Jonathan Lesser

The following report by Jonathan Lesser was originally published at the National Center for Energy Analytics. You can view the original publication here. Executive Summary There is a deep problem with one of the core concepts in the rationale for regulating carbon dioxide. It’s called the “social cost of carbon” (SCC). As a concept, SCC has some theoretical merit. However, it should not be used for making energy policy choices. The SCC can vary by orders of magnitude, depending on the research model. Moreover, it is often divorced from underlying scientific or economic principles, reflecting instead the assumptions and preferences of the modelers. Yet the SCC is used to justify staggeringly expensive regulations and mandates. Set aside the ongoing debate Read More ›

Like the Jeopardy! game show, green energy subsidies have been Congress’ answer to every energy policy question. The first OPEC oil embargo of 1973-74 catalyzed decades of energy policy, including the formation of the Department of Energy. Wind, solar, and hydropower subsidies began in earnest with the Public Utilities Regulatory Policy Act of 1978. Similarly, subsidies for corn-based ethanol were enacted as part of the National Energy Conservation Policy Act of 1978. Both were designed to reduce the country’s dependence on Middle East oil. The PURPA subsidies set off a race by independent developers to construct small generating plants whose output electric utilities were required to purchase at administratively set prices. In some cases, the subsidies were independent of how much Read More ›

As state and federal policies mandate the electrification of virtually all end uses to reduce carbon emissions from fossil fuels. For example, 18 states have adopted California’s Advanced Clear Car II rules requiring increasing percentages of new vehicle sales to be EVs, reaching 100% for the 2035 model year. In 2019, New York City enacted Local Law 97, which requires all residential buildings larger than 25,000 square feet to convert to electricity by 2035. Other states, such as New Jersey seek to convert all residential heating to electricity. Together, mandates for electric vehicles (EVs) and electrification of space and water heat will likely double electricity consumption and peak demand. Coupled with policies that mandate supplying the nation’s electricity with zero-emissions resources, notably intermittent Read More ›

Long viewed as a playground for environmentalists, Vermont has jumped the climate change shark with its new Climate Superfund law. If not halted by judges who reject its dubious legal basis, this shark promises to deliver a severe blow to the state’s economy that will harm the “ordinary Vermonters” proponents claim the law will help. The new law is modeled after the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, which created a “Superfund” to clean up hazardous waste sites. Under the original Superfund law, companies and any predecessors that dumped hazardous wastes are required to pay the actual cleanup costs for those sites.  In contrast, under the Vermont law, U.S. fossil fuel producers and their successors — companies Read More ›

Forty-two was the mystical number that explained “life, the universe, and everything” in Douglas Adams’ comic novel, The Hitchhiker’s Guide to the Galaxy. Today, another mystical number, the so-called social cost of carbon (SSC), is providing the excuse for the Environmental Protection Agency and green-energy-enamored state regulators to enact crippling energy policies. The SCC is the thumb on the scale that can justify virtually any policy aimed at eliminating fossil fuels. When the EPA first proposed its rule to reduce mercury emissions from coal-fired power plants, the agency’s cost-benefit analysis determined the benefits would be minuscule. Any putative benefits, it turns out, would come instead from reductions in carbon emissions and, here’s the key, based on a calculated value for the SCC. The Read More ›