by Tyler_JC » Thu 24 May 2007, 22:40:48
$this->bbcode_second_pass_quote('AirlinePilot', 'H')ow much are you going to charge your nuke customers who cant afford to buy food for that electricity? If and when we have a depression/collapse you have to get the money to build and operate the power stations somehow. Right now you get it from revenue, grants and a viable growing economy.
Your comparision of the Empire state building isnt quite a valid one because everyone knew at some point the economy would get better. The realization of PO is a different animal IMHO. The realization that we havent prepared for a massive powerdown and the ensuing economic chaos is going to make the depression of the 30's look like a picnic.
Energy intensity is dropping for all countries, virtually every year.
California has a strong and growing economy, despite using the same amount amount of electricity per capita as they used in 1976.
Electricity consumes 2.5% of GDP. If electricity prices doubled (from 2.5% to 5%), we could build hundreds of new nuclear power plants as well as plenty of renewable energy plants. If electricity prices increase and stay high, we could increase the total electricity supply in terms of Megawatt hours produced. However, this might not be necessary because the higher prices people would be forced to pay for electricity would encourage them to buy more energy efficient products and consume less in general.
And no, a doubling of electricity prices would not cause a permanent global depression, mass starvation in the industrial world, and a collapse of the financial system. Money isn't destroyed, it is relocated. In this case, money would move from consumer discretionary spending into energy.
Additionally, the extra electricity would be eaten up by electrified transportation (plug-in hybrids, electric cars, light rail, etc.) so prices would not crash. This would provide further incentive to build more electricity-producing power plants. Tax electricity at 2 cents a kilowatt and use that money to subsidize energy conservation and renewable energy production. Or just remove the subsidies from fossil fuels and use the money saved to subsidize conservation/renewables. Essentially, it's the same effect.
Or we could do nothing, let the economy crash and from the rubble a new, lower energy use economy would develop. But providing a cushion would probably be in our best interest.
What we really need to do right now is get oil out of the transportation sector. If we can't do that fast enough while oil is still cheap and plentiful, there will be a painful transition for those left holding on to SUVs.
To make a long story short, oil production and electricity production have little to do with each other. Electricity production is not reliant on geology whereas oil production is often reliant on the underlying geology. We can build nuke plants in a short period of time and if we start now, we can avoid a nasty electricity shortage.