Energy myth eight-worldwide power systems are economically and environmentally optimal

Abstract

Debates on energy policy, environmental regulation, and global warming start with the largely unquestioned assumption that the present heat and power system is economically optimal. It then follows that any actions to change the energy system to achieve other goals, such as lowering pollution, will raise the cost of energy services and damage the economy. It then further follows that the only way to have affordable, clean energy is to invent and develop new technology. This view is widespread. President George W. Bush, in a major speech on climate change said, "Technology is the ticket" (2005). But the energy system is not optimal, and society does not need to play off income against cleaner energy.