i've never understood why people think i "save" gas or decrease energy consumption in some meaningful way by riding my bike to work -- instead, i make (e.g.) gas cheaper for soccer moms in expeditions or oil cheaper for industry in china and india:
But surprisingly few make what, to me, seems like a more basic point: energy is a tradable market good. It is not as if there is some fixed demand for energy, so that by using less carbon-emitting energy, you actually decrease the amount of carbon emitted.
This is, of course, ridiculous. When you donate money to build a new windfarm, you don't take any of the old, polluting power offline; you increase the supply of power, reducing the price until others are encouraged to buy more carbon-emitting power. On the margin, it may make some difference, since demand for electricity is not perfectly elastic, but nowhere near the one-for-one equivalence that carbon offsets would seem to suggest. Especially since the worst offenders, big coal-fired plants, are not the ones that renewables will substitute for; solar and wind power are not good replacements for baseload power. Instead, renewables are likely to take relatively clean (and expensive) natural gas plants offline, since those are the ones that provide "extra" power to the system. Similarly, by giving villagers in Goa energy-saving CFL bulbs, you do not lessen the amount of electricity consumed; rather, you make it possible for other people to purchase the extra energy freed up by more efficient lightbulbs. This may be excellent poverty policy, but it does not lessen the carbon footprint of your international flight.
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