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Post 22 May 2012, 5:42 am

Wow! No wonder the things are less economical if the government is putting a 250% tariff on imports!
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Post 22 May 2012, 5:54 am

sass
In principle I don';t have a problem with the state offering long-term support to the alternative energy sector in order to kickstart the process


There is a contradiction in this statement. Kickstart and "long term".
If an industry is capable of long term sustainability, it should be able to exists and compete within its market segment without long term support. Generally once an industry sector has scaled up and reached a point of maximum efficiency it shouldn't require support. Unless there is some vital strategic reason (security) then the support simply entrenches an inefficient industry that will fail if it ever loses support.
Corn ethanol is probably just such a sector. The enormous subsides for gas and oil producers the same. Neitehr seems to have an impact on the cost of energy do they?
Perhaps mass production solar is in there too. However, China produces a great deal of solar, for in home use. (Heating water) Somehow it is efficient at that level and by eliminating power use for one area, it reduces overall power consumption.
Perhaps the problem is that in the West the solutions are aimed at power production rather than at niches where alternative power has greater applicability, and efficency.
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Post 22 May 2012, 6:07 am

danivon wrote:Wow! No wonder the things are less economical if the government is putting a 250% tariff on imports!


Not yet, but planned by the Obama administration.
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Post 22 May 2012, 6:15 am

Ricky:
The enormous subsides for gas and oil producers the same.


Are you sure? I'm under the impression that gas and oil are taxed more than any other energy source, and receive dramatically fewer subsidies per KWH (or whatever measurement you like) than all the other sources.
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Post 22 May 2012, 6:21 am

Ray Jay wrote:
Sassenach wrote:

In principle I don';t have a problem with the state offering long-term support to the alternative energy sector in order to kickstart the process. What worries me though is the likelihood that all the technologies we're currently looking into are extremely inefficient and highly unlikely to be the optimal solution for the longer term, but once we're locked into long term subsidy arrangements for these technologies then it's difficult to change.


I agree with this last part. Corn ethanol is a very good example of that.


Yes it is. Corn makes no sense as an energy source and yet there is at least a proposal to impose a mandated increase in its use. Who would be dumb enough to mandate 15% ethanol blends?

Oh, the current administration? Yes, and it's not just that nut, Lisa Jackson. How about the former governor of Iowa, now Secretary of Agriculture:

Agriculture Secretary Tom Vilsack is pressing oil companies to back fuel-blends that contain less gasoline and more ethanol. He says it will "increase America's energy security and spur additional job creation," particularly in rural areas -- a priority for the Obama administration.
Oil industry support is necessary if high-ethanol blends are to become commercially viable.

The oil industry says it is committed to using more ethanol in its fuel mix, but it opposes government mandates.

“EPA continues to move forward with its decision to approve the use of 15 percent ethanol (E15) in gasoline, even though testing to date shows this higher concentration would not be fully compatible with much of the dispensing and storage infrastructure at our nation’s gas stations," the American Petroleum Institute said on Thursday.

Fuel blends that contain 15 percent ethanol -- up from the current 10 percent -- present a major infrastructure challenge. Gasoline pumps will have to be changed, and so will car engines.

On Thursday, the American Petroleum Institute noted that around half of all gasoline station equipment is not compatible with E15.

"Adding these fuels into our gasoline supplies could result in damaged equipment, safety problems, and environmental impacts at our gas stations – to say nothing about car engines – and it could even erode support for the nation’s renewable fuels program," Bob Greco said.


And, it drives up food prices.

Still, go ahead and vote to reelect the President! After all, what can he do if we have divided government? :uhoh:

As for other bad idea, not ready for prime time, subsidized "alternatives, how about:: electric (plug-in to charge) cars, solar and wind. None of them appear to be an "answer" at the moment--and they may never be.

I suspect that there are more high paying jobs in installation of the solar panels than manufacturing them (just thinking about it -- perhaps others have data). Now we are making the panels more expensive, increasing the cost of solar and our subsidies even more (and our need for subsidies) to protect solar manufacturers (who I'm guessing are politically connected) at the expense of the guys and gals who are putting these things up, who are going to spend much more of their energy lobbying Washington as opposed to their operations.


True, but I want to get back to something Sass said that I agree with:

In principle I don';t have a problem with the state offering long-term support to the alternative energy sector in order to kickstart the process


Government might have a place in granting money to scientists to experiment with new technologies. They might even stumble onto something. However, once it is viable as an energy source, government should be very careful. If it is not able to become economically viable in the short-term, then the government should not invest heavily in it.
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Post 22 May 2012, 7:50 am

Fossil fuels are taxed, but that can be argued as a way of including externalities in the costs. Of course quantifying those externalities and comparing the outcome to fuel duties will probably show a diiferent result.

Of course a significant part of 'tax' on fossil fuel is down to sovereign ownership of mineral resources, and would apply to other extractions such as gold or useful metal, gems etc.

On the subsidy front, I can see a case for a less stringent test that DF's. If subsidies used to kickstart can be tapered down and / or sunsetted, then we all know ahead of time how long that industry has to become viable on its own. How long was nuclear propped up for?
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Post 22 May 2012, 7:58 am

Yes and no Steve. The reason subsidies are necessary over a longer timeframe is that they create certainty in the market which will attract the sort of investment required for large scale infrastructure to be built. Obviously you wouldn't want to be tied into paying them in perpetuity, but things like power plants or windfarms or major solar installations or whatever all cost enormous amounts to build, take years before they begin producing any revenues, can potentially get tied up in all kinds of red tape and generally represent a significant risk for the investor. As such, a promise of guaranteed income at a certain level for a not inconsiderable period allows companies to invest in this kind of infrastructure with confidence. Over time it should be possible to reduce and eventually eliminate the subsidies. If it isn't possible to do that without the bottom immediately falling out of the market for that form of energy then clearly it's the wrong form of energy in the first place and we shouldn't be supporting it, but if we make sure we've backed the right horse to subsidise then i don't see any problem with subsidies when a technology is still in its infancy.
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Post 22 May 2012, 8:04 am

Sassenach wrote:. . . if we make sure we've backed the right horse to subsidise then i don't see any problem with subsidies when a technology is still in its infancy.


In large measure, I agree. The problem with the current course is we're supporting a smorgasbord without reasonable confidence that any of them will be economically viable. Ethanol, in fact, is an economic loser in a big way (raising food prices, costs too much to produce, etc.).

And, the core of that argument would put an end to subsidies of electric vehicles that must run from our energy grid. I have far less of a problem with something like the Prius, which does not need to be plugged in. Electric cars have been around for a century and the advances have been sluggish.
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Post 22 May 2012, 8:21 am

Well yes, ethanol is clearly a stupid thing to be supporting. But even most diehard environmentalists would agree with that. It's a boondoggle. Well corn ethanol anyway, by all accounts it's much more efficient if you make it from sugar cane, but you don't grow a lot of that in swing states...

As for electric cars, I think in this instance it's a better candidate for investing in basic research rather than ongoing subsidy. The thing that would instantly make electric cars viable would be a big leap in battery technology to drastically increase the range. Until we get that then electric cars will always be an insignificant niche market. I wouldn't object to state support for research in this area, or for that matter into researching hydrogen fuel cells or other alternative power sources for motor vehicles, but we do obviously need to be selective in how we spend the money.
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Post 22 May 2012, 11:13 am

Steve:
Still, go ahead and vote to reelect the President! After all, what can he do if we have divided government? :uhoh:


touche
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Post 22 May 2012, 11:50 am

Sassenach wrote:Well yes, ethanol is clearly a stupid thing to be supporting. But even most diehard environmentalists would agree with that. It's a boondoggle. Well corn ethanol anyway, by all accounts it's much more efficient if you make it from sugar cane, but you don't grow a lot of that in swing states...
It used to be big in Florida. Not sure nowadays. Cane is even worse for soil than corn is, in terms of sucking out nutrients. But it's great for places further south like the Caribbean and Brazil where the weather is set up for it.

Not sure I quite ever like the way that American sugary stuff is made from corn anyway. It just tastes odd to me.

As for electric cars, I think in this instance it's a better candidate for investing in basic research rather than ongoing subsidy. The thing that would instantly make electric cars viable would be a big leap in battery technology to drastically increase the range. Until we get that then electric cars will always be an insignificant niche market. I wouldn't object to state support for research in this area, or for that matter into researching hydrogen fuel cells or other alternative power sources for motor vehicles, but we do obviously need to be selective in how we spend the money.
Interestingly, one thing about the Volt is that the battery is one area of large investment. I know that it's held up as a bad example of subsidising things, but on that score it has reaped some benefits (and when the European version, the Ampere, comes out, perhaps we'll see it do rather better in a place where it hasn't been relentlessly attacked since it's inception).

I'm not sure what the massive hidden waste from solar, hydro or other alternative sources is supposed to be. With hydro we know that you build a dam, which will likely flood some land, and then put turbines into the flow. Not sure what horrors lurk beneath that have not been found in the many decades of hydro so far.

And solar really only has waste in the means of producing the cells. Which we'd know as and when we develop the cells. That's an area we need to be watchful of, but it's controllable and monitorable.

What I would say is that it is probably a bad idea to use any one means for the 'majority' of your energy. Luckily there are many ways to do it.
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Post 22 May 2012, 1:45 pm

ray
Are you sure? I'm under the impression that gas and oil are taxed more than any other energy source, and receive dramatically fewer subsidies per KWH (or whatever measurement you like) than all the other sources
.

My point is that once an industry segment is sustaining itself, which petroluem certainly is as it is enormously profitable, subsidies are ridiculous. I haven't ever seen it argued that they keep gas prices down, have you? Or that without subsidies energy companies couldn't afford to drill and refine..?
In the past the only thing that has kept American producers from drilling a lot more of their stake hold is that those companies that drill and import have found imported oil to be more profitable.
Subsidies don't seem to have affected that....
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Post 22 May 2012, 1:52 pm

Does that mean that you are refudiating this statement of yours?

The enormous subsides for gas and oil producers the same.


Can you tell us what these subsidies (enormous or otherwise) are so that we can evaluate the truthiness of your statement?

By the way, I agree with you that we should not subsidize mature industries. The problem is that once companies have a sense that Washington is for sale, it is very hard to get them to stop trying to buy it. One of the disadvantages of funding nascent industries is that we create such a dynamic.
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Post 23 May 2012, 8:06 am

Ray Jay wrote:. . . refudiating . . . truthiness . . .


Double touche!
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Post 24 May 2012, 6:37 am

Here's a new solar technology which may solve many of our challenges.

http://www.northwestern.edu/newscenter/ ... -cell.html

EVANSTON, Ill. --- The limitations of conventional and current solar cells include high production cost, low operating efficiency and durability, and many cells rely on toxic and scarce materials. Northwestern University researchers have developed a new solar cell that, in principle, will minimize all of these solar energy technology limitations.

In particular, the device is the first to solve the problem of the Grätzel cell, a promising low-cost and environmentally friendly solar cell with a significant disadvantage: it leaks. The dye-sensitized cell’s electrolyte is made of an organic liquid, which can leak and corrode the solar cell itself.

Grätzel cells use a molecular dye to absorb sunlight and convert it to electricity, much like chlorophyll in plants. But the cells typically don’t last more than 18 months, making them commercially unviable. Researchers have been searching for an alternative for two decades.

At Northwestern, where interdisciplinary collaboration is a cornerstone, nanotechnology expert Robert P. H. Chang challenged chemist Mercouri Kanatzidis with the problem of the Grätzel cell. Kanatzidis’ solution was a new material for the electrolyte that actually starts as a liquid but ends up a solid mass. Thus, the new all solid-state solar cell is inherently stable.