Energy and American Society – Thirteen Myths Energy and American Society – Thirteen Myths Edited by Benjamin K. Sovacool Oak Ridge National Laboratory, Oak Ridge, Tennessee, USA and Marilyn A. Brown Georgia Institute of Technology, Atlanta, Georgia, USA AC.I.P.CataloguerecordforthisbookisavailablefromtheLibraryofCongress. ISBN-101-4020-5563-3(HB) ISBN-13978-1-4020-5563-8(HB) ISBN-101-4020-5564-1(e-book) ISBN-13978-1-4020-5564-5(e-book) PublishedbySpringer, P.O.Box17,3300AADordrecht,TheNetherlands. www.springer.com Printedonacid-freepaper Chapter10figures©RockyMountainInstitute AllRightsReserved ©2007Springer Nopartofthisworkmaybereproduced,storedinaretrievalsystem,ortransmitted inanyformorbyanymeans,electronic,mechanical,photocopying,microfilming,recording orotherwise,withoutwrittenpermissionfromthePublisher,withtheexception ofanymaterialsuppliedspecificallyforthepurposeofbeingentered andexecutedonacomputersystem,forexclusiveusebythepurchaserofthework. TABLE OF CONTENTS About the Authors vii Acknowledgements xiii 1. Introduction – The Compelling Tangle of Energy and American Society 1 Benjamin K. Sovacool and Marilyn A. Brown 2. Energy Myth One – Today’s Energy Crisis is “Hype” 23 Marilyn A. Brown 3. Energy Myth Two – The Public is Well Informed About Energy 51 Rosalyn Mckeown 4. Energy Myth Three – High Land Requirements and an Unfavorable EnergyBalancePrecludeBiomassEthanolfromPlayingaLargeRole in Providing Energy Services 75 Lee R. Lynd, Mark S. Laser, John Mcbride, Kara Podkaminer and John Hannon 5. Energy Myth Four – The Hydrogen Economy is a Panacea to the Nation’s Energy Problems 103 Joseph Romm 6. Energy Myth Five – Price Signals are Insufficient to Induce Efficient Energy Investments 125 Jerry Taylor and Peter Van Doren v vi Table of Contents 7. Energy Myth Six – The Barriers to New and Innovative Energy Technologies are Primarily Technical: The Case of Distributed Generation (DG) 145 Benjamin K. Sovacool and Richard F. Hirsh 8. Energy Myth Seven – Renewable Energy Systems Could Never Meet Growing Electricity Demand in America 171 Rodney Sobin 9. Energy Myth Eight – Worldwide Power Systems are Economically and Environmentally Optimal 201 Thomas R. Casten and Robert U. Ayres 10. Energy Myth Nine – Energy Efficiency Improvements have Already Reached their Potential 239 Amory B. Lovins 11. Energy Myth Ten – Energy Efficiency Measures are Unreliable, Unpredictable, and Unenforceable 265 Edward Vine, Marty Kushler and Dan York 12. Energy Myth Eleven – Energy R&D Investment Takes Decades to Reach the Market 289 Daniel M. Kammen and Gregory F. Nemet 13. Energy Myth Twelve – Climate Policy will Bankrupt the U.S. Economy 311 Eileen Claussen and Janet Peace 14. Energy Myth Thirteen – Developing Countries are not Doing their Part in Responding to Concerns about Climate Change 341 Thomas J. Wilbanks 15. Conclusions – Replacing Myths with Maxims: Rethinking the Relationship Between Energy and American Society 351 Benjamin K. Sovacool and Marilyn A. Brown Acronyms 367 Index 369 ABOUT THE AUTHORS Dr.BenjaminK.SovacoolisaEugeneP.WignerPost-doctoralFellowinScience Policy at the Oak Ridge National Laboratory in Oak Ridge, TN. Previously, Dr. Sovacool served as a research analyst for the Consortium on Energy Restruc- turing,whereheworkedonagrantfromtheNationalScienceFoundation’sElectric PowerNetworksEfficiencyandSecurityPrograminvestigatingthesocialandlegal impediments to renewable energy systems. He is also a former Senior Research FellowattheVirginiaCenterforCoalandEnergyResearchinBlacksburg,Virginia, where he assessed renewable energy potential for the state of Virginia. Dr.MarilynA.BrownisChairofEnergyPolicyintheSchoolofPublicPolicy at the Georgia Institute of Technology and a Distinguished Visiting Scientist at Oak Ridge National Laboratory. Dr. Brown is an internationally recognized expert on issues surrounding the commercialization of new energy and environmental technologies and the evaluation of government programs and policies. She has authored more than 150 publications and has been an expert witness in hearings beforeCommitteesofboththeU.S.HouseofRepresentativesandtheU.S.Senate. SheisalsoamemberoftheNationalCommissiononEnergyPolicyandtheNational AcademiesBoardonEnergyandEnvironmentalSystems,andisaCertifiedEnergy Manager. Dr. Rosalyn McKeown-Ice directs the University of Tennessee’s Center for Geography and Environmental Education. Dr. McKeown’s interests focus on the role of education in a more sustainable future and on assessing the environmental literacyofundergraduatestudents.Aspartofherassessmentefforts,Dr.McKeown has developed and validated frameworks for teaching environmental issues and the socio-political-cultural foundation of environmental education. She is also the author of the popular Education for Sustainable Development Toolkit website, and a former President of the Tennessee Environmental Education Association. Dr.LeeR.Lyndisaprofessorofengineeringandadjunctprofessorofbiological sciencesatDartmouthCollege,andaprofessorextraordinaryofmicrobiologyatthe University of Stellenbosch in South Africa. He is a recipient of the U.S. National ScienceFoundationPresidentialYoungInvestigatorAwardandatwo-timerecipient of the Charles A. Lindbergh Award for his efforts to promote balance between vii viii About the Authors technological progress and preservation of the natural and human environments. Professional activities include service as a member of a Presidential Advisory Committee on Reducing Greenhouse Gas Emissions from Personal Vehicles and Co-Leader of a project entitled The Role of Biomass in America’s Energy Future. Dr. Lynd has authored over 60 peer-reviewed manuscripts and 5 patents. Dr. Mark Laser is a research associate in the Thayer School of Engineering at Dartmouth College, where he teaches process design and chemical engineering fundamentals. He recently co-authored a report on biomass refining, entitled “Strategic Biorefinery Analysis,” funded by the National Renewable Energy Laboratory. He also has experience in biomass pretreatment research, as well as bioethanol process design and economic analysis. JohnMcBride,KaraPodkaminer,andJohnHannonareallgraduatestudents in the Thayer School of Engineering at Dartmouth College. Dr.JosephRommisaleadingexpertongreenhousegasmitigation,cleanenergy technologies and advanced vehicles and author of Hell And High Water: Global Warming—The Solution and the Politics (William Morrow, 2007) and The Hype About Hydrogen: Fact and Fiction in the Race to Save the Climate (Island Press, 2005). Romm was Acting Assistant Secretary at the U.S. Department of Energy’s billion-dollar Office of Energy Efficiency and Renewable Energy during 1997. He iscurrentlyexecutivedirectoroftheCenterforEnergyandClimateSolutions,and a principal with the Capital E Group. Dr. Jerry Taylor is a senior fellow at the Cato Institute. He is the one of the most frequently cited energy experts in the nation and is the author or coauthor of studiesaddressingenergyconservation,renewableenergy,resourcescarcity,energy R&D, electricity regulation, energy price controls, the Department of Energy, and theStrategicPetroleumReserve. HehastestifiednumeroustimesbeforeCongress on energy-related matters and is active on the lecture and media circuit. Dr. Peter Van Doren is editor of Regulation magazine. He is the author of Politics,Markets,andCongressionalPolicyChoices(UniversityofMichiganPress, 1991), which examines the history of government energy interventions, and is the author or co-author of energy studies addressing renewable energy, electricity regulation, energy price controls, and the Strategic Petroleum Reserve. Dr.RichardF.Hirshisaprofessorofhistoryandscience&technologystudies at Virginia Tech in Blacksburg, Virginia. Dr. Hirsh has published two books on the recent history of the American electric utility system—Technology and Trans- formation in the American Electric Power Industry (Cambridge and New York: Cambridge University Press, 1989) and Power Loss: The Origins of Deregulation and Restructuring in the American Electric Utility System (Cambridge, MA: MIT Press, 1999). He also currently directs the university’s Consortium on Energy Restructuring,aninterdisciplinarygroupoffacultymembersandgraduatestudents studying distributed generation technologies. Mr. Rodney Sobin has worked on a variety of business assistance, pollution prevention, technology innovation and commercialization, and environmental and energy technology topics. He is currently with the Virginia Department of About the Authors ix Environmental Quality. His previous work in consulting focused on technology transferandenvironmentaltechnologydemonstrationsandanalysisforDepartment of Defense and other clients. He performed policy analyses and contributed to reports on innovation and commercialization; technology and the environment; environment,trade,andforeignassistance;andrelatedtopicsfortheCongressional Office of Technology Assessment and the World Resources Institute. Mr. Thomas R. Casten has spent 30 years developing decentralized energy recycling projects as founding President and CEO of Trigen Energy Corporation, a New York Stock Exchange corporation and its predecessors from 1977 through 2000,andcurrentlyasfoundingChair&CEOofPrimaryEnergyVenturesLLC,an Oak Brook, Illinois based firm with a Toronto Stock Exchange traded subsidiary, Primary Energy Recycling Corp. Mr. Casten has served as President of the Inter- national District Energy Association and has been named a “CHP Champion” by theUSCombinedHeatandPowerAssociation.Tom’sbook,TurningOffTheHeat (published by Prometheus Press in 1998), explains how the world can save money andpollution.Hisarticleshavebeenpublishedinavarietyofenergyjournalsandhe has testified on several occasions before US Senate and House Energy committees and advised officials in India, China, and Brazil on power industry governance. Dr.RobertU.Ayreswastrainedasatheoreticalphysicistbeforebeginningwork attheHudsonInstitute,ResourcesfortheFuture,andCarnegie-MellonUniversity, where he served as a professor of engineering and public policy. He also worked at the International Institute for Applied Systems Analysis (IIASA) in Laxenburg, Austria (1986–2000). He has written or co-authored more than 200 peer-reviewed journalarticlesorbookchaptersand16books,andeditedorco-editedanadditional 12booksontopicsrangingfromtheoreticalphysicsandthermodynamicstotechno- logical change, energy, ecological economics and industrial metabolism. Mr. Amory B. Lovins is the Chief Executive Officer of Rocky Mountain Institute. Mr. Lovins has received nine honorary doctorates, a MacArthur Fellowship,theHeinz,Lindbergh,RightLivelihood,WorldTechnology,andTIME Hero for the Planet awards, the Happold Medal, and the Nissan, Shingo, Mitchell, andOnassisPrizes.Hisworkfocusesontransformingthehydrocarbon,automobile, real estate, electricity, water, semiconductor, and several other sectors toward advancedresourceproductivity.Hehasauthoredorco-authoredtwenty-ninebooks and hundreds of papers, and consulted for scores of industries and governments worldwide.Newsweekhaspraisedhimas“oneoftheWesternworld’smostinflu- ential energy thinkers;” and Car magazine ranked him the twenty-second most powerful person in the global automotive industry. Dr. Edward Vine is a Staff Scientist at the Lawrence Berkeley National Laboratory and is the Manager of the Environmental Program at the California InstituteforEnergyandEnvironment.Hehasover27yearsofexperienceinevalu- ating energy-efficiency programs and policies at the local, state, regional, national andinternationallevels.Hehaspublishedmanypapersontheevaluationofenergy- efficiencyprograms,technologies,andpolicy.Dr.VineisamemberoftheBoardof DirectorsandPlanningCommitteeoftheInternationalEnergyProgramEvaluation x About the Authors Conference, the American Evaluation Association, and the Association of Energy Services Professionals. Dr.MartyKushlerisDirectoroftheUtilitiesProgramfortheAmericanCouncil for an Energy Efficient Economy (ACEEE). While at ACEEE he has directed severalwidelyacclaimednationalstudiesofutilitysectorenergyefficiencypolicies andprograms.PriortojoiningACEEE,Dr.KushlerwasSupervisorofEvaluationat theMichiganPublicServiceCommissionfornearlytenyears.Hehasbeeninvolved directing research and evaluation regarding energy efficiency and utilities for over two decades, has been widely published, and has provided consulting services to numerous states and the federal government. Dr.DanYorkisaSeniorResearchAssociatefortheUtilitiesandPublicBenefits Program of the American Council for an Energy-Efficient Economy. In this role Dr. York researches and analyzes energy efficiency policy and program issues within the utility sector. Example projects include studies of energy efficiency programbestpractices,reviewsofpublicbenefitsprograms,andtrackingofenergy efficiency program trends. Previously, Dr. York served for five years as a Senior ProjectManagerattheEnergyCenterofWisconsin.Whileagraduatestudent,York received a Fulbright Fellowship for researching energy planning and policy issues associated with Norway’s restructured utility industry. Dr.DanielKammenisaprofessorintheEnergyandResourcesGroup,professor of public policy in the Goldman School of Public Policy, and a professor of nuclear engineering in the Department of Nuclear Engineering at the University of California, Berkeley. He is also the founding Director of the Renewable and Appropriate Energy Laboratory. Before joining Berkeley, Dr. Kammen was an assistant professor in the Woodrow Wilson School of Public and International Affairs and chair of the Science, Technology, and Environmental Policy program at Princeton University. He has authored more than 90 journal publications and a book entitled Should We Risk It (Princeton University Press, 1999). Mr. Greg Nemet is a doctoral candidate in the Energy and Resources Group at the University of California, Berkeley. His dissertation aims to contribute to understanding the process of innovation in the energy sector to inform technology policymodels.Heco-leadsBerkeley’sClimateChangePolicySeminar(abi-weekly forum that includes students, faculty, and campus researchers). Prior to coming to Berkeley, he worked as a research manager at the Institute for the Future. Ms. Eileen Claussen is the President of the Pew Center on Global Climate Change and Strategies for the Global Environment. Ms. Claussen is the former AssistantSecretaryofStateforOceansandInternationalEnvironmentalandScien- tificAffairs.Inthatcapacity,shewasresponsiblefordevelopingandimplementing policyonbehalfoftheUnitedStatesonmajorinternationalissues,includingclimate change;ozonedepletion;chemicals;naturalresourceissues,includingforests,biodi- versity,oceans,fisheriesandwildlifeconservation;andthesustainabledevelopment efforts of the multilateral development banks and the United Nations. Prior to joining the Department of State, Ms. Claussen served for three years as a Special About the Authors xi Assistant to the President and Senior Director for Global Environmental Affairs at the National Security Council. Dr. Janet Peace is a Senior Research Fellow in the Economics Program at the PewCenteronGlobalClimateChange. AtPewsheservesasthein-houseeconomist andcoordinatestheCenter’sresearchontheeconomicmodelingofclimatechange policies. Prior to coming to the Pew Center, Dr. Peace was the Director of Offsets Development and Industry Relations with a Canadian non-profit group, Climate ChangeCentral. HeresheworkedonissuesrelatedtoimplementationoftheKyoto Protocol, including the assessment of cost effective, alternative policies that were politically feasible for industry and all levels of government. Working with these stakeholders,shewasafoundingChairoftheNationalOffsetsQuantificationTeam – an intergovernmental/industry group currently developing standardized offset quantification protocols for use in the proposed Canadian offset system. Dr. Tom Wilbanks is a Corporate Research Fellow at the Oak Ridge National Laboratory and leads the Laboratory’s Global Change and Developing Country Programs. He conducts research and publishes extensively on such issues as sustainable development, energy and environmental technology and policy, responses to global climate change, and the role of geographical scale in all of these regards. He has played roles in many national and international energy and climatechangeassessments,includingservingasCoordinatingLeadAuthorforthe chapteroftheFourthAssessmentReportoftheIntergovernmentalPanelonClimate Change(IPCC)onclimatechangevulnerabilities,impacts,andadaptationprospects for“Industry,Settlement,andSociety.”WilbanksisalsoChairoftheU.S.National Research Council’s Committee on Human Dimensions of Global Change.
Description: