Pay Too Much For Food & Power ctwardy | blog | SARBayes

NRC Panel: My paper is described in this Oct. blog entry.
SAR
Bob Koester
SAR World
Re-search
Ken C.
ISRID - inactive
D4H

Modeling
Causality
Causal Inference
Gelman
Flowing Data
Nuit Blanche
ACFR
Machine Learning
DecisionScience

Inference
Tim van Gelder
Overcoming Bias
Less Wrong
Zero Intel. Agents
ADVAT
Sources and ...

Φ
Socrates Wake
Computational Φ
Leiter Report
Experimental Φ
PhilPapers

Friends
pfh
njh'
Older njh
jpl-rpl


My Weblogs
SARBayes
Prior Analytics
SCI 410 news
Blogger -unused


In my local paper, James McCulla argues that HR 2454 "cap and trade" doesn't make sense because it will cost households and businesses a lot.

Without arguing for HR 2454 specifically, I wanted to point out that McCulla's argument needs another premise. My comment:

Mr. McCulla,

Suppose HR 2454 does indeed raise our energy costs as predicted. It may still be sensible.

Sometimes there are good reasons to choose to pay more. Suppose our choice is between (a) our current cheap energy, with occasionally titanic bills for disasters, military operations, etc., and (b) more expensive regular bills with a much lower risk for such shocks. Then it may be sensible to choose (b), because the expected cost is actually less.

Insurance takes this to an extreme: we choose plan (b) even though we know the expected cost is more than plan (a), just because we don't like shocks. Many people regard insurance as sensible.

I do not know if HR 2454's Plan B is actually better, nor why Connolly supported it. I am merely pointing out that there can be good reasons for choosing a plan that will increase the visible, regular costs.

Best regards, Charles

Indeed, my household has chosen to pay more for farm-direct food and for renewable energy because we think that these actually do lower the long-term cost for society. Well, I'm pretty sure of it for the food. I can taste the food and see the farm. If the energy premium really is going to renewables, I think that will pay off too. But the electrons coming into my house are the same, so at night I wonder if I'm just gullible.




Loading
[æ]