Tag Archives: subsidies

The dirty little secret of electric cars.

The dirty little secret of electric cars.

A 2012 comprehensive life-cycle analysis in Journal of Industrial Ecology shows that almost half the lifetime carbon-dioxide emissions from an electric car come from the energy used to produce the car, especially the battery. The mining of lithium, for instance, is a less than green activity. By contrast, the manufacture of a gas-powered car accounts for 17% of its lifetime carbon-dioxide emissions. When an electric car rolls off the production line, it has already been responsible for 30,000 pounds of carbon-dioxide emission. The amount for making a conventional car: 14,000 pounds. …

So unless the electric car is driven a lot, it will never get ahead environmentally. And that turns out to be a challenge. Consider the Nissan Leaf. It has only a 73-mile range per charge. Drivers attempting long road trips, as in one BBC test drive, have reported that recharging takes so long that the average speed is close to six miles per hour—a bit faster than your average jogger.

In other words, government subsidies for electric cars are nothing more than another feel-good program, accomplishing nothing.

One of the major backers has pulled out of a solar energy power plant plan for Africa and the Middle East.

One of the major backers has pulled out of a solar energy power plant plan for Africa and the Middle East.

“We see our part in Dii as done,” says spokesman Torsten Wolf of Siemens, one of 13 founding partners of the consortium, which is also based in Munich. Siemens also said that it will pull out of the solar-energy business altogether. Its decision was made in response to falling government subsidies for solar energy and a collapse in the price of solar equipment. But to DESERTEC’S critics, Siemens’ exit also adds to doubts about the plan, which is expected to cost hundreds of billions of dollars. “DESERTEC is an ambitious attempt to do every­thing at once,” says Jenny Chase, an analyst at Bloomberg New Energy Finance in Zurich, Switzerland. “I think it’s something that will be achieved organically, bit by bit, which will probably be cheaper, easier and achieve the same results.” [emphasis mine]

The cited reasons suggest some fundamental problems with this particular project. That Siemens is abandoning the solar energy entirely, citing the lose of government subsidies as one reason, also suggests there is something fundamental wrong with the industry itself.

Then again, it could be just like the new commercial space industry. Some companies are willing to take the risks to make the money even without subsidies, while others are not.

“Our Fisker Karma cost us $107,850. It is super sleek, high-tech—and now it’s broken.”

From Consumer Reports: “Our Fisker Karma cost us $107,850. It is super sleek, high-tech—and now it’s broken.”

Another wise business choice by the Obama administration, which gave this electric car company just over a half billion dollars in federal subsidies to develop this plug-in hybrid car.

After spending $130 billion on solar power subsidizes, Germany has found the effort to be a monumental waste of money.

After spending $130 billion on solar power subsidies, Germany has found the effort to be a monumental waste of money.

Despite the massive investment, solar power accounts for only about 0.3% of Germany’s total energy. This is one of the key reasons why Germans now pay the second-highest price for electricity in the developed world (exceeded only by Denmark, which aims to be the “world wind-energy champion”). Germans pay three times more than their American counterparts.

Moreover, this sizeable investment does remarkably little to counter global warming. Even with unrealistically generous assumptions, the unimpressive net effect is that solar power reduces Germany’s CO2 emissions by roughly eight million metric tons – or about 1% – for the next 20 years. When the effects are calculated in a standard climate model, the result is a reduction in average temperature of 0.00005oC (one twenty-thousandth of a degree Celsius, or one ten-thousandth of a degree Fahrenheit). To put it another way: by the end of the century, Germany’s $130 billion solar panel subsidies will have postponed temperature increases by 23 hours.

Using solar, Germany is paying about $1,000 per ton of CO2 reduced. The current CO2 price in Europe is $8. Germany could have cut 131 times as much CO2 for the same price. Instead, the Germans are wasting more than 99 cents of every euro that they plow into solar panels.

Rather than invest in the pie-in-the-sky pipe dreams of politicians, wouldn’t it be smarter to let the market figure out the most efficient form of energy? At first glance that efficiency might not appear “green-friendly”, but if it is more efficient I suspect it is almost certainly going to have the least overall effect on the environment.

Germany’s $130B Solar Experiment Delays Global Warming by 23 hours!

Success! Germany’s $130 billion solar power subsidies has delayed global warming by 23 hours!

It gets worse: Because Germany is part of the European Union Emissions Trading System, the actual effect of extra solar panels in Germany leads to no CO2 reductions, because total emissions are already capped. Instead, the Germans simply allow other parts of the EU to emit more CO2. Germany’s solar panels have only made it cheaper for Portugal or Greece to use coal.