Putting a price on carbon distorts all economic calculations wherever the carbon price is used1.
The higher the price on carbon, the greater the distortion.
There is no question, using accepted accounting practices, that electricity generated using coal is less expensive than electricity generated using wind, but, by assigning a price of $15 per ton of CO2 emissions, the EIA has established that electricity from wind costs the same as from coal.
Now the administration has determined that the price of carbon should be $36 per ton.
Using this new price, electricity from wind will be cheaper than electricity generated by coal — a complete distortion of economic reality.
The DOE and EPA introduced this new price when establishing guidelines for microwave ovens.
This was done without public notice or hearings. It was slipped in, under the radar, until it was noticed a month or two…
View original post 608 more words