Mastodawn

Zane Selvans Jul 4, 2024

Thinking about "The Price is Wrong" and the profitability gap between renewables and fossil fuels, I'm reminded of Daniel Yergin's book "The Prize" and how historically, the oil industry has only been profitable when a cartel is in power.

First it was Standard Oil, then the Texas Railroad Commission, and for my entire life: OPEC. But there *is* no renewables cartel so it's race to the bottom. Which is how capitalism is *supposed* to work.

https://www.volts.wtf/p/are-markets-the-right-tool-for-decarbonizing

Are markets the right tool for decarbonizing electricity?

In his book The Price Is Wrong, Brett Christophers argues that, contrary to recent economic triumphalism among renewables advocates, wind and solar are not profitable enough to attract the private capital necessary to scale as fast as they need to scale. He and I dig deep (extremely deep) into the details.

Volts

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Zane Selvans Jul 11, 2024

Just started reading #ThePriceIsWrong and it strikes me that the core argument that the desire for renewable energy to be cheap through competition is fundamentally in tension with the need to attract investment by offering a profit margin rhymes with this classic post by @danielkayhertz on why housing can't be both affordable and a good investment.

#books #EnergyTransition #ClimateChange #Economics #Housing

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Zane Selvans Jul 11, 2024

Also, is it reasonable to try and scale one industry through policies that encourage or even enhance competitive pressures, driving prices down, while allowing monopolies to consolidate and extract rents in other industries? Seems like smart money would make have an obvious choice.

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Zane Selvans Jul 11, 2024

The Energy Gang also reviewed The Price Is Wrong, alongside @akshatrathi's Climate Capitalism a while back (though Climate Capitalism didn't get much airtime unfortunately!)

https://www.woodmac.com/podcasts/the-energy-gang/can-capitalism-save-the-planet/

Can capitalism save the planet? | Wood Mackenzie

Can capitalism save the planet? Join Ed Crooks, Melissa Lott and Joseph Majkut as they debate the role of private investment in tackling climate change. Discover contrasting perspectives in

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Kevin Leecaster

@ZaneSelvans @akshatrathi
There's a big difference between cheap solar and batteries versus cheap oil and methane in that individuals can more easily install solar and batteries than dig their own wells into productive reservoirs of fossil fuels though too.