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Comments on: On free-riders and externalities http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/ The Visible Hand in Economics Sun, 08 Jun 2014 21:00:38 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Top 10 on Global Warming | The Dismal Science http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43354 Sun, 08 Jun 2014 21:00:38 +0000 http://www.tvhe.co.nz/?p=11467#comment-43354 […] on this!  He discusses the idea of what policy we should put in place, given the fact that the lack of an international agreement removes the “externality” argument from play.  Ideas such as investment in technology (risky, with high potential reward, strategy) and […]

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By: Michael Philip http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43343 Fri, 06 Jun 2014 05:41:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43343 In reply to Matt Nolan.

solar energy is a supplement at best. I don’t see it being viable in all but a few areas. I’m sure Arizona could run entirely off solar, but somehow I doubt it would work out for Canada or Norway, or even New England, and we don’t want to just pile all the power in one place and transmit it elsewhere. That’s very inefficient and in the USA for instance would grossly exacerbate what’s already one of their biggest Achilles’ heals for national security: the power grid.
For a lot of places, nuclear fission sounds like a much more viable option. It already gives a far better kwh/$, afaik. Whether it’s thorium or uranium doesn’t fundamentally matter. It works well either way.

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By: Matt Nolan http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43321 Thu, 05 Jun 2014 09:10:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43321 In reply to Michael Philip.

The substitutability question is important, indeed. Especially overseas where renewables make up less of their energy generation. With solar picking up pace as a potentially cost effective option (it has a wee way to go yet, especially regarding storage), and with the impression that the technology could be there, isn’t incorporating price signals a way of helping push the process along?

New Zealand won’t develop these things, so that is a mute point here. But I wouldn’t be quite so negative on the energy front 🙂

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By: Michael Philip http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43316 Thu, 05 Jun 2014 07:58:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43316 I don’t support a carbon tax and more importantly if some form of nuclear energy is not on the table, then people aren’t “doing the right thing” just pretending to.

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By: Matt Nolan http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43288 Tue, 03 Jun 2014 18:56:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43288 In reply to Luc Hansen.

Indeed – I mean there is more discussion to be had about where the revenue goes, but yes a carbon tax is something that makes a lot of sense to me!

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By: Luc Hansen http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43282 Tue, 03 Jun 2014 02:02:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43282 The Greens are getting closer to the carbon fee and dividend plan long advocated by James Hansen, with a couple of politically inspired tweaks – tax free threshold and concessions to agriculture.Can’t blame them for that because to do anything they gotta get elected first! A carbon tax plan removes the arbitrage opportunities of cap and trade plans so we can all concentrate on substituting fossil fuels for sustainable energy instead of short term rent seeking.

All good!

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By: On free-riders and externalities http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43276 Mon, 02 Jun 2014 08:03:57 +0000 http://www.tvhe.co.nz/?p=11467#comment-43276 […] By Matt Nolan […]

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By: Matt Nolan http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43272 Mon, 02 Jun 2014 05:37:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43272 In reply to Blair.

It is hard to judge the appropriateness of a price without action in the big countries – let’s see how the US-China accords end up panning out!

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By: Blair http://www.tvhe.co.nz/2014/06/02/on-free-riders-and-externalities/#comment-43271 Mon, 02 Jun 2014 05:29:00 +0000 http://www.tvhe.co.nz/?p=11467#comment-43271 Some good points in these posts. I actually thought the situation a few years ago, when the price was around $10, was pretty optimal. The price was enough to offer symbolic support for the international community; there was an increase in tree planting on marginal land which I am told was good for certain native birds; and the overall expense was low enough not to noticeably impoverish households even in the post-GFC environment. So, a much better implementation than has happened in many other countries.

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