Energy Use is a Zero-Sum Game

Posted on October 5, 2009 by Chuck Becker

When discussing global warming and attempting to calculate greenhouse gas (GHG) emissions, a fact that is frequently overlooked is that energy use is a zero-sum game. That is, most forms of machinery require an input of energy. It can be electricity for a toaster, a gas flame in a furnace or gasoline into a car. Frequently, you can change the form of the energy, say by switching from a gas furnace to an electric furnace, but you still need to produce the energy to run the furnace. If producing the electrical energy to run the furnace produces more GHGs than running the furnace on gas, then you haven’t gained anything for the GHG environment.
 

In a recent post, I said that the plug-in or all-electric car might save the world based on the fact that it has zero GHG emissions and that we have now reached the tipping point for electric cars because they are fast enough to be credible.  A concerned reader pointed out  that I had "forgotten the basic fact that all-electric cars require ELECTRICITY" and that we will "simply trade one evil for another."  My response?  In the words of  Pat Paulson, “Picky, picky, picky.”  Well, OK, maybe the point needs to be addressed.

So, do plug-in or all-electric cars have a net positive effect on reducing GHGs emissions?  Let me suggest five reasons for the answer being yes.

1. Tesla Says So

Elon Musk, the chairman of Tesla Motors, provides an analysis of how his all-electric car compares to other vehicles, assuming that the electricity is produced via natural gas fueled electrical generation. According to his analysis, the natural gas CO2 emissions in power plant production are one-quarter of the Honda Hy-brid CNG. In essence, a car engine is not nearly as efficient (at least with respect to GHG production) at creating energy as is a power station that produces electricity. I realize that he is biased, but his reasoning seems plausible.

2. Others Say So

Musk isn't alone.  The calculations are that even if the electricity is generated by coal-fired plants, the GHG reductions would be 50%.  In combination with the other advantages of the elimination of pollutants and elimination of oil dependence, that's pretty good.

 3. Wind And Solar Are Coming

Additions to coal-fired electrical generation are here and  growing. Cap-and-trade will force it. International politics will force it. Environmentalists will force it.  And for every kilowatt of electricity produced by wind or solar, the benefit of the all-electric car multiplies.

Advances are also being made in the storage of solar and wind energy through, for example, compressed air storage and improvements in batteries.

4. Action Is Already Being Taken

The ability to have a practical energy delivery system is more than just theoretical. Solar installer Solar City has built  four solar electric-car charging stations along U.S. Route 101 between San Francisco and Los Angeles. Fully charging the Tesla, which has a range of 250 miles, costs about $4.

5. What's The Down Side?

There appears to be no feasible argument that the stand-alone, gas powered engine of every car could possibly be better for the GHG environment than an engine that is electrically powered.  Even if it is a break-even scenario (which isn't supported by the facts), why would anyone be against the all-electric car?  It will always be easier to increase electrical generation at a power plant than it will be to make adjustments to every gas engine.

Now that the electric car has shown that it is more than a glorified golf cart, it is on its way.  And all indications are that it will be a significant net reduction for GHG emissions.  If so, it will be interesting to see what impact it has on the need for extensive and expensive environmental regulation.

 

RELATED POST: Global Warming and Fast Cars -- A Perfect Match
 

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The Supreme Court and the Environment: Who Did They Really Help?

Posted on July 27, 2009 by Chuck Becker

I have read, with interest, several posts that describe the most recently concluded United States Supreme Court term as being a miserable year   for environmental interests. The authors point out that of the five cases addressing the environment, all of them resulted in reversals of decisions that had favored environmentalists. Based on this scorecard, the posts are quick to label the majority of members of this Supreme Court as being hostile to the environment and pro-business. Glenn Sugameli, an attorney with the environmental group Earth Justice, went so far as to say that he believes that the Court put on “pro-business blinders.”
 

While the outcome of the cases certainly did not advance environmental interests, I find it difficult to refer to the outcomes as pro-business. In fact, in three of the cases, the Court deprived the business community of what it needs most.
 

Businesses necessarily rely upon predictability. They need to know, to the greatest extent possible, that the rules of the game are not going to constantly shift. They need to know that government will not make major changes in the regulatory scheme and that they can plan future  purchases, hiring, markets, expansion and the like on rules that are not subject to daily variation. This is critical in the area of environmental regulation where a change in the rules can shift millions of dollars in costs. Business owners understand that there will always be some changes, but they expect it to occur through a cumbersome and combative process (a/k/a Congress). In short, they hope for some level of stability. By this measure, the Supreme Court did not do business a favor during this term.
 

In my previous post relating to Entergy Corp. v. Riverkeeper, Inc., I noted that the end result was that the Court has now accorded broad deference to EPA to determine when and where the agency will employ the use of a cost-benefit analysis. In a similar vein, I noted that in the Coeur Alaska, Inc. v. SEACC case, the Court deferred to EPA’s interpretation as found in an unpublished memorandum authored by the Director of EPA’s Office of Wetlands, Oceans and Watersheds.  In both of these cases, the Supreme Court was making it clear that EPA can change the rules as it sees fit and without public comment.  In several articles written about the Coeur Alaska case, the comment was made that, although the environmentalists lost that case, there would be an easy fix by asking the present administration to take action (presumably without the need for public comment) to repeal the interpretation of the rule that allowed the Supreme Court to rule in favor of Coeur Alaska.  

In Winter v. NRDC, Inc., the Court ruled that the needs and prior practices of the Department of the Navy should receive deference. As in Entergy and Coeur Alaska, this case resulted in substantially strengthening the hand of the governmental entity.
 

Though it is an admittedly small sample, I believe that the best way to label this Court is pro-government when it comes to environmental questions. Given the complexities of environmental regulation, I can’t say that I’m surprised at the rulings which, in effect, simply defer to the expertise of the agency.  What does surprise me is that the Roberts Supreme Court believes that making federal agencies more powerful and less accountable is a good result.
 

Moreover, the impact on many types of businesses is likely going to be significant in light of the political climate. It is an understatement to say that the Obama  administration’s view of environmental regulation is significantly different  from the view held by the Bush administration. With this Court’s seal of approval, changes in EPA regulations, guidance documents and unpublished memos are going to come fast and furious. If anyone really believes that it is “pro-business” for the Supreme Court to tell EPA that it has discretion to change the rules whenever it desires and without notice or public comment, I would question their definition.
 

I believe I can safely guarantee that a change in the presidency, like death and taxes, is a certainty at some time in the future. When that happens, the rules will change yet again. And for business, the lack of certainty, or at least relative stability, is anything but “pro-business.”
 

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