Just received this message from a friend. I haven't had a chance to read
the report yet, but I thought several of you might be interested in what
Cato has to say.
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Cato has just published an account of the causes. It is awesomely
comprehensive.
Altered some of my views; may aid yours too. Quotes from the summary:
Virtually all the increase in wholesale prices can be explained by
increases in production costs and overall scarcity. While there is
some evidence of the existence of excessive generator "market power"
(created not by the unfettered exercise of free markets but by
poorly conceived regulation), it is relatively minor and responsible
for only a small fraction of the price spike, if it exists at all.
We find little evidence to support the argument that
environmentalists are primarily to blame for the crisis. We likewise
are unconvinced that, had the state allowed utilities to enter into
long-term contracts with generators, the crisis could have been
either averted or made less severe.
Check it out at http://www.cato.org/pubs/pas/pa-406es.html
-----
Chris
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Chris Hibbert It is easy to turn an aquarium into fish soup, but
hibbert@netcom.com not so easy to turn fish soup back into an aquarium.
-- Lech Walesa on reverting to a market economy.
http://discuss.foresight.org/~hibbert/home.html
Yahoo Instant Message: ag_cth
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