Where is it cheapest to cut carbon emissions?

There is no single answer to the question of where it’s cheapest to cut emissions. But when more than one country shares a common carbon price or tax, the total cost of the climate policy is higher in the countries whose economies are more carbon intensive; for example, Australia. This is despite these…

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You think you can’t afford it, but do you know what it costs? AAP Image /Lukas Coch

There is no single answer to the question of where it’s cheapest to cut emissions.

But when more than one country shares a common carbon price or tax, the total cost of the climate policy is higher in the countries whose economies are more carbon intensive; for example, Australia. This is despite these countries actually having more low-cost opportunities to cut carbon emissions than greener economies such as Sweden.

This is the main finding of an article by my Australian National University colleagues Jack Pezzey and Ross Lambie and myself in the current edition of the Australian Journal of Agricultural and Resource Economics.

This issue became very relevant in the last week. The Australian government announced that it would link the Australian emissions trading scheme (ETS) to the European ETS. This means that the price of carbon will be the same in both markets from 2015.

It’s well-known that the costs of cutting carbon emissions will be different in different countries and regions. But which countries have high costs and which have low costs depends on how these costs are defined.

There are two main ways of thinking about the cost of cutting emissions. We can look at the cost of cutting a single extra tonne of carbon emissions. Economists call this the marginal cost of abatement. Alternatively, we can try to measure the total cost of carrying out a climate policy.

Our theory is that there are more “low-hanging fruit” – low cost or easy options for cutting emissions – in countries like the US and Australia which have had less-aggressive energy efficiency policies. Economists would say that the marginal cost of abatement is low in these countries.

More low-hanging fruit can reduce the marginal cost of cutting emissions. Jane Rawson

But when we think about the total costs of cutting carbon emissions, these less-efficient countries will bear higher costs. To use the same analogy, this is because the more fruit there is below a given height, the bigger the total crop will be. A common carbon price is like an agreement that all countries harvest emissions reductions up to the same height on the trees. The total cost of such a policy should, therefore, be higher in countries like Australia whose economies are more emissions intensive, because it requires a larger total cut in emissions than countries like Sweden would.

Another twist is that how much a dollar buys depends on where you are spending your money. As shown by the Economist magazine’s Big Mac Index, a dollar buys much more in India and China than in America. And more in America than in Switzerland. This means that cutting a tonne of carbon emissions in India might look cheap in terms of US Dollars but actually be quite costly in terms of Rupees.

To test our theory, we need information on the costs of climate policies in different countries. Obviously we don’t actually know how much policies that don’t yet exist will cost. But we can use computer simulation models to try to estimate these costs and test our theory.

We used the results of a recent simulation exercise called EMF-22. Ten modelling teams from around the world took part. The models – called integrated assessment models – can simulate the effects of policies on the world economy and the climate. Each team used their model to simulate the effects of ten different future climate policy scenarios.

The results of the EMF-22 exercise broadly confirm our hypotheses. They show that the marginal abatement cost is highest in the European Union, lowest in China and India with the US in the middle. But when all countries adopt a common global carbon price, the total costs as a percentage of gross domestic product (GDP) are lowest in the European Union and highest in the two developing countries.

We also found that a Kyoto treaty-style agreement where countries cut emissions by a common percentage has similar results. However, if instead the common target is set for reductions in emissions per dollar of GDP then China and India are the countries with the lowest total costs.

These findings might explain why different countries favour different climate policies and why some are more enthusiastic about action than others. The European Union has been the most enthusiastic about taking action on climate change. And it has advocated policies establishing a Kyoto treaty-style agreement, which would impose the least cost on itself. On the other hand, China and India have announced targets for reducing their emissions per dollar of GDP, which we found imposed relatively low costs on these developing countries.

Our findings also emphasise the complexity of communicating climate change policies. There is no single answer to the question of “Where is it cheapest to cut carbon emissions?” and the choice of answer makes a difference.

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61 Comments sorted by

  1. John Newlands

    tree changer

    If the cheapest option is buying offsets rather than reducing fuel use a warning light should go off. If the offset is temporary, exaggerated or misconceived it has the perverse effect of exonerating real emissions. A leading example is Chinese manufacture of CFC refrigerants. By refraining from producing all their presumed entitlement like a Magic Pudding it creates an endless supply of carbon credits to sell to Europe. The harmful emissions should simply be banned by local or international law.

    Mitigation policies should have a no.1 priority of burning less coal. When we get away from this we've taken our eye off the ball. There is a tendency to conflate welfare with carbon abatement, examples being 3rd world forest preservation and our own Carbon Farming Initiative. While it makes us feel good it is largely an irrelevant side show if we burn as much coal as ever.

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    1. Jonathan Maddox

      Software Engineer

      In reply to John Newlands

      John you post this particular furphy repeatedly.

      The "HFC-23" loophole in the CDM came into existence in 2001, was recognised in short order, and was closed by 2007. It is old news. http://www.newscientist.com/article/dn11155-kyoto-protocol-loophole-has-cost-6-billion.html

      The initial inclusion of this gas on the register was logical : of course emissions of the most potent greenhouse gases should be stopped first -- if the impact of an anthropogenic gas is a few thousand times that of CO2…

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    2. David Arthur

      n/a

      In reply to John Newlands

      John, I'm not sure that flagellating ourselves over the coal consumption of other nations is worthwhile.

      What I am sure about is that Australia and Australians would be foolish indeed to assume that others will continue to use coal, knowing full well that this will eventually be to their detriment.

      For Australia, this means that we must plan for a future in which there are no export markets for Australian coal. We need also consider that our continued use of coal will attract the ire and opprobrium of other nations.

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  2. Daryl Deal

    retired

    Actually, peak oil was in 2006 and the worlds oil production is now in a steady decline.

    By 2020, the pragmatic Scots, knowingly full well, the end of the of the North Sea Oil, will become a stark reality, are preparing well in advance for the day the cheap North Sea Oil and gas bonanza will come to an end. The irony being, south of "Hadrian's Wall", the clowns of Westminster are partying on the deck of the RMS Titanic 'Donald Trump Style', and simultaneously deliberately ignoring the reality of the end of "North Sea Oil and Gas"!

    The reality here is, much of the impetus for clean renewable energy sources, will ultimately come from the Oil & Gas Industry, both directly and indirectly itself.

    Both reality and history tells us, as one dominant industry dies, a new one is born out of the ashes of the old one.

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    1. Philip Dowling

      IT teacher

      In reply to Daryl Deal

      Read BHP's last annual report and commentators view of their purchase of North American assets.

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    2. Jonathan Maddox

      Software Engineer

      In reply to Philip Dowling

      Peak oil is the point of maximum annual consumption, ever. It has almost certainly come and gone. The amount we SPEND will go up and up for quite a while yet!

      Just because there are still profits to be made in oil (there are HUGE profits to be made), does not mean that we'll produce oil faster in the future than we used to.

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    3. Philip Dowling

      IT teacher

      In reply to Jonathan Maddox

      Keep repeating mantras. It's good for the blood pressure.
      When it's low check out the South China Sea ructions.

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    4. Jonathan Maddox

      Software Engineer

      In reply to Philip Dowling

      Sorry Mr Dowling were you trying to explain something? I don't quite see it.

      It is no surprise to anyone that the remaining puddles of crude oil such as those in the deep water off Hainan and Angola are more valuable and desirable now than ever before. The point is that the big oceans of it are dwindling, and no amount of (expensive!) new drilling will compensate for the decline in production from the cheap, "sweet" sources we've relied upon for a century.

      Traditional crude oil production peaked quite some time ago. Total liquid fuel production including biofuels and bitumen from oil sands (dug up with shovels, steam-cleaned and rendered) is roughly constant, but these do not count in my book as the same thing, economically, as the "sweet" crude oil that still flows from the ground almost for free (but in smaller quantity than it once did) in places like the Middle East.

      If you have any new information do not hesitate to elaborate.

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  3. Gerard Dean

    Managing Director

    Professor Stern

    I note that your speciality is the, 'understanding the relationship between resource use and economic growth and development.' There appears to be a disconnect between you article and what is happening in real life.

    Firstly, you claim that although Indian carbon prices are low cost in dollar terms, they are expensive in Indian Rupees. This hasn't stopped India planning to build several hundred coal fired power stations by 2030. Undoubtably, the recent widespread power blackouts…

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    1. David Stern

      Professor at Australian National University

      In reply to Gerard Dean

      Thanks for your comments. I don't think they contradict what I wrote in my article. said in the article that action on climate change is expensive for Indians so it's not surprising that they are continuing to build coal fired power stations (they also though have quite a lot of wind power). And even if the European Union is most enthusiastic on action their action is still limited for the moment. There's no contradiction there. The least fat person among a bunch of overweight people is still the slimmest though they might not really be that thin.

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    2. Ian Donald Lowe

      Seeker of Truth

      In reply to David Stern

      In a world of blind people, the one-eyed man is king.

      Where is the research and development? Where are the hydrogen collectors? Where are the Australian-made solar cells? Why is solar technology virtually unchanged since the 1980's?

      You used some models to predict trends but models are only as good as the data they are based upon and as they are limited, they don't anticipate all contingencies. Did you model a future of war on a global scale? Did you model a future of world-wide economic collapse? Did you model a future of civil unrest and political turmoil? Much the same as the climate change modelling itself, any results you may have gotten from modelling is limited and unlikely to offer anything except a keyhole view of the future.

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    3. Gerard Dean

      Managing Director

      In reply to David Stern

      Professor Stern

      Thanks for responding. Appreciated.

      Your comment, "And even if the European Union is most enthusiastic on action their action is still limited for the moment.' is the perfect summary of the situation.

      Sadly, for those such as yourself, trying to intelligently work through the economics of international emissions trading, "the moment' is the the thing that destroys the logic in the system. Chancellor Merkel' go-go-go on coal fired power plants is going to be a very long moment.

      Again, thanks

      Gerard Dean

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  4. David Arthur

    n/a

    Thanks for this, Prof Stern.

    A difficulty that seems to afflict economics is that it is not informed by climate science. As a result, I have seen nothing written by any economist based on the recognition that fossil fuel exploitation must cease altogether in order to minimise adverse effects of climate change.

    1. Studies of climate millions of years ago have already established that atmospheric CO2 already exceeds anything since the Pliocene Epoch (5.3 to 2.6 million years ago) when polar…

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    1. Gerard Dean

      Managing Director

      In reply to David Arthur

      Hey David

      I agree with your sentiments on purchasing emission abatement overseas- madness. It is a golden scamming opportunity as proven by the near collapse of the European scheme.

      You are very upset about the people who "so busy complicating the process, they've forgotten about the goal". Well, you don't need to worry because these people are actually hitting reaching their goals easily. How can this be?

      The goal of 'They" is to make a complicated process that APPEARS to look like emission…

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    2. David Arthur

      n/a

      In reply to Gerard Dean

      Thanks Mr Dean,

      I agree with the first part of your remarks, that is about how "cap-&-trade" schemes are nothing but the usual parasitising of the real economy by the finance sector and their ma-ates among the self-styled "progressive" political Parties; I understand we each recognise the superiority of carbon pricing via escalating fossil fuel consumption taxes, made revenue-neutral by cuts to other taxes until fossil fuel use is priced out of the economy, and the tax cuts used to effect the…

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    3. Gerard Dean

      Managing Director

      In reply to David Arthur

      Mr Arthur

      Again, thanks for a reasoned reply. Actually, it annoys me a little, because you have obviously put some thought into your points, and that is a rare thing on this site indeed.

      Nevertheless, we agree on stupidity the various ETS schemes, however I am not yet convinced about bio fuels.

      You are right, again! I do scoff whenever biofuels are mentioned by persons who believe it is simple matter of draining the local fish and chip shop deep frying oil into your car.

      However your…

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    4. David Arthur

      n/a

      In reply to Gerard Dean

      Thanks for this reply Mr Dean.

      I see that someone has perused this page, marking my comments as 'unconstructive' without explaining to me how and why they hold that view.

      What's disappointing is that they haven't contributed anything to the conversation. While this sort of troll-ish (like/unlike) behaviour may be expected over on Facebook, on this site it is, indeed, unconstructive'.

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  5. Peter Lang

    Retired geologist and engineer

    “Our theory is that there are more ‘low-hanging fruit’ – low cost or easy options for cutting emissions – in countries like the US and Australia which have had less-aggressive energy efficiency policies. Economists would say that the marginal cost of abatement is low in these countries.”

    I believe this sort of analysis is missing the key point. The point is that only marginal improvements can be achieved in the rate of decarbonisation of the economy by carbon prices without either severely damaging…

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    1. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Peter,

      There are quite a few "impediments" blocking the world from having low cost nuclear power I'd suggest.

      I'd be keen to hear any of your suggestions regarding the removal of the impediments for North Korean NPPs, or the provision of low cost energy in Iran, Iraq, the Congo or Somalia....In other words, when you say nuclear can provide The World with cheap power do you mean the whole world, or just the places that us fat rich white folks live.

      Are you actually suggesting planting nuclear power plants anywhere and everywhere? Afghanistan? Chechnya? Benin?

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    2. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      Unpicking of the Kaya Identity [1] shows that little can be achieved unless we allow a low cost alternative to fossil fuels. Realistically, the only two variables that can be influenced are energy/GDP and CO2 emissions/energy.

      We are inevitable increasing energy consumption. So, if we cannot dramatically cut CO2 emissions/energy, the only alternative is to cut our GDP growth rate. On a simple analysis (Cass 1: all parameters held constant except GDP growth rate) as described in Attachment 2…

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    3. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      Peter Ormonde says: "There are quite a few "impediments" blocking the world from having low cost nuclear power I'd suggest."

      True.

      High cost abatement policies will not be adopted, and nor should they be.

      Renewable energy is a very high cost policy when all costs are properly accounted – at about $300/tonne CO2 abated [1]. So, mandating and subsidising renewable energy is bad policy.

      Carbon pricing is also bad policy. It will not work in practice – for reasons explained here [2…

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    4. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      Abatement cost per $/°C avoided

      The cost per °C temperature change avoided is calculated from the present value abatement costs and the projected global temperature change for the mitigation policies listed in Table 5-1. The costs are in 2005 U.S. $ trillion. The temperature increase is from 1900 to 2100.

      Policy Trillions $/°C avoided
      No controls
      • 250-year delay
      • 50-year delay 4.71
      Optimal 4.89
      Concentration limits
      • Limit to 1.5xCO2 18.79
      • Limit to 2xCO2 6.81
      • Limit to 2.5xCO2…

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    5. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Sure Pete...

      But you haven't actually answered the question regarding real tangible impediments.

      See at the moment Israel is running planning scenarios for a pre-emptive attack designed to wipe out Iran's cheap nuclear power option.

      The US is still trying to untangle itself from the deal struck between the US and North Korea regarding it's access to safe "cheap nuclear technology".

      And the fact that the world's poor people all seem to choose to live in nasty violent unstable places…

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    6. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      Peter Ormonde says: "There are quite a few "impediments" blocking the world from having low cost nuclear power I'd suggest."

      Yes. They are political, ideological and social so they can be overcome by education, especially if the ‘Progressives’, Greenies, ideological Left and ‘Warmists’ stop blocking the technology that can have the greatest impact on reducing emissions. The following shows the advantages.

      How much better is the ‘Cost competitive alternative to fossil fuels’ policy than the…

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    7. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      Peter the EDI study you post a link to is every bit as unrealistic as the BZE proposal. It looks at *current* marginal costs for undeveloped industries and extrapolates with no sensible corrections for learning curves and economies of scale.

      Indeed, the abatement cost you cite is ridiculous, because wind power with its current relatively modest subsidy (nearer $30/tonne than $300/tonne) already cuts emissions in this country by reducing domestic demand for black coal and gas. The same can be said…

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    8. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      Jonathon,

      I suggest you read the cited reference and understand it before you start trying to critique it. The figures you are quoting are nowhere near the full story.

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    9. Peter Lang

      Retired geologist and engineer

      In reply to Peter Ormonde

      Sure Pete,

      But you haven't actually read and understood the comment posted or the cited references.

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    10. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Now lets get practical here Pete.... let's look at Iran and it's pursuit of the peaceful atom. Who should we be edgerkating? Should we be telling Israel that Iran is a great neighbour and just want the most economically feasible power on offer? Or should we be doing powerpoint presentations to Mr Dinnerjacket explaining that nuclear weapons are bad if he's got 'em but OK if Israel got them via illegal deals with South Africa.

      How do you parachute your cheap safe and reliable nuclear power option into the real world Peter?

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    11. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      Nuclear Power – would avoid 900 fatalities per year in NSW and provide the least cost way to reduce emissions;

      Why the opposition to nuclear? Surely nuclear would provide everything most people want, e.g.:

      - energy security
      - reliable energy supply
      - by far the least cost way to reduce CO2 emissions
      - avoid about 900 fatalities per year

      What more could we ask for?

      Here is a very simple calculation of the number of fatalities that would be avoided by replacing coal with nuclear power…

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    12. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      Any comment on current abatement costs *already* being a fraction of the figure you came up with?

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    13. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      If you oppose the world having low-cost nuclear power, you oppose any realistic opportunity of significant cuts to global GHG emissions. That's the reality. Make your choice.

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    14. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      I think the US and Chinese figures for coal-related fatalities don't extrapolate so easily to Australia. Our mines are bigger, more automated, better regulated and generally safer for the few people they employ than the smaller, more labour-intensive, less unionised ones abroad. Our coal is relatively cleaner (even our brown coal is clean : carbon emissions from burning it are high due to its high moisture content rather than because of sulfur or heavy metal contaminants) and the emissions restrictions…

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    15. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      Abatement cost of wind generation in Victoria = $1400/t CO2 abated.

      "Hopes of slashing greenhouse emissions just blowing in the wind"
      http://www.theaustralian.com.au/national-affairs/hopes-of-slashing-greenhouse-emissions-just-blowing-in-the-wind/story-fn59niix-1226462745494

      I have not seen the report and don't endorse it, but you asked for a figure for current abatement costs and there is one just published.

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    16. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      So you'd be full steam ahead with the Kim Il Sung peaceful powerplant then Peter?

      You'd be telling those Israelis to take a pill and have a cuppa while Tehran pushes ahead with its nuclear power option?

      You'd be demanding that the yanks drop all their nanny-state objections to a free market in perfectly safe economically feasible nuclear technologies?

      You'd be up for dropping a few nuclear plants into sub-Saharan Africa or the Middle East as if none of these issues was real?

      Are you serious?

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    17. Peter Lang

      Retired geologist and engineer

      In reply to Peter Ormonde

      Perhaps you should ban oil from all countries you don't approve of. After all, oil is used to make conventional bombs and the delivery systems for all weapons. So why not ban oil?

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    18. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      So you do actually support North Korea and Iran (and Yemen and Somalia and anyone else who wants one) having unrestricted access to nuclear power? Let the market rip eh Peter.

      The Israelis are just over-reacting? The yanks are the South Koreans are just fantasising?

      You are saying that in fact that you are opposed to the yanks and the IAEA and indeed all who impose restrictions and bans on international transfer of nuclear technology.

      The one indisputable fact about the peaceful atom Pete is that it provides the cheapest way of obliterating one's neighbours. You ignore this. You choose to. You pretend it's not a real problem. This means you are offering crank "solutions", Peter - sheer ratbaggery. You cannot just pretend this sort of stuff away.

      What do you old geologists smoke?

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    19. Peter Lang

      Retired geologist and engineer

      In reply to Peter Lang

      I guess, that comment invites the usual uproar from the anti nukes scaremongers. I should have stated the usually stated point first, which I am sure just about everyone knows, but when dealing with anti-nuke scaremongers it needs to be said every time. My bad!

      weapons grade nuclear material is made in dedicated reactors designed and operated to make weapons material It is not made in civil plants designed for electricity generation. the mix of isotopes is wrong. It would be prohibitively expensive to try to extract and make the ratio of isotopes necessary for explosions using civil reactors. The least cost way to make weapons materials is with dedicated reactors designed an operated for the purpose.

      I think that is sufficient explanation for the anti-nukes. Let them run down the rest of their scaremongering Greenpeace talking points. Hopefully, some people who converse on the Conversation who can see the big picture.

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    20. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      Interesting, thanks for the link, and your skepticism is appreciated. If I were you, I wouldn't go endorsing it any time soon :-D

      It looks like Cumming has completely failed to take into account the "merit order" effect within the national fossil fuel electricity market. Indeed it seems he doesn't look at it as a national market at all, but at Victoria separately, and South Australia separately while ignoring altogether the retirement of the Port Augusta power stations -- picking big, fat cherries…

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    21. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      Holland: Wind avoids near zero CO2 emissions.
      http://www.clepair.net/statlineanalyse201208.html

      "Adding it all up, one must conclude that under the present conditions in the Netherlands a 100 MW (Megawatt) 'name plate' capacity wind development produces on average 23 MW because of the capacity factor. 4,6 MW (20%) of this has to be subtracted from the final net result because of initial energy investments. From the actual Statline production figures we know that 27% of this 23 MW = 6,17 MW represents…

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    22. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Who needs weapons grade material these days Pete.... nice cheap little dirty bombs whipped up in some garage in downtown Mogadishu.

      The complexity of the military style weapons no longer holds true in the age of backyard terrorism. Only the scarcity of the material and its location - together with a nanny-state accounting and inspection system - has held the peaceful atom in check.

      Just don't pretend that the world is a nice quiet peaceful place just crying out for cheap nuclear power. You really wouldn't want to be letting the world's poor have it at all would you Peter - this is about us and our energy hungry economies. Not a global answer at all. Certainly not for the world's poor.

      Incidentally don't insult me about needing prompts from anyone like Greenpeace regarding this stuff Pete - all my own work mate and so far unanswerable by you or any other gizmo enthusiast.

      Real live actual world rather than technologically abstract utopias.

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    23. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      It seems my comment got lost in the ether. I’ll try again.

      There are many other reports from around the world producing similar conclusions from empirical data. Here is one example:
      http://www.clepair.net/statlineanalyse201208.html

      “Adding it all up, one must conclude that under the present conditions in the Netherlands a 100 MW (Megawatt) 'name plate' capacity wind development produces on average 23 MW because of the capacity factor. 4,6 MW (20%) of this has to be subtracted from the final…

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    24. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      The le Pair article does precisely the same cherry-picking as Cummings. He does the same thing with domestic Netherlands emissions figures, where in fact the abatement from Netherlands wind is achieved by displacing fossil fuel generation wherever the Europe-wide market means it makes sense. The Netherlands has been increasing its consumption of fossil fuels for *other* market-related reasons, unrelated to renewable electricity generation. le Pair makes other unreasonable discounts for wind (like…

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    25. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Pete ... you're still doing it - fudging the impediments.

      You "advocate to remove the impediments that are preventing the world from getting low-cost nuclear power."

      That would be the US State Department, the Pentagon, the IAEA ... all these nanny-state regulators and restrictions imposed on this low cost energy option for the world. These are the real impediments to the nuclear option. Ask Iran. Ask Israel. Ask North Korea.

      Straight up - you seriously want to plant a reactor in Yemen or Somalia ... or is your world rather smaller than you'd have us believe? Doesn't actually seem to include poor people, trouble spots and places with unstable governments or hostile neighbors.

      This world seems to be pretty much like us really and no one else.

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    26. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      I suggest it is you that is cherry picking and bending data to suit a cause. What is that cause? Are you getting funded from wind farms, renewable energy search or something else?

      Perhaps you can give me some examples where coal power stations have been closed down as a result of wind generating capacity.

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    27. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      No, your original comment was not lost.

      I take your point that there are plenty of people prepared to cherry-pick data in many countries to prove whatever point they like.

      The same arguments of "economic irrationality" that apply to renewable power apply to nuclear power also.

      I think many of the impediments to low-cost nuclear power are rational and I don't think removing the irrational ones would be enough to let nuclear power proliferate in countries such as Australia and Somalia. If…

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    28. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      That's laughable. Yes, I have a cause : lowest-cost abatement ... which means, at the moment in Australia, that wind abates black coal and gas. This is counterintuitive because brown coal "should" be retired in advance, but it makes sense when you realise that in energy terms brown coal can be had for half the cost of black coal, which is in turn available to generators in NSW for about one-third the global market price.

      I am in no way "funded by wind farms", I'm a software developer in an…

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    29. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      Peter...

      It appears you are experiencin g some difficulty following the standard means of communicating here ... that is, you are replying to yourself.

      This is rather disruptive of the flow of an argument and does not augur well for the safety of nuclear power if it relies on pressing the right button.

      Please try and answer questions as they are laid out for you - I know you wouldn't want to be obscuring your points and replies.

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    30. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      You say:

      "I think many of the impediments to low-cost nuclear power are rational and I don't think removing the irrational ones would be enough to let nuclear power proliferate in countries such as Australia and Somalia."

      Those are unsubstantiated statements of your beliefs. Pointless. Baseless.

      I've explained that the vast majority of the population hold beliefs based on misinformation. We have been subjected to 50 years of anti-nuclear propaganda. So, frankly, I see your beliefs as…

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    31. Peter Lang

      Retired geologist and engineer

      In reply to Jonathan Maddox

      "That's laughable. Yes, I have a cause : lowest-cost abatement"

      Sure is. You are advocating very high cost renewable energy that does next to nothing to reduce emissions and opposing the world getting low cost nuclear power. Yep. Sure is laughable.

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    32. Gary Murphy

      Independent Thinker

      In reply to Peter Lang

      "very high cost renewable energy ... low cost nuclear power"

      US DOE disagrees:
      Nuclear 112.7; Wind 96.8; Solar PV 156.9; Biomass 120.2.
      http://en.wikipedia.org/wiki/Cost_of_electricity_by_source

      The AETA estimates are:

      (2012) Nuclear 96; Wind 116; PV 224; Solar Thermal 311; Biomass 128.
      (2030) Nuclear 102; Wind 91; PV 116; Solar Thermal 189; Biomass 136.

      And that is with a lot of the costs externalised.
      http://bree.gov.au/documents/publications/Australian_Energy_Technology_Assessment.pdf

      Nuclear is only comparable in cost to the cheapest renewables - and it is dirty and dangerous.

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    33. Glenn Tamblyn

      logged in via Facebook

      In reply to Peter Lang

      Peter

      Some issues with the simple idea that Nuclear is the way to go. And I hear what you are saying about its benefits, at least in principal.

      The safety record of Nuclear is good - a small number of dramatic events don't invalidate that.

      However, a major part of why nuclear has a pretty good safety record is the intense regulatory regime it operates under. And that regime imposes high costs on construction, long lead times to bring plant to operation, and demands high calibre technical…

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    34. Jonathan Maddox

      Software Engineer

      In reply to Peter Lang

      I do not "love wind and hate nuclear". I am not an opponent of nuclear power. I am merely not a proponent of it either.

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    35. Peter Lang

      Retired geologist and engineer

      In reply to Peter Ormonde

      Read the comments I posted on this thread. I explained what I suggested needs to be done to get there.

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    36. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Peter Lang

      No Peter
      You made a series of generalised assertions and claims - backed up by the likes of that IPA hack and a few others

      I'm asking you to address some real world problems. That you refuse to do. Because you cannot.

      You simply pretend that nuclear power plants offer a global solution to carbon emissions - as if you actually believed they were a problem - but apparently not anywhere and everywhere. Or are you enthusiastically backing Irans program and that of North Korea. See you just won't answer.

      So answer the questions Peter - they are simple and direct.

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  6. Martin C. Jones

    Researcher in Environmental Economics at University of New South Wales

    Dear Professor Stern,

    Thank you for an interesting article and paper. The distinction between marginal costs and total costs is very useful, but I think readers of your article would be helped by the further distinction between the total costs of abatement in a country and the total costs of abatement _borne_ by a country.

    To phrase it differently: while more money may be spent on abatement in countries that have low marginal cost abatement opportunities, and these countries are emissions…

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    1. David Stern

      Professor at Australian National University

      In reply to Martin C. Jones

      Thanks for your comment. If you have a common carbon tax then a country's domestic abatement costs are also their total spending on abatement. But when there are emissions caps or quotas with trading then you are right that the two are different and our paper is just about the domestic abatement costs in each country.

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  7. Denis White

    Retired

    Dear previous commentors. If I discover that I am poisoning myself and can recognise the source of that poison I do my best to avoid that poison. Simplistic you might say, but being a simple person I instinctively decide that the cost of losing my life from continued exposure to the source of poison is far greater than whatever benefit's I might previously have enjoyed from such exposure.

    No matter how I analyze or rationalize or seek to avoid the truth I must eventually face the reality of my…

    Read more