Amory Lovins and other green techno-optimists have long argued that there are numerous technologies and policies that could reduce energy use and emissions at a net profitthe so-called no regrets policies that would save more money than they cost to implement. Conservative economists, many of them employed or supported by the Department of Energy, have argued that this simply cant be true, since energy marketslike all marketsare optimal. (This is the famous twenty dollar bill argument; i.e., there cant be twenty-dollar bills lying on the ground, because people would have already picked them up).
Many economists, of course, see the bills everywhere. 2500 economists including eight Nobel laureates signed the Economists Statement on Climate Change in 1997, which declares Economic studies have found that there are many potential policies to reduce greenhouse-gas emissions for which the total benefits outweigh the total costs. Continue reading “Lies and Economic Models”