Climate Technology

No particular policy instrument is appropriate for all environmental problems

I introduced my previous post by noting that there are several prevalent myths regarding how economists think about the environment, and I addressed the "myth of the universal market" ­-- the notion that economists believe that the market solves all problems. In response, I noted that economists recognize that in the environmental domain, perfectly functioning markets are the exception, not the rule. Governments can try to correct such market failures, for example by restricting pollutant emissions. It is to these government interventions that I turn this time.

A second common myth is that economists always recommend simple market solutions for market problems. Indeed, in a variety of contexts, economists tend to search for instruments of public policy that can fix one market by introducing another. If pollution imposes large external costs, the government can establish a market for rights to emit a limited amount of that pollutant under a so-called cap-and-trade system. Such a market for tradable allowances can be expected to work well if there are many buyers and sellers, all are well informed, and the other conditions I discussed in my last posting are met.

The government's role is then to enforce the rights and responsibilities of permit ownership, so that each unit of emissions is matched by the ownership of one permit. Equivalently, producers can be required to pay a tax on their emissions. Either way, the result -- in theory -- will be cost-effective pollution abatement, that is, overall abatement achieved at minimum aggregate cost.

The cap-and-trade approach has much to recommend it, and can be just the right solution in some cases, but it is still a market.

Electronics industry takes own temperature at Greener Gadgets

Hm. Where are all the gadgets at the Greener Gadgets conference, a one-day acronym festival -- EPEAT, ROHS, LCA, anyone? -- covering topics from e-waste recycling to the economic benefits of going green. I was expecting to see cell phones crafted of discarded water bottles or a smog-powered BlackBerry. At least they've got the photovoltaic backpacks.

Mostly, the exhibitors' hall and panels include an odd amalgam of entrepreneurs and industry analysts, makers and regulators, who are far less focused on the gadget itself than on where it comes from and where it goes on its cradle-to-cradle journey through the world. "We need to focus on the system, and not just on the gadget," said Intel's Director of Environment and Energy Policy Stephen Harper.

They're just as focused on where the gadget goes to die, an integral part of said system. As keynote speaker Saul Griffith, co-founder of Squid Labs and Makani Power, told us, "There's no 'away' to throw something anymore -- we know where everything goes."

Tips for landing a green job

Ah, the daily grind: An endless progression of dreary days with that pathetic guy in the next cubicle who spends half his time complaining and the other half in loud personal conversations for which the phrase “too much information” was invented. And that boss of yours? One shudders. But fear not. You can remake your […]

Survey finds Americans still want earth-friendly products during recession

A survey released Wednesday confirms that Americans remain interested in buying environmentally responsible products even during the recession. Conducted by Boston communications firm Cone Inc., the finding is the latest in a string of surveys drawing cheery conclusions about green spending. According to Cone, about 34 percent of 1,087 adult consumers said they are more […]

Farmers take the hit as the CAFO model comes under pressure

In Meat Wagon, we round up the latest outrages from the meat and livestock industries.

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The industrial meat giants have entered a crisis phase.

As I've reported before, the world's biggest chicken packer, Pilgrim's Pride, is languishing in bankruptcy, squeezed by high feed costs, its own addiction to cheap capital from Wall Street, now dried up, and ruthless competition from rival Tyson. Facing a similar situation, Smithfield Foods, the globe's biggest pork packer and hog producer, announced it's shuttering six plants and hacking away 1,800 jobs.

Pilgrim's Pride has deftly used its bankruptcy to shunt much if the pain onto the backs of its farmer-suppliers, The Wall Street Journal reports (see extremely interesting related video). The article shows the massive risks required of the farmers who supply the nation with meat. Get this:

An interview with Mia MacDonald on China's growing appetite for U.S.-style meat production

Old MacDonald had a farm -- one resounding with oinks and moos and squawks. By today's standards, the old man's farm would count as a model of biodiversity. Researcher Mia MacDonald points out that across the planet, old ways of farming are giving way to the environmentally devastating factory farms we've pioneered in the West -- typically housing a single species of animal, confined by the thousands in conditions that would be alien to Old MacDonald's pigs and cows and chickens. For modern industrial-scale animal farms, the proper literary form is the scathing environmental report, not the children's ditty.

At Brighter Green, an action think tank that helps advocacy groups take informed action through research and analysis, MacDonald is currently at work on a series of case studies on the spread of factory-style farming across the globe. She's cutting straight to the chase: China, the world's biggest nation, is the subject of the first case study.

I caught up with Mia to discuss Brighter Green's new report, "Skillful Means: The Challenges of China's Encounter with Factory Farming" [PDF], which delves into China, meat, and the connection with our climate.

A zero-emission bus tours California, Toyota flirts with ethanol, and more green auto news

Thursday in San Francisco, it was easier to get an electric bus than an electric car. Proterra, a commercial hybrid- and electric-vehicle manufacturer in Golden, Colo., finished its weeklong California clean bus tour in the city by the bay. The sleek EcoRide BE35 climbed the hills of San Francisco, flaunting its environmental and fiscal charms […]

Computer maker expands recycling efforts

PC giant Dell today continues its campaign to be the world’s greenest technology company by rolling out a pair of new recycling programs. The company is adding six states to its partnership with Goodwill Industries that lets customers drop off unwanted electronic devices for recycling at Goodwill retail stories. The network of 1,100-some collection points […]

ITC to build $12B in wind farm power lines, JCSP study finds $50B savings from wind

Wind power is coming of age as the U.S. becomes the global wind leader and probably the biggest source of new jobs in the energy industry.

ITC Holdings announced Monday plans to build a $10 to $12 billion power transmission network to move 12,000 megawatts of electricity from the Dakotas, Minnesota, and Iowa to the Chicago area.

ITC called the plan, depicted above, the Green Power Express, saying it could:

result in a reduction of up to 34 million metric tons of carbon emissions, which is equivalent to the annual emissions of about seven to nine 600 MW coal plants.

ITC made its announcement the same day a major study, the Joint Coordinated System Plan, was released by the Midwest grid operator and other U.S. regional grid managers was released. It concluded that to increase wind power to 20 percent of electricity production by 2024 (requiring some 230 GW of wind) would require some 15,000 miles of new transmission costing $80 billion. The total cost of the wind would be some $1 trillion.

The WSJ reports this as "New Grid for Renewable Energy Could Be Costly." But in fact the study found that "increasing wind's share to 20 percent of U.S. power production would yield annual net savings of $12 billion annually by 2024 based on wind's low production cost compared to the fossil plants the turbines would replace," as Energy Daily (sub. req'd) explained.

Moreover, JCSP projects that the 20 percent scenario would save 3 billion tons of carbon over the next 16 years, which would generate in 2024 an annual value of some $40 billion a year at carbon prices comparable to that which the European Union has seen over the past year -- and several times that if the price of carbon to reaches levels needed to stabilize at 450 ppm.

One reason I say wind power has come of age is because the announcement and the study don't come from your traditional pro-wind trade groups or think tanks. Far from it.

FCC and FTC need to hold 'clean coal' ads accountable to reality

As viewers of PBS and the major network and cable channels know too well, the onslaught of "clean coal" advertisements over the past year has reached a tipping point. In the face of the actual news headlines, the relentless barrage of television daydreams about coal's zero carbon dioxide emissions and the coal industry's fanciful role in environmental protection and job security seem more like bad reruns from the era of "Father Knows Best" than any hope for a clean energy future.

"Clean" coal? How about a little truth in advertising? Perhaps it's time for the Federal Trade Commission or Federal Communications Commission to hold the coal industry's public relations campaign to acceptable standards.

Don't they watch the news?

In the last month alone, viewers have had to juggle the reality of news reports on toxic coal ash spills in Tennessee and Alabama, coal waste-polluted watersheds in West Virginia and Illinois, mining accidents and coal dust explosions in Kentucky and Wisconsin, mountaintop removal and devastated communities throughout Appalachia, tragic strip mining on Native lands in Arizona, and several state initiatives to halt the construction of carbon dioxide and mercury emission-spewing coal-fired plants. And the state of Montana, like the U.S. Air Force, just shot down proposals for the coal-to-liquid boondoggle.

The news ain't over.