American Elephants

Chris Horner of the Competitive Enterprise Institute points out the disaster currently in the works in Europe. European Greens have pushed for carbon-dioxide (energy) rationing to — of course — “save the planet.” This is a climatically meaningless, job and competitiveness destroying, silly feel-good gesture.

The Times (London) reports that energy regulator Ofgem has warned of power blackouts and spiraling consumer prices, and raised the prospect of partial renationalisation of the industry in order to maintain the U.K.’s energy security.

The Chief Executive of Ofgem, said that the crisis has been exacerbated by the impact of the recession on energy industry investment, Britain’s growing reliance on imported gas as North Sea supplies are depleted, and the closure of 9 aging coal-fired and oil-fired power stations by 2015 in order to meet EU pollution laws.  That move will scrap nearly a third of Britain’s generating capacity.

EU targets for cutting “greenhouse gas emissions” and developing “renewable” energy will create a huge demand for investment over the next decade.  The most ambitious plans call for £200 billion for renewable energy, and would mean doubling the size of investment over the past decade.

The EU’s emissions trading scheme (cap-and-trade) is not working. It is not actually designed to reduce emissions, and when you add on the offset schemes that politicians cannot resist, the opposite will occur.

Ann Robinson of the price-comparison website said energy bills could reach around £5,000 by 2020 in order to cover the required investment.

Members of Congress suggest that “We’ll just avoid Europe’s problems.” Chris Horner says that if you know how to avoid Europe’s mistakes, please phone Europe.  They have no idea what to do.