See on Scoop.itThe Great Transition

“Affordable energy”… has always been a myth. Low end-user prices for energy are “affordable” only in the sense that they shift the costs to pollution victims.

“Affordable energy,” as I explained in detail here, has always been a myth. Low end-user prices for energy are “affordable” only in the sense that they shift the cost to pollution victims. Far from reducing total costs, the shift is a negative-sum game: the winners gain less than the losses suffered by those who are harmed.

The alternative would be a race to the top, in which all the major trading countries would raise energy prices to an appropriate level. Doing so in a coordinated fashion would not greatly disturb existing competitive relationships. Some sectors of the U.S. economy, like those based on gas and renewables, would gain, although coal users and exporters would probably suffer.

– See more at: http://www.economonitor.com/dolanecon/2013/11/18/could-americas-new-energy-abundance-spark-a-trans-atlantic-environmental-race-to-the-bottom/#sthash.qZT8CIvU.dpuf

“Affordable energy,” as I explained in detail here, has always been a myth. Low end-user prices for energy are “affordable” only in the sense that they shift the cost to pollution victims. Far from reducing total costs, the shift is a negative-sum game: the winners gain less than the losses suffered by those who are harmed.

The alternative would be a race to the top, in which all the major trading countries would raise energy prices to an appropriate level. Doing so in a coordinated fashion would not greatly disturb existing competitive relationships. Some sectors of the U.S. economy, like those based on gas and renewables, would gain, although coal users and exporters would probably suffer.

– See more at: http://www.economonitor.com/dolanecon/2013/11/18/could-americas-new-energy-abundance-spark-a-trans-atlantic-environmental-race-to-the-bottom/#sthash.qZT8CIvU.dpuf

“Affordable energy,” as I explained in detail here, has always been a myth. Low end-user prices for energy are “affordable” only in the sense that they shift the cost to pollution victims. Far from reducing total costs, the shift is a negative-sum game: the winners gain less than the losses suffered by those who are harmed.

The alternative would be a race to the top, in which all the major trading countries would raise energy prices to an appropriate level. Doing so in a coordinated fashion would not greatly disturb existing competitive relationships. Some sectors of the U.S. economy, like those based on gas and renewables, would gain, although coal users and exporters would probably suffer.

– See more at: http://www.economonitor.com/dolanecon/2013/11/18/could-americas-new-energy-abundance-spark-a-trans-atlantic-environmental-race-to-the-bottom/#sthash.qZT8CIvU.dpuf

Willy De Backer‘s insight:

Great article in Economonitor on how cheap energy in the States is leading to a race to the bottom. The choice should be for a race to the top, incorporating societal costs of energy into the big picture.

See on www.economonitor.com

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