Costs of Fighting Global Warming

I was inspired to weigh in again on the issue of global warming by an article titled “Post-coal Pueblo left out in the cold” by Lydia DePillis of the Washington Post. Under the headline there is a picture of Pueblo resident Sharon Garcia who “…doesn’t allow lights to be left on in rooms that aren’t being used.” She had her power shut off in 2010, and is constantly struggling to make ends meet running a day care center. She is struggling with paying her electricity bill because the residential rate per kilowatt hour has increased 26 percent since 2010.

The reasons for the increase are complex, and I suggest you read the entire article. The impact of regulatory requirements on utility companies is what attracted my attention. A big part of the problem is caused by “…coal plants shutting down as Colorado transitions to renewable energy.” Black Hills Energy provides power to Pueblo, and Colorado’s 2010 Clean Air—Clean Jobs act caused them to shutter three older plants that would have been too expensive to overhaul. Utility regulators guarantee Black Hills an 8.53 percent return, which gives it an incentive to close nearly all of its relatively inexpensive coal capacity, build new plants, and pass the costs to consumers.

Black Hills has slashed incentives for installing rooftop solar panels. That has squeezed solar panel providers and makes “…it nearly impossible for those who bought large solar arrays over the past few years to recoup their investment.” Black Hills has invested in wind energy because it can sell that energy. The person who has solar panels on their rooftop is no longer a customer.

This is just the start of this issue. The EPA has proposed regulations that are expected to force closure of hundreds of coal-fired plants nationwide in the next few years. There will be more stories of people struggling to pay their electric bills. Higher energy costs will impact the bottom line of businesses and probably will cause others to rethink opening a new business. People who aren’t living paycheck to paycheck probably aren’t yet worried about the financial costs, but they should be.

I hope the regulators begin asking themselves how much what has been done and what is proposed will help control global warming. The United States has cut carbon dioxide emissions markedly in recent years, and will continue to do so. The developing world is building coal-fired plants at a rapid rate, and is more than overcoming what the U.S. has and can do.

A smart friend has promised me a summary of his calculations on the matter. As I understand what he has surmised is that the elimination of all carbon dioxide emissions in the U.S. with the exception of what we and other animals exhale will result in a less than one degree reduction in global warming. That means no home heating, cooling, or cooking unless you have a windmill in your back yard or a solar panel on your roof. Of course those won’t work if the wind isn’t blowing and it is cloudy or night. You won’t be able to recharge your electric car or cell phone unless all power production is replaced by wind, solar, or hydroelectric plants. Maybe the desperation of sitting at home in the dark without a job and wondering how to cook food would cause people to rethink their opposition to nuclear, but I doubt it.

2 thoughts on “Costs of Fighting Global Warming

  1. For years I have been telling anyone who would listen, and quite a few who wouldn’t, that the question of human-caused climate change is and has been moot. Regardless of which set of data you decide to take as gospel, the real “inconvenient truth” is this: Bringing total global carbon emissions down enough to satisfy the doomsayers would not only set the world economy back to the 19th century, it would require a summation of international will that would make Allied mobilization against the Nazis look like a boy scout jamboree. Think that’ll happen?

    If, and it is still if, the worst case warming scenario does materialize our only chance to survive, let alone maintain anything close to our present lifestyle, is to find ways to live with climate change rather than wasting our time and resources trying to stop it.

    • There are rational mitigations – one I think makes sense is to stop encouraging homes in flood-prone areas with taxpayer subsidized insurance. But I also think that to continue pumping heat into a warming globe will be self-defeating – at some point there is a balance between benefits to us today and costs in the future. The public debate seems stuck on CO2, which is not the only approach that should be discussed.

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