Posted on 04/29/2009 3:54:12 AM PDT by Scanian
Clean energy and federal standards are hot topics in the nation's capital these days. One issue tossed around by policy wonks is the possibility of creating a national standard for how much electricity must be obtained from renewable resources.
However, any consideration of a federal renewable electricity standard (RES) must start with a basic truth about energy production and usage: Markets talk; mandates shock.
Take a look at the federal mandate to add ethanol to gasoline. Most people (except those in Congress) agree it helped lead to last year's global food-price explosion while also degrading the environment. Not to mention that it drove overall energy prices higher because of the additive's relative inefficiency.
Contrast that mandate to the market's response last year to high oil prices. Energy use dropped dramatically - consumers drove about 3.6 percent less last year in the United States alone - helping push down oil and natural gas prices, and thereby emissions.
But as shocking as most mandates are, few could produce more of a jolt to consumers, businesses and entire regions of our country - while delivering fewer of the intended benefits - than the renewable-electricity standards being considered in Congress.
Proposed bills would require generation of 20 percent to 25 percent of electric power from renewable sources by dates ranging from 2020 to 2025. Their problems begin with how to define a renewable source.
Most proposed mandates omit existing production of large-scale hydroelectric power, nuclear power and clean coal.
(Excerpt) Read more at washingtontimes.com ...
Bump
When are they going to start making sacrifices?
Pray for America
Forbes is the keynote speaker at “The Money Show” in Vegas in a 10 days.... looking forward to it.
bump
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