James Taylor Senior Fellow, Environment Policy The Heartland Institute Energy & Climate Policy Summit November 19, 2015

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1 James Taylor Senior Fellow, Environment Policy The Heartland Institute Energy & Climate Policy Summit November 19, 2015

2 Remember What Unifies Us Economic Opportunity Environmental Stewardship

3 Energy Economics

4 Compara7ve Costs of Electricity Findings of the left-of-center Brookings Institution ( Why the Best Path to a Low-Carbon Future Is Not Wind or Solar Power, 2014): Replacing conventional power with wind power DOUBLES electricity costs. Replacing conventional power with solar power TRIPLES electricity costs.

5 Levelized Electricity Costs: Source: U.S. Energy Informa7on Administra7on Levelized production costs in dollars per mwh: Natural gas Advanced Combined Cycle: 79.3 Coal: Nuclear: Onshore Wind: Offshore Wind: Solar thermal: Solar photovoltaic: 396.1

6 Real-World Impacts 28 states currently have renewable power mandates. Since 2008, when most of the renewable power mandates were put in place, electricity prices have been rising twice as fast in states with renewable power mandates than in states without renewable power mandates. (Source data: U.S. Energy Information Administration, Electric Power Monthly)

7 Leveling the Subsidy Playing Field? EIA Wind power receives more subsidies than all conventional energy sources COMBINED. EIA Solar power also receives more subsidies than all conventional energy sources COMBINED. EIA Solar power received 273 times more subsidies per unit of electricity produced than oil and natural gas combined. 274 times more than nuclear. 842 times more than coal. Source: Direct Federal Financial Interventions in Energy in Fiscal Year 2014, U.S. Energy Information Administration

8 2013 Federal Source-Specific Subsidies In Million Dollars Solar - $5,328 Coal - $1,085 Oil/Natural Gas - $2,346 Nuclear - $1,660

9 2013 Source-Specific Subsidies Per Unit of Electricity ProducKon Dollars Per Thousand MegawaPs Solar - $575,875 Coal - $684 Oil/Natural Gas - $2,107 Nuclear - $2,104

10 But What about Solar Jobs?

11 But What about Solar Jobs?

12 Spain Economy Economics professors at Spain s King Juan Carlos University published a 2009 study showing that for every 1 green job created, 2.2 jobs were destroyed elsewhere in the economy.

13 UK Economy A 2011 study by Verso Economics found that renewable energy mandates in the UK killed 3.7 jobs for every 1 job created.

14 Spain Economy Beginning in 2005, when unemployment in Spain was 8.7 percent, Spain embarked on a renewable energy program designed to transform the nation s economy. Spain s unemployment rate has more than doubled since Spain s renewable energy program took effect, and now stands at 21.2%.

15 Energy Independence? Renewables Do Not Replace Foreign Oil Wind and solar power are sources of electricity production, no transportation fuel. Wind and solar power do not replace foreign oil. Instead, they replaces domestic coal and natural gas. Most solar power panels and wind turbines are made in China and Europe. This is where renewable energy jobs go.

16 Environmental Issues

17 What About Pollu7on?

18 Solar Environmental Impacts Land intensive 40 sq. mi. = 1 conventional plant Water intensive 2x coal, 4x natural gas Most economical where water is scarce Rare earth production produces enormous environmental harm

19 Wind Environmental Impacts Land intensive sq. mi. = 1 conventional plant Bird and bat kills million birds and bats killed each year Compare to BP Gulf oil spill What distinguishes wind power from hydropower?

20 Rare Earth Environmental Harms Yale University Environment 360 report, Boom in Mining Rare Earths Poses Mounting Toxic Risks Last year, China s State Council reported that the country s rare earths operations are causing increasingly significant environmental problems. A half century of rare earths mining and processing has severely damaged surface vegetation, caused soil erosion, pollution, and acidification, and reduced or even eliminated food crop output, the council reported, adding that Chinese rare earths plants typically produce wastewater with a high concentration of radioactive residues.

21 Are the Economic and Environmental Costs Worth the Benefits?

22 Thank You! James Taylor