Jassey - "Once you price in the impacts of air pollution and climate change, coal and gas don't look quite so cheap."
That is the essential question that the recent COP meeting and in fact none of renewable energy lobby want to discuss.
What is the present value cost of future climate change? The climate change ad renewable lobby say that climate change is a certainty and the impact will be so severe we should spend any amount of subsidy replacing all fossil fuel use by 2050 no matter what the economic burden.
What people like me say is the science is not settled, there is uncertainty about whether climate change is man made and even if it is we don't know what the impact will be and over what timescale. The more uncertain and the further away into the future the impact (if any) will be then the less we should spend today. I assume you agree with discounting future costs to present value and that the greater the uncertainty the greater the discount rate?
The position I have is that yes we should spend money on basic R&D in universities but we should not subsidise the technology so it can be built today. If as we go into the future the uncertainty over the impact and timescale is reduced then we spend money on adaptation and on installing zero carbon technology.
Loading subsidies on renewable technology or loading taxes onto hydrocarbon fuels is a way to force the adoption of renewable technology. The question is how much we do now. You want to impose such a high cost now that renewables replace all hydrocarbon as quick as possible. I say wait and do it in a sensible way by replacing coal now with CCGT and do more later when alternative zero carbon technologies are more viable and able to stand on their own without subsidy albeit with either some carbon tax or a stringent cap and trade scheme in place.
We can reduce carbon emissions to zero now by shutting down the global economy but that is not sensible and yet that is how the global warming and renewable lobby talk at times.