“The effect of renewable energy on energy storage opportunities”
Wind and Solar energy have close to zero marginal costs. This leads to the popular hypothesis that renewable energy unambiguously reduces energy prices. A closer look at the energy market illustrates that this cannot be taken for granted, and prices may increase due to additional intermittent energy supply. Intermittent energy supply increases uncertainty and the demand for flexibility. This increases the cost of renewable energy. This paper shows that changes in policy, talking into account the additional cost associated with intermittent energy sources and encouraging more competition, will increase efficiency, increase security of supply, and enhance innovation. Therefore, the paradox is that a successful transfer to an energy market with a greater share of energy from renewable sources requires an extra cost to be levied on the renewable sources.
- Full draft thesis: Henry Gruijters (2012) “The effect of renewable energy on energy storage opportunities”
When is a General Theory really General?
Stiglitz, however, misses Schumpeter’s paradox. Schumpeter believes capitalism creates a better functioning economy, but thinks it will not survive, due to the imperfections in democracy and the lack of belief in the power of the business process itself. He predicts a post-war growth in public spending and an atrocious mis-management of resource that could threaten the organic nature of capitalism.
”What is Political Obligation and what Creates it”Extract:
When the Athenian Jury condemned Socrates to death, Socrates,according to Plato’s accounts in
the Crito, had a chance to escape the state. Yet Socrates argued to stay, saying that to define the
judgement would in some way break the obligations he had toward the state. He had four reasons
which can be traced back to the concepts of the social contract, gratitude, fair play and membership.
Each of these reasons and concepts concerning political obligation can be individually challenged.
The combination, however, is strong; so strong, in Socrates’ case, that he preferred death above a
life in banishment. In the same way our only rational choice is that of acceptance, for both moral
and prudential reasons, as we ‘acknowledge the authority of the state and obey its laws’ and
therefore commit to political obligation above anything else.