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by 9283409232 424 days ago
That is not showing us the market is not rational, it is showing us that Texas politics is corrupt. Texas is interfering in the market and picking the winners despite renewables being the favorable market option. Republicans are only in favor of no regulations and letting the market decide when it favors them.
2 comments
alephnerd 424 days ago
Texas subsidized wind energy for 30 years now - it was actually George W Bush and Rick Perry's legacy making project when they were Governors of Texas [0][1][2] and made up 20-30% of total energy produced.

Issue is, a significant proportion of Texas's budget comes out of NatGas and Oil revenue, so there's a perverse incentive when renewables end up pricing well below NatGas and Oil, and labor unions aligned to ONG like the UAW, ILU, and affiliates of the AFL-CIO like the United Steelworkers are VERY politically powerful.

This will be a major hurdle in energy exporting countries like the US, Norway, Canada, Netherlands, the Gulf, etc and it can't be handwaved away.

And no - rETraInInG doesn't work when much of the renewable industry is heavily automated, a major reason the ILU, UAW, and parts of the AFL-CIO ended up supporting the Trump admin's tariffs regime: either you drop the unions and cause tens of thousands to lose high paying jobs and radicalize a vast swath of Americans OR you do nothing and let the earth cook.

[0] - https://www.technologyreview.com/2016/08/29/70295/george-w-b...

[1] - https://www.texastribune.org/2013/09/16/book-excerpt-go-get-...

[2] - https://www.masterresource.org/texas/george-w-bush-wind-ener...

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moate 424 days ago
>>That is not showing us the market is not rational, it is showing us that Texas politics is corrupt.

Dear capitalists, this is not a bar:

The first thing proves the second. The market is a real thing that exists in the universe we live in, not just in academic research. The markets are never "rational", because they're just people. They may be "predictable" or even "stable" but humans are not rational. The fact that the market can be manipulated, means that it is manipulated.

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