EclectEcon

Many scientists are technocratic fascists at heart, and are convinced that if only they could run the economy or some part of it, instead of relying on this messy bottom-up spontaneous order we call the marketplace, things, well, would be better. The problem is that scientists, no matter how smart they are, miss with their bets because the economy, and thus the lowest cost approach to less CO2 production, is too complicated for anyone to understand or manage. And even if the scientists stumbled on the right approaches, the political process would just screw the solution up. Probably the number one alternative energy program in the US is ethanol subsidies, which are scientifically insane since ethanol actually increases rather than reduces fossil fuel consumption. Political subsidies almost always lead to investments tailored just to capture the subsidy, that do little to solve the underlying problem. In Arizona, we have thousands of cars with subsidized conversions to engines that burn multiple fuels but never burn anything but gasoline. In California, there are hundreds of massive windmills that never turn, having already served their purpose to capture a subsidy. In California, the state bent over backwards to encourage electric cars, but in fact a different technology, the hybrid, has taken off.

... If we must intervene to limit CO2, we should jack up the price of fossil fuels with taxes, or institute a cap and trade scheme which will result in about the same price increase, and the market through millions of individual efforts will find the lowest cost net way to reach whatever energy consumption level you want with the least possible cost. (The only real current alternative that is rapidly deploy-able to reduce CO2 emissions anyway is nuclear power, which could be a solution but was killed by...the very people now wailing about global warming.)

Conclusion

I would like to see some real quality discussion as to the relative merits of the path the world is on today vs. an interventionist world that is cooler but poorer, more populous, hungrier, and less politically stable. [links stripped by PowerBlogs]