James M. TaylorSenior Fellow, Environment Policy
The Heartland [email protected]
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 [email protected]