DeepSummary
The Energy Gang podcast discusses two recently published books on the topic of tackling climate change and the role of capitalism and markets. The first book, 'The Price Is Wrong: Why Capitalism Won't Save the Planet' by Brett Christophers, argues that the inadequate profitability of renewable energy investments is a key reason why the transition to low-carbon energy is not happening fast enough to address global warming.
The second book, 'Climate Capitalism - Winning the Global Race to Zero Emissions' by Askhat Rathi, focuses on real examples of progress in the energy transition and showcases how private investment and market forces can drive the reduction in emissions that the world needs.
The podcast guests, Melissa Lott and Joseph Majkut, analyze and debate the contrasting perspectives presented in the two books, exploring whether capitalism can effectively address climate change, the role of government policies and incentives, and the potential for technological innovation to overcome the limitations of current renewable energy sources.
Key Episodes Takeaways
- The two books present contrasting perspectives on whether capitalism and market forces can effectively drive the transition to low-carbon energy and tackle climate change.
- Brett Christophers' book argues that the lack of profitability in renewable energy investments is a key barrier to faster progress in the energy transition.
- Akshat Rathi's book showcases real-world examples of how private investment and market forces are driving progress in the energy transition.
- Both books highlight the importance of government policies and incentives in shaping market dynamics and facilitating the energy transition.
- Technological innovation may be needed to overcome some of the limitations of current renewable energy sources.
- Effectively addressing climate change requires finding ways to fully account for the costs of emissions in market decisions.
- The discussion highlights the complex interplay between government policies and market forces in driving the energy transition, rather than a simple dichotomy.
- Reading both books provides a more nuanced understanding of the challenges and potential solutions for transitioning to a low-carbon energy system.
Top Episodes Quotes
- “If you plug those costs into the models we use to forecast energy decision making, you see falling emissions, and this is great. And yet, year over year, we see increased consumption of fossil fuels, increased greenhouse gas emissions.“ by Joseph Miket
- “To hinge on that point very briefly, the solution set, which is maybe a little underdeveloped in my sort of casual review, is state control, state ownership, integrated utilities, which you just tell them what to do.“ by Joseph Miket
- “I generally agree with Melissa on that. I think Achat's book has really interesting details that for somebody who knows a lot about energy trends over the last few years, kind of explain the story in new ways, really, really valuable.“ by Joseph Miket
- “Both of them, to me, indicate that if we want to get to the world that we all envision net zero, mid century, avoiding dangerous climate change, we need to find ways for the world to care more about climate change and incorporate that total cost into market decisions one way or another.“ by Joseph Miket
Entities
Person
Organization
Book
Episode Information
The Energy Gang
Wood Mackenzie
6/11/24
Two books that are essential reading for energy wonks give contrasting views on how to tackle climate change.
The hot book in the energy world right now is Brett Christophers’ The Price Is Wrong: Why Capitalism Won’t Save the Planet. It’s a detailed look at the structural issues in electricity markets and the challenges of generating returns on renewable investments, arguing that inadequate profitability is the key reason why the transition to low-carbon energy is not moving fast enough to address the threat of global warming.
It’s a provocative thesis that has sparked heated debate, on both sides of the debate. If you work in the energy business, you need to get to grips with the argument, even if you ultimately think it’s wrong.
In this episode, Ed Crooks is joined by Melissa Lott, Professor at Columbia University’s Climate School, and Joseph Majkut, director of the Energy Security and Climate Change Program at the Center for Strategic and International Studies, to discuss the question of whether private investment and market forces can bring about the reduction in emissions that the world needs.
They also review another important book that has broadly the opposite message: Askhat Rathi’s Climate Capitalism – Winning the Global Race to Zero Emissions. That book focuses on the real examples of progress in the energy transition.
At a time when the pace of the energy transition globally may be faltering, and the 1.5 degrees limit to global warming is getting further and further out of reach, Climate Capitalism shows just how much change and innovation there is in the industry. Bill Gates says it’s an important read for anyone in need of optimism.
In spirit, at least, it seems like a very different message from The Price Is Wrong. But are the fundamental conclusions of the two books really so different? Ed, Melissa and Joseph discuss whether there might be some common ground there after all.
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