On July 14, the Congressional Budget Office released a study on tax credits for biofuels. It estimates that the effective subsidy amounts to 73 cents per gallon of ethanol made from corn, $1.08/gallon for biodiesel, and $1.62/gallon for cellulosic ethanol.
Also on July 14, environmentalist Bjørn Lomborg published a commentary arguing that solar power and other alternative energy sources are more likely to solve our long term energy problem than building more conventional power plants. He urges much more research and development into alternative energy.
In a July 2 commentary, Harvard economist Ken Rogoff expressed hope that the BP oil spill might strengthen public support for a carbon tax.
A July study from the Federal Reserve Bank of St. Louis examined the prospects for unconventional oil production. Based on current oil price projections, it predicts a significant increase in production from oil sands and oil shale.
On June 29, energy expert Steven Kopits examined differing estimates of future energy use in China. These estimates vary widely with significant implications for world energy prices depending on which one is right.
On June 25, MIT released a study of natural gas use in the U.S. It forecasts a substantial increase in usage to meet CO2 emissions targets.
On June 23, the Department of Agriculture issued a report on renewable energy. The department says it is well on track to meeting the goal of producing 36 billion gallons of biofuel per year by 2022. It estimates that 40 jobs are created for every 100 million gallon increase in biofuel production capacity.
On June 3, the National Academy of Sciences published a report analyzing new technologies that can greatly reduce fuel consumption in cars and other vehicles. However, these technologies would greatly increase their cost.
A June paper from the Institute for the Study of Labor examines whether environmental regulations affect trade flows—it has been hypothesized that more stringent regulations will reduce exports and increase imports of “dirty” goods. Utilizing data from Romania, which recently tightened its environmental regulations, the authors find no impact on trade flows.
On May 27, the Sierra Club and the American Security Project released a joint report on ending American dependence on oil, which threatens both the environment and national security, they say.
Note: I previously posted links on energy and environmental issue on July 5 and June 21.
Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).
