Bringing Fairness to the Discussion on Energy

I was going through some old blog posts here at 2GreenEnergy in an effort to make sure that we’re emphasizing the most important elements of the discussion on renewables.  One theme that is central to the conversation, of course, is the need to understand and account for the externalities of our current system of generating energy, based, as it is, more than 80% on fossil fuels.  For those looking for a solid but fairly high-level treatment of the subject, check out this marvelous summary: What’s The Real Cost of Fossil Fuels?

I understand the frustrations of those who say we’re about a million miles from a world that forces these costs onto the energy industry, but I point out that we may be closer that many people believe.  

When I interviewed James Woolsey (Director of the United States Central Intelligence Agency from February 5, 1993 until January 10, 1995) for my book, he called my attention to Boyden Gray’s piece in the Texas Review of Law and Politics, putting the cost in damage to peoples’ health and medical costs total at approximately $250 billion a year from the aromatics.  It’s only a matter of time in this data-rich world in which we live before the we have complete quantification of each of the major externalities, forcing even the most unreasonable people to demand fairness here.

I found it interesting to know that this subject of “internalizing the externalities” goes back more than 100 years.  The article linked above discusses an economic device called a Pigouvian tax, named for Arthur Cecil Pigou, Professor of Political Economy at Cambridge University in the early part of the 20th century, aimed at addressing the smog caused by coal emissions. 

The whole thing seems so simple and obvious to me.  I’m reminded of the conversation that I’ve had dozens of times with my kids, who, when they make a mistake, somehow expect me to pay for it.  Wrong lesson, guys!  The people who make the mess should clean it up.  It’s something we all should have learned by the time we’re five years old.