Archive for the ‘Environment’ Category

energy efficiency and greenhouse gases

Tuesday, March 8th, 2011

Columnist John Tierney reports that increased energy efficiency cannot be relied on to reduce greenhouse gas emissions, and are likely to increase emissions. The problem is known as the ‘rebound effect’ or ‘Jevons paradox‘, named after English economist William Stanley Jevons (1835-1882). Improvements in fuel efficiency, Jevons warned, do not reduce total consumption of fuel.

[A] growing number of economists say that the environmental benefits of energy efficiency have been oversold. Paradoxically, there could even be more emissions as a result of some improvements in energy efficiency, these economists say.

The problem is known as the energy rebound effect. While there’s no doubt that fuel-efficient cars burn less gasoline per mile, the lower cost at the pump tends to encourage extra driving. There’s also an indirect rebound effect as drivers use the money they save on gasoline to buy other things that produce greenhouse emissions, like new electronic gadgets or vacation trips on fuel-burning planes. ….

Consider what’s happened with lighting over the past three centuries. As people have switched from candles to oil-powered lamps to incandescent bulbs and beyond, the amount of energy needed to produce a unit of light has plummeted. Yet people have found so many new places to light that today we spend the same proportion of our income on light as our much poorer ancestors did in 1700, according to an analysis published last year in The Journal of Physics by researchers led by Jeff Tsao of Sandia National Laboratories.  ….

But if the benefits of energy efficiency have been oversold, then that’s more reason to consider alternatives like a carbon tax ….

John Tierney, “When Energy Efficiency Sullies the Environment“, New York Times, 8 March 2011.

the dangers of convergence

Wednesday, January 12th, 2011

Wise words of caution from Martin Wolf.

Now that we have the capacity to destroy civilisation, relations among powerful states have become perilous. After the use of the atomic bomb, Albert Einstein argued that “the only salvation for civilisation and the human race lies in the creation of world government”. Einstein was condemned as naive but his comment might still be true.

The “great convergence” [of living standards] is an epoch-making transformation. It is the spread of the energy-abundant economy to much of humanity. But if we do not manage the consequent pressure on resources, it may end in misery; and if we do not manage the shifts in power, it may end in war.

Martin Wolf, “East and west converge on a problem“, Financial Times, 12 January 2011.

Bill Gates at lunch with the FT

Saturday, October 30th, 2010

Bill Gates is a wealthy man with famously modest tastes. Lunch is chowder and a cheeseburger, with fries and Diet Coke.

Bill Gates would still be the richest man in the world, if he didn’t keep giving his money away. Now, after donating $28bn to the Bill & Melinda Gates Foundation – which funds health, development and educational causes – he is down to his last $54bn. ….

The passion for science and technology that drove Microsoft forward is now being channelled into the search for medical advances. ….

But Gates is also worried about the environment, so I ask him if the rapid industrialisation of China is a recipe for environmental disaster. Again, his impulse is to look to technology for a solution: “Short of going to war over this issue, the best way would be to find innovative forms of energy generation”. He is excited by solar and nuclear energy, and mocks those who complain about rising Chinese energy use – “I mean, these Chinese are actually using as much energy per capita as the average in the world today, how dare they! How did that happen? The US uses four times the average and the Brits double. But now these Chinese are trying to use the average.” ….

I drink up my coffee and ask for the bill. As I produce my credit card, Gates looks slightly amused. “You sure you want to pay for this?” he says. “I got money.”

I don’t doubt it. But the rules are that the FT pays for lunch.

Gideon Rachman, “Lunch with the FT: Bill Gates”, Financial Times, 30 October 2010.

This is a relaxed and interesting interview. From it I learned that Gates’ 84-year old father, Bill senior, “is also an energetic philanthropist, and is currently campaigning for higher taxes on the rich in Washington State”.

Lomborg on climate change

Friday, September 10th, 2010

Climate change skeptic Bjørn Lomborg writes that reports of a major shift in his thinking are premature.

There is no longer any mainstream disagreement about the reality of global warming. The crucial questions concern the economics of our response. But this debate can be just as heated. Ever since I published The Skeptical Environmentalist in 2001, I have always acknowledged that man-made global warming is real. Yet activists have repeatedly labeled me a “climate-change denier.” This is not because I have ever suggested that the basic science of global warming is wrong. Rather, it reflects anger and frustration over my insistence on pointing out that drastic carbon cuts make no sense. ….

The Copenhagen Consensus Center – a think tank where I serve as director – recently asked a large group of top climate economists to explore the costs and benefits of different responses to global warming. At the same time, we convened a second, equally stellar group of economists, including three Nobel laureates, to examine all of the research and rank the proposals in order of desirability. ….

The publication of Smart Solutions to Climate Change [Cambridge University Press] has generated considerable interest, including some from activists who believe that my enthusiastic support of its proposals represents a major shift in my thinking. In fact, I have advocated R&D spending for years. What is new – and exciting – is that with the publication of this research, we may finally be starting a constructive discussion about how we really can respond intelligently to this challenge.

Bjørn Lomborg, “Smarter Thinking on Climate Change”, Project Syndicate, 10 September 2010.

Bjørn Lomborg (1965-) is author of The Skeptical Environmentalist (Cambridge University Press 2001). He is a political scientist (Ph.D. University of Copenhagen, 1994) who has lectured in statistics and is now Adjunct Professor at Copenhagen Business School.

oil spills and wind farms

Monday, July 19th, 2010

[T]he environmental threats that matter are the slow, continuous ones, not the telegenic sensations like oil spills. BP’s spill is known to have killed just over 1,300 birds so far. Just one wind farm, at Altamont Pass in California, was until recently known to kill perhaps 1,300 birds of prey every year. If BP really wants to kill birds, it should indeed go beyond petroleum and into wind, an industry that kills far more rare birds per joule of energy produced than oil does.

Matt Ridley, “Natural resilience”, The Rational Optimist, 19 July 2010.

Biologist Matt Ridley (1958-) is author of several works of popular science, most recently The Rational Optimist: How Prosperity Evolves (HarperCollins, 2010). He is a former science editor of The Economist.

natural resources and economic theory

Tuesday, July 13th, 2010

Martin Wolf questions whether it makes sense for theorists to merge natural resources with manufactured capital. This has been the norm ever since neo-classical economics triumphed over classical economics, about a century ago.

In moving from classical to neo-classical economics — the dominant academic school today — economists expunged land — or natural resources [incorporating them into capital]. ….

Yet it would seem to me that this way of thinking by economists is no longer sensible, if it ever was. Land must again be treated as separate from labour and capital.

First, resource scarcity is an increasingly pressing issue. It shows up in concerns over pollution (including global warming), in the discussion of “peak oil” and so forth. The idea that diminishing returns will become a more significant factor in the next century than in the past two seems to me to be compelling, now that modern economic growth has spread across the globe. So we need to return to economic models that incorporate resources, as a matter of course.

Second, in a globalised economy, taxing labour and capital will become increasingly difficult. That leaves land. The Australian government is right to want to extract the full rental value of its mineral resources for the benefit of the Australian people. Similarly, the people of the UK should wish to extract the rental value of London for their own use. The benefits of infrastructure investments that make London more productive would automatically be recouped if land rents were heavily taxed. Meanwhile, the taxation of capital and land [labour!] could be reduced.

Martin Wolf, “Why were resources expunged from neo-classical economics?”, Martin Wolf’s Exchange, 12 July 2010.

Despite the unfortunate typo (“land” instead of “labour”), Martin provides a splendid introduction to an important topic. (The extract above is only a small part of this introduction.)

Martin Wolf’s Exchange is open to all readers, but you must open a free account with FT.com to post a comment.

libertarians and oil spills

Tuesday, June 15th, 2010

Harvard economist Edward Glaeser reviews Libertarianism, from A to Z (Basic Books, 2010), a collection of essays written by his colleague, Jeffrey Miron. Here is an excerpt, but do read the entire post.

Libertarians are rarely anarchists. Almost all of them believe in some form of state power, at the very least the protection of private property and the enforcement of contracts. Many of them, including Milton Friedman, are quite comfortable with larger exercises of state power, including the redistribution of resources to those who have less. ….

But once the need for public action is accepted, things start getting very muddy and we can’t rely on either a love of liberty or fear of the state for guidance. Consider the purely hypothetical case of a massive oil spill in the Gulf of Mexico. The traditional libertarian would argue that regulation is unnecessary because the tort system will hold the driller liable for any damage. But what if the leak is so vast that the driller doesn’t have the resources to pay? The libertarian would respond that the driller should have been forced to post a bond or pay for sufficient insurance to cover any conceivable spill. Perhaps, but then the government needs to regulate the insurance contract and the resources of the insurer.

Even more problematically, the libertarian’s solution requires us to place great trust in part of the public sector: the court system. At times, judges have been bribed; any courtroom can be influenced by the best attorneys that money can buy.

Edward L. Glaeser, “The Economics of Libertarianism, Revealed”, Economix, 15 June 2010.

oil spills

Friday, June 11th, 2010

Posted without comment at Steve Landsburg’s blog.

bp

the best paragraph that I have read this morning

Wednesday, May 26th, 2010

Oxford economist Paul Collier has written a superb column on the ethics of environmentalism that contains this wonderful passage:

The valid moral insight in environmentalism is that natural assets are special: we did not create them, yet we are depleting them. But the romantic wing of the movement then wrongly infers that the exploitation of nature intrinsically infringes the rights of the future. Economists should be bringing the insight that natural assets matter not because of their intrinsic purity, but because they are valuable. Our obligation to the future is not to preserve purity but to pass on equivalent value for the natural assets we deplete. If, by converting natural assets into more productive assets, a poor society can escape poverty, then it should do so.

Paul Collier, “Towards a new ethics of nature”, Financial Times, 26 May 2010.

Access to the full column requires subscription.

Professor Collier is author of The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It (Oxford University Press, 2007) and was Director of the Development Research group at the World Bank from April 1998 to April 2003. Bill Easterly wrote a critical review of Collier’s book. For positive reviews, see Martin Wolf and Niall Ferguson . I expressed my own (very positive) opinion of the book long ago in a TdJ:

This is an amazing book that is a very good read–no footnotes, no bibliography, no charts, no tables–even though it was written by an academic economist. Everyone–economist or not–will learn something from it.

“Why poor countries should not emulate Cuba”, Thought du Jour, 31 August 2007.

advances in synthetic biology

Friday, May 21st, 2010

Craig Venter, the US genomics pioneer, announced on Thursday that scientists at his laboratories … had succeeded in their 15-year project to make the world’s first “synthetic cells” – bacteria called Mycoplasma mycoides.

“We have passed through a critical psychological barrier,” Dr Venter told the FT. “It has changed my own thinking, both scientifically and philosophically, about life and how it works.” ….

“Venter is creaking open the most profound door in humanity’s history, potentially peeking into its destiny,” said Julian Savulescu, ethics professor at Oxford University. ….

Experts warn of the risks as well as the benefits of synthetic biology. “We need new standards of safety evaluation for this kind of radical research and protections from military or terrorist misuse and abuse,” said Prof Savulescu.

Clive Cookson, “Scientists create a living organism”, Financial Times, 21 May 2010.

M mycoides is a simple microbe with no immediate application. Researchers are now moving on to more useful targets, such as the design of synthetic algae to capture carbon dioxide from the air and produce biofuels.

Dr Venter claims to have created “the first self-replicating species we’ve had on the planet whose parent is a computer”. Not everyone is convinced

Dr. Venter’s assertion that he has created a “synthetic cell” has alarmed people who think that means he has created a new life form or an artificial cell. “Of course that’s not right — its ancestor is a biological life form,” said Dr. [Gerald] Joyce [a biologist at the Scripps Research Institute in La Jolla, California].

Dr. Venter copied the DNA from one species of bacteria and inserted it into another. The second bacteria made all the proteins and organelles in the so-called “synthetic cell,” by following the specifications implicit in the structure of the inserted DNA.

“My worry is that some people are going to draw the conclusion that they have created a new life form,” said Jim Collins, a bioengineer at Boston University. “What they have created is an organism with a synthesized natural genome. But it doesn’t represent the creation of life from scratch or the creation of a new life form,” he said.

Nicholas Wade, “Researchers Say They Created a ‘Synthetic Cell’”, New York Times, 21 May 2010.

Science Magazine has published the findings of Dr Venter and his co-researchers. The full text of their article can be downloaded here.