Measuring growth
11/07/2009 at 7:57 am | In Politics | Leave a CommentThe New Economics Foundation in the UK released their “Happy Planet Index” report this week, which tries to rank countries based on how good they are at satisfying basic human needs and producing happy citizens without destroying their environment. The basic premise underlying the report is hardly new – namely that GDP is not a great way to measure our growth as a society. GDP basically measures the value of all goods and services made within a country in a given period, regardless of whether those exchanges increase or decrease well-being. This means that GDP growth is obviously not equivalent to growing the things that we actually want to grow – expenditures on cleaning up toxic pollution, recovering from natural disasters, and increasing health care costs contribute just the same as positive investments in, say, education. In other words, “pollution is a double benefit to the economy since GDP grows when we manufacture toxic chemicals and again when we are forced to clean them up.” [Redefining Progress, p.4] Also, our economic growth currently comes at the expense of rapidly eroding our natural “capital,” and just looking at GDP growth completely misses this problem. GDP also misses the informal, non-cash economy based on bartered goods and services, which accounts for up to 44% of GDP in developing nations, according to the IMF.[Redefining Progress, p.4] Unfortunately, GDP is frequently used as a proxy for well-being in policy decisions and GDP growth is a central goal, if not the central goal, of economic policy in developed nations. NEF’s proposal basically amounts to redefining efficiency as how efficient nations are in using their ecological resources to achieve well-being.
The Happy Planet Index looks at 3 factors: life expectancy, life satisfaction, and ecological footprint. (Life satisfaction data has apparently been collected for nearly 50 years in many countries, typically by asking a question like, “all things considered, how satisfied are you with your life as a whole these days?”, on a scale of 0-10. Supposedly this data has been correlated with other factors like income, education, etc to give sensible and useful results, so it is not a completely meaningless statistic). The broad conclusion, not surprisingly, is: “Whilst the HPI confirms that the countries where people enjoy the happiest and healthiest lives are mostly richer developed countries, it shows the unsustainable ecological price we pay. It also reveals some notable exceptions – less wealthy countries, with significantly smaller ecological footprints per head, having high levels of life expectancy and life satisfaction. In other words, it shows that a good life is possible without costing the Earth.” The highest score was Costa Rica, whose residents have the highest reported life satisfaction in the world and an ecological footprint less than 1/4th that of the U.S. 9 of the top 10 countries are in Latin America, and the highest-ranking western country is the Netherlands, at a distant 43rd. Looking at historical trends in OECD nations (i.e. developed nations), they found that life satisfactiona and life expectancy combined increased 15% over the last 45 years, whereas ecological footprints increased 72%. While I don’t take much stock in the actual numbers, the idea that consumption and ecological destruction have outpaced gains in health and happiness doesn’t seem too hard to swallow.
The idea that we should not base our economic philosophy on maximizing GDP growth, and instead use an indicator that more accurately reflects our aspirations as a society, has been kicking around for a long time and largely ignored. But we also ignored many other warnings about the unsustainability of our economic growth, ranging from the increasing consumer debt to finance consumption growth to the fundamental limits imposed by resource constraints. (It is darkly amusing to note that in 2003, the New Economics Foundation predicted “collapse in the credit system of the rich world, led by the United States, leading to soaring personal and corporate bankruptcies.”) The economic crisis is forcing us to confront some of our previously dominant economic ideas – it will be interesting to see whether the idea of re-defining how we measure economic growth will gain any more traction in light of the crisis.
Climate change bill in the House
22/06/2009 at 8:40 pm | In Climate change, Energy Efficiency, Politics | 1 CommentThe House of Representatives is most likely going to vote on a major piece of energy and climate change legislation within the next couple of weeks (the American Clean Energy and Security Act, a.k.a. the Waxman-Markey bill). There is a ton of stuff in this bill, so I figured I’d spend this week’s blog post going through some of the highlights – and lowlights. This is mainly for my own amusement; I’m sure there are lots of other better analyses of this bill out there.
1. Renewable Energy:
– The bill would require 20% renewable electricity by 2020, although up to 5% could be met by reducing demand through efficiency measures instead and this could increase to 8% from efficiency at individual states’ requests. This is pretty weak – and the original version of the bill was stronger. They also somehow include coalbed methane as a renewable fuel, which is a rather odd definition to say the least.
– The bill requires utilities to develop plans for integrating plug-in hybrid electric cars & requires the Secretary of Energy to establish a demonstration program in several regions to integrate plug-in electric vehicles into the grid.
- It requires research into smart grid technologies, coordination of smart grid planning, and requires major utilities to set peak demand reduction goals.
- Finally, it requires coordination of electricity transmission planning with the goal of building out the grid to facilitate deployment of renewables.
2. Energy Efficiency:
- Requirement of 50% reduction in energy use relative to today’s standards by 2014 for new residential buildings and 2015 for new commercial buildings
- Requires the Department of Energy to work with states to improve efficiency of existing residential and commercial buildings through retrofitting.
- Stronger efficiency standards for lighting and appliances
3. Climate Change:
- Emissions reductions targets are 17% reduction in greenhouse gas emissions from 2005 levels by 2020 and 83% by 2050 to be achieved through a cap and trade system (the standard market-based mechanism where emissions are capped and in order to pollute the company has to purchase pollution permits, which can be traded between firms). One of the big debates in cap and trade is how the permits should be distributed – given away to firms, auctioned, or some combination? And if they are auctioned, what do you do with the revenue? This bill gives a fraction (about a quarter) of the permits directly to energy intensive companies. A large fraction (about a third) is given to “local distribution companies” (essentially electric utilities); the idea is that they won’t have to raise prices as much if they get the permits for free. Although this is one way of protecting consumers against rising electricity prices, it’s not really my favorite, but I think I’ll save that for another post. The remaining money from auctioning the permits is split among investment in renewables and efficiency research, state energy efficiency programs, climate change adaptation programs, programs to benefit low-income households, and federal deficit reduction.
- Unfortunately the bill allows 2 billion tons per year of carbon offsets, i.e. companies can by “offsets” instead of reducing their own emissions. Experience to date with offsets suggests pretty strongly that they don’t usually result in the emissions reductions that they claim, so this basically means that the bill won’t be as effective. (Note that 2 billion tons of carbon dioxide is nearly 30% of U.S. 2005 emissions).
Lots of people are concerned by how much this bill has been weakened so far and potentially further in the House floor debates. Some environmental groups are considering withdrawing support for the bill, which I think would be a huge mistake for a couple of reasons (see also ClimateProgress.org for more elaboration on some of these points). The first is that this bill really does have a lot of very good energy efficiency provisions that aren’t getting much attention. But the main reason is that if the U.S. doesn’t have some sort of national climate policy on the books before December, the international climate change negotiations in Copenhagen are likely to be a disaster. I can’t imagine China and India being willing to undertake binding commitments to reduce emissions if the U.S. isn’t doing anything. Although some people have argued that Obama could still reduce emissions by requiring the EPA to regulate carbon dioxide as a pollutant, there are two downsides to this strategy: (a) it could easily be overturned by a subsequent administration; and (b) it would still send a signal to the international negotiations that the U.S. is unlikely to be able to ratify an international treaty. So, to make a long story short, I really hope this bill passes.
Climate change and the Maldives
10/05/2009 at 6:33 pm | In Climate change, Politics | Leave a CommentThere was a fascinating feature article in the New York Times today (“Wanted: A New Home for My Country”) profiling the president of the Maldives and his dilemma over how the Maldives should adapt to climate change. Sea level rise is the big threat they’re facing since the Maldives are an average of 4 feet above sea level. They are currently pursuing two strategies: becoming carbon neutral and approaching other countries about buying a new homeland for their people. The first strategy is really more of a political ploy since obviously the Maldives going carbon neutral would do next to nothing to reduce global carbon emissions.
As the article points out, there are a couple of factors that make understanding the impact of sea level rise on the Maldives more complicated than just comparing the projected global average sea level rise to the average elevation of the Maldives. First, regional sea level rise is not the same as the global average, and the net sea level rise for the Maldives may be reduced if storms bring sand that can build up the islands further. Second, and not mentioned in the article, salinization of the water supply could force people to move or invest in desalinization before sea level rises enough to drown them out. These complications have led to the controversy reported in the article over what residents of the Maldives should expect in terms of sea level rise in the next few decades and whether or not they’ll have to relocate.
Despite the various complications involved in making sea level rise predictions for the Maldives, one thing seems very clear to me and was not mentioned in the article: melting of either the Greenland Ice Sheet and/or the West Antarctic Ice Sheet would be the end of the Maldives. Melting of either ice sheet would raise sea levels by 5-7 meters; granted this would take several hundred years, so it would be possible for the nation to artificially build up their islands over that amount of time, although I’m not sure whether or not such an investment would be more expensive than relocating. “Business as usual” scenarios of future greenhouse gas emissions (i.e. those with no climate policy) would lead to ice sheet collapse. Some recent studies suggest that in order to avoid an ice sheet collapse, atmospheric greenhouse gas concentrations need to stabilize at 350-450ppm, which would basically require global greenhouse gas emissions to peak and start declining within the next decade or two (at the most). It is a bit unfortunate that the NYT article didn’t mention this issue, since it seems like there would be less controversy among Maldivians if the issue were simply framed as: don’t let climate change proceed to the point that locks us into 5-7 meters of long term sea level rise. Even this modest demand from the Maldives would already be a serious political challenge.
Major EPA announcement: Climate change threatens public health (!)
18/04/2009 at 8:44 pm | In Climate change, Politics | 1 CommentApologies for the long time without posting. I suspect that posting will continue to be sporadic until this semester is over …
But, I was quite excited to see the Environmental Protection Agency officially released this major announcement on Friday:
“EPA Finds Greenhouse Gases Pose Threat to Public Health, Welfare / Proposed Finding Comes in Response to 2007 Supreme Court Ruling”
After a long scientific review process, the EPA has come to the conclusion that greenhouse gases, via the climate change that they cause, pose a threat to public health and welfare. This may not come as a shock to a lot of people, but it has the very significant implication that the EPA will now be able to regulate greenhouse gases under the Clean Air Act. (Actually the EPA’s conclusion published yesterday is only a “proposed finding;” the “final finding” will not be released until after a public comment period, and only then could regulations be imposed).
Some background on this issue:
In 2003, the EPA Administrator decided that the EPA lacked authority to regulate greenhouse gases under the Clean Air Act and, if it did in fact have the authority, it wasn’t going to regulate them anyway. [1]. Twelve states and several cities sued the EPA over its refusal to regulate greenhouse gas emissions from cars. The Supreme Court ruled against the EPA in April 2007 (Massachusetts v. EPA), finding that greenhouse gases are pollutants and therefore the EPA would have to regulate them under the Clean Air Act if they were found to endanger public health and welfare. The Bush EPA basically sat on this court order, dragging its feet until Bush left office.
The interesting thing about the Clean Air Act, which I was only recently made aware of, is that the legislation requires the EPA to put public health and welfare first when making regulations. That is, the economic costs don’t enter into the EPA’s pollution standards; they only enter into the second stage when deciding how to go about achieving a given reduction in pollutants. This is how the national ambient air quality standards are set for the major air pollutants (particulate matter, ground-level ozone, carbon monoxide, sulfur oxides, nitrogen oxides, and lead). After my non-expert reading of the relevant section of the Clean Air Act, I’m pretty sure that the same situation would also apply to greenhouse gases, now that they are considered a threat to public health and welfare. Thus, I would suspect that utilities and other carbon-intensive industries would much prefer having a carbon policy imposed by Congress, where they will likely get more of a say in shaping the legislation, rather than having a mandate slapped down on them by the EPA. It will be very interesting to see if/how this new statement from the EPA will change the dynamics of the climate bill debate in Congress in the coming months.
The power of energy efficiency retrofits
10/03/2009 at 10:43 pm | In Climate change, Politics | 3 CommentsI have been getting depressed lately over the fear that Congress will fail to pass significant climate legislation this year ([1]; [2]). So I’m writing this post in an attempt to cheer myself by pointing out all the other work that could still be done even without a national framework.
Suppose a comprehensive piece of climate legislation does not pass Congress. There is still a fair amount that the president and Energy Secretary Chu can do through regulatory measures and other government programs. I’ll focus here on energy efficiency, although regulatory agencies can also weigh in on other areas (e.g. by creating a national low carbon fuel standard, modeled on California’s example). To give some perspective, building energy use is responsible for almost 40% of U.S. greenhouse gas emissions; residential buildings for 18%. And making new homes energy efficient won’t be sufficient; existing homes consume about 90% of the amount of energy that will be used by the country’s housing stock in 2030. ([3];[4]; [5])
Even if we do pass cap and trade legislation (the most likely form that a national climate bill would take), a lot of other regulations and programs will still be necessary to encourage energy efficiency. That is because energy efficiency represents a huge market failure – there is an estimated 600 million tons per year of carbon emissions reductions available through energy efficiency at net negative cost (compared to total U.S. emissions in 2005 of 7.2 billion), according to a recent report by McKinsey . Various market barriers have prevented people from taking advantage of these savings. For example, alternatives with higher upfront cost won’t necessarily be chosen even though they save money on energy bills in the long run. Adding another market (a carbon market) on top of the existing market won’t solve these problems.
One of the barriers to improving energy efficiency that I’m becoming increasingly aware of is the lack of skilled people to actually do the necessary work. I recently heard a talk by someone from the California Building Performance Contractors Association estimating that the average California home could save 60-80% of its energy use through improved efficiency. Unfortunately there just are not that many people trained to do whole home energy audits; most contractors are trained in narrower sub-specialties and whole home performance retrofits hasn’t yet taken off as an industry. There are about a dozen contractors certified by the CBPCA in the entire San Francisco Bay Area. On a smaller scale, we are seeing pretty much the exact same thing on my campus – not pursuing energy efficiency projects as vigorously as we could simply for lack of trained staff. So we seem to be running up against a human capacity issue that environmental groups, in their focus on designing cap and trade legislation during the Bush years, seem not to have put a lot of thought into addressing (but I could be wrong here).
One silver lining of the economic crisis is that it is finally providing the impetus to take this human capital problem seriously. There is a pretty strong argument for government-funded job training programs that would result in (a) employment; and (b) lower energy bills.
Fortunately our president seems to be taking energy efficiency extremely seriously. The stimulus bill provided $800 million in job training programs for energy efficiency. It also provided $5 billion for the Office of Energy Efficiency and Renewable Energy (EERE)’s Weatherization Assistance Program; for some perspective, in 2008 EERE requested a budget of $200 million for weatherization. The Departments of Energy and Housing and Urban Development just announced a $16 billion partnership to use stimulus bill money for residential energy efficiency.
My point with all of this is that, regardless of whether or not we pass a climate bill, there is still a ton of important work that can happen and is happening through government programs and regulatory agencies to drive significant emissions reductions. If a climate bill fails this year, one might hope that continued emphasis and funding for energy efficiency could help build the momentum and the public awareness of the climate crisis needed to accept a climate bill in the (near) future. But it would obviously better to pass serious national climate legislation as soon as possible since efficiency alone will never get us where we need to be.
Rhetoric & metaphor
07/03/2009 at 11:19 am | In Communication, Politics | Leave a CommentTaking a break from climate change, Joe Romm at Climate Progress has a recent series of interesting posts on political rhetoric, focusing on Lincoln:
How to be as persuasive as Abraham Lincoln, Part 1: Study the figures of speech and Shakespeare
How to be as persuasive as Abe Lincoln, Part 2: Use irony, the twist we can’t resist
“The greatest thing by far is to be a master of metaphor”: How to be as persuasive as Lincoln, 3
How Lincoln framed his picture-perfect Gettysburg Address, 4: Extended metaphor
Romm devotes two of these posts exclusively to metaphor, which he justifies by quoting a 2005 study that found that “Charismatic presidents used nearly twice as many metaphors (adjusted for speech length) than non-charismatic presidents” and that presidents were “perceived to be more inspiring when they used metaphors.” (The study used some independent survey data of how charismatic presidents were perceived to be; I don’t know how they defined charisma, but it isn’t relevant to the rest of this post anyway).
I found this rather interesting because, on the surface, it seems odd that using any figure of speech would make an idea more inspirational – why should using a metaphor make an idea like, say, putting a man on the moon any more inspiring than using non-metaphorical language? But, as Romm illustrates in various ways using examples from Lincoln, metaphors are much better at subtly forcing people to think in certain ways than are other figures of speech. For example, we tend to structure our thinking about arguments in terms of war, which may preclude any attempt to think of it in terms of trying to achieve mutual understanding. (We attack other people’s positions, defend our positions, shoot down people’s arguments, etc, as discussed in another book I’ve been reading, “Metaphors We Live By”). This metaphor is also commonly extended to politics (see, e.g., a recent NYT article), which I would argue is not generally very productive in encouraging bipartisanship or even much in the way of meaningful debate. But metaphors like “the nation as a house” can also be used in more inspiring ways by emphasizing notions of solidarity and brotherhood. It’s no coincidence that Lincoln invoked this metaphor to argue against slavery (“a house divided against itself cannot stand”).
Perhaps even more importantly, metaphors can also subtly evoke powerful cultural narratives. As Romm points out, the Gettysburg address creates a metaphorical narrative of birth, death, rebirth, and immortality, which is obviously a highly salient narrative in our culture. Such narratives are useful in helping us categorize events and stories that we hear (another common narrative is the “hero narrative”). By conceptualizing the battle of Gettysburg in this way, Lincoln was perhaps trying to inspire his listeners to think of, in Romm’s words, “hope for transcendence even during the worst suffering.”
Political paradoxes
17/02/2009 at 6:28 pm | In Communication, Politics | 2 CommentsI’m taking a cognitive science course this semester where we have recently been reading about “contested categories”, which are essentially words for which there are several different but related definitions and the dominant meaning that a person applies to a given situation depends on their broader set of values. This is not, on the surface, an extremely profound concept. However, I think it does allow for a bit more political understanding – i.e. to see how other peoples’ political opinions which may seem completely illogical actually do follow from their system of values.
I want to consider the word “freedom”, which was mentioned in passing in class as a contested category. Freedom can have several meanings: (a) everyone should be free to do whatever they want; (b) everyone is free to enjoy certain basic political rights. There are probably others that I’m not thinking of offhand. Certain situations involving the word “freedom” can be understood by everybody; for example, I think it would be hard to find someone who disagrees that people in concentration camps were not free. BUT, note that within the different meanings of freedom, there are some open questions, such as: what happens when different people’s freedoms come into conflict (e.g. my freedom to enjoy clean air and your freedom to pollute)?
Liberals would approach this question by arguing that people have the freedom to enjoy their rights as long as they are not causing harm to others or to society in general. I am guessing that conservatives would argue that people have freedom to act as they wish as long as it does not violate established social structures. This probably leads to conservatives misunderstanding liberals as follows: liberals support environmental regulations (which impose limits on people’s freedom) but they say they believe freedom of speech, freedom of religion, and all sorts of other political freedoms. Therefore they don’t make sense. But from the liberal point of view it does make sense that my right to health trumps a company’s right to harm me by polluting the air. Similarly, liberals do not understand some conservatives who defend their freedom to drive off-road vehicles all over sensitive public lands and/or to shoot endangered species while also opposing the freedom of gays to get married. But I suppose that, from a conservative standpoint, this does make sense because environmental values are not deeply embedded in our social structure, whereas gay marriage would be seen to violate the established social construct of marriage.
Anyway, there are lots more words like this – equality, patriotism, etc. I find it interesting to try to dissect the dominant values and priorities of both sides of the political debate – not that I’m planning to change mine anytime soon, but I do think a little more understanding and a little less vitriol in our political discourse would be nice. ![]()
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