Lynne Kiesling Tim Worstall does some dynamic thinking about energy consumption and the price system. If you want energy efficiency in the face of high natural gas prices this winter, here’s my suggestion: install new windows. In September we got double-paned, UV-coated, argon-gas-filled windows on the front and side of our house (north and west …
Michael Giberson Which business would you rather be in, one in which the price of your product is rocketing upwards, or one in which the price is slowly drifting down? “Rockets” and “feathers” are names characterizing a pair of stylized facts about the usual behavior of retail gasoline prices: when prices are going up, they …
Lynne Kiesling No surprise … the effects of Katrina and Rita on domestic natural gas supplies will lead to higher heating bills this winter, particularly for those who heat with natural gas (and secondarily for those who heat with natural-gas-generated electricity). These shocks exacerbate a five-year trend in increasing natural gas prices, for reasons that …
Michael Giberson FERC has issued a new proposed rule that would revise regulations governing ?Qualifying Facilities? (QF). QFs are small renewable energy generators or cogeneration facilities that, under the Public Utility Regulatory Policies Act of 1978, gained the right to sell power to public utilities at the utilities? ?avoided cost.? This right to sell power, …
The Energy Policy Act and Cogeneration – What the Qf? Read More »
Michael Giberson Rainbough Phillips amusingly tags price gouging as “the Phantom Menace” in a post on Catallarchy. She also provides a neat insider’s look at the supply and demand for emergency supplies, viewed from the returns counter at an Austin-area big box hardware store. Meanwhile, back in Houston, authorities are urging the city’s gasoline station …
Lynne Kiesling Reason’s Adrian Moore discusses the binding constraint that is refinery capacity in the US in a commentary from the Orange County Register. Very good summary and analysis. Just a few new refineries would alleviate the problem and help keep our gas prices lower and steadier. But getting an oil refinery built is next …
Lynne Kiesling Mr. Coyote has a post from last week (complete with good links) on that mythical economic concept: price gouging. There are two ways this can play out: 1) a short term spike in prices, as much as a dollar or more a gallon or 2) long and irritating gas lines. Lets hope that …
Lynne Kiesling Last week on vacation we stayed in a paddle-in cabin 20 miles northeast of Ely, Minnesota. No phone, no television, no computer, hence no information on the horrific consequences of hurricane Katrina. We ventured into town twice for dinner, once on Monday (when we saw a newspaper and saw the looming threat) and …
Michael Giberson The Washington Post reports growing consumer interest in automobile fuel economy as gasoline prices increase. Not exactly an earth-shattering development, is it, when consumers respond to price changes? Almost as reliable as consumer responses to price changes is the “I told you so” chorus from alternative-energy advocates. [S]upporters of hybrids, electric vehicles, hydrogen …
Michael Giberson For months we have been treated to media reports telling us gasoline consumption was undeterred by higher prices. Apparently, not any more. Prices have become high enough to reduce consumption, and because a reduction in gasoline consumption leads to a reduction in gasoline tax collections. State government officials are taking notice, according to …
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