Growing Skepticism About Government Regulations
- 05/14/12
- AEA
- News
Results of a new national survey conducted for the American Energy Alliance reveal healthy skepticism among likely voters regarding the real value of Federal Government regulations. According to the survey results, a large majority of Americans now believe that increasing regulations on energy and manufacturing companies often result in more cost than benefit.
Sixty five percent of survey respondents agreed that federal regulation result in more cost than benefits. The President has...
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Does Ethanol Make Gasoline Cheaper?
- 05/14/12
- AEA
- Facts
The federal mandate to blend corn-based ethanol into the U.S. vehicle fuel mix is an economically absurd practice. On a level playing field, conventional gasoline would be used for the foreseeable future, as it is the most efficient method (all things considered) to deliver energy to U.S. vehicles. At most ethanol would have a small share of the market in the absence of federal government support.
However, a study from Iowa State University argues that the growth in ethanol production...
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CBO Wants to Launch Preemptive Strike on American Energy Prices
- 05/11/12
- AEA
- Facts
Those who have followed the political debates over energy through the decades have observed a familiar pattern: The critics of American “dependence” on oil will keep coming back with new arguments, no matter how many times their earlier arguments are refuted. So it is with a new Congressional Budget Office (CBO) study on “Energy Security in the United States.”
In its introduction the CBO paper explains that it “ examines energy security in the United States—that is, the ability...Continue Reading...
Second Thoughts on Electric Vehicles
- 05/10/12
- AEA
- Facts
One of the problems with making purchases based on “the greater good”—as opposed to the direct benefits and costs—is that your estimate might turn out wrong. For example, many people simply assumed that electric vehicles were “good for the environment” and so were willing to spend more, and put up with more hassles, thinking that they were helping future generations. Yet some recent studies suggest that the environmental case for electric vehicles is more dubious.
Electric...
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Rising Gas Prices and the U.S. Refining Industry
- 05/09/12
- AEA
- News
WASHINGTON D.C. -- The American Energy Alliance released a white paper today detailing the factors that contribute to the rising cost of gasoline -- a combination of crude oil costs, taxes, distribution and marketing, refining costs, infrastructure issues, and regulations. The white paper, entitled "Rising Gasoline Prices and the U.S. Refining Industry" combines the scholarly research of the Institute for Energy Research with the public policy advocacy of the American Energy Alliance as a...
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Parsing Obama’s Remarks on Fuel Standards
- 05/08/12
- AEA
- CAFE
In July 2011, President Obama announced yet another federal intervention into the economy: increased fuel-efficiency mandates for vehicles. Although his speech was jocular and peppered with humor, it was also filled with very misleading “facts” about energy markets. In the present piece I’ll address some of the biggest whoppers.
The President Agrees: Rising Oil Prices Are Bad!
Although we won’t have many kind things to say about the speech, at least the president acknowledged...
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EPA’s Absurd Defense of Its Greenhouse Gas Regulations
- 05/07/12
- AEA
- News
The Environmental Protection Agency (EPA) filed a court brief in 2011 in its ongoing litigation over the regulation of greenhouse gas emissions. Amazingly, they are saying it would be absurd to follow the law. I’m not joking, as I will demonstrate below. The Institute for Energy Research (IER) has consistently opposed granting the federal government even further intervention into the operation of the economy and specifically of energy markets. Ironically, EPA’s own court documents...
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Greenhouse Gas Regulations are Stealth Taxes
- 05/03/12
- AEA
- News
In late March the EPA proposed new rules limiting carbon dioxide emissions from new power plants to 1,000 pounds per megawatt-hour. This move spells a death-blow to the coal-fired power plant, as the New York Times admits in its coverage of the announcement:
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The Obama administration’s proposed rule to control greenhouse gas emissions from new power plants — the first ever — could go far toward closing out the era of old-fashioned coal-burning power generation. … Recently built...
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Breaking Down EPA’s Light-Duty GHG Emission Standards
- 05/02/12
- AEA
- CAFE
On February 13, 2012, IER submitted its comment on EPA’s proposed light-duty truck greenhouse gas emissions standards. As we will see, even relying on the EPA’s own analysis shows just how absurd federal intervention into energy markets has become. The debate would be funny, if it didn’t have such serious consequences in terms of economic welfare and indeed traffic fatalities.
Takeaway Messages
For those readers with a busy schedule, the following bullet points summarize the...
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Correcting Krugman on Ozone
- 05/01/12
- AEA
- Emissions Standards
Nobel laureate and New York Times columnist Paul Krugman has been known to say some wacky things. After the 9/11 attacks, he opined that they “could even do some economic good.” In 2002 he wrote that only a housing bubble could rescue the U.S. economy. After the tsunami, Krugman argued that the Japanese nuclear disaster “could end up being expansionary.” And this past August, Krugman went on CNN to claim that a fake alien invasion could pull the world out of recession in...
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