What accounts for Detroit’s failure to produce a commercially viable electric car? When I discuss this question with students, I sometimes get conspiracy theories. They cite the 2006 documentary film “Who killed the electric car.” The film attributes the demise of GM’s all-electric car, the EV-1, to collusion among the carmakers, the government, and oil […]
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In 1983, Professor Bruce Yandle of Clemson provided an economic perspective on prohibition. His paper, “Bootleggers and Baptists: The Education of a Regulatory Economist,” described how an alliance of bootleggers and Baptists, who for quite different reasons, had incentives to seek restrictions on the Sunday sale of alcohol. Baptists sought moral improvement, while bootleggers supported […]
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The fallout from global economic recession ripples through Montana. In addition to unsettling lives, the economic downturn has important consequences for Montana’s energy policies. Here are some. Governor Schweitzer hopes Montana can be a leading producer of synthetic fuels, and he’s advocated for the construction of a 22,000 barrel-per-day coal to liquid plant near Roundup. […]
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The version of the economic stimulus bill lumbering through Congress contains a pernicious provision barring foreign steel and iron from infrastructure projects and requiring that all such projects use only American-made equipment and goods. Steel and iron manufacturers and labor unions no doubt promote these “Buy American” provisions. But can they explain how banning inexpensive, […]
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“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” -F.A. Hayek, The Fatal Conceit On a family trip to Nicaragua we saw workers digging a multi-mile ditch in preparation for laying communication lines. The workers were using picks and shovels; we saw […]
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As Montana legislators begin another session, they’ll no doubt consider energy policy. Rather than trying to pick an energy winner, e.g., wind power, they should focus on a far simpler task: crafting policies that promote energy conservation. This will be easy—but only if consumers know the true cost of their energy use. Today’s energy regulations […]
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I have a hockey-playing buddy who is converting an old Honda Civic into an electric car. His goals are modest; he’d like it to be able to make the round trip from Bozeman to Bridger Bowl. I wish him well with this fun and constructive project, but I expect it will be some time before […]
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Coal is a ubiquitous and relatively inexpensive resource. Montana holds one-third of all U.S. coal deposits, representing about 8 percent of the world’s total. The International Energy Agency reports that between 2000 and 2007, global coal use increased by 4.8 percent. That’s three times the growth of oil consumption and nearly twice the rate of […]
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The Department of Energy estimates year-end domestic oil consumption will fall 5.4 percent. This is the steepest decline since 1980. Only a few months ago, seemingly relentless growth in China and India, combined with tight supplies, and a weak U.S. dollar, pushed oil to nearly $150 a barrel. Now concerns over a global recession have […]
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Recently I spent several hours discussing environmental issues with an honors class at MSU. One of the points I emphasized was the importance of thinking beyond slogans. When seeking to craft effective environmental policies, good intentions are simply not enough. I left the class with a handout that included this quote from Mark Twain: “It […]
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