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Note that this argument assumes ongoing free riding by fossil fuel. If fossil fuel is sold at full economic cost, then there is no need for electricity to be any cheaper than it is today, and it could indeed by a bit more expensive and still represent a substantial savings.

This argument also assumes there is no Connie Mae institution financing the capitalized savings of energy saving capital spending at subsidized terms (where it may be noted that this financial subsidy could easily be provided by a portion of a carbon fee while still recycling a majority of carbon fee payments as social dividend).


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Jul 8th, 2010 at 01:14:07 PM EST
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