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Still Another Look at Global Warming
3.11.08   Ferdinand E. Banks, Professor

Article Viewed 998 Times
50 Comments
 
David Stipp of Fortune has referred to climate change as “the mother of all national security issues (2004).” I see no reason to disagree, since as explained in my new textbook (2007), a peaking of global oil production in the near future could be labeled the father. Moreover, these are related, because when oil becomes less available, the use of coal will be drastically boosted, and among others Jeffrey Michel (2008) clarifies what this means. I also emphasize that one difference between a climate meltdown and a peaking of global oil production is that many readers of this contribution are certain to experience the latter; and although less traumatic than the former – should the former take place – it will not be the kind of rendezvous that Frank Sinatra described in those marvellous songs that accompanied our après ski revels at Courchevel and St Anton.

Unfortunately, when the topic is (presumptive) anthropogenic (or man made) global warming (AGW), we have a situation where politics and psychology play a role that cannot be ignored, which means that we cannot always call on altruism or logic to provide us with optimal guidelines. Increasing numbers of people are willing to sacrifice a modest amount of money and/or comfort in order to help keep the environment in a seemly condition, but when the bad news might originate dozens or hundreds of years in the future, of unknown extent, involving societies whose compositions are unknown, then taxpayers and legislators might hesitate to endorse even small expenditures. As Professor John Kay once pointed out, “the burden of caring for all humanity, present and future, is greater than even the best-intentioned of us can bear.”

It has certainly become greater than this humble teacher of economics and finance can shoulder. As a result I would be more than happy if formulating tactics and strategy that would be useful in the global-warming battle were taken out of my caring hands, and turned over to high ranking governmental officials – bypassing if possible mastodon conferences where the majority of participants lack a relevant technical background, and many would be perplexed by freshman mathematics at Boston Public.

For instance, a majority of the delegates attending the Kyoto talkathon (in l997) did not have the slightest intention to do the kind of reading and thinking that is necessary to comprehend the economic and political implications of things like oil shortages and global warming. I know this because serious people would have insisted upon immediate action, and under no circumstances would have welcomed the introduction of a measure as senseless as emissions trading. What most of those ladies and gentlemen were primarily concerned with was obtaining a ticket to the next global warming jamboree.

Readers who want an important insight into this issue should refer to the work of the Carbon Tax Center (info@carbontax.org), where the many shortcomings of emissions trading are examined in some detail.

MY SIDE OF THE COIN

My approach to global warming turns on some conclusions I absorbed when studying and teaching theoretical welfare economics and game theory: the basic issue is rationality! It has to do with whether voters and concerned politicians – or for that matter non-voters and political hacks – adopt or accept political and economic programs that are consistent with their ambitions in life, love, and the pursuit of money or power. As I have found out over the past few years, this is asking for a great deal. Instead, regardless of beliefs about the authenticity of AWG, persons who enjoy thinking that they possess something valuable to contribute to this debate are similar in at least one respect: they are vulnerable to systematic manipulation and self-delusion.

Too many AGW partisans want the main attack against climate problems to be carried out with renewables. They inevitably proclaim that nuclear energy is dangerous or relatively expensive, and they show an unreasonable tolerance toward half-baked schemes like emissions trading. I prefer to believe that crank convictions of this nature should be discouraged at the highest scientific and journalistic levels, since in reality they have been accepted by many politicians and civil servants only because of their political currency. For instance, the resort to emissions trading hardly deserves to be called “foolish simplicity”, which, as the Nobel Prize physicist Wolfgang Pauli added when he coined the term,” is beyond all help.”

Similarly, almost all the climate commentators working the wrong side of the global warming street are believers in the long run availability of oil and gas. Dr Björn Lomborg once stated publicly that oil will last at least 100 years. Actually, if it were close to a thousand it would make little or no difference, because the two basic issues here are the geographic distribution of reserves and the peaking of the world oil output, and peaking could – could, not will – take place during the coming decade. In other words, it makes sense to disregard the way that resource scarcity is generally treated in most of the academic economics literature, where despite the algebra readers are presented with a soap-opera rather than a scientific exposition. It should also be noted that in Stipp’s article the Pentagon plays the role of attentive observer to the climate warming drama, which suggests to me that any indication that oil production was peaking or about to peak would cause the lights to burn later than usual in that impressive structure. This is something we don’t want, because going to war for oil is not a healthy option.

THE BOTTOM LINE

In a recent letter to EnergyBiz Insider, a hard-core member of the denial lobby classified talk about AGW as an integral part of the international socialist conspiracy, following which he insinuated that placing limits on the emission of greenhouse gases would eventually lead to the placing of limits on economic growth. More surprising, some very intelligent technicians, engineers, businesspersons and commentators associated with the important forum EnergyPulse have called AWG a hoax, scam, nonsense, foolishness, etc.

I accept AGW regardless of what it is called, or by whom, because working to suppress greenhouse gases is perhaps the best approach to the installation of a new energy economy – which I regard as essential. I was also informed recently that 400 prominent “scientists” have put their names on a document saying that global warming is hogwash. What we have here is a farce similar to that in the U.S. presidential election in 2004, when a posse of “Swift Boat Captains” was rounded up to question the bona fides of Senator John Kerry. The difference between President Bush’s sailor supporters and the above mentioned scientists is that the former were actually captains, though seriously confused about the role of Senator Kerry in the war, while a majority of the ‘scientists’ had as much right to that designation as citizens who received bogus titles at the masquerade balls held in Paris the night the Bastille changed management.

Some AWG sceptics are often cited in the journal Energy and Environment. A few of those ladies and gentlemen possess impressive academic credentials, although most of them belong in the same category as the foot-loose ‘boffins’ summoned to Dr Lomborg’s ‘Copenhagen Consensus’, and who – before proceeding to the marvellous Tivoli to drink beer – were provided with a bizarre opportunity to challenge the research of important physical scientists. As good luck would have it though, the gradual discrediting of Lomborg and a gallery of know-nothings and wannabees in other parts of the world means that even if real scientists are wrong about AGW, we could still end up with the energy system we deserve. The matter of who knows what where this topic is concerned has been examined by Barry Naughten of the Australian National University (2007).

It seems clear that to satisfy future energy requirements and to deal with (actual or hypothetical) AWG, a comprehensive portfolio of ‘green’ energy sources should be acquired as soon as possible: e.g. solar, wind, optimal amounts of biofuels, and perhaps hydrogen. In addition, according to Jim Beyer (2007), a more sophisticated access to and utilization of large amounts of methane is desirable. My focus though is on nuclear, because as far as I am concerned the solution to the distasteful energy dilemma that might be just over the horizon, as well as a partial solution to a possible climate calamity, is as follows: a base of reliable and comparatively inexpensive nuclear, on top of which is a large and variegated slice of renewables. Unfortunately, there would also have to be another non-nuclear bundle consisting of gas and clean coal, but its size and composition will have to be discussed by somebody else.

An example might be useful. In the Swedish city of Växjö, greenhouse gas emissions have been reduced by 30%, and intentions are to raise this figure to 50% by 2010. Careful attention to best practices technology and management, to include a large increase in biofuel consumption, is supposedly the key element in this program. But I suspect that another pivotal element is the large amount of energy produced in Sweden with e.g. nuclear, even if Växjö may not be a major producer or consumer of this energy source. As suggested above, Nuclear energy (and hydro) provide the base on which other constituents can display a maximum utility! In fact, if the Swedish government were friendlier to the friendly atom, a comparable success might be possible for the entire country, without stresses on industrial output and employment that could burden everybody. The point is that nuclear energy in Sweden has paid its own way! The flexibility inherent in very large amounts of electricity has meant higher employment, lower costs for energy intensive industries, less greenhouse gas, etc, and consequently larger tax returns to finance things like health care and education.

Let me emphasize that what we should avoid is an offbeat foundation of biofuels, wind, sun, ‘small’ hydro, etc, in phase with a nuclear retreat, which is the goofy formula that hypocrites and deadbeats in Brussels (and elsewhere) obviously favour, and as far as I can tell could mean a drastic fall in the standard of living for many of us. As former Prime Minister Tony Blair indicated, even environmentalists should logically prefer nuclear to a decline in their disposable incomes. This might be one of the reasons why we now hear so much these days about a renewed interest in nuclear-based electricity, and this interest is conspicuous in virtually every corner of the industrial world.

According to Robert Frank (2006) in his important textbook, “if a single agency had the power to enact globally binding environmental legislation, it would be a straightforward, albeit costly matter to reduce the build-up of greenhouse gases. But in our world of sovereign nations, this power does not exist.”

This conclusion can be adjusted. If a miracle had taken place, and the Kyoto delegates had specified that climate issues should be exclusively dealt with by heads of governments and senior civil servants from the major greenhouse gas emitting countries, meeting several times a year, we might already be in possession of optimal environmental legislation, instead of the sub-optimal trivia that was eventually cranked out. Moreover, the cost mentioned by Professor Frank might have been quite tolerable. As a bonus, observers like myself might have the satisfaction of knowing that the self-important climate vigilantes yawning and waffling at assorted talk-shops were denied the luxury of flaunting their tiresome amateurishness in international forums.

An adviser of President Putin once said that emissions trading was about making money, and not suppressing greenhouse gases. This should never be forgotten, because when that statement was made, the efficacy of emission trading was in doubt. This is no longer the case. It is a scam that will be perpetuated by, among others, the Nordic Electricity Exchange, whose ulterior purpose is to make fools of the lethargic voters and politicians who have come to believe that countering things like peak oil and climate warming with what amounts to a lottery can make their lives sweet and prosperous.

REFERENCES

Banks, Ferdinand E. (2007). The Political Economy of World Energy: An Introductory Textbook. London, New York and Singapore: World Scientific.

_____. (2007). ‘The architecture of world oil.’ Energy Pulse (www.energypulse.net).

_____. (2004) ‘A faith-based approach to global warming’. Energy and Environment, Volume 15, Number 5: 837-852.

Beyer, Jim (2007) ‘Comment on Banks’. Energy Pulse (www.energypulse.net).

Frank, Robert H. (2007). Microeconomics and Behavior. New York: McGraw-Hill.

Harlinger, Hildegard (1975). ‘Neue modelle für die zukunft der menshheit’ IFO Institut für Wirtschaftsforschung (Munich).

Michel, Jeffrey H. (2008). Status and Impacts of the German Lignite Industry. Göteborg Sweden: Swedish NGO Secretariat on Acid Rain (2nd Printing).

Naughten, Barry (2007). ‘Obfuscating the debate on climate change’. The Diplomat

Website (1 November). [http://www.The-diplomat.com/article.aspx?aeid=3714] Stipp, David (2004). ‘Climate collapse’. Fortune (Feb. 9, 2004).

Yohe, Gary W. (1997). ‘First principles and the economic comparison of regulatory Alternatives in global change’. OPEC Review. 21(2): 75-83.

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    Readers Comments

    Date Comment
    Edward Reid, Jr.
    3.11.08
    Fred,

    Individual nations can make informed decisions regarding energy independence. They can then individually pursue that goal as aggressively as they believe is in their best interests. The process must begin by convincing an informed electorate that the change is essential; and, that the proposed approach to reaching the goal is reasonable and achievable. While that is no small task, I believe it could be accomplished. However, I do not believe it can be accomplished using the "cockamamie" approaches which have so far emanated from the US Congress.

    Individual nations can also make informed decisions regarding global climate change. However, individual nations cannot effectively act to halt/reverse global climate change, even if they act to reduce/terminate their emissions of chemicals which might contribute to climate change. The issue is a global issue; it is amenable only to a global solution. Anything less that a global effort to affect climate change is doomed to failure before the first expenditures are wasted.

    Individual nations pursuing an approach similar to your suggestions above, focused on nuclear and renewables, could become energy independent on a rational schedule as well as reduce/eliminate their global climate change emissions. Successful implementation of such a program would achieve the desired level of independence. However, in the absence of a similar concerted effort on the part of every other nation on the globe, their reduction/elimination of global climate change emissions would have little or no effect on global climate change emissions. (If the vessel to which you are adding something is already overfull, adding to it more slowly will not solve the problem.)

    If human-induced global climate change is a serious problem, the "seven percent solution" (Kyoto) is no solution at all. It is a silly and dangerous attempt to trivialize the scope of the required solution to encourage the taking of the first step onto the "slippery slope". That is, it is fundamentally dishonest; and, it richly deserves any ridicule heaped upon it.

    Ed

    Len Gould
    3.11.08
    Fred: I must say "when you're right, you're right". In this article, you've nailed a large number of issues on the head.

    I also note the following, from a comment at the end of an article in your referenced Carbon Tax Centre - Congressional Budget Office Confirms Superiority of Carbon Taxes

    "It is amazing that something as sensible as a carbon tax is so feared in Washington because it is called a tax. To provide political cover for the cowardly politicians who might otherwise consider implementing it, the word “tax” needs to be removed from the concept of “Carbon Tax”. Perhaps “Carbon Revenue Shift” or “Carbon Emissions Fee” or maybe something such as “Atmosphere Pollution Charge”. ... he who defines the terms of the debate controls the debate."

    Len Gould
    3.11.08
    Ed: "Individual nations can make informed decisions regarding energy independence. They can then individually pursue that goal as aggressively as they believe is in their best interests. "

    That scheme is obviously flawed, as I'm sure you well know. It suffers the well-known Free Rider failure, where it becomes "in the best interest" of every nation to sit back and wait for every other to solve the problem at minimal cost to themselves, witness recent history.

    Referring back to the carbon "Tax vs. Trade" discussion, it seems wierd to me that the US hasn't yet caught on to how advantageous the Tax approach would be to the US versus Europe, especially as North Sea N Gas runs out and the fallback is coal. US dependence on coal should be much lower than eg. Germany, so isn't Europe simply promoting trading as an easier way to get away with using coal than a direct "Carbon Use Fee"?

    Len Gould
    3.11.08
    Sorry, Ed. I failed to note that your remark referred to "Energy Independence" and not "GHG Emissions". WRT "Energy Independence", I agree your position.

    Michael Keller
    3.11.08
    For the life of me, I can not see any good reason to further tax the consumer. Energy prices are already skyrocketing and the rationale for a carbon tax is specious, at best.

    The crisis is energy, not CO2.

    If the collective decision is that we must do something about CO2 emissions, then set emissions targets (e.g. pounds per megawatt-hour electric) like is done with actual pollutants, while letting industry string together groups of plants. For instance the XYZ power company has a coal plant, combustion turbine and wind generators. How the XYZ Company hits the target is up to them. Of course if they miss the emissions target, they are subject to hefty fines. Technically, such a regulatory system is easy to implement with the metering and plant controls systems already in place at the plants and everybody has to report NOx, SO2 etc. emissions already.

    PS I would not let this degenerate into the "trading" of emissions; too easily abused. Hit the targets for your group of generating facilities or face the consequences. I believe this would help phase out the old-dog, inefficient and polluting plants as the emissions targets are lowered.

    Len Gould
    3.11.08
    Micheal: Your proposition is no more than a "tax in effect", best to honestly declare it so.

    Ferdinand E. Banks
    3.11.08
    I agree with just about everything said above, and especially the last two paragraphs in Ed Reid's comment. I don't like this idea of Michael Keller's however about taxing firms. That sounds to me like an environmentalist dodge to put capitalists in their place.

    In general I'm dissatisfied with my knowledge of this subject, although there are a few things that I think that I know. First and foremost, emissions trading is the wrong way to go.

    Don Kopecky
    3.11.08
    Interesting analogies and an entertaining article, but you make the same mistake of confusing oil consumption with the generation of electricity that is commonly made by nearly everyone. Nuclear, wind, and solar will do NOTHING to reduce oil consumption. Oil is not used for generating electricity, it is used for transportation. Electricity is not used for transportation, except in the case of electric trains and subways. Discouraging the consumption of coal in the name of global warming will do nothing for reducing our dependence on oil. To reduce our dependence on oil we need to discourage the use of oil, it's quite simple. The most straightforward way to do that is to tax the living daylights out of petroleum the way the Europe does it. But since I hate taxes as much as any good American, I do not advocate that at all. The sneaky way is to charge oil companies "protection fees". All cost of military intervention to stabilize oil producing regions would be passed on to oil companies, who will then charge 3x as much for gasoline. That will considerably reduce our consumption of petroleum, the politicians get to blame the oil companies for the high cost of fuel, and the oil companies make as much money as ever. Everyone is happy, except the rest of us who have to pay for it, but we're going to get robbed anyway. Then again, there are a few companies making electric cars.....

    Edward Reid, Jr.
    3.11.08
    Fred,

    What Michael has suggested is essentially "cap & trade", with the caveats that the cap is a company-level cap and the trading is among plants within the same company's generating fleet. As the cap declined, not only would load growth have to be served by low emission generation, but increasing amounts of existing load as well.

    The key thought missing here is that the lowest level to which the cap would be lowered must be established at the beginning. The incremental investments required to meet the declining cap would be made in very long-lived facilities. It is absolutely essential that none of these investments be made in plants which would not satisfy the cap within their useful lives.

    "You've got to be careful, if you don't know where you're going, because you might end up someplace else.", Yogi Berra, American philosopher

    Jose Antonio Vanderhorst-Silverio
    3.11.08
    The WTO could be entrusted as the "single agency” with "the power to enact globally binding environmental legislation." Clearly the WTO disciplines should be developed with a corresponding "miracle" attitude in place.

    That is in line with what I suggested earlier, that instead of a tax or emissions trading, tariff schedules on exports of GHG should be in place. Since this is no a tax, the tariffs schedules would have a range that would be negative, meaning that company export below the threshold level would generate a credit for the company. This is just an idea for discussion to suppress GHG, by changing the tariffs schedules and reducing the corresponding thresholds as time goes on.

    The case for WTO disciplines has already been studied earlier, I recall around the year 2000 in the energy and environment task forces of the WTO. In fact, there is an important unfair competition issue involved, making GHG suppression a trade issue amenable to binding agreements.

    Just like Demand Integration, GHG Suppression, is just another externality that can be handled by 2GRs for the electricity industry. California is once again in the process of shaking-up the power industry, as can be seen in the EWPC article High Leverage Shake-Up in California. Since California has probably invested more than any other place in the world in the suppression of GHG gases, their companies could well become competitive by the process. The coalition of California businesses promoting “direct access” should look closely into this idea.

    It is very clear that in the process, transportation should undergo GHG Suppression and thus shift to electricity. That is already happening with cities mass transportation initiatives.

    Edward Reid, Jr.
    3.11.08
    Jose Antonio,

    How does WTO become a global lawmaker?

    What constitutes a "miracle" attitude?

    What has the WTO accomplished which convinces you that it could be entrusted with anything?

    Enquiring minds want to know.

    Michael Keller
    3.11.08
    Fred, Len I'm not sure I follow your thoughts that to set an emissions target is a tax, although I suppose it might be so construed. If we set a NOx regulation of say 5 ppm and you have to buy combustion turbines that meet that regulation, is it a tax? Is it a tax to require energy efficient light bulbs? Such regulations typically increase costs but I always thought of taxes going to the glutinous maw of government, as opposed to money going to clever manufacturers of machines or light bulbs. Other manufacturers see the monetary advantage of higher profits and competition sets in, thereby reducing costs. Exactly what has occurred with combustion turbines and NOx requirements set by regulators. (PS Fred, you could not be more wrong – you’d be hard pressed to find a stronger advocate of the free market)

    Jose, As to using EWPC, I gather the idea is to artificially modify the tariffs within the structure of the regional transmission operators (not too dissimilar to the “transmission constraint” charge). However, who foots the added cost of the higher tariff? The consumer? The generator/power company or does the RTO grab the money? Seems to me it should be deducted from the price received by the generator with CO2 emissions outside the target. However, I remain uncertain as to whether EWPC would work for constraining CO2 emissions. Under no circumstances would I put up with WTO, the UN or any of the other such oxygen wasters dictating devastating economic requirements on any country. Targets and cooperative agreements – OK, dictates, no.

    Don – hybrid vehicles that charge at night from the power grid reduce oil consumption. We can also turn coal into transportation fuels. Absolutely last thing I’d do is further tax oil because the money ends up in the hands of the politicians. I’d use tax breaks on buying more fuel efficient vehicles and require the politicians reduce government expenditures to cover the cost! True that would make it difficult for them to buy votes, but too bad.

    Mike

    Ferdinand E. Banks
    3.12.08
    Let's slightly extend the argument in your last paragraph, Mike. Hybrid vehicles that charge from electricity generated by wind and solar, and during non- peak hours from nuclear. Nuclear would also supply what (I believe) Joseph Somsel called "extra energy", which among other things would be an input for the few million (oil equivalent) barrels of biofuels needed to put some kind of cap on the oil price. That oil price just touched $109/b, which is something that I knew would happen ten or so years ago, when Milton Friedman was talking about it falling to $5/b. And so Don, there actually is a connection between nuclear and renewables, and motor fuel.

    Now lets look at this statement by Mike about free markets. The first time I heard of Adam Smith, I was working for the US Navy, and somebody told me that Adam Smith was responsible for "our" prosperity. I tuned out of course. A month or so ago I attended a lecture by a gentleman who had actually read Adam Smith's book, and he pointed out that Smith was crazy about free markets EXCEPT when it involved national security. National security to me means, among other things, not letting local industry move to another another country or another part of the world because of craziness like emissions trading and/or an excessive price of electricity. For example, industrialists in Sweden have said that they will move everything that is movable if the electricity price here continues to rise.

    One other thing about the oil price. Apparently the US government and others have asked the OPEC countries to increase output, but it seems that their request was ignored or dismissed. That makes all the sense in the world to me from a strictly theoretical point of view. I would also like to know why the big oil companies were not requested to raise production, since OPEC only produces 29 mb/d of a global consumption of 86 mb/b. ANSWER: because given global requirements, we are short of oil, and nobody knows this better than those companies - regardless of what they tell the TV audiences.

    Finally, as Ed Reid implied, this CO2 suppression campaign is going nowhere fast.

    Len Gould
    3.12.08
    So.... i guess we're about to find out the effects on our spaceship of raising CO2 levels well above 500 ppmv. Should be an interesting experiment.

    Jose Antonio Vanderhorst-Silverio
    3.12.08
    Fred, Ed and Mike,

    Governments develop budgets. Money from tax and tariffs are forecasted and balanced to meet the budget approved by the legislative body of the country. If new money comes in from GHG Suppression, that same amount is deducted in other taxes.

    GHG Suppression tariffs are collected (payed) from (to) generators and 2GRs (that aggregate end-customer transactions) to the government based on the balances of each market agent on the periodic wholesale economic transactions performed by the market coordinator.

    On the miracle: Fred wrote “This conclusion can be adjusted. If a miracle had taken place, . . .” The miracle works like this (taken from the WTO Website):

    Virtually all decisions in the WTO are taken by consensus among all member countries and they are ratified by members' parliaments. Trade friction is channelled into the WTO's dispute settlement process where the focus is on interpreting agreements and commitments, and how to ensure that countries' trade policies conform with them. That way, the risk of disputes spilling over into political or military conflict is reduced.

    At the heart of the system — known as the multilateral trading system — are the WTO’s agreements, negotiated and signed by a large majority of the world’s trading nations, and ratified in their parliaments. These agreements are the legal ground-rules for international commerce. Essentially, they are contracts, guaranteeing member countries important trade rights. They also bind governments to keep their trade policies within agreed limits to everybody’s benefit.

    The agreements were negotiated and signed by governments. But their purpose is to help producers of goods and services, exporters, and importers conduct their business.

    [Binding. A better take . . . ]

    There is no legally binding agreement that sets out the targets for tariff reductions (e.g. by what percentage they were to be cut as a result of the Uruguay Round). Instead, individual countries listed their commitments in schedules annexed to Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994. This is the legally binding agreement for the reduced tariff rates. Since then, additional commitments were made under the 1997 Information Technology Agreement.

    [An alternative on Energy and GHG Subsidies that distort trade . . .]

    Subsidies and countervailing measures …

    This agreement does two things: it disciplines the use of subsidies, and it regulates the actions countries can take to counter the effects of subsidies. It says a country can use the WTO’s dispute settlement procedure to seek the withdrawal of the subsidy or the removal of its adverse effects. Or the country can launch its own investigation and ultimately charge extra duty (known as “countervailing duty”) on subsidized imports that are found to be hurting domestic producers.

    Bill Corbin
    3.12.08
    Cap, and trade, has the votes on both sides now. It's the new alternative reality, and it was founded in 1992. There are other alternatives, but this one that got the votes and the judges. Ozone man rules.

    I'm thinking that an organic energy drink, with a 40 year code date, and a little carbon for some fizz, might be an emerging market.

    Jim Beyer
    3.12.08
    I think a big question for carbon trading is what constitutes a valid carbon sink? An old growth forest? Forests aren't long-time (1000+ years) sinks. Eventually, the trees fall down and rot, releasing CO2. Only a tiny portion of trees ever get buried and became peat -> lignite -> coal. Using CO2 to improve oil wells? That's a sham. First, they are doing that already anyway. Second, any quick calculation will show that the amount of extra carbon exiting the well (in the form of extra oil) exceeds whatever was put in as a gas. So, I can't think of any really valid carbon sinks -- so that whole part of the equation should be dropped.

    Someone might also notice that the atmosphere is worldwide, so a carbon tax has to be a global tax. Otherwise, ABC Corp. in the U.S. could obtain their carbon-intense resources from a company in a country with no carbon tax. Maybe a global carbon market could develop. I guess it's possible.

    And then there is enforcement. I bet its easy to cheat on releasing a colorless, odorless gas that immediately mixes with the ambient atmosphere. Just a wild guess here.....

    Depletion of oil and NG will limit their long-term carbon outputs, so the real problem is coal. (I've said this before, ad nauseum...) New technologies, including nuclear technologies, need to be developed that are cheaper to use than coal. That's the only realistic strategy to limit future coal use. I think this is possible, though a challenging technical endeavor. And even if implemented, it somehow needs to be widely distributed to make a difference. Also a big challenge.

    The final major source of carbon output is deforestation. Hopefully, humanity can see a reason behind preserving some of our remaining forests beyond their inaccurate labeling as carbon sinks.

    Bill Corbin
    3.12.08
    Interesting evolution for property rights. I'm not assuming anyone can 'take' somebody else's forest. Maybe if its for sale, and mega-corp has the money, because very few individuals do (at least since G. Washington), then carbon 'sinks' could be the next big emerging market.

    Edward Reid, Jr.
    3.12.08
    Jose Antonio,

    "Governments develop budgets. Money from tax and tariffs are forecasted and balanced to meet the budget approved by the legislative body of the country. If new money comes in from GHG Suppression, that same amount is deducted in other taxes. "

    What ever gave you that idea? Certainly not the US government!

    Jose Antonio Vanderhorst-Silverio
    3.12.08
    Even if the budgets are not balanced, it doesn't matter for the whole process to work. The objection is inmaterial.

    Roger Arnold
    3.12.08
    Jim,

    Any carbon reservoir that is increasing in size acts as a sink; any that is shrinking acts as a source. Old growth forests, as you note, are in equilibrium--acting as neither sinks nor sources. It's newly reforested lands that serve as sinks, though there are obvious limits to how much land is actually available for reforestation. Just planting trees somewhere where they'll only be cut down again in a few years doesn't (shouldn't) count.

    Increasing soil carbon inventories through ammending soils with "agrichar" is a legitimate carbon sink. It's potentially a huge one. Increasing soil carbon by switching from annual crops--with their shallow root systems--to perrenials is another viable strategy. There's a little-publicized line of agricultural development that aims to develop perrenial replacements for key annual crops. It's a long path that will take many years before it begins to pay off, but it's potentially vital.

    Everybody always notes that CO2 is a global problem, and therefore requires a global solution. Well, yes and no. That's mostly an easy excuse for inaction.

    I don't see that there's any need for some great international agreement that every nation signs onto. If country X seeks to give its businesses an economic advantage by declining to tax carbon emissions, there's an obvious and easy remedy: import tarrifs. The countries that have signed on for reducing carbon emissions can adopt trade policies that make it more advantageous for other nations to join them instead of seeking an economic edge for their own businesses.

    Edward Reid, Jr.
    3.12.08
    Roger,

    I think you have just defined an alternative approach to a "global solution" - play or pay.

    Regardless of how you get there, either everybody cuts emissions or those who do don't buy from those who don't. That is: you cut your emissions, or we will cut them for you.

    Works for me.

    Ed

    Ferdinand E. Banks
    3.13.08
    I'm sorry Bill Corbin, but you forgot something. You forgot that this is FRED, and Fred knows about emissions trading because Fred knows a scam when he sees or hears about one.

    Some time ago a scholar in another part of Sweden wrote and informed me that both "theoretically and empirically" emissions trading has been proved viable, as a result of which I invited him to my university where we could discuss this matter in an open forum. He wisely decided that he had better things to do with his time, because I would have cut him off at the knees. Emissions trading hasn't worked and it isn't going to work. It has nothing to offer, and should never have been considered.

    In this morning's London Financial Times there was a short piece about how some hedge funds are not allowing investors to withdraw what they have left of their stake. When I saw that I suddenly found myself thinking about a fool who is a director of the Swedish Central Bank, and who recently sang the praise of hedge funds. I immediately circulated a note saying that his praise was due to his wanting a job with a hedge fund, which to me was obvious, though apparently not to many others. It's the same thing here. There is an emissions trading gravy train on the track, and undoubtedly a passel of finance/hedge-fund professionals and hustlers are itching to get aboard. Let them, but please don't tell me that I should wish them 'bon boyage'.

    You know how people are always saying "do the math", well in this matter of emissions trading they should do the economics, or read some of the comments in this forum.

    Michael Keller
    3.13.08
    Without emissions trading, a revenue stream for speculators would be closed off. The poor hedge fund lads might face starvation ... might not be so bad.

    Jim Beyer
    3.13.08
    Roger & Ed,

    I think you've both brought up some very good points here, definitely worthy of expansion.

    My concern about using forests for carbon sinks (even growing ones) is the impermanence of the solution, at least potentially. As I understand these arrangements, a forest owner is paid annually NOT to cut it down. But what happens when the payments stop? Then the whole thing gets cut down, and the previous years carbon credits were illusory.

    I admit to being fuzzy about the soil carbon inventories concept. That also seems hard to monitor and subject to abuse. And let's face it, the lion's share of the carbon emissions is due to fossil fuel use and perhaps cement manufacture, not deforestation, and not soil decarbonization.

    The notion of restricting trade due to carbon emission behavior is reasonable in theory, and probably what should be pushed for. But that means some international body decides what a country should be doing. That might be messy to implement. Also, one could argue that trade with certain countries like China should also be conditioned on some issue with Human Rights, OSHA-like rules, or environmental degradation. But no one seems too interested in challenging them on any of these more specific and easily measured problems, let alone carbon emissions.

    But I think that could be addressed as well. Given how most all major companies want to be perceived as "Green", this might be a good time to raise the carbon emissions issues (as well as these other ones) and tag products from every country, depending on how they are produced.

    This "greening of globalization" is perhaps what a body like the WTO had not intended, but it is probably just what is needed to go forward.

    Bill Corbin
    3.13.08
    Carbon can be scrubbed, burned and moved; and I don't know if its cheap. I understand your point about realizing that cheap fuel mixes can affect air qualitys and not to confuse it with some sort of centralized wizzardy. I think comments abount energy return on energy invested, and carbon return on carbon invested are probably worthy. Universities set the tone and agenda for learning, and most of them abandoned the sciences in the very early 80s for MBA's, LBOs, 'marketing', etc. Changing planting practices or writing a new farmers almanac might lead to higher food prices, and that is a risk managed by governments, not me. I read the financial paper today too, and saw that gold was over $1000 an ounce. So, I think I'll go read some anthropology.

    Jose Antonio Vanderhorst-Silverio
    3.13.08
    Arnold writes: "If country X seeks to give its businesses an economic advantage by declining to tax carbon emissions, there's an obvious and easy remedy: import tarrifs. The countries that have signed on for reducing carbon emissions can adopt trade policies that make it more advantageous for other nations to join them instead of seeking an economic edge for their own businesses."

    By default, signatories countries of WTO are bound to follow the trade disciplines. So I repeat, for the electricity industry "The WTO could be entrusted as the "single agency” with "the power to enact globally binding environmental legislation." Clearly the WTO disciplines should be developed with a corresponding "miracle" attitude in place." Arnold is helping unvail the miracle.. "GHG Suppression tariffs are collected (payed) from (to) generators and 2GRs (that aggregate end-customer transactions) to the government based on the balances of each market agent on the periodic wholesale economic transactions performed by the market coordinator."

    Len Gould
    3.18.08
    Perhaps we should simply make the oil industry pay for the CO2....

    The following quote, from a staff writer for the Midland Reporter-Telegram, Waste not want less:

    , if read correctly and in co-ordination with other articles I've seen lamenting the shortage of CO2 needed for Enhanced Oil Recovery in older fields, provides an interesting new (for me) perspective on the incentive for a) Ethanol promotion (CO2 main byproduct) and b) IGCC coal-burners (again, CO2 main byproduct). c) moving the FutureGen project from Illinois to Texas. ??? {QUOTE} "It is estimated in the Permian Basin alone, a little over seven to almost 11 billion barrels of oil is still potentially recoverable using CO2," he said. "Keep in mind we've only made 32 billion barrels so far in the Permian Basin."

    The amount of CO2 necessary to realize those figures is huge though, Melzer said, and thanks to oil prices, well beyond what is available locally.

    "With all this growth we are running out of CO2 in the Permian Basin. It's not cheap to go find another source of CO2. And we've got to find a lot of it. By some estimates done by some people that ought to know, by next year we're going to be 600 million cubic feet a day short of CO2. And that's about 40 percent of what we use today of new CO2," he said noting that the shortages of the gas for EOR currently also exist in Wyoming, South Dakota and Mississippi.

    Capturing CO2 produced as a by-product from coal to hydrocarbon liquification projects and ethanol production are two potentially viable sources for efficiently collecting CO2. {/QUOTE}

    Len Gould
    3.18.08
    Kinder Morgan Energy Partners pumps about 1.2 billion cubic feet of carbon dioxide per day to West Texas from fields in southern Colorado and northwestern New Mexico. That company invested about $200 million to increase delivery to 1.5 billion cubic feet per day because of rising demand, said Tim Bradley, head of CO2 operations. "The Permian Basin has been supply limited for a couple of years," Bradley said "A lot of companies are coming out of the woodwork now that want to do CO2 flooding, so additional sources are needed." Indeed, Oklahomabased Chaparral Energy Inc. one of the leaders in CO2 recovery in West Texas is now exploring for CO2 reserves in Socorro County because of the carbon dioxide shortage, said President and CEO Mark Fischer "We've had difficulties getting CO2, so we're looking to develop some additional resources of our own," he said. Lasker estimates that as CO2 flooding spreads, Permian Basin producers could consume up to 1 billion mcf (thousand cubic feet) per day in additional CO2. "The demand far outweighs supply," Lasker said. "We think there is tremendous opportunity to bring CO2 into the basin."

    For interest, that billion mcf fossil CO2 / day from underground reservoirs (at 8,000/365 = 22 tpd CO2 / megawatt day) is equivalent to perhaps (10^9 cu ft * 0.066 kg / cu ft / 1000 kg / ton) 66,000 tpd (rounded severely), equivalent to operating 3,000 megawatts of coal-fired generation continuously. This just to recover a small percentage of oil from one small production area. What's the REAL CO2 footprint of oil?

    Ian McQueen
    3.18.08
    I found the article a bit of a dog's dinner, wandering around through several ideas. The one main fact that was never touched on, as it is never touched on by Al Gore, is that carbon dioxide is only a minor player in the earth's atmosphere. The most important substance, by far, is WATER. As vapor and clouds, water is responsible for up to 95% of the greenhouse effect. Depending on the locale, water can be more than 100 times the concentration of CO2, and it is absorbing and emitting IR radiation of much the same wavelengths. In addition, water conveys vast amounts of heat energy high into the troposphere and thence to outer space by convection, another factor never acknowledged by the Gorites. If CO2 emissions could magically be stopped immediately, the difference in global temperature 50 and 100 years into the future would scarcely be measurable. There is just no justification for carbon taxes, trading, or any other schemes to limit CO2 emissions.

    Jack Ellis
    3.18.08
    I saw an interesting and well done analysis by some folks from Credit Suisse that suggests carbon prices in the US (whether via trading or a tax) of at least $40 a ton would be required before natural gas displaced coal in the dispatch of existing plant, assuming today's prices for natural gas. To accomplish this transformation, natural gas for electricity production use would increase by about two thirds over today's levels. No mention of how that would affect natural gas prices, but the direction is obvious.

    To Fred's point about nuclear, it's likely nuclear would look a lot more attractive at the carbon prices that would be required for natural gas to displace coal assuming gas prices rise in accordance with increased demand. However, the analysis also points out that the number of new nuclear plants that would be needed far exceeds the number already operating in this country, and that costs for nuclear plants already in the pipeline are increasing rapidly.

    Bottom line: economic dislocation in the electricity sector alone will be larger than most people imagine. Although I hate scaremongering, this is one instance where if the policy direction is to reduce carbon emissions, telling the truth, the whole truth and nothing but the truth about the likely costs may help focus attention on more cost-effective solutions.

    Fred, one other point I think we can agree on is that it's going to take a variety of resources and solutions to displace fossil fuels. One of my favorites, which seems to be catching on, is algae of various kinds that can turn sunlight and CO2 into a precursor for the liquid fuels we use today.

    Ferdinand E. Banks
    3.18.08
    Well Ian McQueen, somewhere around 90-95% of the real climate scientists say that you are wrong, but even so that is for you and them and the next president of the United States to settle, because both the republican and democratic candidates accept the AGW business. As for my humble self, I know less today about what is going on in the upper or lower atmosphere than I did when I wrote my first 'thing' about warming, and relatively speaking I hardly knew anything then. I did give a good lecture on this subject in the far north of Sweden once, but good lectures don't count for very much in that part of the world.

    Al Gore. I don't pay much attention to Mr Gore. If he had had any competence at all he would have become president of the U.S., in which case my shares might be worth more money. I also didn't like the Kyoto circus, and my point about carbon taxes was that if you are going to go in that direction, they make more sense than emissions trading, which I view as a scam.

    Of course, the thing that is interesting about your comment is what you don't say, which is that Lomborg and Crichton and phonies like that know the score, while Nobel Prize physicists and chemists should stay out of this rumble. Also, that the peak oil hypothesis is a dog's breakfast - note, "breakfast", since as the Chinese once said, eat your breakfast, give half your lunch to your friend, and give your dinner to your enemy.

    About Jack Ellis' comment. I agree with all of it. There are some bad days ahead, and it's depressing to think about them. Too little and too late is the way that historians in the 22nd century might be forced to describe this era for many countries. Now, I wonder just which countries those are going to be?

    Fred

    Len Gould
    3.19.08
    Ian McQueen: "If CO2 emissions could magically be stopped immediately, the difference in global temperature 50 and 100 years into the future would scarcely be measurable. "

    I love it. Complains about the quality of other's science, then throws out a pure speculation as if it were fact. What nonsense. Water vapour quantity in atmosphere is a CONTROLLED variable, not a CONTROLLING variable. (eg. the simple version is "Higher the temperature, higher the water vapour content of atmosphere. Atmosphere pretty much always contains it's max. content of water vapour for it's temperature." )

    Peter Boisen
    3.19.08
    I agree with Don's comment that the main problem is to find an alternative to oil for use in the transportation sector. Ten years ago we were told that fuel cell vehicles powered by hydrogen produced from renewable energy was the solution. Today we are told that plug-in vehicles will by and large solve the problem. Neither alternative, however, is an option for heavy goods traffic.

    Looking at the light duty vehicles I agree that plug-in hybrid vehicles to some degree could reduce fuel needs. For the many people living in large cities, and parking in the street ,it may not, however, be so easy to plug in each evening. Cold wheather is another problem. Winter time the heating needs would have to be met using battery power. This means either reduced range, or increased battery capacity. Bigger batteries means increased weight and reduced energy efficiency.

    All things considered it does not seem to be such a bad idea to prioritize rhe use of sustainable biomass resources for supply of really efficient biofuel alternatives. Power needs could be met via other options.

    Finally, regarding carbon sinks and forest potentials: About two thirds of Sweden's land area is covered by forests. The annual growth has over the last fifty years gone from 60 to 80 million cubic metres of wood and the annual harvesting, has in the same period gone from 50 to 75 million cubic metres. Since less wood is harvested than the annual growth we have a sustainable situation. Gross Swedish GHG-emissions expressed in CO2-equivalents amount to some 96 million tonnes. The forests, however, absorb some 25 million tonnes, leaving net emissions of 71 million tonnes. In comparison the CO2 emissions in the transportation sector amounts to 21 million tonnes corresponding with roughly 7 million tons of oil use. Some 25 % of the present annual forest growth would be required to substitute all oil use, still leaving 75 % for paper pulp, timber and other uses (greater experts than I could provide more accurate numbers).

    Ferdinand E. Banks
    3.19.08
    Peter Boisen, I don't think that there will be any problem at all in finding an alternative to oil. The problem is it in time - or perhaps I should say finding enough of it in time. Sweden might be able to lead the way here, if it wasn't for their globalist and internationalist orientation which keeps them from doing anything constructive these days.

    As for the environmental bit, the completely ignorant 'shadow' finance minister in Sweden, Thomas Östros, has stated that he is ashamed of Sweden's commitment where global warming is concerned. Translation: he want to join the other parasites in Brussels. Note the word "other".

    Now, what about some back of the envelope calculations. Sweden produces almost 95% of its electricity with hydro and nuclear, and you say that two-thirds of Sweden is covered by forests. That means to me that, in theory, Sweden doesn't really have much left to do in the global warming war. But even so, should they try to do more - well, probably, as long as it doesn't interfere with my income.

    Don Giegler
    3.19.08
    Len, your concept of relative humidity ought to be most interesting.

    Jack Ellis
    3.19.08
    "should they try to do more - well, probably, as long as it doesn't interfere with my income"

    And that is the problem. It's going to hurt us in the pocketbook, unless some bright people actually can pull a rabbit out of the proverbial hat. I'm not taking either side of that bet, at least not right now.

    Len Gould
    3.20.08
    Don: I do understand relative humidity, simply assumed Ian doesn't and skipped the complication in the "simple version". On earth, it's still true that raising atmosphere's average temp. will increase the atmosphere's water content.

    Edward Reid, Jr.
    3.20.08
    Gentlemen,

    If you accept (as the IPCC apparently does) that global average temperature is increasing; and, that the increase in atmospheric CO2 concentration is causing, or even significantly contributing to, the temperature increase; and, that either or both of the temperature increase and the CO2 concentration increase are undesirable; then, the only logical conclusion is that CO2 emissions must be stopped (not reduced) as rapidly as possible.

    If the vessel into which you are pouring something already contains more of that something than is desirable, continuing to pour that something into the vessel more slowly will not solve the problem. Also, if you share the vessel with others, even stopping pouring that something into the vessel will not solve the problem if the others who share the vessel continue pouring. Then, once everyone who shares the vessel stops pouring, the process of solving the problem, by removing some of what has been poured into the vessel, can begin.

    I am not a climate scientist. I have not played a climate scientist on TV. I did not sleep in a Holiday Inn Express last night. However, "I hold these truths to be self evident". If any of you detect a logical fallacy in the paragraph above, I would appreciate your pointing it out. I remain fascinated that the real climate scientists toiling away in the bowels of the IPCC have either not stumbled upon these truths, or have chosen (for whatever reasons) not to share them with the rest of us mere mortals.

    Ferdinand E. Banks
    3.21.08
    "Holiday Inn Express". I need some explanation here.

    Fred

    Edward Reid, Jr.
    3.21.08
    Fred,

    The discount hotel chain uses a series of commercials, including one in which a person is touring a nuclear power plant when an emergency occurs. He suggests a course of action, which is successful in averting a failure. He is then asked if he is a nuclear expert, at which point he replies: "No, but I did stay at a Holiday Inn Express last night." The message, obviously, is that it is very smart to stay at HIE.

    The reference to playing a climate scientist on TV is a play on yet another current commercial.

    I sometimes forget that the entire Energy Pulse community is not necessarily "in on the joke". My bad.

    Ed

    Ferdinand E. Banks
    3.23.08
    I see, well if I remember correctly, at one time in was smart to stay at a Holiday Inn in Munich. At least I think that it was Munich.

    Fred

    Len Gould
    3.24.08
    Ed: In re your "continuing to pour that something into the vessel more slowly will not solve the problem." A valid point. Is it that those concerned are simply realistic enough to know that there is zero possibility of halting emissions completely and are accepting of a gradual progression to zero increase over say 40 years? I think most rational proponents of curbing emissions are setting a goal of keeping peak levels of atmospheric CO2 equivalants to under 500 ppmv, though whether there is any logic or science in the selection of that goal, or simply an acceptance of what's possible, I couldn't say.

    Edward Reid, Jr.
    3.24.08
    Len,

    Who have you heard advocating "a gradual progression to zero increase over say 40 years"? My concern is that those who may understand this rather simple concept seem to be afraid to stand up in public and say it. If this is what must be done, then a 35 mpg CAFE standard is a waste of time and money; the focus should be on zero emission vehicles. (I do not mean remote emission vehicles, powered by fuels which emit elsewhere, such as at the local coal-fired generating station.)

    However, it is based on this logic that I laugh at those still advocating the "7% solution". As I believe you know, I have laid out a conceptual plan for a 95% reduction by 2050. It ain't pretty. However, if it is what must be done, then maybe we need to begin "drinking it pretty". I have no idea how much neat, non-denatured ethanol that would take, though I am willing to participate in the experiment.

    Ed

    Len Gould
    3.24.08
    Ed: I think you may be overly pessimistic on the fossil emissions allowable to maintain 500 ppmv atmospheric equivalent with zero increase. The oceans are a very capable sink of CO2, and (assuming their capacity is not damaged by the increases) the amount they will sink per year from an atmosphere at 500 ppmv is much higher than the amount from a 280 ppmv atmosphere. Probably fair to guestimate the additional allowance maintaining zero increase at perhaps 50% of current emissions worldwide, which is a lot more rational than your 95% reduction, though I agree that at the current pace of development in the underdeveloped workd, the 95% target MAY be more realistic if emissions allowances are allocated worldwide on a per capita basis.

    So what is it we should "drink pretty"? The difficulties of doing it or the results of not? I'm in for either, sounds like a huge long-lasting party.

    Len Gould
    3.25.08
    This is from CarbonTax.org. - Cap and Trade Problems

    Carbon taxes will lend predictability to energy prices, whereas cap-and-trade systems will do little to mitigate the price volatility that historically has discouraged investments in less carbon-intensive electricity generation, carbon-reducing energy efficiency and carbon-replacing renewable energy.

    Carbon taxes can be implemented much sooner than complex cap-and-trade systems. Because of the urgency of the climate crisis, we do not have the luxury of waiting while the myriad details of a cap-and-trade system are resolved through lengthy negotiations.

    Carbon taxes are transparent and easily understandable, making them more likely to elicit the necessary public support than an opaque and difficult to understand cap-and-trade system.

    Carbon taxes can be implemented with far less opportunity for manipulation by special interests, while a cap-and-trade system’s complexity opens it to exploitation by special interests and perverse incentives that can undermine public confidence and undercut its effectiveness.

    Carbon tax revenues can be rebated to the public through dividends or tax-shifting, while the costs of cap-and-trade systems are likely to become a hidden tax as dollars flow to market participants, lawyers and consultants.

    Peter Boisen
    3.25.08
    Ferdinand, You are missing the main point: All things considered it does not seem to be such a bad idea to prioritize rhe use of sustainable biomass resources for supply of really efficient biofuel alternatives. Power needs could be met via other options.

    Power needs we can meet with all types of renewable energy - solar power, wind power, wave power, tidal power, geothermical power etc, but fuels for use in vehicles is another matter. For considerable time ahead we must rely on renewable hydrocarbons, and this is the reason why it is so important to ensure that the biomass resources are used as efficiently as possible for this purpose.

    If you take lignocellulosic matter and produce methane 70 % of the energy contents will be transformed into fuel, 20 % recovered for heat and power, and 10 % consumed in the process. If I take the other extreme, ethanol, you will recover less than 30 % as fuel, 40 % as heat and power, and some 30 % lost in the process. Synthetic biodiesel will end up in between with around 50 % fuel yield.

    If we are serious about replacing oil we should thus go for the most efficient alternative - methane.

    Ferdinand E. Banks
    3.26.08
    I may be missing a point, Peter, but not the main point. My book on oil was published in l980, and in that book I probably said something about replacing oil, because I knew then that someday OPEC would be in the drivers' seat.

    This business about using methane was pointed out by one of the other regular contributors to this forum. I accepted it immediately, but I'm afraid that the movers and shakers are not in a hurry to make a commitment. Incidentally, this paper is NOT about global warming because that is one of the many subjects that I don't know very much about. Instead it deals with expanding the use of nuclear energy to ensure a slice of inexpensive and reliable power, and putting a lot of renewables on top of that. And if you want to discuss that well, I'm at your service.

    Of course what I could also say is that it isn't about global warming or nuclear or renewables but about irrationality, and how these days the TV audience is determined to make a mess of everything they get their hands on.

    Todd McKissick
    3.26.08
    While I appreciate the above sentiments, I think there is another alternative. A good path to allow the methane process(es) and any other technologies with promise, to prosper based on their own merits is to directly support those startups with their well... startup. If we consider for a second simply leaving the government policies, legislation and tinkering out of the game as well as the big brother type partnerships and get the first company rolling, the public can then choose this new product over those of the past. Consumers may choose it for reasons of price, environment, national security, rebellion or a combinations or reasons, but if they can just get to choose, they can speak with their dollars. That will require the big guys to compete or lose market share. Both of which are good for the consumer and the planet and will promote the next startup to continue this trend.

    Consumers are individually rather smart, but collectively rather sheepish. Let's take the decision away from the group (policy/subsidy/research grant) and give it to the individual. I say we reinstate the oil drilling royalties and dole out that money to alternative energy startups. Then we have to ensure that there are no ties between them and the current conglomerates and lastly, we have to remove the stifling rules against anything against the status quo. I have found so many 'large potential' technologies that I'm convinced it would only take half the time AND money being proposed today to solve the whole enchalada. Too bad they're all struggling year after year in myriad little battles instead of making energy.

    John K. Sutherland
    5.1.08
    Fred, I suspect that you are unlikely to see the new tack of the IPCC, delaying warming for about a decade. Oops! Their slip is showing.

    And now we have this report on May 1, 2008: 'Global warming is taking a break that could last for another 10 years or so. That's the latest word from a team of climate researchers in Germany. Global average temperatures should remain above normal, the team suggests. But additional warming – already on hold over the first seven years of this decade – is likely to remain that way for another decade. The reason? The team says it expects natural shifts in ocean circulation to affect temperatures in ways that temporarily out-wrestle the effects of rising greenhouse-gas emissions. The forecast is "very bold," cautions Tom Delworth, a scientist at the National Oceanic and Atmospheric Administration's Geophysical Fluid Dynamics Laboratory at Princeton University. But, he adds, it represents the cutting edge of climate modeling. The German effort is one of the first widely published attempts to offer climate forecasts on time scales of a decade or so, rather than a century or more. The findings appear in Thursday's edition of Nature.'

    And this from Steven Milloy of Junkscience: 'Researchers belonging to the UN Intergovernmental Panel on Climate Change (IPCC) reported in Nature (May 1) that, after adjusting their climate model to reflect actual sea surface temperatures of the last 50 years, “global surface temperature may not increase over the next decade, as natural climate variations… temporarily offset the projected anthropogenic warming.” You got that? IPCC researchers project no global warming over the next decade because of Mother Nature.'

    I suggested that this year would be the year that this insanity was beginning to get corrected. It's happening, despite all the denialist comments by several respondents above.

    I suspect they will not want to know any of it, but GW and obviously AGW is now on hold for at least 10 years because of good old mother nature.

    I guess doomsday has been postponed for a while. Al must be hysterical over this, but then he always was. Hansen and Schmidt will probably do their best to muddy the waters.

    John.

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