Archive for economy

Words of Wisdom from Eisenhower

In the 1950s, our home was in the Stevenson camp. We didn’t Like Ike for president. Although he was undoubtedly a war hero, as a Republican, he seemed to represent big business at the expense of the rest of us – the working people. We were a union household, and back then working people were loath to trust the rich and powerful. After all, American history (in fact, world history) is full of hundreds of years of the rich sacrificing the working people to maintain their wealth and power.

Anyway, we didn’t like Ike as president. But, today, he seems like a hero, compared to many of the feeble and corrupt-minded people currently in power. In the years that followed, I’ve found myself quoting Eisenhower’s Farewell Address. That’s where he refers to the dangers of our then new, military industrial complex. Ike was prescient, for today, much of our foreign policy and our nation’s domestic spending priorities are warped to keep this military industrial complex functioning. We don’t have money to combat climate change. There are no funds to improve education or health care. But we never run out of funds to bomb another country.

I recommend reading this remarkable address, and comparing the words of this exemplary military leader to those we must hear (or read) from our government today. Where are those political leaders when we need them?

Energy Efficiency Saves Billions in Maryland

Baltimore, MD—Maryland electric customers will save more than $4 billion due to energy efficiency improvements made at homes and businesses through a successful Maryland program, according to a first-of-its-kind study from the American Council for an Energy-Efficient Economy (ACEEE). The study, co-authored by a former Maryland Public Service Commission energy analyst, highlights how the first phase of EmPOWER Maryland has yielded substantial economic growth and environmental benefits across the state.

EmPOWER Maryland, enacted in 2008, created energy efficiency programs that are offered through the state’s five largest electric utilities. The program helps homeowners and businesses save energy, partly by offering incentives and technical assistance for adding insulation, sealing air leaks, and installing more efficient appliances. It also facilitates efficient commercial lighting and other improvements at industrial facilities.

ACEEE’s study reveals that EmPOWER Maryland has produced significant benefits, including:

  • More than $4 billion in savings in total customer bills over the life of the improvements, which were made between 2008 and 2015;
  • $1.81 in benefits for every dollar spent on energy efficiency measures as a result of lower wholesale prices for energy, savings from reduced need to build new power plants and power lines, reduced air pollution, and reduced need for electricity production;
  • Total lifetime energy savings of more than 51 million megawatt hours, equivalent to the electricity used by 850,000 residential customers over five years;
  • Reduced emissions of nearly 19 million metric tons of carbon dioxide, more than 34 million pounds of nitrogen oxides, and nearly 78 million pounds of sulfur dioxide over the lifetime of the programs.

The full study can be viewed at: http://aceee.org/research-report/u1701

“EmPOWER Maryland is an unqualified success story for the state,” said Brendon Baatz, study co-author and utilities policy manager at ACEEE. Yet despite its achievements, Baatz believes the program’s future is not guaranteed: “With Phase One of the program complete, Maryland regulators must now renew their support for EmPOWER Maryland so that consumers and businesses can continue to reap the benefits of lower utility bills and cleaner air.”

“EmPOWER has proven critical for helping us improve the energy efficiency of our affordable multifamily properties, which lowers utility costs and provides healthy homes for our residents” said Trisha Miller, sustainability director for WISHROCK. “At Windsor Valley Apartments, EmPOWER helped fund efficiency improvements that are expected to reduce utility bills by as much as 20% per year. Without EmPOWER, the upfront costs of making these upgrades can be prohibitive in the affordable housing industry.”

The first phase EmPOWER Maryland aimed to reduce per capita electricity usage 10% and peak electricity demand 15% by 2015. The Maryland Public Service Commission, in its annual report to the legislature in 2015, concluded that state utilities achieved 99% of the per capita consumption goal and 100% of the per capita demand reduction goal.

Due in part to the EmPOWER Maryland program, Maryland now ranks as the ninth most energy-efficient state in the nation, according to ACEEE.

Nobel Economists Supports Children’s Climate Suit

Joseph Stiglitz writes in a court brief that fossil fuel-based economies impose ‘incalculable’ costs on society and shifting to clean energy will pay off.

One of the world’s top economists has written an expert court report that forcefully supports a group of children and young adults who have sued the federal government for failing to act on climate change.

See Our Children’s Trust to learn about this important effort.

Joseph Stiglitz, who was awarded the Nobel Memorial Prize for economics in 2001 and has written extensively about environmental economics and climate change, makes an economic case that the costs of maintaining a fossil fuel-based economy are “incalculable,” while transitioning to a lower-carbon system will cost far less.

The government, he writes, should move “with all deliberate speed” toward alternative energy sources.

Stiglitz has submitted briefs for Supreme Court cases—and normally charges $2,000 an hour for legal advice, the report says—but he wrote this 50-page report pro bono at the request of the attorneys representing the children. It was filed in federal district court in Oregon on June 28.

He is one of 18 expert witnesses planning to testify in the case, scheduled for trial later this year, the children’s lawyers said.

Read more…

Does Renewable Energy Increase Electricity Costs?

By Daniel Fleischmann, Renewable Energy World

Since the big push from the U.S. government for investment in renewable energy in 2009, we’ve had the opportunity to see how prices have changed between states that have made large investments in renewable energy, and those that have not.

Critics of renewable energy investment say that renewable energy will never be as cost-effective as fossil fuels and could give customers sticker shock.

But is that the case?

To make the comparison, I took a sampling of 40 states; 20 states that have clearly invested heavily in increasing generation from renewable energy, and 20 states that have clearly been lagging behind on investment. I left out Alaska and Hawaii, where electricity prices are affected by different market forces than in the lower 48 states. I focused on the increased generation from geothermal, solar, and wind energy. Biomass has only grown measurably in New Hampshire and Virginia over the past several years.

I focused on generation rather than consumption, since the practice of actually constructing and operating these facilities within the state is more of an “investment” than buying power from hundreds of miles away. To do this, I compared the average price of power provided by the Energy Information Agency (EIA) for each of these states from 2010 through 2015 with the approximate average price over the last 18 months.*

In selecting the states for each list, I found it pretty clear to differentiate those that had invested heavily in renewable energy and significantly increased generation, with those that had not. This list takes into account EIA estimates on generation from distributed solar.

The obvious states that have invested heavily include California, Colorado, Iowa, Kansas, Maine, Massachusetts, Minnesota, Nevada, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, and Vermont. As for the remaining six states, I found Arizona worthy for the list, growing from 0.2 percent of its generation from wind and solar in 2010 to nearly 5.8 percent through the first half of 2016.

Read more…

Businesses Support Clean Power Plan

This is an interesting article for us here in Arizona where our Senators have sued to stop the Clean Power Plan. The leading businesses understand the value of the Clean Power Plan to the economy, communities and jobs. Our Senators seem to place more value on the benefits to dirty power and the contributions they make to their political campaigns.

Tech titans Apple, Google, Microsoft and Amazon as well as global brand companies Ikea, Mars, Adobe and Blue Shield Blue Cross Massachusetts told a U.S. court Friday that they need the federal Clean Power Plan for economic reasons.

In two separate Amici Curiae briefs filed in U.S. Circuit Court supporting the EPA’s plan for reducing carbon emissions from the nation’s power plants by 32 percent, the corporate giants said without a “national carbon mitigation plan,” they face “undesirable business risk,” energy price volatility and higher costs.

With these arguments, the businesses seem to have flipped prospects for the Obama administration’s centerpiece climate change policy, which only a month ago looked dim after the U.S. Supreme Court ruled to delay its enforcement.

Since the eight companies collectively employ about 1 million people, account for nearly $2 trillion in market capitalization and are major energy consumers — the tech companies alone use 10 million megawatt hours of electricity a year — they have clout.  

Read more here.

Value of Energy Efficiency

Steven Nadel, Executive Director of American Council for an Energy Efficient Economy

Multiple studies looking at spending and savings across programs, over time and in multiple states, all show the same thing: energy efficiency is highly cost effective. Put another way, it keeps electricity affordable by meeting demand and environmental regulations at a lower cost than if we generated new power, including from clean energy resources. To help break down this discussion to key points, we released two new fact sheets today, one showing that energy efficiency is consistently the lowest-cost option for meeting electric demand and the other showing that including energy efficiency can lower the cost of Clean Power Plan compliance.

How Much Does Energy Efficiency Cost?” includes results from studies by Lawrence Berkeley National LaboratoryACEEE, and the US Environmental Protection Agency (EPA). The fact sheet shows how these studies provide further evidence that energy efficiency costs less than other sources of energy, and also that the costs of energy efficiency have been level in recent years. “Energy Efficiency Lowers the Cost of Clean Power Plan Compliance” looks at the results of three studies, all finding that including energy efficiency as part of state compliance plans will lower costs to utility customers. For example, a study by Synapse Resource Economics provides state-by-state information on most of the states…

To continue reading this blog post, visit: http://aceee.org/blog/2016/03/new-studies-are-showing-what-we 

To read “How Much Does Energy Efficiency Cost?” visit http://aceee.org/fact-sheet/cost-of-ee 

To read “Energy Efficiency Lowers the Cost of Clean Power Plan Compliance” visit http://aceee.org/fact-sheet/ee-lowers-cost-cpp

Science of Inequity

This is an interesting discussion of the embedded systems in our economy that create and perpetuate inequity and poverty. While this presentation can seem a bit academic, it does give an interesting look at the ways to eliminate poverty and correct the problems with our economic systems. Thanks to Geoff McDonnell and Gene Bellinger of the Systems Wiki.

10 Reasons to Go Local

1.  Local Character and Prosperity

In an increasingly homogenized world, communities that preserve their one-of-a-kind businesses and distinctive character have an economic advantage.

2.  Community Well-Being

Locally owned businesses build strong communities by sustaining vibrant town centers, linking neighbors in a web of economic and social relationships, and contributing to local causes.

3. Local Decision-Making

Local ownership ensures that important decisions are made locally by people who live in the community and who will feel the impacts of those decisions.

4.  Keeping Dollars in the Local Economy

Compared to chain stores, locally owned businesses recycle a much larger share of their revenue back into the local economy, enriching the whole community.

5.  Job and Wages

Locally owned businesses create more jobs locally and, in some sectors, provide better wages and benefits than chains do.

6.  Entrepreneurship

Entrepreneurship fuels America’s economic innovation and prosperity, and serves as a key means for families to move out of low-wage jobs and into the middle class.

7.  Public Benefits and Costs

Local stores in town centers require comparatively little infrastructure and make more efficient use of public services relative to big box stores and strip shopping malls.

8.  Environmental Sustainability

Local stores help to sustain vibrant, compact, walkable town centers-which in turn are essential to reducing sprawl, automobile use, habitat loss, and air and water pollution.

9.  Competition

A marketplace of tens of thousands of small businesses is the best way to ensure innovation and low prices over the long-term.

10.  Product Diversity

A multitude of small businesses, each selecting products based, not on a national sales plan, but on their own interests and the needs of their local customers, guarantees a much broader range of product choices.

© Institute for Local Self-Reliance.

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