james m. taylor senior fellow, environment policy the heartland institute jamestaylorpolicy.com...

James M. TaylorSenior Fellow, Environment Policy

The Heartland InstituteJamesTaylorPolicy.comjtaylor@heartland.org

North Korea: Every day is Earth Day!

Which Would You Choose?

Electricity Prices by State

What Are the Costs of Competing Power Sources?Source: Gilbert Metcalf, Professor of Economics, Tufts University (2007)

Levelized production costs per kWh in tax regime providing no investment preferences:Coal: 3.79Clean coal: 4.37(+ 15 %)Natural gas: 5.61(+48 %)Nuclear: 5.94(+57 %)Wind: 6.64(+75 %)Solar thermal: 18.82 (+570 %)Solar photovoltaic: 37.39 (+887 %)

Levelized Electricity Costs: 2016Source: U.S. Energy Information Administration

Levelized production costs per mWh in tax regime providing no investment preferences:Natural gas: 63.1Natural gas (with CCS) 89.3 (+42%)Coal: 94.8 (+ 50 %)Clean coal (with CCS): 136.2(+116 %)Nuclear: 113.9(+81%)Onshore Wind: 145.5 (+131%) 23%

capacityOffshore Wind: 361.8(+474%) 23% capacitySolar thermal: 311.8 (+394 %)Solar photovoltaic: 210.7(+234 %)

Federal Electricity Subsidies Source: U.S. Energy Information Administration

Will Kansas Politicians Ever Learn?Year Renewables KS Price US Price

2009 2.8 mWh 7.98 c/kWh 9.82

2010 3.4 mWh 8.35 9.83

2011 3.7 mWh 9.90

2012 DOUBLE 9.24 9.93

State-by-State Comparison

State Price % Ren KS SavingsPer KS Hs

KS 9.24 7 - -MO 8.54 1 $280 mil. $250NE 8.39 1 $340 mil. $300OK 7.52 1 $690 mil. $600

But What about Green Jobs?

Spain Economy

Beginning in 2005, when unemployment in Spain was 8.7 percent, Spain embarked on a renewable energy program designed to transform the nation’s economy. Economics professors at Spain’s King Juan Carlos University published a 2009 study showing that for every 1 “green” job created, 2.2 jobs were destroyed elsewhere in the economy. Spain’s unemployment rate has approximately tripled since Spain’s renewable energy program took effect, and now stands at 26%.

Spain Economy

In February 2012 Spain’s government announced that it can no longer afford to subsidize renewable power and is halting all subsidies.

UK Economy

A 2011 study by Verso Economics found that renewable energy mandates in the UK killed 3.7 jobs for every 1 job created.

Compare to Oil and Gas Production

Shale oil finds in North Dakota (under private lands) are fueling a oil boom in the state. North Dakota’s unemployment rate is 3%.

Texas leads the nation in oil and natural gas production. More than 40% of the nation’s job creation during the recent recession occurred in Texas.

Is China Really Eating Our Lunch?

What About Pollution?

4. Cutting U.S. Emissions Would Make Little Difference(In Million Metric Tons) Source: U.S. Energy Information Administration

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China

Wind Power

Wind Power ImpactsIntermittent and unpredictable

Land intensive - 600 sq. mi. = 1 conventional

plant

Bird kills (440,000/yr), bat kills, crops

Solar Power

Solar Power Facts and ImpactsIntermittent

Land intensive – 40 sq. mi. = 1 conventional

plant

Water intensive – 2x coal, 4x natural gas

Most economical where water is scarce

Environmental Priorities Are Determined by Subjective Preferences

Thank You, Any Questions?

James M. Taylor

Senior Fellow, Environment Policy The Heartland Institute jtaylor@heartland.org