say, on climate change, production of the Canadian oil sands, gasoline prices and the overall job market in the United States. It doesn’t make a big difference in energy prices, employment, or climate change either way.”.

2015 131

When was the last time you saw "permanent income hypothesis" in the news?

Environmental Economics

Today: While few outside of Texas and North Dakota are complaining about this huge savings that consumers have enjoyed since energy prices began falling last summer, economists have been stumped recently trying to figure out exactly what consumers are doing with the windfall.

2015 148

I wonder how many jobs this is going to cost?

Environmental Economics

But this is just a movement along the production frontier between two sectors of the economy, tourism and energy (not the nonmarket value part of the environment, but that will be protected too as a result of this decision). With low energy prices one could make the argument that increased drilling off the southeastern coast is not all that necessary

2016 122

A Peak Oiler Comes Around?

Environmental Economics

When I first came to The Oil Drum over seven years ago I was looking for information to explain the steadily rising oil price. Society is adapting to the new reality of higher energy prices. It has been some ride. In the vastly complex system that is industrial society it is impossible to make predictions about the future, but here, in any case, is my wag. 100+ oil has opened the door to exploitation of more expensive resources and reserves.

2013 152

Well, this throws a wrench in Hotelling's Rule*

Environmental Economics

 Back in 2013 I wrote about Hotelling's Rule in it's simplest form :  For a non-renewable, exhaustible resource with completely known stock, no discoveries possible, no alternatives, no recycling, private ownership and constant costs of extraction, the price of the resource will increase at the interest rate over time. If these scientists are right (and Einstein was wrong.idiot), then energy might be infinitely renewable.at

2016 100

"House slams door on carbon tax"

Environmental Economics

Republicans say a carbon tax would stunt the economy by raising energy prices on fossil fuel-fired power — chiefly, coal. Not really, it seems they had a vote to not let the EPA impose a carbon tax, which the EPA is not likely to do: The House approved an amendment to legislation Friday that would prevent the White House from imposing a carbon tax without congressional approval. The lower chamber agreed to Rep. Steve Scalise’s (R-La.)

2013 148

Aguanomics: Notes from EAERE

Environmental Economics

Here are a few miscellaneous notes: Dale Jorgenson gave a boring talk on the industrial distribution of impacts from higher energy prices , but one of his numbers was fascinating: he estimated that the quantity of coal sold would fall by 62% by 2060 but its price would rise by 370%. David Zetland: I attended the annual meeting of the European Association of Environmental and Resource Economists in Rome.

2011 116

"Job creation shuffle"

Environmental Economics

Severin Borenstein: Renewable energy proponents and advocates of the Keystone pipeline finally agree on something: that the right way to count “job creation” is to focus narrowly on the jobs in the industry they want to boost and ignore the overall impact on employment.  The “job creation” justification for government energy policies isn’t new, but its support among economists remains in the range of, well, zero.

2015 160

I signed the "Economists' Statement on Carbon Dividends"

Environmental Economics

By correcting a well-known market failure, a carbon tax will send a powerful price signal that harnesses the invisible hand of the marketplace to steer economic actors towards a low-carbon future. A consistently rising carbon price will encourage technological innovation and large-scale infrastructure development. This system would enhance the competitiveness of American firms that are more energy-efficient than their global competitors.

2019 116

But probably not the most cost-effective

Environmental Economics

Heather Zichal, a White House policy adviser on energy and environmental issues, said fuel economy standards were among the most effective ways to cut emissions and reduce oil imports, top priorities of the president. The reason is that economic incentive-based policies provide the signal (in the form of higher energy prices) to improve fuel economy and pursue other ways of reducing emissions. Fuel economy standards on Independence Day?

2011 140

Is some number better than no number?

Environmental Economics

Lucas Davis at the Energy Institute at Haas blog (emphasis added): Last month Meredith wrote about coal being too cheap and Max wrote about gasoline being too cheap. But what is the right price for energy?   Together with a team of IMF researchers, Parry set out to quantify energy externalities for 156 countries.    The result is the aptly-named study, “Getting Energy Prices Right”. 

2016 122

A problem with the most recent "Foxx Report"

Environmental Economics

My Congresswoman, Virginia Foxx : North Carolina gas prices increased by almost a third in the last year and continue to tick higher.    For workers, families and students driving to jobs or school these high energy prices stretch their already thin budgets to a breaking point.    However, Washington bureaucrats appear to be blind to the heavy burden that outrageous energy prices place on already tapped-out taxpayers. 

2011 116

People have the power! Big Six UK energy monopoly faces challenge

Green (Living) Review

The UK energy market is facing a challenge from councils and social housing landlords seeking to undercut the monopoly of the six big suppliers amid growing frustration with energy price hikes nationwide. Local authorities are pledging to slice around 100 pounds ($158) from the average energy bill - the average of which has risen to more than 1,000 pounds (nearly $1,600) per household. alternative energy energy monopoly green living

2014 110

Eco Tip - Magnets

Green Earth Journey

But here is a word of warning, with energy prices rising rapidly you might want to cut down on the magnets you have on the fridge or eliminate them completely. Magnets draw energy from your fridge. This makes the fridge work harder and wastes energy, which in turn will contribute to a higher electric bill. Photo is linked to Etsy listing. I do not know anyone that does not have magnets on the fridge.

2010 100

He said, he said

Environmental Economics

The funny thing is, high gas prices are mostly a good thing ( Gas prices spur sound and fury.): “When oil companies are making huge profits and you’re struggling at the pump, and we’re scouring the federal budget for spending we can afford to do without, these tax giveaways aren’t right,” President Obama said in his weekly address on Saturday. Higher gas prices cause people to use less energy. Note: 12,000 miles per year, 25 mpg, $1 price increase

2011 172

Solar Energy: Benefit the Environment and Save Money

Hug a Tree with Me

Solar energy: Benefit the environment and save money Solar Power is becoming increasingly popular in today’s environmentally conscious world, especially with all the stories regarding global warming and climate change. With energy prices increasing, people are now trying to find new cost effective ways to power their homes. In recent years though, solar energy has become a lot more cost effective, efficient, and is well worth the initial investment.

"Some Comments on [Dr. Kahn's Comments on] Dr. Krugman's Recent Climate Change Piece"

Environmental Economics

 Suburban households and workers in fossil fuel intensive industries and consumers of electricity generated by fossil fuels will face higher energy prices and employment risk if the carbon tax ramp up is fast. consumers and firms who enjoy low-cost, dirty energy) are granted the property rights because of historical precedent. aren't compensated for higher prices) so it might not solve the political economy problem. 

2016 122

An anti-carbon tax pledge?

Environmental Economics

Here are my quick comments: The letter cites the correlation between energy prices and macro performance, much of which is from OPEC price shocks. Here is an assertion: A gradual ramping up of a carbon tax will likely kill some fossil fuel jobs but will have positive effects in other energy sectors. carbon dioxide emissions are declining because of a severe and prolonged recession (and low natural gas prices).

2012 132

How to save money by switching energy supplier

Green Prophet

Every home should feel like an eco oasis, and it can be done by saving energy. Switching energy suppliers is one of the smartest ways to save money on your gas and electricity bills. What information do I need to switch energy company? Step 2: Enter your current energy usage.

2020 59

nana nana boo boo, stick your head in doo doo

Environmental Economics

While the president’s action does not preclude later approval of the project, it sets up a baldly partisan fight over energy, jobs and regulation that will most likely persist through the November election. For those who say the Keystone XL pipeline will reduce energy prices (e.g., And where does the stuff about Keystone XL pipeline leading to higher gas prices come from? If energy groups say this (e.g., higher gas prices, less jobs)?

2012 135

Switchpoint

Environmental Economics

The shortage has prompted PSNC Energy, the Triangle's natural gas utility, to propose financing options to drivers who want to install a home filling station for their natural gas cars. The company sensed an opportunity this year when gasoline prices rose and customers began inquiring about alternative fuel vehicles. "When The switchpoint is, generally, when the rising Hotelling price path for nonrenewables hits the decline renewable energy price path.

2011 109

61% say Energy-Saving is most popular reason for replacing windows & doors

Green (Living) Review

Manchester, United Kingdom - DGCOS (The Double Glazing and Conservatory Ombudsman Scheme) commissioned a survey by Opinium Research , which revealed that 61% of homeowners now consider reducing energy bills as the most popular reason for replacing windows and doors. Now the next most important reasons trail 18% behind energy-saving in the survey: 43% say making their home more comfortable is their most important reason, and 42% say it is making their home look better.

2011 116

An economic conundrum

Environmental Economics

So I read page 2 (and no more) of the NYTimes story John pointed to this morning (John read page 1) and it raises an interesting economic puzzle for environmental advocates: Simple economics suggests that if the nation is producing more energy, prices should be falling. But crude oil — and gasoline and diesel made from it — are global commodities whose prices are affected by factors around the world.

More energy bills set to rise

Green (Living) Review

Another one wanting to cash in on the back of the poor by Michael Smith (Veshengro) Just after British Gas increasing its prices by 7% ScottishPower has followed British Gas in introducing price increases just as more cold weather is predicted. Both energy companies have denied purposely increasing prices before winter but claimed the decision was down to 'sustained increases' in the wholesale energy market.

2010 109

Sustainability 2.0 - Harnessing the Power of Social Media to Promote Change

Celsias

The changing climate, increasing air and water pollution, rising energy prices, and ongoing water supply problems are all driven by choices that people make. What does matter is how much you use - especially energy & water - and how much you waste. Polls tell us that people want to buy ‘green’ products and are willing to pay more for it – but when push comes to shove – most people don’t.

Gasoline is Expensive - Deal With It

Celsias

OPEC and the IEA both said in their monthly reports that market perceptions were behind higher energy prices, not physical shortages. consumers still economically gun shy, gasoline consumption is down amid high retail prices. The White House announced it was getting into the commodities game in an effort to protect consumers from some of the geopolitical factors spilling over into the retail gasoline market.

Greedily sharpening the old pencil

Environmental Economics

Additionally, our families, communities and employers will benefit from more affordable energy prices as we increase the domestic supply. American manufacturing will experience a tremendous boost if we control electricity prices and get a handle on the cost of fuel for transportation fleets. oil price = P = $90. The world price of a barrel of oil would fall by $8.20 If gas prices are about 70% due to the price of oil and gas costs $3.35

2011 122

How do high gas prices have a negative macroeconomic impact?

Environmental Economics

Gas prices solely, not energy prices: Even with the higher prices, economists said recent broad data had continued to be positive. He predicted that “spending on discretionary goods will be diminishing as the price of gasoline keeps moving higher.”. Money has been pouring into all commodities at an incredible pace for the last four months,” said Tom Kloza, chief oil analyst with the Oil Price Information Service. “I increase in gas prices is a $37.5

Impact 122

Climate Change measures " Grinding to a Halt?"

Celsias

Greenhouse gas emissions in the UK fell by 7% in 2011, but not because of any surge in renewable energy or improved carbon savings. Most of the reduction came as a result of higher energy prices, milder weather and lower incomes. In fact, climate change measures accounted for just 0.8% of emissions reductions last year, prompting suggestions that progress in some areas is "grinding to a halt".

Yeah, and monkeys might fly out of my [a passing jet liner mutes out the word]*

Environmental Economics

Michele Bachmann Friday defended her campaign promise made earlier in the week that the price of gasoline will drop back down below $2 a gallon when she is in the White House. The Minnesota congresswoman and Republican presidential candidate pledged to utilize the nation's vast, untapped resources to bring down high energy prices and "create millions of high-paying jobs instantly." Can you imagine an administration trying to push gas prices down like that?

2011 109

Something to do on a Saturday night: a new social cost of carbon drinking game from the Wall Street Journal

Environmental Economics

Drink everytime you read a pejorative in this WSJ editorial  (with paragraph numbering added): [1] President Obama unveiled his vast new anticarbon-energy agenda this week, which he plans to impose by executive fiat. " Team Obama made no public notice and invited no comment on this change that will further tilt rule-making against products and industries that use carbon energy. [3]

2013 155

ENER-G Launches Free 'Quick Guide to Improving Energy Performance - at No Cost'

Green (Living) Review

A free 'Quick Guide to Improving Energy Performance - at No Cost' has been launched by ENER-G to help cash strapped businesses save money on their energy bills, improve energy efficiency and reduce carbon, without upfront expense. Gary Dowsett, Director of ENER-G Controls , said: "The need for organisations to embrace energy efficiency measures is made more urgent by the upward price trend.

2012 110

Turkey: Whopping 9GW of Solar Projects Submitted in Five Days

Green Prophet

The country recently invited expressions of interest to participate in a Feed-in-Tariff (FIT) clean energy pricing scheme for solar energy generation projects larger than 1MW. Turkey is better off than many Middle Eastern countries in terms of its energy supply, but the government is still keen to ensure that by 2023, 30 percent of its generation capacity will be derived from clean sources. This is a good sign for the future of solar energy in Turkey.

Vermont Yankee Nuclear Power Plant Announces End of Operations

Sierra Club Compass

Each closing is further proof that the price and safety costs of nuclear energy are too high for the energy source to be competitive with other sources. The continuing costs to operate and maintain our ageing nuclear reactor fleet, don't make sense in the current market of low renewable energy prices. The nuclear reactor closures are further proof that it is time to invest in safe, clean and cheap energy sources like wind and solar.

How Much Do Solar Panel Installations Cost in the U.S.?

Greentumble

With electricity prices on the rise, this may be the perfect time to invest in solar energy. You’ve perhaps heard about how solar energy can reduce your electricity bills, but how much does solar power cost to install? The best way to calculate the average price of a solar power kit for your home is to look at all the costs associated with a complete solar installation and compare them with the potential long-term savings. What about solar prices in the future?

2017 43