Showing posts with label environment. Show all posts
Showing posts with label environment. Show all posts

Sunday, November 22, 2015

The rich and poor of environmental wars

http://www.npr.org/2015/11/04/452555878/deep-in-the-amazon-an-unseen-battle-over-the-most-valuable-trees

http://news.nationalgeographic.com/news/2014/06/140627-congo-virunga-wildlife-rangers-elephants-rhinos-poaching/

Despite more awareness of climate change and wildlife conservation this decade, rainforests and elephants are being destroyed at higher rates recently (maybe you also heard about the Indonesian peat fire that has blanketed SE Asia in smog, driven by deforestation to make room for corporate palm oil plantations).

But unlike pollution, habitat/species destruction may not be reversible. By some estimates, elephants will be gone in the wild in a few decades, at present hunting rates. Recent laws have slowed Brazilian deforestation, but globally we are still losing ~100K acres/day (mostly in Bra., Indo., and Africa).
When I was a teen, I knew species like elephants and forests like the Amazon were under threat, but I never imagined that they could totally disappear in my lifetime. The Amazon is so large and remote that it won't be totally wiped out, but we might lose enough to tip the climate change scales past the point of no return (deforestation is responsible for ~15% of total greenhouse gases due to burning/rotting, and disappeared forests can no longer absorb CO2). It's really scary.

So what is going on at the ground level? As you would expect, it's poor desperate people pitted against each other. In Brazil, indigenous forest communities tap rubber plants sustainably for their meager livelihoods. But others are paid by illegal logging operations to cut those trees down (mostly for export to the US). The Bra. gov't doesn't have the resources/interest to patrol the huge swaths of forest. So the "defenders of the forest" take up outdated arms to keep the loggers at bay and protect their way of life, but more of them keep coming and the trees are cut down much faster than replacement saplings can mature.

On the other side, economically marginalized Brazilians with few skills/prospects feel like they have no choice but work for illegal loggers to feed their families. They know it's wrong, but what choice do they have in that situation? When it comes to stealing vs. letting your baby starve, and the corrupt/uncaring gov't offers no solutions, what choice do they have?

Similarly in Africa, poorly paid/trained/equipped rangers are fighting a losing battle to protect elephants 24-7 (a daunting bodyguarding task) from the multiplying bands of poachers (who are getting more and more sophisticated). But these poachers are not getting rich either; they might fetch $100/kg from ivory smugglers, but the end product sells for ~$2K in China. They're just the foot soldiers fighting and dying over a luxury product that they will never use (same applies to rainforest hardwood, or some narcotics for that matter). $100/kg is relatively lucrative for the poachers, but the benefits wane when you consider the physical and legal risks they take. Again, they have very little education and other viable economic options, and live under gov'ts that are not able to lift much of the populace out of poverty.

We might pay more attention to the front-line fights because those are visceral and Hollywood-esque, but of course the root causes are less exciting and the economic perpetrators are not held accountable. I do not know the trade laws regarding rainforest timber, but Western importers should perform the due diligence to find out where the wood came from (like with blood diamonds), and boycott shadier sources. Builders/consumers should also scrutinize suppliers and call out/shame those who can't verify the sustainability/legitimacy of their sources. But likely illegal sellers offer lower prices, so foreign importers can pocket more profit if they pass it off as above-board. No one asks questions, and all we care about is the beautiful hardwood adorning our McMansions. Maybe gov'ts and trade orgs should demand that nations like Brazil curb illegal logging and make socioeconomic reforms, or face tariffs/sanctions (or even provide aid/counsel to help them reform). But the huge sums of money made by the powerful players on all sides of the trade is too important to let some trees and poor people get in the way.

Elephants are a protected species and ivory is illegal in many nations, but those laws are not well enforced in major consumption markets like China/Thailand. The US is an advanced nation, yet we are still a top importer too, so I guess we are not really in a position to criticize. Where is the education and stiff punishments for ivory smugglers/buyers to help dry up demand? Where is the global shaming/penalties on consumer markets and source countries? Int'l orgs and other bodies can influence African nations like Kenya to do more about elephant hunting. But even if they do, Asian buyers will just pay higher prices and enable poachers to defeat enhanced protections. We have to attack the demand, but then again no one wants to anger China because they are so economically important now. 

The saddest part is that ivory and rainforest hardwood are frivolous products without much intrinsic value. Some fish are being driven to extinction too, but at least you could make the argument that it's for food (even if fish are mostly being consumed by the rich who have more sustainable protein alternatives). There are cheaper and environmentally-friendly alternatives to wood and ivory too, but the problem is that some buyers desire those status products specifically because of their rare/exclusive/controversial status (more so for ivory). "Look how rich/powerful I am; I can put ivory all over my home with impunity." I know greed and selfishness will always be a part of the human condition, but some societies do a better job of teaching better values to its people. That is the best enforcement because you don't even need the legal system - people will "self police" because they don't value those illegal items to begin with, so it's a moot point. Sweden and Canada are rich nations, but I'm pretty sure ivory is not a problem there.

Saturday, August 8, 2015

Can money buy environmental and social harm?

Rich Californians don't think they should have to cut back on water (their golf courses, lawns, and pools need it): http://www.washingtonpost.com/national/rich-californians-youll-have-to-pry-the-hoses-from-our-cold-dead-hands/2015/06/13/fac6f998-0e39-11e5-9726-49d6fa26a8c6_story.html

And of course everyone's favorite dentist to hate allegedly paid locals $55K to get him special access to kill Cecil the lion: http://heavy.com/news/2015/07/walter-palmer-federal-international-zimbabwe-charges-charged-crimes-federal-corrupt-practices-act-laws-zimbabwe-united-states-extradition-treaty-info/

Power is corrupting, and money is a major form of power, so stuff like this has been going on for millennia. But do you think new laws are in order, or we just have to accept money as speech and tolerate that some wealthy folks can afford to commit socially harmful actions? Surely it isn't absolute, as some laws prevent people from buying other human beings, or WMDs, or using their money for coercion (the dentist may have violated the Foreign Corrupt Practices Act, even if the actual act of killing the lion off the preserve was "legal").

Some laws are already in place, as CA households that don't cut back on water sufficiently may need to pay fines/higher rates on a sliding scale (ostensibly to offset the social harm of their resource usage). But is that enough of a deterrent? Probably not considering some people's net worth - do they need to be cut off instead? They can water their lawns with Evian. That is why market pricing for water won't fully "solve" the issue for price insensitive people (it might affect businesses and farms though, which is the lion's share - no pun intended - of usage). But since water shouldn't be a luxury good like a Vuitton bag, affordability can't solely determine access.

But in the end, stricter punishments for "bad rich people behavior" are unlikely because the politicians who write the laws are rich and disproportionately represent the interests of the rich. America has ~150MM eligible voters, yet so far 400 families have accounted for 50% of the 2016 presidential campaign funding (according to Bill Maher today).

PS - environmental rant: I don't buy the BS from hunting proponents to justify killing animals - it's actually pro-environment as population control (and some species can withstand "culling" more than others). Maybe it's even pro-conservation because the $ that some hunters spend to kill a few big game are used to protect the other specimens (for future kills?). First of all, nature doesn't need us egotistical humans to control a species' population. There are natural limiting factors like food, habitat, etc. Humanity's only impacts on nature are negative, and in a huge way. Yeah we do a good thing now and then by relocating or repopulating a species under stress, but those well-intended moves can backfire too. The best we can do is have as little impact as possible, like some untouched areas of Siberia probably have the healthiest ecosystems because we don't have a footprint (apart from climate change and air pollution diffusing over). And re: the $ argument, I bet for every dollar spent on big game hunting/fishing, maybe at best 20% actually benefits the animals and the rest are just paid to various parties in the supply chain, so that claim is specious. If we love nature then we should leave it alone.

Another heartbreaking example: birds in the extreme north. Because of climate change (and humans' acceleration of it), arctic ice has receded drastically since 1980, and snows have turned to rains. Excessive rain causes fatal hypothermia for some birds, and the weather trends are too rapid/drastic for them to evolve and adapt in time. Ice gives access for birds to fish for food, and chicks are starving to death with less available ice per family (it's as if all our farms permanently lost 80% of their acreage in a generation - could we sustain our population under such conditions?). Species will naturally wax and wane (or disappear) over time, we don't have to "fix" that, but highly successful and evolved creatures like these birds and polar bears, who used to be flourishing, are now rapidly dying out because of us. If our species makes it to the 22nd-23rd Centuries, I am sure they will look back at our (in)actions and think that we were really a bunch of assholes.

All those birds wanted to do is live, and they never did us any harm (they don't even compete for resources with us, as that land is uninhabited and the fish they eat are not commercial). Yet because people want comforts and money (enabled by fossil fuel burning), benign living things have to die. And for those who don't value other species as much as humans, the same can be said of the ~3B folks who by chance were born into poverty and/or environmentally sensitive areas of the planet.

Friday, July 4, 2014

Some interesting links

Kinda sad, but by no means particular to the UK: http://www.theguardian.com/society/2014/jun/08/police-fear-rise-domestic-violence-world-cup

Though I wonder if dom. violence rates are actually rising over time, or if reporting is just increasing (the latter being a positive change I suppose).

Hyundai has a different take on the emotional effects of a big football win on a culture: https://www.youtube.com/watch?v=L7v5pf0aN2Q 

Also about the ISIS stuff: the CIA has been training "non-extremist, non-jihadist" Syrian rebels in Jordan in unconventional war tactics to fight the Assad regime. Some folks (ironically both on the far left and far right) are accusing our gov't of not screening those folks very well (a hard task) and inadvertently training fighters who later joined ISIS, J. Al-Nusra, and other extremist groups.
Granted I couldn't find reputable news sources that covered this story, but I can imagine that it's been hard to verify claims and apply journalistic rigor. However, it wouldn't be the first time (Viet Minh, Mujahadeen, Contras, right wing Cubans, etc.).

http://rt.com/op-edge/168064-isis-terrorism-usa-cia-war/
http://www.independent.co.uk/voices/comment/mi6-the-cia-and-turkeys-rogue-game-in-syria-9256551.html

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Yet another red flag associated with fracking: http://www.loe.org/shows/segments.html?programID=14-P13-00026&segmentID=2
In the Marcellus Shale in the East, fracking is surfacing radioactive rock material from deep underground, and wastewater is showing very high levels of radium-226 (associated with bone cancers, half-life of 5K years). Fortunately for the drillers, they got an environmental exception, because for everyone else - radioactive water needs special disposal. But in PA, it's treated the same as household sewage.

Monday, May 19, 2014

Did BP and the Feds do more harm than good trying to clean up the Gulf?

BP's Gulf PR: https://www.youtube.com/watch?v=hoOfIR4Vk1o

Probably closer to the truth: https://www.youtube.com/watch?v=wLzacnH3u50
The oil's all gone, victims are fairly compensated, and the Gulf is just like how it used to be, right?
We expected this problem wouldn't go away so smoothly, and unfortunately we were proven right. BP seemed to care more about concealing their Gulf spill rather than actually cleaning it properly. Remember how they heavily relied on chemical dispersants, such as Corexit (sounds like maximum strength white-out)? Corexit is banned by many nations, but is manufactured by Ecolab in the US, so it is still open for business (most times, the burden of proof is not on the company but on environmentalists/others to prove that a substance causes harm). Other nations prefer to use oil eating microbes, but Corexit just dissolves oil globs into smaller ones (out of sight, out of mind). The hope was that sea life would digest the smaller droplets and the problem would be solved (but what happens when sea life ingests the Corexit too?). 4 years after the disaster, oil is still washing up on the Gulf Coast. So maybe some of the millions of barrels of oil were digested, but clearly a great deal was not.

So the dispersant strategy was partly ineffective, but what about the side effects? Anything that chemically separates aggregated hydrocarbons is probably not healthy for other organic matter. When Corexit was used in Valdez and the Gulf, hundreds of workers came down with respiratory issues (the chemical is sprayed out of hoses and nozzles like Agent Orange, and can be easily inhaled). Coastal residents also documented many cases of skin rashes and boils. BP and the Coast Guard did not have its cleaning crews wear any protective clothing or respirators. According to VICE, they even barred people from wearing respirators because of the negative impression.

Under the water, many studies have shown that Corexit+oil is much more toxic on some marine life than oil or Corexit alone. So the shrimping industry was heavily affected too. One business reported ~50% of shrimp exhibiting illnesses and deformities, often in the gills. They are obviously unsellable and possibly unsafe for consumption (despite the FDA quickly pronouncing Gulf seafood to be safe just 4 months after the blowout... but it takes them 10 years to declare a medicine to be safe?).
Clearly, this cautionary tale demonstrates the dangers of (1) our dependence on fossil fuels, (2) our hubris that the latest technologies will never fail and we can safely tap more challenging resource deposits in more environmentally sensitive areas, (3) the political influences of the petrochemical industry, and (4) lax/incompetent regulation. Also, a destroyed city can be rebuilt, but a decimated ecosystem may be irreversible (at least on human schedules).

BP should not only compensate victims of the blowout, but also of the "cleanup". Whoever authorized the use of Corexit at this scale (without sufficient impact study a priori and public oversight) should be fired and possibly jailed. If this isn't grounds for prohibiting a foreign company from doing business in the US (and hopefully nationalizing their assets), I don't know what is. "Corporations are people, too", but if we can drone-execute a US citizen overseas without trial, then we should be able to give companies a lifetime ban if the body of evidence is so compelling. We lock up poor minorities and throw away the key, and AFAIK they did much less harm to the US than BP so far.

Wednesday, May 7, 2014

Climate change defeatism

I know we've talked about climate change for years, and of course it's only getting worse. It has been more in my consciousness recently because I had some class projects on it, and it seems to be in my News Feed a lot.

From the little I know, unfortunately I think it's too fucking late. Many of the underlying mechanisms are positive feedback loops, so it makes it even harder to reverse them - even if we had the social consensus and investments. Deforestation, reduced food production, and more and more resources wasted on extreme weather/fire/sea level responses - it will likely be more crippling on humanity than the aging Baby Boomers. 

People in our situations will likely have decent lives in spite of climate change. We have the mobility and resources to avoid a lot of the pains. But billions of others are not so lucky, and many species will die out or be decimated in our lifetimes too. Species that never meant humans any harm. They just want to live and we took that from them.

So even though we may not suffer much directly, we will have to live with the shame that we presided over the biggest environmental calamity since the meteor that wiped out the dinos. Clearly, industrialized humans have been the worse thing for the planet. All because of the pursuit of wealth (or pursuit of happiness/survival). So future humans will look back at us the way we look at the Nazis or Crusaders. That is just pitiful to me.

Of course most of this is on the Boomers instead of the younger generations, but we weren't strong enough to overthrow those fucks and course correct. We want to be like them, that is the problem.

Do you have any thoughts on this stuff? Sorry for being so negative, but it's hard to feel upbeat about anything when you look at the various data. Sure, I do believe humans will find cost-effective ways to get renewable energy, protect coastal cities, grow food with a smaller environmental footprint, and conserve way better. But those things just make our lives more comfortable - they don't do much for the poor or the various species/ecosystems under threat.

PS - maybe you saw this how Gates is telling China's mega rich to help the poor. What do you think about wealth inequality in China vs. the west? Can China's social structure survive more decades of inflation, environmental degradation, construction bubble, and a growing wealth gap?

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From what I understand, major changes to the global climate are now more or less inevitable. Maybe I'm behind on the science, but I also thought that we can still mitigate the damage somewhat? 

Of course a lot of the damage due to climate change is senseless and was avoidable, but to the extent that it wasn't avoidable, I don't think we can be too hard on ourselves. The best we can do is mitigate it and teach our children to do better. Maybe I've gotten too cynical, but I never really expected humanity to do much about it. If you follow politics closely, it's basically just a series of leaders kicking the can down the road on hard decisions. 

The EU did that with the financial crisis, it's estimated that as a result of the German's need to "teach the Greeks a lesson," (in reality the problems had nothing to do with the average Greek citizen) millions of people have been out of work, had their soul crushed, and been made to feel worthless in Europe  and tens of thousands have committed suicide that otherwise wouldn't have: http://www.nytimes.com/2012/04/15/world/europe/increasingly-in-europe-suicides-by-economic-crisis.html?pagewanted=all

In the US, national single payer health care, if instituted any of the earlier junctures in which it was attempted to pass, would have saved hundreds of thousands of lives over the years, and even with Obamacare, lack of a truly comprehensive health care system will kill untold thousands more (http://www.pnhp.org/facts/a-brief-history-universal-health-care-efforts-in-the-us).

Poverty in the US was once thought to be possible to eradicate, and in fact we once came pretty close with the Great Society program. But thanks to Reagan, we do too little to actually fix the problem, and as a result hundreds of thousands go hungry, homeless, and lack adequate health care and social services on a daily basis. http://en.wikipedia.org/wiki/Poverty_in_the_United_States The estimated cost to fix this is a trivial percent of the cost of what we spent on Iraq and only a smallish sliver of our annual defense budget.

I don't bring these up to be overly pessimistic, but I guess I see these problems as much more directly impactful on society than climate change and we can't even remove vested interests from them (or only with a lot of effort, see Obamacare) to make any headway. I think climate change is one of those things where people in society feel that they can "make a difference" more than these other problems above by buying a more fuel-efficient car, recycling, etc. and of course it gets a lot of messaging on lefty blogs/news sources. And it definitely should - it is an important issue.

But at the same time I feel like there are these issues where people are suffering /now/, where society could do something, but because the people are poor or invisible, we don't do anything. And that's what really breaks my heart. 

As for China, I think the Chinese are getting more altruistic, and that's a good thing. I think that one of the ironic things about Communism was that if you wanted to survive, you, by necessity, had to look out for number one - if you cared about anyone else's survival, you might starve or really go without. That carried over after the reform era began but things are changing. A new generation is growing up that has seen the excesses of development and want to do something about it. Still, they're a ways from Western level of altruism and I think there's a lot less trust of NGOs in China than there are in the US (and rightfully so - even supposedly well run US NGOs waste a lot of their money).

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Re: China - is there a similar tension between the 1% and 99% like we see in places like the US and Brazil? Or do the poor kind of accept that the connected elites in the Party hoard all the money too? I just don't know if there is much culture of sharing in China, as you said. Especially with the rapid transition from Great Leap to #2 economy, now it's all about "me" and conspicuous consumption, etc. Luxury brands now say that China is their key market, right? Also, Beijing gives way less foreign aid relative to its GDP vs. others in the G20. I guess you could call their projects in the 3rd world "aid" - securing resources rights by giving Congo a shitty dam or railway that is shoddy and won't add much value to the host nation (plus it's all built by immigrant Chinese, so it doesn't produce much vocational training, jobs, and economic activity for the locals - hence the resentment by the locals).

Wow, I didn't know about the Greece suicide data, that is really sad. I agree that the social problems you mentioned are more easily and cheaply fixed than climate change, and could save more lives. I also agree that we really had a chance with LBJ and the Great Society to wipe out poverty and have a more fair, humane nation. All the conditions were right, but he got sidetracked with Vietnam and then stagflation-oil embargo-Iran hit us, and the GOP got to take over and dismantle some of the progress. IMO, we'll never get such an opportunity again. It's not just you; we're all more cynical with harder hearts these days I think.

But re: climate change, I would have hoped for more traction/progress, because unlike poverty/inequality issues, it's not about "why should the rich help the needy?" Climate change is both a threat and opportunity for the rich. Do they want their kids to be subjected to superstorms and droughts for perpetuity? And those extreme events wreak havoc on the stability of global markets and their investments. Lastly, climate change is a huge opportunity too (industries to either mitigate or adapt to it). It's a trillion dollar problem with huge profits to be made for the first movers - so why haven't we seen it (apart from the impressive advances in solar, and energy efficiency for some products)? 


I forget which NYT journalist said it, but his comment was along the lines of "lightbulbs aren't going to solve climate change." There is only so much a conscientious consumer can do. Sure we can get a Prius, improve our home's insulation, and change some of our behaviors, but even if millions of us had the money/time to make those changes, it would barely affect the carbon situation. The main drivers are deforestation, agribusiness, and power generation. Huge, politically connected, int'l industries where only coalitions of governments have enough power and reach to move them (if they wanted to). Sure, consumers en masse could give up beef or boycott Indonesia until their economy stops burning rainforest - but we know it won't happen because we are addicted to carbon-intensive products and services.

Bottom line, climate change could eat up 10% or more of global GDP, and reduce crops/fish yields by 20% or more. That is freaking scary. With a growing population and more consumption in Asia, something's gotta give. All the conflicts that could arise due to climate-related problems could also eat up gov't resources, attention, and lives. So overall it's a major deadweight loss for humanity, and likely irreversible at this point.

Tuesday, July 19, 2011

The economic inefficiencies of our energy policies

A friend recommended "Environmental Economics and Policy" by Tietenberg and it's pretty interesting for those who are eco and econ novices. There's a big chapter on energy policy and how various government actions and corporate incentives reduce the "economic efficiency" of energy (or the total net benefits to society). In other words, we're not getting the most out of our energy use, and our poor decisions are making our energy problems worse. Dynamic efficiency takes the future into account, so it is the best allocation of resources that will maximize the net benefits to both present and future peoples. This is important because so often short-term thinking creates problems (Wall Street quarterly reporting, the House's 2-year election cycle, etc.). Many incentives exist to "rob from the future" in order to increase profit or look better today, and if only future peoples could invent a time machine to advocate for their interests now.
Environmental economics helps to inform policy decisions to increase "fairness" and "sustainability". Fair, sustainable decisions should not leave future generations worse off than we, in terms of aggregate natural and man-made capital available. Carbon trading operates on this principle. Although company X is polluting in the present and thereby hurting the future, it can become more sustainable by offsetting its damage with conservation/research outlays that benefit the future. So the general strategy is to find policies that satisfy sustainability criteria, and of those choices implement the ones with the highest dynamic efficiency. Of course the strictest sustainability criterion mandates that we should preserve the natural world exactly as it is for the future, so that our consumption is limited by the replenishment rate of the resource (forest, fishery, etc.). But that is a hard sell these days, and of course impossible for non-renewable resources like minerals and fossil fuels. Peak oil is probably behind us and the discovery/creation of new deposits is greatly outpaced by our consumption rate. If we can't leave our progeny the same abundance of fossil fuels as we enjoy now, at least our energy use should create profits that can become capital set aside to compensate the future. Alaska basically does this and pays its residents yearly dividends from its "permanent fund" (but really all of it should be off limits).
Republicans and some Democrats pre-BP spill were advocating "drill baby drill" to solve our energy problems. But from a fairness standpoint you can see that makes no sense (we're just leaving less oil for the future). And since domestic oil generally has higher costs of production (labor, regulatory compliance, insurance), we're retaining less profit, even if we were nice enough to set it aside for the future. Plus there's not much left to tap. "Easy oil" has already been exploited in the US, so untapped deposits entail a lot of risk and cost. Deep-water drilling blowouts, arctic pipeline leaks, and water pollution from natural gas fracking are not just hypothetical dangers, but we've witnessed them with horror. Even though the environmental costs of production aren't really included in the retail price of energy, exploration in hard-to-access locations is already super expensive. It's only cost-justified when the demand for oil pushes the market price above $70/barrel like it is today.
The booming tar sands industry in northern Canada and elsewhere is a consequence of this. If you're not familiar: building-size earth movers (that consume a lot of fuel as you can imagine) dig up tons and tons of dirt, transport it to giant boilers that heat up the sludge and separate the usable fuel from the sand. And all this takes place at the top of the world, so there are a lot of costs associated with moving equipment and people up there, keeping them warm and sane, and pumping the fuel back to civilization. Beyond the environmental damage and infrastructure concerns, it also costs about 3 gallons of cleaner natural gas to make 1 gallon of dirty oil from tar sands. Even a child could see that something is amiss with that paradigm. But just because the market says this transaction makes sense doesn't mean we should accept it at face value.
Speaking of natural gas, it's not a panacea either. Since methane is gaseous at normal temperatures, high-pressure transportation and storage is challenging. In order to be cost-effective, it has to be super-cooled to -259 F for international tanker transport. Although we've been lucky so far, LNG facilities are an attractive terrorism target, as an LNG fire is much hotter and harder to contain than an oil fire. Also, methane is much more potent than CO2 for greenhouse effect.
But shouldn't we drill more at home to reduce our dependence on imports? Only if it will make us better off, and it usually doesn't. It's just easier to buy foreign oil - that's why we still do it despite the risks. Yes our money goes to people who may not like us very much, but it's hard to quantify how much actual damage that is causing. What about Middle East terrorism? We are implicitly paying a "security premium" for foreign oil. Some of that is our taxes to fund the US Navy that is mostly in charge of keeping the sea lanes safe for tankers and other vessels. Other monies are allocated to maintain the Strategic Petroleum Reserve: a billion barrels of oil stored in caves in the South in case of embargoes or other supply disruptions. And of course there are the oil wars and support to oil dictatorships. The security premium is good in that it lowers consumption and makes domestic supply more attractive, but the bitter truth is the premium is more efficient than trying to be energy independent (that would require a major US economic downsizing). So we have to live with OPEC and volatile imports, but how can we reduce our pain? Conservation always helps, but it won't fix the problem because of the oil we still need to use, much of it will be foreign. In addition, the government can impose tariffs equal to the security premium. The revenues collected could fund alternative energy research and pollution control. But tariffs piss people off (people we depend on), so DC would prefer to subsidize domestic suppliers (but that won't make oil any cheaper to consumers).
Price controls are a touchy issue too. We know that the middle and lower classes are getting squeezed by higher energy prices, and we don't want people to lose their jobs because they can't commute or die because they can't afford to keep the heater/AC on. It isn't humane if some people are priced out of access to energy. Of course OPEC and other local monopolies reduce supply in order to capture more "economic rent" or resource royalties. But when the gov't holds commodity prices below their market price, it causes consumption to increase, which exacerbates climate change, hurts the future more than it helps the present, and makes it harder for alternative energy to gain market share. If price controls are in place long-term, consumption will be so high that all the cheap gas will be used up until the extraction costs of harder sources equal the price cap. Then producers have no incentive to sell gas. And even though prices are forced lower, during shortages there's no guarantee that poorer people will get access to fuel. Subsidies make a lot more economic sense. Let prices rise to the market rate, but compensate the poor so that they can afford it.
Price controls also create perverse incentives for suppliers. Politicians may cap prices to look good in an election year, but if producers know the cap will expire next year, they may cut back supply to make more money in the future. So we'd have over-consumption plus supply shortage. This happened with natural gas in the US in the 1970s. For some reason, the gov't put price caps on interstate gas purchases but not intrastate. So suppliers preferred to sell locally, which totally screwed people in gas-poor states.
And then there's the whole issue of energy deregulation. Traditionally, utilities were regulated monopolies where gov't would set price, but suppliers were obligated to service all customers in an exclusive area. But in 1992, Congress decided to let suppliers sell electricity on open markets, and lower prices to compete for customers. Well, that was the plan at least. If price leadership is key, firms have incentive to cut safety corners and use the dirtiest inputs to provide the cheapest watts. Dysfunctional California joined the party in 1995 since the state was paying power rates about 50% higher than US average. But a perfect storm ensued to cripple the state. Drought reduced hydroelectric productivity and many fossil fuel plants were due for scheduled maintenance shutdowns. This boosted wholesale costs, but suppliers couldn't pass them onto consumers due to a price cap that was law. So rolling blackouts ensued, and some firms like Enron affiliates (famously) exploited the chaos. They deliberately withheld power in various markets to take advantage of short-term supply inelasticity, which raised prices and allowed them to reap monopoly profits. So the poorly and hastily designed "free market" turned monopolistic anyway. PGE even had to declare bankruptcy in 2001, the voters blamed Gov. Davis, and replaced him with the Terminator.
Even China knows that coal is literally a dead-end, but how about nuclear? If the energy market functioned properly, nuclear power would never exist. Besides the yearly tax breaks, gov'ts had to offer huge assistance to promote plant construction, because if suppliers had to absorb the real costs of nuclear accident risk and waste disposal, there would be no takers. We passed the Price-Anderson Act in 1957 to cap liability damages at $560M for a nuclear disaster (and the taxpayer would cover 90% of that, though not sure if those are 1957 or 2011 dollars). It was supposed to expire in a decade (by that time nuclear plants were supposed to figure out safety so that accident risk was a nonfactor), but it hasn't. The gov't share has fortunately shrunk, and now private insurance covers the difference.
Like other insurance, plants pay premiums into a big accident fund, but in this case the sick pay as much as the healthy. Plants with great safety records and top-of-the-line equipment don't get rate discounts, so there's no incentive to provide sufficient safety. But no one wants another Chernobyl, right? Well economically speaking, it makes no difference for nuclear firms. Due to gov't and insurance risk underwriting, they are no worse off if they wet the bed. And I'm not sure how much responsibility companies bear for waste disposal (my guess is not much, otherwise they wouldn't be in business). How scary is that? Sure I believe they still have a conscience and don't want to take the PR hit from an accident, but it concerns me that negligence can't really be punished financially. As we've already discussed, the NRC that oversees nuclear facilities is underfunded and bullied by Congress to back off the plant operators. A fair alternative would be to tax the nuclear firms to compensate those affected by nuclear power issues. France already forces plants to sell cheaper power to those living nearby, and the same should be done for those living near waste disposal sites, in order to make up for lost property values and potential risks. Then future residents can decide whether those incentives make it worthwhile to live there. But after Fukushima, I think nuclear won't be experiencing growth for at least a generation.

To close, energy use is a double-edged sword. Low or high prices are both good and bad for the environment. Low market prices increase consumption (and pollution), but will cause us to deplete our resources faster and transition to sustainable renewable energy. But this will exacerbate scarcity conflicts, force us into riskier exploration before the tech is ready, and probably make the energy transition more traumatic. High market prices will reduce consumption and conserve more resources for future peoples (who can hopefully extract the remaining energy more safely and efficiently), but most of the profits will go to OPEC and other suppliers. High prices will also make alternative fuels more attractive and stimulate research. And of course if energy prices truly reflected social and environmental costs of use ($100-200B/year in the US according to the author), they would be much more expensive ($10/gallon for gas). I am not sure which scenario I am rooting for, but higher prices seem probable. Any way it goes, fossil fuels will dwindle until the remaining supplies are as expensive to extract as renewable alternatives (hopefully by then hydrogen and clean electricity will be viable for vehicles). But if we plan intelligently, we'll be ready that day for a smooth transition instead of furiously struggling to cope.

Wednesday, July 7, 2010

Americans fleeing to Canada due to global warming, and other environmental issues

"Rather than spending money only on cutting greenhouse-gas emissions, [scientist James Lovelock] believes that [Canada's] government would be wise to develop plans to house and deal with the millions of American wetbacks who will soon wash up on our shores. 'This is going to become a very habitable part of the globe and people are going to want to come here in vast numbers.'"

http://www.theglobeandmail.com/news/world/apocalypse-now/article1172056/
http://www.globalchange.umich.edu/globalchange2/current/lectures/human_pop/human_pop.html

The global recession has kind of put environmental policy and climate change on the back burner, but ideas of environmental apocalypse are getting more prevalent, especially with reminders such as the BP spill. We are familiar with the various disaster scenarios caused by the Earth's average temp going up a degree or two, due to more greenhouse gases in the atmosphere. Apparently our neighbors to the north are preparing for milder weather in the future, and for the influx of desperate people from the south similar to the Dust Bowl migration (another man-made eco-disaster). We may or may not believe that human activities are contributing to global warming, but no one can deny that more humans on the planet, consuming more and more resources and polluting more and more ecosystems, is also a major environmental concern. But how do we ethically and fairly manage the human population, as part of an overall sustainability strategy? Governments can't even agree on how to bail out Greece, so I'm not sure how we can tackle larger problems with uglier choices.

I'm sure you economists are familiar with the Malthusian model of population growth. Biological proliferation is exponential, yet Malthus thought that the growth in our sustenance capacity was linear, so at some point we would outgrow our resources supply, suffer a population crash, and then hover around a new equilibrium, as other species do. Some 1960s era scientists like Paul Ehrlich also thought that our species (numbering just 3B at the time of his writings) would overshoot the planet's ability to sustain us, and face a population and environmental calamity by 1979 or so. But those bright people were wrong, because they failed to predict the influences of technology and economics to enhance our survival (in the short term at least). 


Technology and innovation have allowed humans to continually raise our global carrying capacity, and create stout defenses against most other predatory animals and nature's fury. From the Stone Age until the Industrial Revolution, the global population was fairly steady around 100-300M, but then really took off since the Spanish Flu. Medical advances and sanitary practices have severely mitigated or even abolished some diseases. Genetically-modified (GM) agriculture and food science have improved crop yields many times over, and permitted foods to last longer. Water purification and management have made that resource safer and more accessible. And global economics in the Information Age have allowed buyer, laborer, and seller to connect on an unprecedented scale, boosting productivity and wealth in almost every nation. But some of this has come at a cost. Huge tracts of nature were destroyed to clear land for farms and ranches, and industrial pollution/urban sprawl have wiped out other areas. High-density animal husbandry has increased the risk of animal-human disease transmission, as we have seen with avian flu. GM strains have overtaken local species and disrupted environmental equilibrium. Over-used anti-microbials have weakened human immune systems and unleashed drug-resistant strains. Mass marketing has convinced consumers that they need to buy all sorts of single-use, non-biodegradable junk to be happy. So ironically, the very ingenious innovations that allowed humans to dominate the globe and vastly increase our numbers may be the causes of major population loss and species decline in the future. And of course humans were only able to increase our carrying capacity by endangering or exterminating other species and ecosystems in the process.

All the technologies that I mentioned were not necessarily developed out of human need or altruism, but instead out of a desire for profit. This is a cynical simplification, but even if individual inventors were benevolent, then needed to partner with a profit-seeking company or self-serving government to mass produce and market their creations. Economics doesn’t necessarily obey natural laws. Free-marketeers probably believe that wealth and humankind can increase indefinitely. But wealth is a human construct, and the resources that wealth is built on do have finite limits. Even “virtual capital” like Facebook still requires silicon chips and hydrocarbon-fueled electricity to exist. People are debating whether we have reached "peak oil" or not, but what about peak grain, water, etc.? They will come to be at some point, despite mighty efforts to postpone them. Conservation of mass. Nature strives to achieve equilibrium, but businesses exist to maximize profit and countries exist to take care of their own, even if it means breaking the law and putting people and the environment in danger. Companies influence our governments and employ many of our citizens, so when push comes to shove, we may find ourselves siding with them instead of the planet and the poor. Therefore, the only way I see our species being able to sustainably continue its growth is to cease all R&D and economic activity not related to food/water production and environmental protection/restoration, in order to reduce waste and focus on planetary survival. But this would require a global dictatorship in order to abolish profiteering and distribute resources on a need basis. Unfortunately such command economies like North Korea have had a horrible track record though.

Maybe population shocks and environmental collapses won’t be as drastic as Easter Island, because the planet changes slowly, and humans can be very adaptable when we put our minds to it. But if population losses do occur, they won’t be felt evenly. Rich nations can close their borders and distribute drugs during pandemics, or so we hope. Rich nations can afford to overpay for food, water, and energy during shortages, or use their armed forces to commandeer access. Rich nations are mostly geographically situated to avoid the harshest effects of global warming, and have the resources to migrate to greener pastures if needed. Rich nations, despite being much less populated, are bigger culprits of resource waste and pollution, yet sadly it will be the already suffering poor that suffer more. I don't buy the racist argument (at least to me) that poorer nations are killing the planet because of their birth rates. You've seen those satellite images of the world at night - the lights, which correlate with emissions/consumption, aren't on in the Third World. Their life expectancies and standard of living are much lower, so ten rural Rwandans aren't killing the planet as fast as one suburban American. Yes more poor pre-industrial people can be a problem, but more so for other humans than the planet, since Earth doesn't really care about a little more subsistence farming and human defecation going on. "Semi-poor" people in Brazil, Nigeria, and China are more of a concern, because for the first time in their history they can afford the heavy machinery to clear-cut forests and strip mine in order to make a living, which endangers other species and habitats, causing all sorts of unforeseen havoc on the natural balance. And of course rich nations enable this by selling them the equipment, providing a market for their unsustainably-harvested resources, and investing in and managing their operations to make money. We can't really blame the poor, because when you have nothing else, people become capital. A village with 100 kids has a better survival outlook than one with 50. I'm sure many people in the G20 would want to have more kids, but just can't afford them. So our economics have evolved from a facilitator of fertility to a limiter.

Some might argue that the rich will come to the poor’s defense. Have we so far? Rich nations stay rich partly by keeping the poor down. The top killers in the world are respiratory diseases, tuberculosis, and malaria – all cheaply preventable/treatable and affecting younger, productive people in the Third World. Yet the rich spend so much more money on cancer and cardiovascular treatments, because that is what we die from when we’re old. Tony Blair helped set up a fund so that rich nations would contribute a measly 1% GDP to virtually eliminate poverty (the merits of his plan are another discussion), but so far most of the G20 are behind on their pledged donations, and the global recession has put the project further on hold. And speaking of that, we have enough environmental crises to worry about, but now rich nations are creating their own socioeconomic calamities that also hurt people in the Third World by cutting off credit and increasing protectionism.

It will get really interesting when rich nations (and their symbiotic growth nations like China and Brazil) end up fighting each other over resources and environmental issues, and sadly we may witness it in our lifetimes, or it's already ongoing in the shadows.  


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Thanks for your comments. Yes surely if I had to rank expenditures for wars, Western illnesses, and Third World illnesses, I would put war at the lowest priority - especially our current conflicts. I understand why our government would prefer to research expensive cures for Western diseases over more cheaply treatable Third World killers, I am just questioning the morality and even efficiency of that. Chloroquinine, malaria nets, antibiotics, and HIV/TB drugs are sure thing solutions for millions of patients. Companies and the NIH spend billions of dollars on diabetes, cancer, cholesterol, and neurological research that gets next to nowhere. Even some current "breakthrough" cancer treatments on the market have a median extension of life of about 5 months, at a cost of $20k/month to Medicare or one's HMO/PPO. I can see why we would want to fund such efforts, but in my view it's not a great use of precious resources.

Sure, debt/GDP is a way to measure a nation's financial health, but when I mean rich nations, I think GDP is a decent metric. How productive is that country and how much do the people and government spend? Obviously Sierra Leone and Nigeria are rich in some resources but poor by many other measures. America may be rich in wealth/consumption but poor in less quantifiable measures of life quality.

Conflict is not 100% guaranteed, but it's like 99% guaranteed, if you consider human nature and history. Surely there is a chance that we will reform and improve our behavior before it's too late, but it's a small chance. When the pressure is on, people's true colors show and nations will stop at nothing to protect what they think is rightfully theirs. Brazil is not Switzerland. In fact their rich-poor wealth gap is the biggest in the world, even more than Mexico and the US. Brazil may be externally at peace (though its military imports are the highest in South America, but per capita/per $GDP they're much lower), but internally there is major racism between the fairer skinned minority who own everything and run the country, and the indigenous/black masses. Many native Amazon tribes have been victims of injustice and are not represented by their national government. The poor in the favellas are victims of drugs violence and social neglect. But yes, Pakistan and India have avoided nuclear war, though various skirmishes over the years have claimed dozens of lives, and maybe the attack in Mumbai and violence in Afghanistan can also be partially attributed to their conflict.

http://www.nationmaster.com/graph/mil_con_arm_imp-military-conventional-arms-imports

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GDP might not be the best measure for the next century; after all, something like software isn't included in the standard GDP measure and I image other "knowledge economy" outputs (e.g. intellectual property) is also not included in the measure.  Just as developing nations have been able to deploy infrastructure in one-tenth the time spent in the industrialized world (e.g. nothing to 3G telecommunications in 10 years v/s 100 years of the Bell evolution) it could be the case that by focusing on GDP as a measure of wealth we make ourselves more susceptible to the "blind spot" you mentioned with respect to American life quality and even to the actual difference between "rich" and "poor".

Also, I guess we have to agree to disagree about the potential for conflict; I can understand your point (i.e. a simple regression on the data shows a trend) but I also think relying on history alone can be a... well... regressive way of thinking.  After all, our country did get sick of "return of the neo-cons" after a few years, yeah?

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I agree about the limitations of GDP. But for now it's a quick and dirty measure that almost tells you enough of what you want to know. But there is a move to add more "knowledge capital" to the GDP in a few years. I think they'll try to take into account worker training/development, and more R&D type value. But I think it's hard to quantify quality of life. The UN/WHO measures I think include GDP, life expectancy, and subjective surveys, but I'm not sure how you add more to that.

But I don't think it's fair to compare US telecom's history to the rapid rise in some poorer nations. Yes some industry inertia and political red tape has retarded our efforts to modernize (and we've now fallen behind several nations), but without the groundwork done in the US, Europe, and East Asia, poor countries wouldn't have the know-how to get their networks up so quickly. Plus it's foreign companies who are consulting and investing in the poor nations' networks, otherwise they wouldn't be able to get off the ground.

I think wars and politics may be cyclical like economics. As you said, after a near decade of neo-con extremes, we moved back towards the center-left, even though many of Obama's policies are similar to Bush's. But after all, we're a center-right nation I guess. But humanity has never really had to struggle through a global environmental crisis before (climate change and energy/water security), on top of the usual political, social, religious, and economic crises. Now with globalized everything, a problem in one area may have butterfly effects far beyond. Basically, powerful nations have always had more than they knew what to do with, and life essentials were more affordable. Now $70/barrel oil is a reality, and it may get worse. Now decade-long droughts are not only possible but likely. Now even traditionally "rich" countries are going into record debts and unable to fund social programs, create enough jobs, and even birth/educate enough young people. This may exacerbate conflicts and tensions among nations and peoples.

Monday, October 27, 2008

Better Place: an expanded model of electric transport


http://www.sciam.com/blog/60-second-science/post.cfm?id=electrifying-cars-down-under-2008-10-23

http://www.betterplace.com/

The business model for automobiles and cellular phones don't seem very similar at first, but that will change if entrepreneur and former SAP software engineer Shai Agassi has his way. His CA start-up called "Better Place" is pitching a new electric automobile network, and companies/nations have been so impressed already that he's garnered a billion dollars in venture capital, even in this tight economic climate. He already has contracts with Denmark and Israel, and Australia (the most carbon-spewing nation per capita, even more than the US/China) recently signed on as well.

His innovative approach centers on paying for the miles you drive instead of the actual car, like cell phone plans with minutes included and the phone comes free (or heavily discounted). If all works well and his system reaches a sufficient scale for efficiency, he even makes the audacious claim that customers will get their cars for free. Deutsche Bank analysts have studied this possibility and concluded that it's feasible. Renault-Nissan have developed the prototype vehicle for Better Place's network, and unveiled at an Israeli auto show in January. It uses an advanced litium-ion battery (like personal electronics) and has a range of about 100 miles with peak horsepower of 91. Sure it's not a Corvette, but it's not an Insight either. It's performance is comparable to a 1.6 L vehicle and looks like a typical compact 4-door sedan (see below). 500,000 units are supposed to hit showrooms, starting in 2011 for the first customers Denmark and Israel.

With a projected 2.5 charging stations per EV on the road, customers shouldn't have to worry about running out of power, especially when most urban residents drive less than 40 miles per trip. Using current technologies, 1 mile of normal driving power will take 1 min to charge, so it won't be an all-day ordeal. On-board GPS will locate the most convenient charging locations. Israel estimates that 1/6 of its parking spots could be converted into charging stations to make this work. There will also be automated battery replacement stations that operate similar to car washes (see simulation video below). This way, you can just get a fresh power supply without much delay if you're taking a cross-country trip. Small nations like Denmark and Israel may not need it, but for Aussies driving across the Outback (or potentially Californians commuting from SF to LA), it will help a lot. So in order to be accepted by the consumers, EV charging mustn't be more inconvenient than our current system of refueling at gas stations and taking your car in for regular oil changes/tune-ups (which EVs won't need).

http://www.youtube.com/watch?v=f9bc4vNccL0

So Better Place will make it's money on mileage/power plans for its customer network. I am not sure how much it will cost to drive a mile, but again, it has to be affordable vs. gasoline to gain acceptance. The up-front infrastructure costs will be huge, but hopefully governments will contribute in return for the benefits of less pollution and oil dependence. Especially for nations like Israel and Denmark with abundant renewable power (wind in Europe, sun in the Middle East), nature will literally power human transport. Though this model may not work for rural peoples, who could get gasoline credits or hybrid subsidies instead. Of course this plan is quite radical, and may encounter stiff resistance from more conservative oil and auto interests, who still refuse to stop marketing SUVs. Aircraft, buses, and freight trucks will still need to rely on fossil fuels, but alleviating the passenger vehicle sector will do wonders for our oil consumption. Though another concern is where the electricity will come from. It doesn't do much good to power electric cards from coal or petroleum-fired plants, so the power sector has to evolve in parallel for their plan to be successful. Hence Better Place's partnerships with power companies like Australia's AGL Energy, in order to build wind farms of sufficient scale to power their auto grid.

But the sad reality of all of this is, "If the 700 million cars on the road today were powered by re-chargeable batteries, our carbon footprint would be reduced by 10%," according to BetterPlace.com. A lot of effort for just 10% savings, but maybe weaning us off gasoline automobiles from an energy security standpoint is the larger benefit. Though on a separate page in Better Place's website, they estimate carbon savings of 40%. So not sure which figure is more accurate, but every bit helps.

Monday, May 26, 2008

Conserving and consuming energy


I think my main point, which I think you agreed to most of, is that sure its great to cut back, but only if there is some assurance that the bottom few will be on the receiving end of that savings. This really is the ultimate conundrum, how do you help the poor and needy short of just redistributing wealth?

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But why do you need assurances that your cutting back will directly help the less privileged? It's not just that you giving up item X means another person can have it. It's conservation, not competition. You don't use it, so it isn't consumed. Then it is still around if you or someone else really needs it in the future. And it's not just about charity and living green; it's also good for your wallet. I don't like wasting money on gas or electricity, so I hang-dry clothes (fortunately my employer doesn't care if I come to work raggy) and I sold my SUV years ago. We scale back because it's imprudent to waste money and resources, even if they are abundant.
People may have a hard time "doing the right thing" out of moral conviction, but already there are plenty of economic incentives in place to live more sustainably. Of course some argue that there should be many more incentives/penalties, but then the conservatives pull the "big government" card, industry lobbyists cry foul, and Congress ultimately chickens out. I don't know if a carbon tax is the answer (and it's debatable whether a carbon-trading market would help or hurt), but definitely we could incentivize conservation (we already subsidize compact fluor bulbs and hybrid vehicles) and penalize waste a lot more than the status quo.

http://marketplace.publicradio.org/display/web/2007/11/12/consumed3_mmr_4/

Commentator Robert Frank is a Cornel University professor and author of The Economic Naturalist. He says: not so fast.

Robert Frank: It's no mystery we like eating our favorite foods year-round. The problem is, importing large quantities of food and other goods from around the globe contributes significantly to global warming. Does that mean our consumer appetites are destined to destroy the planet? Not necessarily. Take imported food. In recent years, environmental activists have been urging us to eat foods grown closer to home. From now 'til spring, they'll be eating only root vegetables or summer produce they've canned themselves. But most people won't make sacrifices like that voluntarily. The problem is the consumer economy provides us no incentive to consider the environmental impact of our decisions. The price of lamb from New Zealand, for example, includes the cost of the fuel used to transport it here, but not the environmental cost the trip imposes on the planet.

Fortunately, we don't need to transform human nature to do something about global warming. We just need to pull some familiar economic levers to change people's habits. The simplest solution would be a carbon tax that would force consumers to confront the environmental impact of their purchasing decisions. Such a tax would raise the price of fuel sharply -- stuff from distant places would become much more expensive, and most people would buy much less of it. I know what you're thinking: A carbon tax proposal would be dead-on-arrival in Washington. If so, our problem is not that we don't know how to make the economy sustainable. Rather, it's that we simply lack the political will.

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Some more interesting follow-up articles from the "Consumed" series on Marketplace:
American consumer debt

Harvard Professor Elizabeth Warren has spent a career looking at personal debt. I asked her if consumers can sustain the engine of our economy much longer.

Elizabeth Warren: No, it's not sustainable. We've built this latest economic boom on borrowed money. Consumers, to the extent that they've stayed afloat, have managed to stay afloat by using their credit cards and by taking out home-equity lines of credit.

Krizner: And they've used that credit for what? For lattes and microwaves and expensive vacations? Have Americans been over-consuming?

Warren: I wish that were the case, but the data say otherwise. Americans are in a lot of debt not because they're overconsuming, but because of big fixed expenses that they really can't wiggle out of.

Krizner: When you say "fixed expenses," what are you talking about?

Warren: Where American families are getting ruined financially is in the areas of mortgages and health insurance. The fact that they've got to have two cars, the fact that they've got to put their children in child care, their taxes -- the things over which they have little or no control.

Krizner: But can that really be the whole story? I mean, in gross numbers, consumption has tripled, apparently, in about 20 years. Surely a good chunk of that is discretionary spending.

Warren: Let's look at the basics. What families are spending on clothing in the last 30 years, it's down 33 percent in inflation-adjusted dollars. What they spend on food is down about 20 percent. What they spend on appliances, down about 52 percent. It's not stuff that's driving families to the poorhouse.

Krizner: You're describing a really tough squeeze. So how is this gonna play out in people's behavior -- what do you think?

Warren: I worry that there are gonna be some people that are going to delay marrying, there are going to be some who are not gonna have children, that the family life that sustains America, that makes us who we are, will become so expensive that many Americans will just opt out. And if that happens, everything that we understood about America starts to fade away.

Krizner: This would be an enormous social change. What about the economy in all of this? We're often told that consumers are responsible for about two-thirds of Gross Domestic Product. Now if they start pulling back, what can we expect?

Warren: This is one of the scariest parts for me. The typical family is carrying now about two months' worth of income in credit card debt. So what's going to happen long-term? Do we have a period where all these families that are carrying all this debt simply cut back on their consumption so that they can pay off the outstanding debt loads? Is that gonna be a long, slow decline, or is it going to be a one-time smack? Either way, the consequences for the economy cannot be good.

Will innovation sustain us?

Scott Jagow: Consumer spending is the lifeblood of our economy. But it can be a poison pill for the environment, and perhaps even our own health. All those things that we make and ship and buy, will they eventually bury us? Or can we keep going like this if we innovate?

Goulder: Well, I guess I'll start with the pessimistic side -- which is, as your series indicates, there's a lot that we in the U.S. are doing through our consumption to deplete natural resources. All of that is very worrisome. The positive side is that if we invest sufficiently in other forms of capital, like human capital, or in man-made capital such as buildings or equipment and machines, it's possible that that kind of investment can compensate for the loss of environmental capital.

Jagow: All right, you're going to have to explain that one to me. I don't understand how if we build more buildings, and we make more machines, and we invest in human capital, how that is going to save the environment.

Goulder: Well it takes know-how, and it also takes a kind of substitution. I'll give you a couple of examples: If we invest in, say, equipment that provides for better irrigation methods, then we can produce food with less water input and thus economize on water resource use. Similarly, on the consumer level, we can invest in ways that enable consumers to substitute among products. An example would be if we developed technologies and manufacturing capacity to produce cars that require less gasoline, like hybrids or fuel-cell automobiles, then consumers can substitute for those kinds of cars and put less demands on the environment.

Jagow: How much of a leap of faith is it for us to assume that we can keep up with the innovation that will protect our resources?

Goulder: Yes, what we've seen in recent history is that innovation has tended to keep pace with the dwindling of natural resources, so that in many countries, standards of living have been able to be maintained. As we look to the future, I should acknowledge that there's considerable disagreement among researchers, particularly between many economists and many ecologists, as to what the prospects are for the future. Economists tend to be a lot more optimistic in terms of substitution possibilities and the potential for innovation and new knowledge to compensate for the loss of natural resources.

Marketing

Kai Ryssdal: Consumer spending has mushroomed in the past few decades. You've got to wonder why -- are marketers behind it, craftily engineering false needs? And really, what's the difference between wants and needs, anyway?

Kit Yarrow: Well, I think they're pretty evenly matched. You know, no marketer or retailer is successful in the long term if they're not satisfying real consumer needs. But at the same time, people really aren't buying clothing, for example, to stay dry when it rains. They're buying clothing to express who they are to others, feel more confident in outfits. So these needs, actually, are really closer to emotional needs or a need to connect to other people, or show people who we are.

Ryssdal: All right. But why, though, are we now using products to communicate so much?

Yarrow: You know, a couple of things: One, I think because people move so much. They don't live in the same community like they did 50 years ago. And because we're so much more global. I think the idea that people need to figure out very quickly who we are in our community and who other people are, that's part of it. And then, secondly, all of the technology at our disposal allows us, I think, to process information really quickly. And we've become really well-trained and really proficient at making use of tidbits of information, and allowing them to represent something bigger.

Ryssdal: But it does sound, just to be objective about this for a minute -- it sounds a bit superficial. It sounds almost as if you're saying we're defining ourselves by the stuff we own.

Yarrow: We are becoming a more and more superficial society. And I'm not saying that just in a negative way. You know, I think people always have had the need to connect to each other and to show people who they are and to be understood by other people. It's just that today, in our fast-paced, disconnected society, we do that through the products that we have in very quick visual ways. And what marketers have to do is to truly understand their consumers' deeper, more emotional needs -- and you can be sure they're researching that.

Ryssdal: Well, so make me hip, as it were, and tell me what the marketers are doing.

Yarrow: (Laughs) Well, you are definitely already hip, but I'll throw you a few of the things that retailers and marketers are doing, You know, one thing is to try to limit the amount of supply out there -- the perception of the amount of supply -- or to limit the amount of time somebody has to make a decision. And when consumers are in that situation, there's a little bit of fear of losing out, and consumers get a little wiggy. And you know, the use of celebrities and the association with movements -- that's another hugely emotionally appealing and oftentimes irrational aspect of purchasing.

Ryssdal: Do they work? And I'm thinking now specifically of the "green" movement as what might be the archetypical marketing ploy, right? I mean, if you want to save the planet, be green.

Yarrow: They definitely work. Consumers have a great, great need to feel like there's purpose in life, that they're connected to things that are larger than them, and so when marketers and retailers make a connection with a charity or make a connection with a movement, they give consumers two things. One, they give them a bigger sense of purpose that feels great and inspires them to buy. And two, it allows people to rationalize a purchase that they might not make were it completely rational.

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Ultimately, I guess, the issue is what, exactly, are we conserving by not
consuming and for whom?

I'm definitely for not fucking up the environment for ourselves in the future
and for our future generations by cutting down old growth forests, polluting
streams, and encouraging global warming. So to the extent human consumption
encourages those things it is troubling, and I agree with you 100%.

However, most of our consumption that the website you linked to suggests that
the problem is largely the consumption of fossil fuels and the like. Obviously
burning fossil fuels to get goods from point A to point B is problematic, esp
wrt to global warming. However, if (and its a huge if) global warming weren't a
factor, I don't see any particularly bad effect from just using up all our
fossil fuels. So what if we run out of oil (or natural gas etc.)? There isn't
really any measurable effect to the earth's ecosystem (generally) from dry
oilwells vs. full ones, nor is there any real change in the way we interact with
the environment because we drilled some deep-sea oil wells.

The process of using up all the oil would be a gradual one. By slowly increasing
oil prices (as is occuring now), it will disincentivize use and encourage use of
alternatives to fossil fuels. There would be some economic pain, no doubt, in
transition, but oil/et al. is a finite resource, and by conserving now we're
just punting the economic pain down the road a few decades. In general, I can't
really think of any good reason to save fossil fuels for a rainy day in the future.

So, if they found some way to scrub the carbon from exhausts, I'd say sure,
bring on the SUVs (added bonus: supports the uncompetitive American worker!).
Just means we'll get our hydrogen car all that much sooner.

--------

I guess I take for granted that I live a fairly minimalist lifestyle. But my assurances are desired because I am talking about giving up things above and beyond the normal circumstances. For instance, in Georgia I would be willing to go without water 20 hours a day if I knew that others would be able to use water they would otherwise not be able to use. I agree whole heartedly that we should really all move towards reduction. SUV’s are the easiest example. Why? Who needs that? And if you do have a need, you can still slap a hybrid engine in it for non heavy weight usage. High efficiency appliances, etc. And the fact of the matter is that we will move where the money is. No matter how much government cries and businesses pout, if consumers demand better alternatives and require better usage of resources, it will happen.

--------

Yes as you said, since we are young adults we probably live fairly austerely compared to the general population. Imagine suburban families – all the diapers, laundry going constantly, Costco runs, Christmas presents, and shuttling the kids around to piano/mall/sports/SAT tutor in low-MPG vehicles. Yet another reason to defy Malthus and refuse to breed!

Bringing up the Georgia example is very appropriate. The governor even publicly prayed for rain ( http://www.npr.org/templates/story/story.php?storyId=16281915 ). Well, it is the Bible Belt after all. Even in the richest nation on Earth, you have a fight among neighbors over something so trivial as water. It's not even a north-south, red-blue state divide. It's between GA, MS, and FL! It even went to the courts and the state governors called Bush down there to moderate! Imagine if that fight was in unstable areas of Africa or Central Asia – you can imagine the risk of war would be fairly high. Water conservation is a big mess in this country and the rest of the world. Why do we have to wash our cars and water our lawns with the same quality of water that we drink and cook with? There would be massive infrastructure costs involved, but why not have a separate plumbing network for recycled water? Some parks and businesses already do this. And because of all you thirsty SoCalers, California wastes megawatts pumping water from Mono Lake and the Sac River Delta hundreds of miles down to water the Palm Springs golf resorts and keep the Disneyland fountains going. Vegas might be even worse, with its overbuilt urban sprawl and wasteful tourism economy. Nearby Lake Mead (where Vegas gets a lot of its water) is over TEN FEET below historical water levels. If you've ever seen how vast Lake Mead is, you can appreciate that it's like millions of cubic meters of water low. And fighting among farmers and residents over the Colorado River water? It's as ugly as the Georgia situation.

Yeah the problem is that gasoline is a darn good fuel for personal transport. Can you imagine freighter ships or airplanes running on ethanol or battery? Not in our lifetime. We have a decent thing going with oil (it's way better for propulsion than it's dirty, inefficient predecessor coal), and we're wasting it like there's no tomorrow. I know there are environmental costs associated with hydrocarbon combustion, but people have places to go, and even if we reverted to horse-drawn carriages, their poop also creates methane and CO2. If we use oil intelligently, a relatively affordable supply will last at least another 100 years. Then hopefully electric/natural gas public transit can improve, hybrid vehicles will be the norm instead of the exception, we will curtail our personal driving habits, and we can make carbon sequestration a reality.

Hydrogen is a pipe dream in terms of large-scale, practical implementation ( http://autos.canada.com/green/story.html?id=3a459297-3ed9-41c0-a7e1-58125d87a3b5, http://www.post-gazette.com/healthscience/20030728hydrogencars0728p2.asp). The energy required to process H2O into H2 is more than the kinetic energy output of H2 in even the best fuel cell vehicles (not to mention the safety risks and enormous cost of high-tech hydrogen engines and filling stations). I've previously discussed the problems associated with corn ethanol ( http://blog.360.yahoo.com/blog-oyRzqeYyeqkKKFSKN5COYA--?cq=1&p=193 ). Ethanol does hold promise (especially cellulosic ethanol from plant waste, so no farming is required), but not in the way the Bushies and big agribusiness are currently envisioning ( http://magma.nationalgeographic.com/ngm/2007-10/biofuels/biofuels.html ). The Brazilians have pioneered a more efficient sugar cane distilling process to produce ethanol, and although they still burn plenty of gasoline, they are relatively energy independent ( http://yaleglobal.yale.edu/display.article?id=6817 ). But the Feds levied tariffs on cane ethanol to protect our more wasteful, expensive domestic corn ethanol industry. To them, it's all about money and environmentalism is only a marketing gimmick. Of course the easier solution is to reduce the usage of personal transport and improve mass transit, but we know how that fight is going. I'm still waiting on Mr. Fusion from in "Back to the Future, part II".

IMO, oil should not be used for electricity generation. We have many other alternatives like NUCLEAR, geothermal, wind, solar, coal (hopefully "clean" coal), and the San Francisco region, among other seaside metro areas, is even considering underwater turbines to harness the energy from sea currents (imagine the maintenance costs and repairs on those structures). All those sources don't pack the punch of oil, but at least they're much more renewable. It just bewilders me why we haven't gone more nuclear (maybe the oil/coal and environmental lobbies have joined forces?). Developed nations in Asia and Europe have benefited from safe nuclear power for decades. And at least the pollution from nuclear waste can be confined, rather than the particulates and greenhouse gases from hydrocarbons diffusing everywhere (California is starting to get some of China's pollution now, and Canada has complained about drifting New York smog for years).

Then on the other side of the coin is conservation as you said. CAFE fuel standards have gotten WORSE since 1980. Appliances are terribly energy inefficient. Stores overuse climate control to make sure their customers are comfy and more inclined to stay and spend money. Office buildings leave their lights on all night even though hardly anyone is working at 2AM. The list goes on and on. I just worry that these problems won't improve without government intervention. Consumers won't demand greener alternatives unless it benefits them (cost, productivity, convenience). We waste resources because we can. It's pathetic how Americans are griping about $3 gasoline when much of Europe and Asia has lived for years with $3 per LITER gasoline, because of government taxes. That's why they have 45 MPG small cars (if they even own cars). Parking is also scarce and pricy, which discourages unnecessary driving. Electricity is also way more expensive than in the States, so you should see how small and efficient their appliances are (maybe apart from their giant coffee machines). Water is also pricier, which may be their excuse for showering only three times a week? I don't know why Americans feel like they are ENTITLED to cheap resources. And because they are cheap, we tend to waste. This is a serious social problem that I think government is most equipped to address.

Government told us that we had to wear seatbelts and we couldn't smoke in many public places (depending on where you live, and yes it's debatable whether the anti-smoking Nazis have gone too far). Government told companies that the food/drugs they sell must meet minimum safety requirements, and that they must dispose of their hazardous waste properly. All of those laws were enacted for the public good and human welfare. Conserving resources is also necessary for the public good and human welfare. Yet the government only acts in times of crisis (1970's oil embargo, Enron-orchestrated blackouts in California). This has to change. The consumer is not off the hook either. Americans and others can and are changing their living habits to be greener, but as we all know – it's a PAIN IN THE BUTT sometimes. We don't have the time, money, or energy, so we often choose the convenient, more wasteful option. We have things to do, after all. Unless the government incentivizes, I think consumers will always be too busy and too lazy to do the "right thing" often enough to make a global impact, myself included. And of course companies will exploit our weakness in order to encourage or at least maintain waste, oversell their products, and increase their profits. In some cases it's very challenging for companies to manufacture greener products, but in other cases it's trivial and just a matter of lack of will. And will the average consumer pay 30% more for a next-generation product that is more efficient than the competition? Only if the electricity savings can compensate, or if the government subsidizes.

Speaking of oil and waste, NPR's morning show had an interesting series on the oil economy ( http://www.npr.org/templates/story/story.php?storyId=16223995). If you think passenger cars are wasteful, get a lot of military vehicles!

Military's Oil Needs Not Deterred by Price Spike

by Jeff Brady

http://www.npr.org/templates/story/story.php?storyId=16281892

All the U.S. tanks, planes and ships guzzle 340,000 barrels of oil a day, making the American military the single-largest purchaser and consumer of oil in the world. If the Defense Department were a country, it would rank about 38th in the world for oil consumption, right behind the Philippines.

Peterson Air Force Base in Colorado Springs, Co., is a good place to start if you want to understand why the military uses so much oil. A bulky C-130 "Hercules" transport plane fires up its four propeller engines in a corner of the tarmac as Senior Master Sgt. Glen Blackmann looks on.

"So that's three gallons to the mile. Not three miles to the gallon (but) 3 gallons to the mile," he said. [the C-130 cargo plane has 0.33 MPG!] There are more than 500 C-130s in the Air Force and Reserves. That's just one machine in one branch of the military. The Army's Abrams battle tank weighs 60 tons and needs about two gallons to travel a mile.

After all, O'Hanlon said, in a time of war the Department of Defense can't really say, "Let's not fly that mission this week because gas prices are too high." When Congress considers the next appropriation for the military fuel costs likely will not be high on the agenda.

The bigger challenge for the military, O'Hanlon said, is what the price hikes represent — a narrowing of the gap between supply and demand that could cause problems for the military down the road. What happens when such an oil hungry institution can't get oil? That's why the Defense Department is conducting all kinds of research on alternate forms of energy and more efficient machines. So is a hybrid tank on the horizon? It's already in the works.

--------

Thx for writing and I see your argument. I think in my recent reply to M I communicated why oil is very precious/useful versus our deficient alternative fuels. Maybe innovations will save us, but for now it doesn't look good. The global economy is built on fossil fuels. I guess you could say - if we deplete worldwide supplies then we will just have to turn to something else. But in no time in history have nations run out of a vital resource that sustained international commerce. It may get really ugly. Like imagine during the Colonial Era if gold or wind suddenly ran out. It would have been chaos. I think that is what we're looking at, times 100, if oil runs out and we are assed out with not many viable alternatives.
I mean, oil drilling and transport itself does have a major impact on the environment (see Nigeria or the Black Sea), apart from the likely combustion-global warming connection. I also wonder how "gradual" our depletion of oil would be. India, China, and others are consuming oil at an accelerating rate. America's consumption is also growing, but fortunately Europe's is leveling off. Conceivably some parts of Latin America, Africa, and the Middle East are poised for upcoming economic booms. They will require more oil. Even if America does scale back (and reducing our use from 19 to 15 million barrels a day is commendable, but still very gluttonous), other nations won't, and we'll probably go to war because of it.
From 2001, so I guess China has surpassed Japan by now:

-----------

I've heard this argument before, and I'm generally sympathetic to the idea that
oil running out is a bad thing and obviously people hurt by economic change are
also really bad.

I guess my point of view is that we're going to keep using it until its gone,
whether it's in 50 years or 200 years, depending on how much there is left. So,
to me, it's more of an issue of pain now or pain later. I had to explained to me
as below and I think this analysis makes a lot of sense.

One of the things that makes pain now (aka use it all up) is okay is that there
are lots of oil fields and sources of oil out there that are untapped now; they
remain untapped because it isn't economically feasible to get at (the fields are
out in the middle of the ocean, under hard bedrock, take special refining etc).
So my understanding is that we aren't going to run out anytime soon, what we're
going to run out of is cheap oil soon (if we effectively haven't already).

What will happen, then, is that with higher oil prices alternate forms of energy
become increasingly attractive. This is already what's happening now, and if oil
rose to $150/per barrel, it will only increase the pressure. So the faster we
use, the higher the price goes, and the more attractive alternate energy gets.
http://economics.about.com/cs/macroeconomics/a/run_out_of_oil.htm
On the other hand, if we conserve, oil stays (relatively) cheap. So there's not
as much incentive to move to new/alternate energy sources.

However, even if we cut consumption by a heroic 10% worldwide (which would take
probably *literally* a minor miracle), it only slows the process down somewhat -
we're still going to reach those high prices, we probably just delay it 5-10
years. For example, even if we cut in half the amount of driving people in the
US do, and in addition eliminated all fuel used in the delivery of goods to the
US, we still wouldn't get a 10% worldwide decrease in oil use - and doing those
things would require massive social changes in the US.

On the other hand, I don't think the economic impact is as severe as you might
expect given what we saw in the 1970s. Energy per point of GDP in the US
(esentially a measure of how much oil/nat gas/etc it takes to produce one
percentage point of GDP) is at its lowest point in pretty much forever. This
post explains it better than I can:
http://mjperry.blogspot.com/2007/10/energy-efficient-economy-can-handle-100.html
The basic upshot is that we are much less dependent on energy in the economy
than we used to be (no doubt switching from manufacturing to white
collar/service industries is part of that), as are most developed nations. Note
that this is gdp compared to energy, not oil, so the price of oil only effects
this equation if there are no good energy substitutes.

On that front too, we are in much better shape than we used to be. Plug-in
hybrids are almost commercially available (I think Toyota said they'd start
selling them next year), Honda is planning to sell publicly a hydrogen car in a
few years, nuke plants that are finally safe and efficient are in the planning
stages, etc.

I'm not saying that increased oil prices are going to be any kind of great thing
for the economy, but our economy is much more resistant to oil prices than it
was in the past. Furthermore, from what I understand of the oil markets, the
price of oil isn't likely to rise all that quickly in the long run due to
underutilized supply being introduced into the system coupled with decreased
demand due to substitutes. Finally, I suspect major efforts to cut consumption
will probably only delay this effect, and at best have a marginal impact.

Ultimately, though, I think our end goals are very similar right? Increase our
environmental stewardship and avoid serious economic consequences in doing so.
Clearly, the above is mostly an economic argument, but I'm also very aware of
oil's impact on global climate change. That needs to be addressed too, with
either some form of a carbon tax or cap and trade scheme. On the economic side,
I think what is likely to be a better way of doing that then trying to get the
US consumer to radically change their behaviors is rather 1) allow supply to run
its course 2) use government funding to seriously lower the costs of
alternatives to oil.

Finally, I understand the appeal of conserving for the sake of conserving,
especially in our consumer-saturated culture. I'm not particularly concerned
about the macro economic effects of this - as I outlined above, I think, from
the evidence I've read, it will mostly take care of itself, and I have no ipso
facto need to see oil around forever just to have it around. What I am worried
about from people's need for stuff is that I have to live with people where it
hollowed out their lives to need consumer *things*, and guard against it myself.

---------

wouldn't be so dismissive of some of these alternative energy sources (see
below), although I completely agree about nuclear. I think because the
government spent the Cold War scaring the crap out of us with the "Ruskies have
nukes" thing, that Americans are still trained to think nuclear=evil. But that's
changing: http://opencrs.cdt.org/document/RL33442 Up to 30 new nuke plants will
be opened in the next 10-15 years, which is a pretty big expansion.

On the other hand, not much power in the US comes from oil plants. Most oil in
the US is used for either gasoline, trusty Jet-A, or home heating. There are
actually a lot more LNG plants than oil power plants, if my memory serves me
correctly. The main reason is that coal is so damn cheap and abundant (despite
being horrible for the environment). So new nukes would mostly be replacing coal
plants (which would be great!) but not really do much for our energy independence.

-----------
Hydrogen car on the market next year:
http://jalopnik.com/cars/news/honda-hydrogen-fcx-coming-in-2008-259716.php

Of course, you're right that we have to solve the problem of making the
hydrogen. See: http://www-formal.stanford.edu/jmc/progress/hydrogen.html
particularly: "Assuming $0.05 per kwh of electricity from a nuclear power plant
during low demand, hydrogen would cost $0.09 per kwh ( Bockris and Wass 1988).
This is the equivalent of $0.67 per liter of gasoline. Gasoline sells at the
pump in the United States for about $0.30 per liter [my note: this is now about
$0.60/liter]. "

The advantage of hydrogen is you can make it pretty much anywhere there is a
nuclear plant, unlike oil. It is also (according to the Stanfraud engineering
link) about 1.33x as efficient as gaz. The downside is that it is less dense so
it costs more to transport and you need more space to store it.

Most of the problem with hydrogen vehicles is not really the cost of the
hydrogen fuel but rather the cost of building a vehicle that can store the
hydrogen in a car efficiently as well as transporting it efficiently, and then
building the infrastructure so that people feel confident that they can fill up
anywhere they might want to go (i.e. the changeover costs).

Assuming the costs of oil go high enough, and in the next 5-10 years car
manufactures solve the storage problem (looks like Honda is about 90% the way
there on solving the range problem, 50-60% the way there on costs), hydrogen
cars become a reality. Of course, it will take nearly 20 years after that for
old oil-based cars to work their way out of the system. Still, there is reason
to be optimistic.

Futhermore, algae-based biomass ethanol seems quite promising:
"Michael Briggs at the Univ. of N. Hampshire Biodiesel group estimates that
using open. outdoor, racetrack ponds, only 15,000 square miles could produce
enough algae to meet all of the USA's ground transportation needs."

and

"Second, traditional oilseed crops are not the most productive or efficient
source of vegetable oil. Micro-algae is, by a factor of 8 to 25 for palm oil.
and a factor of 40 to 120 for rapeseed, the highest potential energy yield
temperate vegetable oil crop."

http://oakhavenpc.org/cultivating_algae.htm

---------

As someone who lived 15 miles away from 3 mile island, i have very different feelings about nukular energy. look at chernobyl. i have a father, who, from radiation exposure while in the military has the same primary tumors popping up all over as the people who lived in and around chernobyl. nuclear bombs and accidents at nuclear power plants create the same radioactive fallout. the waste issue with nuclear energy has yet to be addressed. do you want that truck load of waste driving past your house? oh, we could put it on a rocket and blast it into space? that doesn't seem fuel efficient.
those days around that accident were terrifying. we were constantly wondering if we should leave. my sister was 7 months pregnant. she left. once that genie's out of the bottle, you can't put him back and there's no absorbant material you can toss down to soak up the rads. as the old song goes, 'plutonium lives forever.' to this day, i don't know how much radiation exposure occured with regards to that accident. if an accident like that happened today, do you think our current regime would be able to handle evacuation plans, clean up, follow up care for exposed individuals? are you willing to put people you love in the hands of FEMA and the NRC?
---------
Agreed that nuclear energy is not exactly the wonder energy, and I definitely
feel for anyone that lived near 3 Mile Island or otherwise had unsafe exposure
to nuclear energy. However, today's nuclear plants are a *lot* safer than the
old ones built in the 1950s and 60s. Upcoming designs are actually structurally
impossible to initiate a meltdown
(http://en.wikipedia.org/wiki/Pebble_bed_reactor) and in general much much safer.

The other main problem with nuclear power is that of nuclear waste, and this is
the biggest downside - it should not be overlooked at all. There are a few ideas
about safe ways to deal with it, the main one being reuse in the nuclear fuel
cycle (http://en.wikipedia.org/wiki/Radioactive_waste#Transmutation), but this
is a ways from being commercially viable. In the meantime, storage at Yucca
Mountain is probably the only real alternative. The politicians in Nevada hate
the idea (and I don't blame them) but it really would be a safe place to keep it
(http://en.wikipedia.org/wiki/Yucca_Mountain#The_facility). In general, though,
nuclear waste has been safely stored and transported and while there are
certainly risks, they are small at least until we can either do Yucca Mountain
or transmutation.

This is all relative to coal. You are actually a lot safer in normal, everyday
conditions living next to the nuke plant than a coal plant (and probably even
safer than living next to 3 Mile Island). This is because coal is so damn dirty,
and the dirtyness of coal spreads much further. A coal plant in normal operation
actually releases more radiation than does a nuclear plant in normal operation
(according to Wikipedia, 100x as much:
http://en.wikipedia.org/wiki/Fossil_fuel_power_plant#Environmental_impacts),
because of the way coal is burned, not to mention the asthma problems, lung
cancer, etc. that comes along with a coal plant. Clean coal is somewhat better,
but not by much (http://en.wikipedia.org/wiki/Clean_coal). Coal power plants are
just really, really, nasty.

Solar, wind, geothermal are all in some sense better than nuclear on being
safe/clean (although most of them require some pretty awful
chemicals/manufacturing processes to create), but are faily limited in
applicability. Wind can only be done in certain areas, and requires a lot of
steel and other materials per/kwh of power. Solar takes up very large amounts of
land (building over fragile ecosystems if you try it in the desert) and
photovoltaic solar panels (the kind that you can just put anywhere) require
hideous amounts of mercury. Geothermal is especially limited in use.

So there isn't any great solution to the energy needs. Presumably if we don't
want to go back to the stone age, though, we have to get our power from
somewhere. I'm all for increasing solar, et al. as much as possible. But they
can't, and probably never will, be able to do the bulk of energy generation.
Given how nasty, dirty, and polluting coal is, whatever the downside of nuclear
power plants, they seem to make a lot more sense.
----------
Thank you A for the links and compelling points! Like any global reform movement, the solution has to be multi-pronged. I am a scientist, so of course I support research into alternate energy, transportation, and more efficient products. But that's not the panacea alone. For the here and now, conservation is the easiest action that can yield significant results almost immediately. Our energy consumption and pollution crisis is not dependent on technology to save us. We have to save us from ourselves. If there is the social and political momentum to conserve, maybe it will buy us some time to make other options more attainable. In 20 years or so, I do believe that there will be plenty of plug-in hybrid, E80, and hydrogen vehicles on the road. There will be more nuclear plants and renewable energy plants. We will have much more efficient products in our homes and workplaces. But if humans keep fighting each other over resources and refusing to conserve for the sake maintaining unsustainable commerce, we won't have the global stability and cooperation necessary to see these reforms through on a meaningful scale.

So I am not dismissing alternate energy sources, but I don't want to oversell how easily and how rapidly they will hit the mainstream (if ever). Just because we can build a hydrogen car as a pet project doesn't mean we will solve a global energy challenge. Doesn't Arnold have a hydrogen Humvee? I know that kind of defeats the purpose, but just because a rich person can mod their vehicle for hydrogen fuel cell power doesn't mean it's implementable on a larger scale. As you said, the biggest issue with hydrogen is it's a GAS. That is horrible for energy storage, versus a liquid fuel like octane or E80 that has much more energy per unit volume. Natural gas (methane) is also a good fuel and cleaner than heavier hydrocarbons, but it needs to be cooled and pressurized to be liquefied (because it's too unstable as a gas). Liquids don't require expensive high pressure vessels and tubing that could fail during normal wear and tear of a vehicle, not to mention a Hindenburg-like multi-vehicle pileup on the 101. And what is the range of current H-vehicles? Is it comparable with a battery-powered car? IMO, it would be a better investment of resources and time to improve hybrid technology, expand clean public transit, and implement more conservation incentives (like putting a huge tax on low-MPG vehicles). Plus a car is not just an engine and fuel tank. More efficient parts and automobile designs could extend a vehicle's mileage a lot. If people changed their driving habits, we could conserve a lot of fuel too (not just the distance driven, but not accelerating too hard, keeping your speed down, and not driving in heavy traffic).

But frankly, the technical challenges are not as daunting as the more mundane social-political hurdles. If any of you have seen "Who Killed the Electric Car?", you know what social-political challenges hydrogen cars could face. GM, of all carmakers, made an excellent electric vehicle called the EV-1 ( http://en.wikipedia.org/wiki/General_Motors_EV1 ), which had the range, size, and design to be appealing and practical for small households commuting less than 30 miles in urban areas. GM tested the vehicle in a pilot program in California/Arizona. But due to lobbying and other pressures (and very cheap gas in the 1990's), the hundreds of EV-1 that were being happily used on the roads were then rounded up and destroyed. All the electric vehicle recharging stations that were built now sit unused. Maybe the oil/auto industries, and the average narrow-minded American consumer, would have an even harder time swallowing a hydrogen vehicle.

But I think we are confusing two debates here. (1) Do we want to use technological improvements to sustain our personal driving culture, or (2) do we want to reform our transportation habits completely? Hydrogen cars definitely help goal #1, but I don't know if they are the most cost-effective solution for #2 when other easier options are already available. As S said, Europe and Asia are way ahead of us on clean public transit networks. And the standard of living in those countries is still very high (in some cases higher than here!), so it's not like they are suffering because they've forgone driving. Plus automobiles are not the only sources of greenhouse gases and not the only consumer of hydrocarbons. Let's not forget that demand for air travel is at record highs (hence the record delays), which consumes a lot of fossil fuels too. All the alternate energy sources can't really help there, so we need to conserve oil at least to fuel our airplanes, unless you want to bust out the hydrogen Titanic for a two-week-long journey from NYC to Amsterdam.

Speaking of that, shipping is the lifeblood of the globalized economy. Either we need to restructure things so that buyer and seller are in closer proximity, or just buy less in general. And once the cargo containers get to the US, they are often loaded onto inefficient semi-trucks instead of trains ( http://www.thezephyr.com/environ/trucktrain.html). Some truckers transport goods 3,000 miles across the entire country, which costs them over a thousand dollars in fuel. Plus all those trucks congest roadways and make thousands of other drivers waste fuel in traffic jams, not to mention plenty of fatal accidents (over 40,000 Americans die on our roads each year). Why not put it on pre-existing rail lines? Maybe it won't get delivered as quickly, and you'll still need trucks on the downstream end, but they can be smaller and will travel shorter distances. We need to start accepting more sacrifices if we are serious about combating environmental problems and conserving resources.

The human race is going to die out eventually. If not from fighting, then from disease, climate events, overpopulation, overconsumption, and probably a combination of them all. And even if we're smart enough to avoid those problems, an asteroid may hit us and our sun will go red giant in a few million years anyway. I think that if we are intelligent stewards of fossil fuels now, running out won't be the most serious survival concern for the human race and our growing economies, versus the other threats I mentioned. And oil exploration/refining is constantly improving, so now we are able to extract oil from places that were previously unimaginable or cost-prohibitive. We can also extract more oil from wells and fields previously thought to be depleted. Plus if oil traders are willing to pay $90/barrel for even high-sulfur, sludgy shale, that gives companies incentive to get more creative and resourceful.

And finally, the problem about alternative energy sources is you can't really be sure until you've tested them in a large trial. These niche sciences are thirsty for exposure and profitability, so they will promise us the moon, like some researchers and politicians on stem cells. These days, everyone and their mother have a miracle solution, but we need to see concrete results. If our leaders can appoint true experts (and not biased cronies) to evaluate the benefits of each of these proposals and settle on the best few, then we can stop experimenting and start implementing. Because such huge projects (like a hydrogen-based national transportation and refueling network) require vast resources that private investors can't supply. So sooner or later we have to involve the G-men. Hopefully Presidents 44 and beyond will have a healthy respect for the sciences.

------------

http://en.wikipedia.org/wiki/Kardashev_scale

This link, you guys may or may not have heard of, is a measurement of a civilizations advancement based on energy creation/utilization. Right now we are type zero and if you take a look at our energy usage, ie exponentially increasing with time, we are going to need to step up our game on this whole energy thing. In the short term you can’t argue with Tim, reducing our consumption will have the fastest most dramatic benefit. But all it really does is give us a little bit of extra time to come up with the next great energy source. The reason I brought up the Kardashev scale is that fossil fuels or even fuel based on corn or sugar cane is in the course of things a short term solution to energy needs. The future, in my opinion, needs to move towards public transit that can run on electricity, or purely electric cars. If our energy needs can be satisfied by electricity then transport of energy becomes simple. And creating electricity on a large scale has a lot more options than creating a new fuel source or energy method that is safe, transportable, and refuelable. The constraints are just easier to meet. You can even start playing with solar farms in space with wirelessly beamed power back to earth. Seems sci-fi but technologically feasible today.

http://en.wikipedia.org/wiki/Solar_power_satellite

And of course this whole thing would be much more feasible if they would just build my damn space elevator.

http://en.wikipedia.org/wiki/Space_elevator

Now I’m kind of going off topic…

Also, with regards to the movie “who killed the electric car?” does anyone else remember when they said that hydrogen power wasn’t feasible as an energy replacement?

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Yeah very interesting points. I am tending to agree with you that our economy can withstand oil shortages/price increases since we are not living in Jimmy Carter times anymore. Even though oil went from $35 to $90 per barrel in the last 3 years, the Dow has kept going up and so has GDP. So the economy continues to roll, and probably the subprime fallout hurt the global economy worse than rising oil demand/prices.
But a gradual rise in prices is different than a sudden cut in supply, which could cause chaos. I worry that politics and conflict may rock the boat. Growing economies (with less than responsible governments) won't simply tolerate prices rising to the heavens, and may start more oil wars to secure supplies. Oil-producing nations (with even worse governments) will be sitting on more and more wealth, which may cause infighting, corruption, and whatnot to disrupt production. Al Qaeda definitely won't sit on their hands if oil is $200 a barrel. Insurgents have already disrupted Iraq's pipelines (I guess hundreds of miles of unguared pipe is an easy target for them, or Nigerian rebels/thieves), and tried to bomb Saudi Arabia's main oil processing hub. If they succeeded in damaging that facility, I think global supply would have been cut by like 4M barrels per day for at least a month (more than all of Iraq's production). The consequences could be scary. But this is more of a security issue than an environmental/economic one. My point is, I don't know if all the oil-thirsty nations will just sit back peacefully and watch prices rise to ridiculous heights without taking potentially damaging actions.
As you said, the fact that heavy industry has all but disappeared in the US probably helps us have an energy-leaner economy. What I really worry about is air and sea transport. Those modes (especially air) are not amenable to alternative energy. And if America is becoming more of a services and high-tech oriented economy, we are increasingly dependent on foreign commerce to supply our consumer needs. Maybe personal transport can be modified for alternative fuels, but if we had an ethanol freighter, the fuel tank would occupy most of the ship in order for it to have a halfway decent range. So we do need to conserve oil at least to sustain our militaries and air/sea transport systems. I am not sure how consumption from those areas compares to automobiles and power generation, but we have to cut somewhere.
So America consumes 20M barrels of oil per day, and Japan/China roughly 6 each. Even with the miracle algae, I don't think biofuels can meet those needs. I also don't know if we can make enough H2 either since the energy density is so low. For how many tons of vegetable oil you can extract per square mile of corn/cane/algae farms, you only get a fraction of that amount in pure ethanol on the other end of the distilling process. Plus you have to subtract all the energy costs of growing, harvesting, processing, and transporting the material (and waste disposal). Ethanol is only like 20-40% energy potent versus gasoline (I've heard different figures, and I'm too lazy to crunch the chemical reactions now). So we'd need farmland the size of India to even hope to meet America's energy needs. And we don't know what effects the large-scale monoculture of genetically-engineered strains of corn will have on the ecosystem. I know you probably don't love the idea of corn ethanol either, but even other biofuel sources may struggle with the same concerns.
Well, I'm glad that caring, smart people are thinking about these problems at higher levels of government and industry (but other people are trying to block their efforts of course). I guess all the masses can do in the meantime is conserve, boycott wasteful commerce, and voice our demands for alternative products/fuels.