James Taylor Senior Fellow, Environment Policy The ...James Taylor Senior Fellow, Environment Policy The Heartland Institute Energy & Climate Policy Summit November 19, 2015 Remember

JamesTaylorSeniorFellow,EnvironmentPolicy

TheHeartlandInstituteEnergy&ClimatePolicySummit

November19,2015

RememberWhatUnifiesUsEconomicOpportunity EnvironmentalStewardship

EnergyEconomics

Compara7veCostsofElectricity

Findingsoftheleft-of-centerBrookingsInstitution(“WhytheBestPathtoaLow-CarbonFutureIsNotWindorSolarPower,”2014):� ReplacingconventionalpowerwithwindpowerDOUBLESelectricitycosts.

� ReplacingconventionalpowerwithsolarpowerTRIPLESelectricitycosts.

LevelizedElectricityCosts:2016-2046Source:U.S.EnergyInforma7onAdministra7on

�  LevelizedproductioncostsindollarspermWh:�  NaturalgasAdvancedCombinedCycle: 79.3�  Coal: 100.4 �  Nuclear: 119.0�  OnshoreWind: 149.3 �  OffshoreWind: 191.1 �  Solarthermal: 256.6 �  Solarphotovoltaic: 396.1

Real-WorldImpacts28statescurrentlyhaverenewablepowermandates.Since2008,whenmostoftherenewablepowermandateswereputinplace,electricitypriceshavebeenrisingtwiceasfastinstateswithrenewablepowermandatesthaninstateswithoutrenewablepowermandates.(Sourcedata:U.S.EnergyInformationAdministration,ElectricPowerMonthly)

LevelingtheSubsidyPlayingField?

� EIA–WindpowerreceivesmoresubsidiesthanallconventionalenergysourcesCOMBINED.

� EIA–SolarpoweralsoreceivesmoresubsidiesthanallconventionalenergysourcesCOMBINED.

� EIA–Solarpowerreceived273timesmoresubsidiesperunitofelectricityproducedthanoilandnaturalgascombined.274timesmorethannuclear.842timesmorethancoal.

Source:“DirectFederalFinancialInterventionsinEnergyinFiscalYear2014,”U.S.EnergyInformationAdministration

2013FederalSource-SpecificSubsidiesInMillionDollars

Solar-$5,328

Coal-$1,085

Oil/NaturalGas-$2,346

Nuclear-$1,660

2013Source-SpecificSubsidiesPerUnitofElectricityProducKonDollarsPerThousandMegawaPs

Solar-$575,875

Coal-$684

Oil/NaturalGas-$2,107

Nuclear-$2,104

ButWhataboutSolarJobs?

ButWhataboutSolarJobs?

SpainEconomy

EconomicsprofessorsatSpain’sKingJuanCarlosUniversitypublisheda2009studyshowingthatforevery1“green”jobcreated,2.2jobsweredestroyedelsewhereintheeconomy.

UKEconomy

A2011studybyVersoEconomicsfoundthatrenewableenergymandatesintheUKkilled3.7jobsforevery1jobcreated.

SpainEconomy

Beginningin2005,whenunemploymentinSpainwas8.7percent,Spainembarkedonarenewableenergyprogramdesignedtotransformthenation’seconomy.Spain’sunemploymentratehasmorethandoubledsinceSpain’srenewableenergyprogramtookeffect,andnowstandsat21.2%.

EnergyIndependence?RenewablesDoNotReplaceForeignOil

� Windandsolarpoweraresourcesofelectricityproduction,notransportationfuel.

� Windandsolarpowerdonotreplaceforeignoil.Instead,theyreplacesdomesticcoalandnaturalgas.MostsolarpowerpanelsandwindturbinesaremadeinChinaandEurope.Thisiswhererenewableenergyjobsgo.

EnvironmentalIssues

WhatAboutPollu7on?

SolarEnvironmentalImpacts� Land intensive – 40 sq. mi. = 1 conventional plant

� Water intensive – 2x coal, 4x natural gas

� Most economical where water is scarce

� Rare earth production produces enormous

environmental harm

WindEnvironmentalImpacts�  Landintensive-600sq.mi.=1conventionalplant� Birdandbatkills-1.4millionbirdsandbatskilledeachyear

� ComparetoBPGulfoilspill� Whatdistinguisheswindpowerfromhydropower?

RareEarthEnvironmentalHarmsYaleUniversityEnvironment360report,BoominMiningRareEarthsPosesMountingToxicRisks–“Lastyear,China’sStateCouncilreportedthatthecountry’srareearthsoperationsarecausing‘increasinglysignificant’environmentalproblems.Ahalfcenturyofrareearthsminingandprocessinghas‘severelydamagedsurfacevegetation,causedsoilerosion,pollution,andacidification,andreducedoreveneliminatedfoodcropoutput,’thecouncilreported,addingthatChineserareearthsplantstypicallyproducewastewaterwitha‘highconcentration’ofradioactiveresidues.”

AretheEconomicandEnvironmentalCostsWorththeBenefits?

ThankYou!

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