Latest Articles

We Can’t Bear to Look

U.S. Senate squares off on ambitious energy bill All eyes are on the Senate this week as it debates a controversial Democrat-penned energy bill. (Hey! We said “all eyes”! Don’t go away.) The legislation contains several provisions that make Big Oil, Big Auto, and Big Republicans squirm: it would shift nearly $15 billion in tax […]

Google.org funds V2G demonstration projects

Sweet mama! Google.org is going to give vehicle-to-grid technology a much-needed boost, to the tune of $10 million. The company is going to modify six cars, a mix of Toyota Priuses and Ford Escape hybrids, with batteries that can draw juice from the grid and feed juice back in. The promise of this technology is […]

Worst music video ever

Oh. My. God. Question: is this better or worse than “Bush Was Right”? (via Hugg)

The paper, like everybody else who doesn’t stand to benefit, doesn’t like it

The lead editorial in the Washington Post today beats liquid coal about the head and shoulders, using all the familiar arguments. Here’s a challenge: somebody out there send me a thoughtful defense of liquid coal that doesn’t issue from the coal industry, a paid shill of the coal industry, or a legislator from a state […]

Discount rates: Boring but important

This post will address two questions. What exactly is the discount rate? Did Sir Nicholas Stern, a former chief economist with the World Bank, use the wrong discount rate in his landmark 2006 report, the Stern Review on the Economics of Climate Change?

These may seem like abstruse economic questions, but for analyzing the cost-benefit analysis of climate action -- whether we must act urgently or at leisure -- the discount rate is probably the single most important factor. The discount rate basically represents the so-called time value of money, how much more $100 is worth to us today than next year.

A high discount rate means we would much rather have money today than in the future. The issue is complicated by the fact that society should have a lower discount rate than individuals, since a high "social" discount rate essentially means that we don't value future generations much.

I must confess that even though I minored in economics and have followed the discount rate issue closely for years, after reading various recent blogs by economists, I realized I didn't really understand it, particularly as it applies to climate change. I was not alone -- The New York Times completely misunderstood Stern's choice of discount rate.

Since discount rates are probably as important to the climate debate as feedbacks, I would very much commend the work of Australian economist John Quiggin. He explains why Stern's choice of a low discount rate is fully justified -- and why most critics are either wrong or confused or both -- in an essay, "Stern and the critics on discounting" (PDF) and a lengthy blog post, "Discounting the Future yet Again." The blog post has a fascinating quote from an Environmental Science & Policy article, "Discounting and the social cost of carbon" on the PTRP (Pure Time Rate of Preference):

Antonio Diaz, environmental-justice advocate, answers questions

Antonio Diaz. With what environmental organization are you affiliated? I work with a San Francisco-based grassroots environmental-justice organization called PODER: People Organizing to Demand Environmental and Economic Rights. I’m the organization’s director. What does your organization do? PODER works with Latino immigrant families in San Francisco to organize on environmental- and economic-justice issues affecting them, […]

Chalk up a win for Pelosi

Well hey, look at that! No sooner do I write a post on the horrible legislative proposal out of Dingell’s Energy Committee than I find out that Pelosi has more or less beat it back. A memo Dingell sent to the committee today (PDF) says that he and Boucher are removing most of the controversial […]

Wherein I chat with House types

Hi! I’m back. And — if you’ll indulge me in a little whining — I’m sick as a dog, woefully behind on the news, buried under work, and just generally frazzled and bedraggled and haggard. And what’s with time zones? They’re stupid. Woe is me, I tell you. I wanted to do a quick post […]

WHO says dirty air and water kill 13 million people a year, and more

Read the articles mentioned at the end of the podcast: OK, We’re Moving to Iceland Don’t Count Your Hatchery Salmon Before They Hatch, or Even After Buffalo and Behold How Much CO2 Does a Kegger Emit? Johnson Pussyfoots Yellow Jersey Optional Read the articles mentioned at the end of the podcast: The Talk of the […]

Comedian Dave Attell wants your number

Comedian Dave Attell wants your number. No, really! The star of Comedy Central’s Insomniac was at Bonnaroo this year working the air-conditioned comic tent. At a press conference Sunday afternoon, Attell said he’s really here for the hippie girls, and that he likes a vegan girl who can keep him up all night talking about […]