American Elephants

Matt Ridley, On The Greening of the Planet. by The Elephant's Child

This video is a year old this month, but the very clear message seems not to have reached the true believers, so I’m re-posting it.  Apple CEO Tim Cook has just told global warming skeptics to “get out of this stock.” In essence, he told every Apple shareholder to take a hike and waved away any potential investors.

When Mr. Cook met with shareholders on Friday, a group proposed that the company be more open about its environmental activism and more transparent about the costs it incurs as it increases its dependence on renewable energy. “If you want me to do things only for ROI (return on investment) reasons, you should get out of this stock,” he said.

What he was saying is that profit is overrated, and if you aren’t interested in a warm feeling from political activism, you are misdirected. Cook succeeded Steve Jobs in 2011, and Apple has gone for fighting global warming in a big way, tripling the use of renewable energy for its offices to 75%, The goal is to go 100% renewable.

Unfortunately, comparing costs is interesting. The cost per megawatt hour of a new natural gas power plant averages $66, while the tab for wind is $96, and solar photovoltaic $153, and solar thermal $242. It not only costs way more, it doesn’t do anything whatsoever to stop the natural warming and cooling of the planet. And you may have noticed that cooling is the current mode. There has been no warming for over 17 years.

European countries are becoming aware of the vast drag on their economies from their investment in “renewable” energy. Germany is realizing that its Energiewende — its radical energy policies — cost taxpayers €22 billion last year alone, making businesses uncompetitive.

True believers aren’t interested in facts, but are hell-bent on saving the planet. It’s a religious belief, and it’s adherents are cult-like in their devotion.

Over the past three decades, our planet has gotten greener!

Even stranger, the greening of the planet in recent decades appears to be happening because of, not despite, our reliance on fossil fuels. While environmentalists often talk about how bad stuff like CO2 causes bad things to happen like global warming, it turns out that the plants aren’t complaining.


Europe Is Facing A Self-Inflicted Crisis. Sometimes You Have to Learn the Hard Way! by The Elephant's Child

Country after country in Europe is abandoning, curtailing or reneging on once-generous support for renewable energy. Green dreams are giving way to hard economic realities. In a time of straightened budgets and recession, they are beginning to recognize that their ill conceived projects have been a self-inflicted economic and political debacle.

A study by British public relations consultancy CCGroup analysed 138 articles about renewables published during July last year in the five most widely circulated British national newspapers: The Sun, the Times, The Daily Telegraph, Daily Mail and Daily Mirror, which have a combined daily circulation of about 6.5 million.

The study found a number of trends in the reporting of news about renewable energy. The media’s sentiment toward the renewable industry was cold. More than 51 percent of the articles published were negative or very negative toward the industry.

EU member states have spent about €600 billion  ($882 billion) on renewable energy projects since 2005, Germany’s green energy transition alone may cost consumers up to €1 trillion by 2030. These billions of Euros are being paid by ordinary families in what is certainly one of the biggest wealth transfers from the poor to the rich in modern European history. Rising energy bills are dampening consumer spending, a poisonous development  for a Continent struggling with a severe economic crisis.

Germany has Europe’s most expensive electricity at 26.8 euro cents a kilowatt hour. Angela Merkel has warned that the rapid expansion of green energy is weakening Germany’s competitive advantage in the global economy. More than half the world’s solar panels are installed in Germany, meeting almost 40 percent of the nation’s peak electricity demand. But during many weeks in December and January, Germany’s 1.1 million solar power systems generated almost no electricity.  Solar panels just stopped generating, and Germany had to import nuclear energy fro m France and the Czech Republic.

Siemens, one of Germany’s biggest companies is abandoning the industry. They  announced in June that they are closing the entire solar division, at a loss of about €1 billion. Last month they fired the chief executive. Interestingly, as I was writing this I was startled to hear a commercial extolling the wonders of solar energy — from Siemens. They’re going to unload their excess stock on us?

One of the unintended consequences of Germany’s Energiewwende has been that preferential treatment for wind and solar has meant that natural gas plants have become unprofitable, and are being mothballed. Governments are not successful in picking winners and losers, Competition and the free market will do a far better job of directing investment. Government subsidies simply suppress the information that the marketplace is trying to send.

Would someone please explain this to President Obama?

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