Should government subsidize renewable energy?

Robert Semple Jr. of the NY Times say yes.

not WTP for EVs

People want to use electric vehicles (that's good) but they aren't willing to pay for it (that's bad).
Here's a short article at CNET.
What to do?
Hat tip: DGill

Strong policy and tough decisions needed

This could be the mantra for just about any conservation policy, and is especially true in tough economic times, but in this case pertains to renewable energy in the Caribbean.
Here's a short article at the Barbados Advocate.
How do we garner the support for these tough decisions? How do we get people, businesses and governments to forsake personal gain for the long-term betterment of society? What are the primary obstacles? What are examples of other problems we face today (i.e. other than renewable energy) that can be presented in the same framework?

Readings on valuation

As we get deeper into our discussion of non-market valuation, I'm going to continue my efforts to convince you that economic analysis has a indispensable place at the conservation policy table. This argument is fairly easy to make when I'm talking to economists or economics students, but for those that have never really studied econ before, it's a bit tougher. This is because people who have only studied natural sciences may have a tendency to view all things dealing with markets as the causes of environmental problems rather than the solutions. I hope you're starting to see that it's both.

Please read:

Why Economics Matters for Endangered Species Protection (Shogren et al., 1998)

The Role of Economic Valuation in the Conservation of Tropical Nature (Naidoo, 2008)

Conservation Pays (Yuskavitch, 2007, Defenders of Wildlife)

Marine Conservation: How Economic Valuation of Ecosystem Services Can Help (Environment Matters, 2008)

Can Environmental Economic Valuation Techniques Aid Ecological Economics and Wildlife Conservation? (Loomis, 2000, Wildlife Society Bulletin)

Of additional interest:

Economic Incentives and Wildlife Conservation (Bulte et al., 2003)

Tons of references and links here:

Economic Valuation References WRI

Reefs here and here and here

Wetlands here

This is a tiny fraction of what's out there. Thoughts?

The political history of cap & trade

Good reading here at Smithsonian.com

Turtle bycatch improving

Here's an article from the local paper describing the downward trend in sea turtle bycatch. Turtle- excluder devices (TEDs) seem to be helping on a national scale but the NC fishers interviewed for the article don't seem to think that bycatch is an issue here. The article also cites a decreased number of vessels in the water (due to low profit causing exit from the industry) and a performance standard.

the Coase Theorem in action

Here at the WSJ

Here at the Independent

the true cost of a gallon of gas

Here is a report suggesting that externalities bring the true cost of a gallon of gas up significantly (between $5 and $15). The report is several years old and pre-9/11, so we can probably assume that the numbers would be higher today.

Here's a piece by Ezra Klein at the Washington Post from 2010 that discusses the same issues.

More here at Catalyst.

Collective action requires incentives

Gernot Wagner (an economist at Environmental Defense Fund) has a thought-provoking piece in yesterday's New York Times. He hits on a lot of issues that we've been discussing in class or will discuss later in the semester. Notably topics are the need for incentives to curtail externalities and the notion that it's easy to make marginal movements toward being "green" when you're rich.

Elkhorn coral and pollution

Next week we'll be beginning our discussion of externality theory, which allows us to look at the inefficiency created when costs are created by a market but are not accounted for in the price of the good. Once we understand the cause of the inefficiency, we can develop measures to address it.

Externality theory is easily understood in the context of pollution in its many forms. Here is a study suggesting that white pox disease in elkhorn corals is attributable to improperly treated human waste. We can categorize solutions into two broad groups: "command-and-control" (standards) and incentive-based systems.

What are the external costs associated with this pollution?
What solutions might work?