Energy

Lots of Rhetoric, Not Much New in Obama’s Climate Plan

The Obama Administration just released a “Climate Action Plan” to accompany the speech the President will give this morning at Georgetown University.  I applaud the President for delivering a speech devoted exclusively to climate change.  But for all the hooplah surrounding the President’s speech as “major,”  the measures he’s proposed in the new plan  to …

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Regulators Between a Rock and a Hard Place: The Extraterritorial Dilemma

Current dormant commerce clause doctrine creates an incredible dilemma for state lawmakers. No matter what they do, they are at serious risk of attack under the dormant commerce clause. Here’s an example. Suppose a state wants to move its own electricity generators from fossil fuels to renewable energy. For instance, the state might require that …

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Constitutional Issues in Cap and Trade: New Light from an Unexpected Source

At the end of April, the Supreme Court decided an obscure case called McBurney v. Young about state public records law.  Quite unexpectedly, the court’s opinion turns out to be good news for state environmental regulators.  In particular, it clarifies how cap and trade relates to what lawyers call the dormant commerce clause — a …

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Quality of Life Dynamics in Rural Renewable Power Communities

A journal called Energy Policy will soon publish my paper titled; Local Non-Market Quality of Life Dynamics in New Wind Farm Communities.   We know that renewable power generation (both solar panels and wind turbines) requires land.  It wouldn’t be efficient to transform Beverly Hills into wind farms even if it was a windy place.  Thus, …

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Court Doesn’t Cast Much Doubt on the Constitutionality of Michigan’s Renewable Portfolio Standard

Thanks to Ann Carlson for pointing out the significant decision recently issued by 7th Circuit Court of Appeals related to allocating the cost for new electric transmission lines and for so concisely describing its complicated fact pattern. But I have to respectfully disagree with Ann’s suggestion that this decision has cast any meaningful doubt on …

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Court Casts Doubt on Constitutionality of Michigan’s Renewable Portfolio Standard, Upholds Cost Sharing for Transmission Lines

In an important victory for the Federal Energy Regulatory Commission (FERC) — and in my view for renewable energy more generally — the U.S. Court of Appeals for the 7th Circuit has upheld a FERC order that helps finance transmission lines to carry renewable energy from rural areas to urban centers in the midwest and …

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The Optimal Amount of Nuclear Power Generation?

Is it zero?  I don’t think so. I believe that it is important to keep our options open.  The NY Times reports about a new nuclear plant being built in Georgia and highlights that this is a rare event.    This story raises an important human capital point.  Suppose you are a young engineer at …

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Not Enough Money in the Pipeline

When regulators approve rates for a utility such as Pacific Gas & Electric Company (PG&E), they are making their best guess as to how much money the company will need to cover various kinds of activities. The utility starts out the process by offering its position on how much it will need for things like …

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The Market for Lemon Solar Panels

George Akerlof won the Nobel Price for his work on the market for lemons and the role that asymmetric information and adverse selection plays in mucking up markets.  His favorite example is the used car market.  The seller knows more than the buyer about the vehicle’s true quality.  Used vehicle owners are more likely to …

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The NY Times Publishes a Strange Anti-Geoengineering Op-ED

I encourage this blog’s readers to skim Clive Hamilton’s piece on Geoengineering which was published in the NY Times today in its Opinion section.   His piece is so strange that it is worth a carefully read.   Here I provide some direct quotes; “We can imagine a situation 30 years hence in which the …

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