Thursday, December 10, 2009

Debate Recap

Tonight was the climate debate where I defended "cap and trade" against 2 senior EPA staff who are very critical of the plan and are calling for a carbon fee (tax) model.  I'm sure Allan and his wife Laurie carried the evening in terms of the audience reaction.  But I made my points.  Cap and Trade isn't as good as Carbon Tax, but it's more politically viable.  As evidence I submitted a graph showing different US states heavily invested in coal as a source of electricity.  This represents "equity investments" made in cheap fossil fuel by key political states.  To get these states to participate in any climate change / GHG reduction plan, you have to buy them off with free "emissions credits" or perhaps, the hated offsets (offsets are supposedly very susceptible to fraud, because no one can verify their claims to reduce GHG emissions).  I don't see any other way other than cap and trade but perhaps I'm too pessimistic.  

Tuesday, December 08, 2009

Arguments In Defense of a Cap and Trade Program

In Defense of Cap and Trade
Points to be argued during the Dec. 10th, 2009 Kehilla Synagogue Debate

Following the lead of Europe, a US Cap and Trade system would function as an important next step in establishing a global emissions trading system.  A global Carbon Tax is not politically feasible, because of the wealth disparities between nations.  A global market in GHG emissions credits, however, is possible, as has been demonstrated in heterogenous Europe with its poor Eastern states pledging to reduce carbon emissions in the new phase of the Emissions Trading System (ETS).

Cap and Trade is the only method whereby diverse economic and political regions in the United States can agree to share in the pain of converting from an energy intensive lifestyle to one of conservation and efficiency.

The United States in its different geographic regions reflects the diverse cultural, economic and policial heritage of our nation.  It is nearly impossible to get the United States to agree on major reform of a system that most acknowlege is badly broken: health care.  By the same token, trying to impose a carbon tax on regions of the country that are fundamentally opposed to change will be an effective declaration of political war.  A cap and trade system, where offsets and emissions credits can be distributed in greater proportion in the regions where structural reform will be most painful (for instance the coal-intensive southeastern US), will be much more likely to succeed by gaining the support of climate change advocates from all parts of the country, and not just the well-to-do progressive hubs.

We should not underestimate the difficulty in getting all 50 states to agree to any system that will increase the cost of energy.   Imposing a price on carbon (either through a carbon tax, or cap and trade) involves a fundamental restructuring of the built environment and with it the existing culture in certain parts of the US, similar to the change that occured in the 19th century when slavery was abolished.  Cheap energy was the foundation for many region's planning and zoning, and in much of the US, the strip-mall character of the landscape will take decades to unravel.

Response to Auctioning Proposal
(source: "The European Union’s Emissions Trading System in Perspective," A. Denny Ellerman, Paul L. Joskow, Mass. Instititue of Technology, May 2008)
A commonly advocated remedy for windfall profits is auctioning allowances instead of allocating them freely to existing units (Sijm, Neuhoff, and Chen, 2006). This remedy would not cause electricity prices to be any lower, but it would end the granting of the scarcity rent associated with the free allocation of allowances to fossil generators. Advocates advance two main virtues of auctioning. It would ensure that carbon prices are passed through into retail prices where electricity markets have not been liberalized (thereby improving efficiency) and it would raise substantial revenue for the government that could be used for other purposes some of which could improve efficiency and equity. In opposition, it is argued that auctioning raises equity issues for suppliers who made investments when there were no constraints on CO2 emissions and whose profits may be adversely affected by unanticipated carbon emission costs (“windfall losses”). If these suppliers are not compensated in some way, they are likely to oppose efficient market-based CO2 emissions control mechanisms or to lobby for complicated tax credit, deduction, and other mechanisms to protect themselves.


Response to the "Windfall Profits" critique
(source:  Ellerman and Joskow, MIT)
In member states with fully liberalized electricity markets the market value of allowances was included in wholesale prices regardless of whether these allowances were received for free or purchased.  Research conducted by Jos Sijm at the Energy Research Centre of the Netherlands and his collaborators finds that CO2 costs have been passed through to wholesale electricity prices but that generators have not been able to recover the full market value of their free allocations. In a careful study of wholesale electricity markets in Germany, the Netherlands, Belgium and France from January through July 2005, Sijm et al. (2005) estimated that the average pass-through rates varied from 40 percent to 70 percent depending on the country and whether it was a peak or off-peak demand period.

Cap and Trade ... and my favorite Procrastination

One activity I like to do when I am at home and Roxanne's cats are around is to sit on my couch and watch episodes from a cable TV series.  Since I don't get cable TV (too many channels = too much choice), I rent or borrow them.  Currently I'm watching the first season of "The Wire", a portrayal of crime, police and life in the (mythical) projects of west Baltimore, MD.  For those of you not familiar with it, the series ran from 2002-2007 on HBO and enjoyed a small, loyal following (I would compare "Wired" fans to the crowd that likes "Lost").  After watching most of the first season, I can see why.  The show's vivid portrayal of the frustrations faced by actors on both sides of the "War on Drugs" is compelling.  Throw in fine character acting by little known actors and you've got the recipe for a really fine TV show.  I have many episodes to catch up on (am on the 12th episode of Season 1, which I will save until Thursday or Friday).
The Wire was useful as a way to unwind but also a way to procrastinate.  I've got a carbon tax vs. cap and trade debate that I'm participating in and need to prepare for.  I've been procrastinating mightily.  Such is my lazy nature.  The next days I will do what I can to get ready.  I've got most of the material assembled (and read) to at least make a passable defense of cap and trade (see my other blog post from today), but the anti-capitalist sentiment runs high in the environmental crowd, plus people are not keen to support anything that requires the involvement of Wall Street to determine the fair price of carbon.

Thursday, December 03, 2009

Flu Update

Well this flu has got me down.  I missed a day at work this week and every night I go to bed, I have a cough.  Every morning, I have a cough.  It is definitely cutting into the blogging time (even though it did "free up" part of a day for me on Tuesday).  My friend, the acupuncturist, recommended I try some "Wellness Pills."  I picked some up at a nearby natural food store (Health Foods? in the Rockridge shopping center between the old Long's and Safeway).  The guy who sold it to me said it was good stuff, of course.... so far I can't really judge whether or not it's helped.  Could just be a psychological trick / advantage, like a placebo.  But I'll assume it's doing something.  At least I can be semi productive now ...

Tuesday, December 01, 2009

Thoughts on the Bay Area

While in Wisconsin for Thanksgiving I appear to have picked up the flu.  I think it was from my mother.  In that case, I can't really complain about this since it was she who gave me life in the first place!  On the good side, this has led to me having a "free day" today (thankfully I enjoy paid time off for being sick as a Kaiser employee).  So I have a little time to do things like update my blog.

I realized on my return to the Bay Area last week how blessed we are here with the natural beauty and mild weather.  It is so easy to take this for granted.  I had the same experience many years ago, driving to California the first time (during the winter).  After driving through the snows, winds and desolate regions of the Plains States, Wyoming and then Nevada, when I reached the central valley in California it was like a paradise.  I remember smelling the lush vegetation, seeing the green grass in January, and people walking around in T Shirts and shorts without a seeming care in the world.  Well, now we know the last part is no longer true - the state has problems in ratio to its size.  Yet I cannot stop feeling like we are truly lucky to live here, assuming we can afford to pay the rent and for food!

Speaking of affording the rent ...recently I have been reading "The Good Earth" by Pearl S. Buck.  I read the book once when I was a teenager.  Reading it again makes me appreciate how different life was for many, many people until recently, for instance the Chinese in the 1920s and 1930s (when this book was set).  The scenes of starvation and forced migration are powerful.  Beyond that, I can appreciate more the changes occurring for the main character, Wang Lung, that Buck describes as he changes from a poor young man to a wealthy landowner.  Though I am not a landowner, I once had to pinch every penny (in the early 90s) and now, approaching middle age, I guess I feel more "rich" and don't have to worry so much about money.  Some people who know me would say this is not a good thing.  In any case, having money doesn't make us happy, but it's good to appreciate what it can do when spent wisely.

Wednesday, November 18, 2009

Google Chrome, and other Technology Musings

Recently while surfing around the web I downloaded Google Chrome on a lark and installed it.  Since then I've become a big fan of this new browser.  Here are my reasons why I like it:

- Chrome loads faster than either Microsoft IE or Mozilla Firefox
- Chrome allows searches in the "address bar" (just start typing a phrase - it's a built in search - of course, a good deal for Google!)
- Chrome has a "last viewed" selector for recent sites that is waaaay cool (see picture)
- Chrome refreshes automatically - I do not have to "clear cache".  This is very useful whenever I work on websites (which is something I do for a couple of non-profits)

In other news, 2 friends of mine recently experienced computer problems.  One is a mac user who had her laptop stolen in Central America.  Another is a friend whose laptop's motherboard friend.  Both are wondering what to do.  I recommended to check eBay or Craigslist for quality used machines.  But I would not invest in a computer that is more than 1.5 years old.  Last time I did that, my laptop was obsolete by the 2nd year I owned it.  Any suggestions from the peanut gallery?

Friday, November 13, 2009

Ella Baker Center


Today I attended an end of year celebration and fund raiser event for Ella Baker Center, an Oakland non-profit co-founded by well-known community activist and "Green Collar Economy" author Van Jones. The event was inspiring, with speeches, awards, and of course, an ask for money. It wouldn't be a non-profit event without a pitch for money! It's always impressive to hear about all these idealistic, progressive people hard at work here in the local community. It makes me feel inadequate. My work produces little besides the fact that my colleagues appreciate my technical assistance. (Theoretically I am helping save Kaiser money, which translates to lower premiums. But I digress.) So to witness people working at their passions and doing what they believe in is an inspiring thing.

I just read a brief history of the EBC. Despite what you may think about the issue of police brutality, I am thankful for organizations like this that keep the police, but also the state and its voters, accountable. Most bad ideas in California are a result of a proposition system that essentially lets any millionaire with an axe to grind or a big enough ego go and try to buy a new law. This creates laws, like last year's "Jessica's Law," passed here in 2006 via a citizen's initiative, that are impractical, expensive, and wasteful. In the case of drug offenses, it's probably a federal issue. However, any way you cut it, due to "3rd strike" sentencing and sentencing for drug offenses, too many people who could be helped with a little counseling are instead caught up in a prison system and (most) destined for a life in and out of jail, at the expense of you and me, the taxpayer.

Which brings up another topic: how to get rid of the California proposition system altogether. Now that's a worthy idea!

Note, I served on a jury this spring, in Oakland, and can tell you I am not a rabid, police-hating radical.  In fact I was one of the "law and order" people in the jury - only because this is Alameda County.  The justice system is slow, ponderous and not very lenient.  In my opinion, it catches up too many people in its teeth who belong elsewhere besides court and prison.

Thursday, November 12, 2009

Back in action


Dear All 3 Former Readers of "Kent's Korner" :

Kent's Korner is back. I got the idea to start blogging again. My idea is that writing can be therapeutic.

One thing though: since I last blogged, in 2007, I am somewhat "known" in the local community. This is (hopefully only) because of my political activity. I am trying to give my readers a warning that I am going to try to avoid rantings in here. Sometimes I have an urge to do this.

In any case, the content of this blog, at least to start, will involve my job, (I'm a data analyst at a large HMO), my thoughts about technology, politics, volunteering, and life in California (and beyond).

Please drop a comment or just a rating. That gives me another reason to keep writing.

Welcome back readers!