Roundup is early this week because tomorrow I set off from Hobart to the far northwest and I may never be seen again. In that event Steve Kates can have all my W H Hutt and Austrian economics books.
Progress on the wind power front. Put this site in your favorites as well!
Senator MADIGAN (Victoria) (12:16): Today I am going to lift the lid on the economics of the RET scheme, while speaking on the Renewable Energy (Electricity) Amendment Bill 2015. I am going to give you the inside story on the money trail of the wind industry. This is the story that neither side in this place, nor the Greens with their wind industry fundamentalism, want you to hear.
The subsidy for renewable electricity, legislated in the REE Act 2000, is paid for by electricity consumers in their power bill. There is government modelling that discusses the effect of renewable energy on the wholesale price of electricity.
This amount is added onto consumers’ bills, with a further retailer’s margin typically between seven and 10 per cent. This increase in the retail price of electricity could be as high as 200 to 300 per cent. According to then Senator Boswell, during a Senate estimate hearing of 27 May 2010, Grant King, of Origin Energy, a very big player in this sector, said:
Aspects of RECs, such as the need to build thousands of megawatts of gas power to back up wind at a cost of billions, and expenditure on connecting wind farms to the grid will be a major factor in power price increases over the next decade.
He then said: It could be two to three hundred per cent.
When you study the states of Australia that have had dramatic increases in their household power bills in recent years you will find a direct correlation to the number of wind turbines that have been connected to the grid in those states. You will find the same correlation in European countries.
The power of people in adversity. From Pete Boettke and the team at the George Mason University.
This book should be on your “must read” list for this summer, especially as we lead up to the 10th anniversary of Hurricane Katrina and the devastation it wrought, and more importantly how individuals reconstituted their lives and their communities in the aftermath, and what policies impeded that process and what policies enabled that process. There are so many lessons to learn about self-governing democracy if you are just willing to listen to those who must live the experience.
Around the town. Hendo and the media watchdog [Updated on Friday afternoon]. The Australian Institute for Progress, (AIP) “because the future does not look after itself”. IPA HEY. The Sydney Institute. Australian Taxpayers Alliance, Quadrant on line, Mannkal Foundation, Centre for Independent Studies.
Education, accuracy in academia.
Mario Rizzo on Hayek on rationality and situational analysis.
Furthermore, this framework also shows that his fundamental conception of individual rationality is pragmatic, contextual, modifiable, and ecological. While standard neoclassical economists were axiomatizing the explicit logic of choice, Hayek was decades ahead of these economists in understanding the nature of decisionmaking outside of completely artificial worlds in which there are no cognitive limits and in which the structure of the environment is simple. This article attempts to lay the foundation for an integrated understanding of Hayek’s pragmatic rule-following rationality and the “ecological rationality”.
Dodgy work on inequality. International Liberty. Could be handy for your favorites as well.
When I wrote the other day that the Organization for Economic Cooperation and Development was the worst international bureaucracy, I must have caused some envy at the International Monetary Fund. One can imagine the tax-free bureaucrats from the IMF, lounging at their lavish headquarters, muttering “Mitchell obviously hasn’t paid enough attention to our work.”
And they may be right. The IMF has published some new research on inequality and growth that merits our attention. I hoped it would be a good contribution to the discussion, but I was disappointed (albeit not overly surprised) to see that the authors put ideology over analysis.