Obama’s energy policy
http://feedproxy.google.com/~r/CoyoteBlo…
If you move solar panels out of the Arizona desert, they are going to produce less electricity. You almost don’t have to tell me where they are going — if they are currently close to the optimal spot for maximum solar energy production, then moving them is bound to reduce their output.
Seems obvious, huh? So why is it so difficult to understand that when the government moves capital and other resources away from the industries where the forces of market optimization have put it, output is going to go down.
Subsidizing renewable energy in the U.S. may destroy two jobs for every one created if Spain’s experience with windmills and solar farms is any guide.
…
We all know from reading the media that the Obama administration is 1) full of brilliant people way smarter than the rest of us and 2) driven by science. So this insightful exchange between a reporter and White House spokesman Robert Gibbs vis a vis this Spanish study should come as no surprise:
Q: Back on the President’s speech today, a Spanish professor, Gabriel [Calzada] Alvarez, says after conducting a study, that in his country, creating green jobs has actually cost more jobs than it has led to: 2.2 jobs lost, he says, for every job created. And he has issued a report that specifically warns the President not to try and follow Spain’s example.
MR. GIBBS: It seems weird that we’re importing wind turbine parts from Spain in order to build — to meet renewable energy demand here if that were even remotely the case.
Q Is that a suggestion that his study is simply flat wrong?
MR. GIBBS: I haven’t read the study, but I think, yes.
Q Well, then. (Laughter.)
In two sentences, Mr. Gibbs demonstrates that 1) He is an idiot and 2) He has no respect for science. The correct, intelligent response would be “I can’t comment, I have not read the study yet.”
Unreal.
How many jobs might we be talking about?
The following math is suspect, because we don’t really know how the tax incentives work, or what sort of behavior they compel, but it’s worth a first stab.
If the $20 billion is half spent on increased profits, one quarter spent on materials and one quarter spent on labor, then we’re looking at $5b on labor. If an employee costs $100k/year with overhead, then 50,000 employees can be paid for a year with the $20b.
If for every job created, two are lost, then we’re destroying 100,000 jobs, or 50,000 jobs net.
So: $20b removed from the government’s top line (and replaced with borrowing that we’ll have to pay for later), all in order to destroy 50,000 jobs.
Nice!
You may argue that spending $20b and destroying 50k jobs is worth it, if the new “sustainable” energy sources reduce the CO2 emitted.
However, it turns out that much of this “sustainable” energy doesn’t actually reduce the use of conventional power plants, and often results in increased CO2 production:
http://feedproxy.google.com/~r/CoyoteBlo…
wind [ power ] must have a backup… every technology that might currently be used as a backup takes a really, really long time to start up… a large coal-fired power plant can take days to go from a cold stop to producing electricity. This is in part because there are a series of steps where A has to precede B which must come before C to start plants up, and partially just because immediately heating the whole system up would cause the plant to blow up just from the thermal stresses.
So, to back up wind power, traditional fossil fuel plants have to be kept warmed up with turbines spinning. This means that fossil fuels are burned but no electricity is produced… Germany estimated that 48,000MW of wind capacity was in fact allowing the shut down of just 2000MW of traditional fossil-fuel powered capacity.
A recent article in the National Post argues the Danes are seeing absolutely no substitution from their substantial investment in wind.
There is no evidence that industrial wind power is likely to have a significant impact on carbon emissions. The European experience is instructive. Denmark, the world’s most wind-intensive nation, with more than 6,000 turbines generating 19% of its electricity, has yet to close a single fossil-fuel plant. It requires 50% more coal-generated electricity to cover wind power’s unpredictability, and pollution and carbon dioxide emissions have risen (by 36% in 2006 alone).
Flemming Nissen, the head of development at West Danish generating company ELSAM (one of Denmark’s largest energy utilities) tells us that “wind turbines do not reduce carbon dioxide emissions.” The German experience is no different. Der Spiegel reports that “Germany’s CO2 emissions haven’t been reduced by even a single gram,” and additional coal- and gas-fired plants have been constructed to ensure reliable delivery.
Indeed, recent academic research shows that wind power may actually increase greenhouse gas emissions in some cases, depending on the carbon-intensity of back-up generation required because of its intermittent character.
It probably comes as no surprise that the Danes have the highest electricity costs in Europe. The article goes on to call wind power in the US a “huge corporate welfare feeding frenzy.”
The perfect storm: arrogant preachy leftists throwing money at useless things – and rational but amoral capitalists running around picking up the money.
The only loser is the taxpayer who is on the hook for all that money.

April 17th, 2009 at 9:12 am
I’m not a fan of windmills but I don’t necessarily think Gibbs response is bad if he has a lot of studies that show they create jobs. If someone says they have a study showing homeopathy works I’d be quite comfortable making the exact same response.
April 17th, 2009 at 2:02 pm
“… if he has a lot of studies that show they create jobs…”
Creating jobs is a bug, not a feature.
The whole point of using electricity instead of rubbing two sticks together is to eliminate work and therefore, necessarily, jobs. The whole point of an economy, of trade and commerce, of bankers, lawyers, miners, fishers, farmers, bakers, candlestickmakers and yes, even UAW members, is so I don’t have to do the work.
What possible point is there in increasing the amount of work, therefore jobs, we need to do to maintain our current level of wealth and comfort? What kind of nut would advocate this?
Leftists all think the amount of our money and our free time is infinite. Their own money and time? Not so much. Ask Tim Geithner.
Is everyone this damned ignorant about what an economy is? I was for sure until I got to Tim Worstall’s blog.
April 17th, 2009 at 3:05 pm
[quote comment="196420"]
Creating jobs is a bug, not a feature.[/quote]
Well said!
April 17th, 2009 at 8:57 pm
[quote comment="196420"]“… if he has a lot of studies that show they create jobs…”
Creating jobs is a bug, not a feature.
The whole point of using electricity instead of rubbing two sticks together is to eliminate work and therefore, necessarily, jobs. The whole point of an economy, of trade and commerce, of bankers, lawyers, miners, fishers, farmers, bakers, candlestickmakers and yes, even UAW members, is so I don’t have to do the work.
What possible point is there in increasing the amount of work, therefore jobs, we need to do to maintain our current level of wealth and comfort? What kind of nut would advocate this?
Leftists all think the amount of our money and our free time is infinite. Their own money and time? Not so much. Ask Tim Geithner.
Is everyone this damned ignorant about what an economy is? I was for sure until I got to Tim Worstall’s blog.[/quote]
Jobs are like waste heat and money is fuel.
They’re a by-product and an expensive one, but if your engine isn’t producing any heat it’s probably not producing much work either.
Now I have no idea what Gibbs interpretation was.
But my belief is that the study implied that the windmills were an inefficient means of producing electricity. And this inefficiency caused a loss of money, which meant a loss of work (and jobs) further down the line.
Now I suspect the study is more correct than Mr Gibbs on the virtues of windmills, but I counter he’s not necessarily guilty of the flawed reasoning you suggest.
April 18th, 2009 at 12:18 am
They’re trying this wind business in Indiana. About 1000 MW (nameplate rating) or so, recently. The Indy Star comments are full of ‘yay, less evil coal’ and ‘only ignorant redneck hicks oppose wind’.
I don’t think these people understand what “123,000 GWh from coal” really means. I’m not even going to start on ‘intermittent source’ and ‘grid balancing’. It’s pointless.