Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts

Tuesday, July 2, 2013

Nuclear is Green

Writing in The Guardian, George Monbiot has an excellent argument about why the Fukushima disaster has led him to strongly support nuclear power as a green technology. As he explains,
A crappy old plant with inadequate safety features was hit by a monster earthquake and a vast tsunami. The electricity supply failed, knocking out the cooling system. The reactors began to explode and melt down. The disaster exposed a familiar legacy of poor design and corner-cutting. Yet, as far as we know, no one has yet received a lethal dose of radiation.
 
Some greens have wildly exaggerated the dangers of radioactive pollution. For a clearer view, look at the graphic published by xkcd.com. It shows that the average total dose from the Three Mile Island disaster for someone living within 10 miles of the plant was one 625th of the maximum yearly amount permitted for US radiation workers. This, in turn, is half of the lowest one-year dose clearly linked to an increased cancer risk, which, in its turn, is one 80th of an invariably fatal exposure. I'm not proposing complacency here. I am proposing perspective.

[...]

Before coal became widely available, wood was used not just for heating homes but also for industrial processes: if half the land surface of Britain had been covered with woodland, Wrigley shows, we could have made 1.25m tonnes of bar iron a year (a fraction of current consumption) and nothing else. Even with a much lower population than today's, manufactured goods in the land-based economy were the preserve of the elite. Deep green energy production – decentralised, based on the products of the land – is far more damaging to humanity than nuclear meltdown.

But the energy source to which most economies will revert if they shut down their nuclear plants is not wood, water, wind or sun, but fossil fuel. On every measure (climate change, mining impact, local pollution, industrial injury and death, even radioactive discharges) coal is 100 times worse than nuclear power. Thanks to the expansion of shale gas production, the impacts of natural gas are catching up fast.

Yes, I still loathe the liars who run the nuclear industry. Yes, I would prefer to see the entire sector shut down, if there were harmless alternatives. But there are no ideal solutions. Every energy technology carries a cost; so does the absence of energy technologies. Atomic energy has just been subjected to one of the harshest of possible tests, and the impact on people and the planet has been small. The crisis at Fukushima has converted me to the cause of nuclear power.

I also sympathize with a lot of the concerns of the greens, and I strongly believe that we must move to a more sustainable form of energy over the next several decades. To accomplish this lofty goal, we cannot ignore human nature. As Mark Lynas explains in The God Species, human beings evolved to depend fully on external energy sources for protection, comfort and food. Just as uranium serves a distinct purpose within the earth, so do trees, oil and coal. The latter three we burn prodigiously, upsetting the earth's carbon cycle and polluting the planet. These substances play a distinct role in the environment by capturing carbon and toxins beneath the earth. We've clearly upset it.

We can see how toxic petrocarbons are without even getting into global warming. Burning coal, for example, spreads mercury and other toxins all throughout the biosphere. We find fish and other animals all throughout the world who have been deformed and poisoned by the mercury released by coal. If you don't care much about fish, look at China. The country is facing an epidemic of asthma and other respiratory diseases due mostly to its massive reliance on coal.

Given the damage that our energy reliance has already caused, we have little choice. We must accept our flaws as a species and find ways to make our energy reliance less dangerous. While images of atomic explosions would lead you to conclude otherwise, civilian nuclear technology is surprisingly safe. The UN commissioned report on the effects of Chernobyl, the largest nuclear disaster ever, lists the death toll around 9000. Other nuclear events have much lower casualty rates. According to the WHO, not a single person has died from radiation exposure since the Fukushima event, and at most, two people died because of Three-Mile Island. More people die of respiratory diseases related to pollution each week in China than the total number of people that died from these three major accidents combined. That's only one country, which goes to show the massive scale of the problem that we already face.

We need to adopt cleaner technologies, and we need to do it with a clear understanding of the risks. We have been willing to accept terrible costs for energy dependence because of people's inborn laziness to settle for the status quo. Unfortunately, this is a recipe for disaster. People are already contributing to the greatest mass extinction event since the end of the dinosaurs, and our demands from the planet will only grow over the next century.

Yes, nuclear fallout is scary. This is a positive, since it makes us even more wary of the consequences of screwing up. The nuclear power industry has not had a single accident in the 30 years since Three Mile Island. This is a clear sign of diligence and the relatively strong grasp of a still imperfect technology. But even better nuclear technologies are coming very soon, and this includes the ability to recycle spent fuel from older reactors. Like it or not, these technologies will eventually be the key towards ending our dependence on carbon and finding a more healthy and sustainable relationship with our planet.

Wednesday, January 26, 2011

Oil, taxes and the real costs of fossil fuel consumption

Debates over climate change often involve both sides pulling up very different data when it comes to the taxes on oil companies, and this post is an attempt to sort all of this out. Part of this comes from my belief that neither side's data is tainted. I could easily be wrong with this, since the original source of my data often comes from a climate study institute. If you buy that the numbers are fair, a little digging is necessary if we're going to figure out how fairly our tax system treats oil companies.

More importantly though, I'm trying to answer some larger questions: Should we use taxes to make fossils more expensive than other energy sources, and is our tax code currently preventing us from doing that? It's impossible to answer these questions unless we have a full understanding of what oil actually costs the American people.

Scope of usage

This comes up in different ways. In this report from the Tax Foundation that's been making the rounds recently, the study encompassed subsidies/ tax breaks to companies receive to produce electricity. Crude oil goes to a lot of different sources, and one of the big gaps in looking at oil consumption is gasoline.

Gasoline has some interesting tax elements to it. Favoring oil companies is the depletion allowance. There are good arguments both for and against this allowance, but this can and should be considered a tax break for oil and mineral companies. That's not considered in Thomas' data.

On the other side of things, there's also a lot of tax breaks for increased efficiency and buying cars with higher gas mileage.  I'm not sure if my data encompasses this as "green tax breaks." But they should be considered that.

So just taking those two, both sides are probably underestimating tax incentives given to oil companies and money going towards green technology. And these are two examples; thousands of more exist.

Scope of operations

One of the big issues in our debate is the scale of operations of some of the companies we are looking at. Thomas perfectly correct (and I am wrong for generalizing) when he says that American oil companies do invest a lot in communities, create jobs and contribute a large amount of money to governments.

My criticism has been of international oil corporations, and Exxon Mobile in particular. The supermajor oil producers can hardly be considered American companies. Exxon, for example, conducts most of its business outside of the US, where it pays taxes, but its sizable American revenue is not taxed here. This is a specific case, not reflective the of the industry as a whole, but still a problem.

Also, when looking at the supermajor's tax expenses, they are granted a specific tax credit for having foreign operations. This is supposed to prevent double taxation (I'm tax exempt in the US because of it), but many people (probably all on the left, but whatever) have pointed out that this is exploited by oil companies to avoid taxes altogether. Essentially, they use this to declare revenues in the most tax friendly environment, and that seems to be not the US. This kind of stuff is definitely not included in the report Thomas published.

Economies of Scale

Part of the reason that you should definitely have higher subsidies for an emerging industry like renewable energy is that the cost of production goes down the larger the industry gets. This is a part of every economics class and called economies of scale. From a policy standpoint, subsidizing heavily now will pay big dividends later on, since a larger renewable industry will produce electricity much more cheaply on a per unit basis than a smaller one.

Economies of scale also give oil companies a barrier against competition from other forms of energy. Since they benefit largely from being in a highly developed industry, companies that focus on renewables must spend much more on investment to compete. It gives oil basically a natural monopoly in energy markets.
Externalities

The full price of oil is not just what we pay at the pump. It also includes all of the other costs that a fossil fuel based economy forces us to endure. In particular, this includes pollution clean up and the effects of global climate change.

While oil companies pay when there's an oil spill (partly), no one pays for the pollution created when oil is consumed. Because there is a cost associated with this pollution, it is necessary for government to increase the cost of oil to offset this cost. If you compare oil taxes in the US to those in other countries, it seems clear that we are not fully accounting for all of the other costs that burning fossil fuels brings. This is strong justification for taxing oil companies and oil consumption more than the taxes in other industries.

In fact, increasing the cost of oil now in order to limit the effects of global climate change will actually be more economically efficient in the long run.
A world without oil

All things being equal, if you could derive all of the world's energy without using a drop of oil, would you? For me it's an easy decision. Oil is a dirty fuel, whose emissions are poisoning our atmosphere and whose profits go to supporting corrupt regimes around the world that actively seek the destruction of our country. When talking about oil's role in the US energy mix, you cannot ignore the fact that OPEC accounts for 45% of global oil production, generating more than 700 billion dollars a year. Cutting US oil consumption means going after the oil that these countries produce. Americans oil companies will likely always have a large market for their product here.

If, for example, the US was not oil hungry, we would have never needed to invade Iraq, as Sadam's regime would have had no material base to stand on. A huge portion of US security spending goes towards Middle Eastern countries, which is something we simply wouldn't have to do if we didn't depend so much on the supply of foreign oil. While everyone is celebrating the recent events in Egypt, let's not fool ourselves into believing that the Saudis are one iota better or that the US doesn't a key role in keeping this brutal regime in power.