Will Alternative/Renewable Energy Will Alternative/Renewable Energy Resources Develop in a Free-Resources Develop in a Free-

Market Economy, or are Market Economy, or are Government Stimuli Needed?Government Stimuli Needed?

Presented by: Presented by: April LandryApril LandryDarren OufnacDarren OufnacBrian BensenBrian Bensen

OutlineOutline

FactsFacts Steady-State EconomicsSteady-State Economics Grey Area QuestionsGrey Area Questions Group Consensus on General QuestionGroup Consensus on General Question

FactsFacts USA constitutes 4.5% of the world population, yet we USA constitutes 4.5% of the world population, yet we

consume 25% of planets energy resources and emit consume 25% of planets energy resources and emit 25% of the global greenhouse gas emissions. 25% of the global greenhouse gas emissions.

In order to stabilize the concentration of carbon dioxide In order to stabilize the concentration of carbon dioxide in the atmosphere at 550 ppm (double the pre-industrial in the atmosphere at 550 ppm (double the pre-industrial amount) within the next 100 years would require amount) within the next 100 years would require cutbacks of ~70% from current levels.cutbacks of ~70% from current levels.

For USA in 2001, renewable energy generated was 5.5 For USA in 2001, renewable energy generated was 5.5 quadrillion(10quadrillion(101515) BTU of the total 97.3 quadrillion BTU of ) BTU of the total 97.3 quadrillion BTU of energy consumed or about 5.7%.energy consumed or about 5.7%.

Facts cont’dFacts cont’d 1995 numbers: 1995 numbers:

Utilities:Utilities:• 1.8¢/kWh for coal-fired plants1.8¢/kWh for coal-fired plants• 3¢/kWh for high-efficiency gas 3¢/kWh for high-efficiency gas

turbinesturbines Non-Utilities:Non-Utilities:

• 5.5¢/kWh for nonrenewable 5.5¢/kWh for nonrenewable generationgeneration

• 8.78¢/kWh avg. for renewable 8.78¢/kWh avg. for renewable generationgeneration

Older coal plants (~1940’s) escape the 1990 Clean Air Act through a congress Older coal plants (~1940’s) escape the 1990 Clean Air Act through a congress approved “grandfather” clause. It is estimated by Environmentalists to be about approved “grandfather” clause. It is estimated by Environmentalists to be about a 2¢/kWh subsidy. This is due to their lack of incorporating cleaner processes a 2¢/kWh subsidy. This is due to their lack of incorporating cleaner processes to reduce NO/NOto reduce NO/NO22 & SO & SO22 emissions. emissions.

Steady-State EconomicsSteady-State Economics In 1991 Herman Daly authored In 1991 Herman Daly authored

Steady-State Economics.Steady-State Economics. ““A sustainable society requires: A sustainable society requires:

1)1) The rate of usage of renewable resources should not The rate of usage of renewable resources should not exceed their rate of natural regeneration.exceed their rate of natural regeneration.

2)2) The rate of usage of nonrenewable resources should The rate of usage of nonrenewable resources should not exceed the rate at which renewable substitutes not exceed the rate at which renewable substitutes are found and developed.are found and developed.

3)3) The rate of pollution emissions should not exceed the The rate of pollution emissions should not exceed the assimilative capacity of earth. “assimilative capacity of earth. “

Grey Area QuestionsGrey Area Questions Is it ethical to just use “as much energy as we want” right Is it ethical to just use “as much energy as we want” right

now, just because we can?now, just because we can?

How will our behavior at the beginning of the 21How will our behavior at the beginning of the 21stst century century appear to future generations when out in a historical appear to future generations when out in a historical context?context?

Should the government tax fossil fuels so that their cost Should the government tax fossil fuels so that their cost is equivalent to truly renewable resources (e.g., wind, is equivalent to truly renewable resources (e.g., wind, solar)? solar)?

General QuestionGeneral Question

Will alternative/renewable energy sources Will alternative/renewable energy sources develop in a free-market economy, or are develop in a free-market economy, or are government stimuli needed?government stimuli needed?

ReferencesReferences COONEY, CATHERINE M. COONEY, CATHERINE M. Environmental Science and Technology. Environmental Science and Technology.

Dec. 1, 1999. pg. 495. Dec. 1, 1999. pg. 495.

Annual Energy Outlook 2003 With Projections to 2025: Overview.Annual Energy Outlook 2003 With Projections to 2025: Overview. DOE/EIA-0383(2003). DOE/EIA-0383(2003). http://www.eia.doe.gov/oiaf/aeo/index.htmlhttp://www.eia.doe.gov/oiaf/aeo/index.html

Schnoor, Jerald L. “An Environmental Challenge.” Schnoor, Jerald L. “An Environmental Challenge.” Environmental Science Environmental Science and Technology. and Technology. April 1, 2003. pg. 119 A. April 1, 2003. pg. 119 A.