3/27/2007

I’ll take “Disagreeing with Gore” for $2000
Filed under: Energy, Politics, Technology — nobrainer @ 9:11 pm

Gore was before Congress recently:

Gore advised lawmakers to cut carbon dioxide and other warming gases 90 percent by 2050 to avoid a crisis. Doing that, he said, will require a ban on any new coal-burning power plants—a major source of industrial carbon dioxide—that lack state-of-the-art controls to capture the gases. [my side note: he should be recommending performance metrics as opposed to equipment mandates]

He said he foresees a revolution in small-scale electricity producers for replacing coal, likening the development to what the Internet has done for the exchange of information.

Today I’m mostly interested in the 2nd idea, but I had to include that first paragraph for a little context. Less importantly, I have serious doubts about how viable and popular home generation will become (I assume home generation is equivalent to “small-scale” or else the comparison to the internet will be worse than I contend below). More importantly, however, the comparison between the electrical grid and the internet is pretty wrong.

To talk about small-scale production, I’m also assuming that he’s talking about solar, or maybe wind production and pretending that no one would consider adding home diesel or natural gas generators for selling electricity to the grid. One thing we often forget about home generation, is that suddenly the home owner is really in charge of their own grid. A bit of information I gleaned from watching Living With Ed, is that there is more equipment involved than just a bunch of panels on the roof. I don’t think there are enough monetary savings for people to want deal with the potential hassle of having another new, strange appliance. Maybe being independent is good for avoiding the occasional grid blackout, but any home blackout now means the owner is the one who has to fix the problem. Is having to deal with all the maintenance really worth a few cents a kilowatt-hour? However, one can conceive of a system where big electric companies possibly install and/or maintain home solar systems in exchange for cash or electricity.

Moving on, I’ll grant that maybe a lot of people really will try generating some extra electricity. That still doesn’t warrant the comparison to the internet. As more people join the internet, Metcalfe’s Law [thanks Yeti] proposes that the value of the network increases proportionally to the square of number of users.

Currently, the grid is unidirectional. It is also obvious that adding small-scale generators won’t change the number of people on the grid. So I will analogize — because Metcalfe’s law is intended for telecommunications networks — that the value of the electricity “network” is mostly related to the number of user-producers. However, while the amount of power may vary by producer, the product is basically identical.

The user-producers of the internet, on the other hand, can take in and use content vastly different from what they are self-producing. Moreover, the delivery and replication cost is almost zero. Thus once the content is produced, it can be multiplied millions or billions of times. Thus small groups of small producers can create huge impacts. An influx of small electricity producers, however, will only create, on the grid, a marginal difference on the total supply.

The net effect, maybe, is the reduction of emissions, primarily from coal plants. Still, that is a finite benefit. Plus, the internet doesn’t bury and destroy old information, as it surely hasn’t stopped the sale of books or wasting of paper. Al Gore’s forecast is probably right in that do-it-yourself power will become increasingly popular as prices decrease. And coal use may decrease if and only if regulations make it prohibitively expensive, which is probably why he favors equipment based regulation instead of performance based regulation. To that end his forecast a simple economic one. If that succeeds, however, it will not be due to the level of sharing or exchange like the internet… that he invented. It will be a basic case of improvement in applied technology.

References: (more…)

I’d have never guessed
Filed under: Business, Politics, Stupidity — nobrainer @ 1:00 pm

Plan: ban smoking.
Result: smoking continues.
Revised plan: Grant some waivers on demand to some bars
Revised result: A whole bunch of fucked government interference that primarily benefits management regimes who are terrified of banning smoking of their own free will.

3/26/2007

Chavez goes the Dennis the Peasant route
Filed under: Economics, Politics, Venezuela, Zimbabwe — nobrainer @ 5:58 pm

Chavez is en route to destroying his country. That pretty much sucks for low class Venezuelans, but it is great news for me and all Americans.


It works out very easily:

  • He loves to hear himself speak
  • He provides great sound bites
  • He convinces a large number of Americans that his ideas are good
  • Meanwhile his policy of redistribution fails miserably and creates a very visible representation of why Americans don’t really want socialism

Now he’s apparently moving quickly with conceptual plans for “social, or collective, property.” The goal is to seize private property, redistribute it, and form collectives to be “managed by workers who share profits.”

It reminds me of Monty Python and the Holy Grail.

It also reminds of Zimbabwe, where “Wonderful Bobby” Mugabe took the land away from people who knew how to grow things like food — I call them “farmers” — and distributed the land to poor desperate souls who didn’t have much of a clue how to grow things. That is always a winning plan for creating an abundant food crop.

In addition to land, Chavez also nationalized the “telecommunications company and the electricity sector, and imposing greater state control over the oil and natural gas industries,” but you already knew that. He’s also planning to increase luxury taxes and do away with those silly presidential term limits.

Of course a few realistic folks are questioning the results of his oh-so-good-intentions:

“If Mr. Chavez really wants to help Venezuela’s poor farmers, he must offer them technical assistance and sufficient financing because land doesn’t become productive without investment,” said opposition leader Alfonzo Marquina. “We’re only seeing increasing shortages and more expensive products.” [emphasis mine]

But hey, despite severe restrictions of the press, “[s]upporters say Venezuela’s democracy is as healthy as ever.” Admittedly, I’m not sure what the benchmark for Venezuelan democracy is. The supporters also really appreciate Chavez’s initiatives.

Oh well, as long as the people of Venezuela are content with waiting for Chavez’s initiatives to work and/or for him to die, it’s really none of my business.

3/25/2007

You just can’t help some people
Filed under: Computing, People — nobrainer @ 5:13 pm

After the Great Comcast Disaster of ‘06, I gave my old, extra router to my girlfriend. It’s been running just fine for months and now her roommate wants to plug into it. And she wants the installation software for the router. I told her something along the lines of, “I probably have it, but you totally don’t need it to connect. I’ve never used it.”

She insisted that computers can’t connect through a router unless that router’s software is installed.

Had she not been so insistent, I might have suggested that she just needed to restart the router. But who am I to keep her from the fun of looking up the router manufacturer; finding, downloading, and installing the software; and then rewiring everything… and then restarting the router.

[the extra technical details: (more…)

3/23/2007

Soccer is a funny sport
Filed under: CollegeHumor, Humor, Sports — nobrainer @ 2:15 pm

Let’s go to the video for evidence:

Have a good weekend folks!

[College Humor]

3/22/2007

On reducing middlemen
Filed under: Economics, Health, Marketing, Technology — nobrainer @ 10:14 am

In today’s NYT business section, Tyler Cowen writes why reducing the middlemen from health care won’t make it a “free lunch.” The basic point is that lower overhead costs are generally created by shifting the costs to health care consumers, generally in the forms of either fewer available treatment options, or longer waiting times for treatment.

This is not groundbreaking, but it reminds me of some information from an EconTalk podcast with Richard Epstein. From the time starting at 33:58:

“Often Times, the sale of drugs goes down in absolute units when they become generic… but what happens is, if you don’t have a brand name, it’s harder to sell it. And if there are 11 guys making it, nobody wants to advertise it. So that the thing tends to disappear from consciousness… Ironically, one of the things you could argue respectably now is that lengthening the patent term will actually help consumers in addition to producers by making sure that somebody’s keeping that drug in everybody’s face.”

The basic economic analysis predicts the presence of generics will dramatically shift the supply curve which seems to predict an increase in quantity of drugs at reduced prices. But the lack of advertising pushes the demand curve even further in the opposite direction. This seems to indicate a dramatic monetary savings at the cost of fewer people getting the drugs they want or need.


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