Can Central Banks Monetary Policy Be Described by a Linear Taylor
James Taylor Senior Fellow, Environment Policy The ...James Taylor Senior Fellow, Environment Policy...
Transcript of James Taylor Senior Fellow, Environment Policy The ...James Taylor Senior Fellow, Environment Policy...
JamesTaylorSeniorFellow,EnvironmentPolicy
TheHeartlandInstituteEnergy&ClimatePolicySummit
November19,2015
Compara7veCostsofElectricity
Findingsoftheleft-of-centerBrookingsInstitution(“WhytheBestPathtoaLow-CarbonFutureIsNotWindorSolarPower,”2014):� ReplacingconventionalpowerwithwindpowerDOUBLESelectricitycosts.
� ReplacingconventionalpowerwithsolarpowerTRIPLESelectricitycosts.
LevelizedElectricityCosts:2016-2046Source:U.S.EnergyInforma7onAdministra7on
� LevelizedproductioncostsindollarspermWh:� NaturalgasAdvancedCombinedCycle: 79.3� Coal: 100.4 � Nuclear: 119.0� OnshoreWind: 149.3 � OffshoreWind: 191.1 � Solarthermal: 256.6 � Solarphotovoltaic: 396.1
Real-WorldImpacts28statescurrentlyhaverenewablepowermandates.Since2008,whenmostoftherenewablepowermandateswereputinplace,electricitypriceshavebeenrisingtwiceasfastinstateswithrenewablepowermandatesthaninstateswithoutrenewablepowermandates.(Sourcedata:U.S.EnergyInformationAdministration,ElectricPowerMonthly)
LevelingtheSubsidyPlayingField?
� EIA–WindpowerreceivesmoresubsidiesthanallconventionalenergysourcesCOMBINED.
� EIA–SolarpoweralsoreceivesmoresubsidiesthanallconventionalenergysourcesCOMBINED.
� EIA–Solarpowerreceived273timesmoresubsidiesperunitofelectricityproducedthanoilandnaturalgascombined.274timesmorethannuclear.842timesmorethancoal.
Source:“DirectFederalFinancialInterventionsinEnergyinFiscalYear2014,”U.S.EnergyInformationAdministration
2013FederalSource-SpecificSubsidiesInMillionDollars
Solar-$5,328
Coal-$1,085
Oil/NaturalGas-$2,346
Nuclear-$1,660
2013Source-SpecificSubsidiesPerUnitofElectricityProducKonDollarsPerThousandMegawaPs
Solar-$575,875
Coal-$684
Oil/NaturalGas-$2,107
Nuclear-$2,104
SpainEconomy
EconomicsprofessorsatSpain’sKingJuanCarlosUniversitypublisheda2009studyshowingthatforevery1“green”jobcreated,2.2jobsweredestroyedelsewhereintheeconomy.
UKEconomy
A2011studybyVersoEconomicsfoundthatrenewableenergymandatesintheUKkilled3.7jobsforevery1jobcreated.
SpainEconomy
Beginningin2005,whenunemploymentinSpainwas8.7percent,Spainembarkedonarenewableenergyprogramdesignedtotransformthenation’seconomy.Spain’sunemploymentratehasmorethandoubledsinceSpain’srenewableenergyprogramtookeffect,andnowstandsat21.2%.
EnergyIndependence?RenewablesDoNotReplaceForeignOil
� Windandsolarpoweraresourcesofelectricityproduction,notransportationfuel.
� Windandsolarpowerdonotreplaceforeignoil.Instead,theyreplacesdomesticcoalandnaturalgas.MostsolarpowerpanelsandwindturbinesaremadeinChinaandEurope.Thisiswhererenewableenergyjobsgo.
SolarEnvironmentalImpacts� Land intensive – 40 sq. mi. = 1 conventional plant
� Water intensive – 2x coal, 4x natural gas
� Most economical where water is scarce
� Rare earth production produces enormous
environmental harm
WindEnvironmentalImpacts� Landintensive-600sq.mi.=1conventionalplant� Birdandbatkills-1.4millionbirdsandbatskilledeachyear
� ComparetoBPGulfoilspill� Whatdistinguisheswindpowerfromhydropower?
RareEarthEnvironmentalHarmsYaleUniversityEnvironment360report,BoominMiningRareEarthsPosesMountingToxicRisks–“Lastyear,China’sStateCouncilreportedthatthecountry’srareearthsoperationsarecausing‘increasinglysignificant’environmentalproblems.Ahalfcenturyofrareearthsminingandprocessinghas‘severelydamagedsurfacevegetation,causedsoilerosion,pollution,andacidification,andreducedoreveneliminatedfoodcropoutput,’thecouncilreported,addingthatChineserareearthsplantstypicallyproducewastewaterwitha‘highconcentration’ofradioactiveresidues.”