Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

2009-10-23

Another day, another survey

And today we have less positive numbers. This is a newer poll of 1500 Americans, conducted by Abt/SRBI Inc. for the Pew Research Center [LINK]. This poll is a repeat of earlier ones focused on global warming (the science and the policy). The interesting part is that the Pew Center is reporting on the trends over the past few years, showing that there has been a strong decrease in the belief that global warming is supported by solid evidence and a decrease in the belief that global warming is a very serious problem. The numbers seem to suggest that this signal is mostly carried by the 365 Republicans and the 543 Independents in the survey, but even the 473 Democrats show a decline.

The news is not all bad, and not all contradictory to the older survey I reported on yesterday [LINK]. Despite the decline, the survey shows that 57% of respondent think there is solid evidence the earth is warming, and 65% think it is somewhat or very serious. That's a strong majority. Things get a bit dicier when you consider that only 36% believe there is solid evidence the earth is warming because of human activity; this is a ridiculously low number, and Jim Hoggan thinks this has a lot to do with the well-funded anti-environment, pro-coal lobby [LINK]. The other positive result is that of the participants 50% favor limits on carbon emissions, even if it means higher energy prices. Even more people, 56% of the participants, say that the USA should join other countries in global initiatives to address global warming.

Okay.... but wait a minute. Let me just state that I'm skeptical of the robustness of these results. To be fair, there is a plus or minus 3% on all of these, according to the methodology [LINK]. But even with that in mind, I have to wonder how 50% of the responses favor limiting emissions to address global warming and 56% want global action while only 35% of people think global warming is a "very serious" problem and only 36% think there is "solid evidence" of human-caused global warming. Maybe people are just really pragmatic about environmental policy, so they favor erring on the side of action because of the large risk. I'd support this, as it seems the most rational response (in the absence of "solid" evidence (of which there actually is a mountain)), as discussed in this video. I'm pretty sure people are not nearly that pragmatic nor rational, so I have to wonder whether there is something else happening. I don't really have an alternate hypothesis. One would be a biased sample, but the methodology does seem pretty good (but I'm no expert). A second alternative is that Jim Hoggan is right, but this just seems a little to conspiratorial. Another possibility is that in the past year or so Americans have gotten a little bit edgy because the economy went nuts, and now they are a bit shaken up, not knowing what to think about things like global warming. If this were the case, we'd see a shift in the numbers toward the more moderate or the "don't know" position. However, looking at the responses from April 2008 and October of 2009, the percent of people who think the earth is warming (at all) went from 71% to 57%, and the number of people who think there is not warming went from 21% to 33%. That'd pretty much mean people have changed their minds. However, the question is stated as:
From what you've read and heard, is there solid evidence that the average temperature on earth has been getting warmer over the past few decades, or not?
So we are restricted to "solid" evidence, so we can not reject my moderation hypothesis.

In this case, I think that we have to take these results with the figurative grain of salt. What would be more informative is to see the results showing whether people have shifted to what they might perceive as the more moderate position. Is there "solid", "compelling", "preliminary", "unconvincing", or no evidence at all that the earth is warming? My guess is that what has really happened is that people, in a haze of fear of the economy collapsing, have shifted to the more conservative position, adopting a more "wait and see" attitude. However, some of their previous thinking remains, and they are taking the more pragmatic position on action because of this. In fact, as a bit of evidence that this is the case, we can look at the follow up question:
Do you believe that the earth is getting warmer mostly because of human activity, such as burning fossil fuels, or mostly because of natural patterns in the earth's environment?
The "human activity" answer changed from 47% to 36%, but the "natural patterns" stayed about steady, going from 18% to 16%. If Hoggan's conspiracy were the correct mechanism for the change in opinion, then more people would be jumping on the "natural patterns" bandwagon, since that is a very prevalent denial argument. Instead, I would suggest people are just feeling more skeptical about issues that they don't know much about (e.g., the economy, global warming, etc). Either way, it will be interesting to watch how public opinion changes in the coming months. And the fact that still half of Americans are in favor of action supports my repeated call for the current government to actually do something.






2009-10-05

US Chamber of Commerce

It isn't a government agency, it's just a coalition of large businesses in the US. Really, it's a lobbying organization for these businesses. The US Chamber of Commerce position on climate change has been very regressive, and quite a few companies have started to take notice of it.

But now it is getting serious. Apple has quite the Chamber (as have other companies recently). [LINK] Note that Apple isn't the first company to do so, their move follows some others, which amazingly also include some big utilities [LINK1, LINK2].

2009-09-11

The warming arctic

Over the past week or so, I've noticed a number of articles and posts about the Arctic. There seems to be some kind of ongoing flap about some climate change deniers denying that the extreme north is warming. I have (mostly) avoided reading those original posts because they can't be a good use of time (one example will essentially prove my point). Following each denier rant seems to be a barrage of posts refuting their claims. The good things about these posts are that they more carefully present evidence to support themselves and the reader can actually learn something from them (here's a good example from Tamino). Unfortunately, I don't think these posts help to convince the public of the state of the science, since the public doesn't read them (sorry, but they don't). If a person is willing to dig into the climate change issues enough to read these posts, I think they have already decided what they believe before they get involved (even passively) in these "debates." (They are, of course, not debates at all.)

Another article from the NYTimes.com helps explain why the warming Arctic is an important issue, not just for climate research, but for geopolitical and economic reasons. A commercial ship is about to finish traversing the Northeast Passage from South Korea to the Netherlands. This cuts thousands of miles off the usual trip. If more ships start going this way during the summer, Russia stands to profit because the ships will sail through Russian waters. The path has historically been blocked by ice even in the summer, but as the Arctic has warmed, summer ice has become reduced in area and thickness, and over the past few years the Northeast Passage has been open for a few weeks each year. Similarly the Northwest Passage through Canada's many islands has been open, but so far commercial ships haven't used it yet (they will soon, I would wager). These are impacts of climate change, and unlike most other impacts, these ones could be interpreted as positive for some of the involved parties. Of course, along with these routes opening, the open waters spell doom for the polar bears who have become unwitting symbols of the ecological impacts of a warming world.

On the research side of things, the warming Arctic has long been considered the proverbial canary in the coal mine. Because of strong positive feedbacks associated with snow and ice retreat and atmospheric water vapor, there has emerged a general understanding of the polar regions (especially in the north) as being particularly sensitive. The poles are expected to warm most rapidly, an effect usually called "polar amplification." There is some scientific uncertainty about whether the amplification is observed yet (e.g., this RealClimate post from C. Bitz), but there is strong consensus among researchers that it will emerge from the noise. This view is supported by climate modeling experiments, in which all the reliable models predict an amplified response in the Arctic. From my reading, which is incomplete, this extends to the Antarctic, but only on slightly longer timescales because of the heat transfer into the Souther Ocean.

2009-09-08

Hatoyama says emission cuts are coming, maybe

So Japan's PM says that the country is going to reduce carbon emissions by 2020 to 75% of 1990 emissions [LINK], but is requiring other countries to come along for the ride.

First off, great! It is terrific to see a world leader take a stand and give a real goal... dare I say a target.

Second, this could be a genius move on Hatoyama's part. Japan is pretty amazing when it comes to designing and building stuff, and there is a strong track record of taking ideas/concepts originated elsewhere and making them more useable, streamlined, and efficient (cars, VCRs, etc). So my first take on this is that Japanese companies like Toyota and Mitsubishi ( cf.) are going to have an obvious target for building efficient things (things of all kinds!). These companies already have a head start down this path, and having a huge economy destined to reduce emissions means there is economic incentive to improve R&D.

If these companies, which are already leading the world, now accelerate their R&D, they will be selling their wares to the rest of the world shortly. This will be especially true if Hatoyama gets his way and other countries do vow to reduce emissions. If Japanese companies can do for power generation what they have done for other industries, then the whole world will be buying Honda wind turbines and Sony solar panels in now time. (possible example) What a boost to the Japanese economy! Wish the USA could have thought of that.

2009-08-26

Is peak oil a myth?

An op-ed piece by Michael Lynch in the New York Times suggests that "peak oil theory" is just a myth [LINK]. Really what he's saying is that it is a crazy left-wing conspiracy theory. I wanted to just post some reaction to his op-ed, calling some of his arguments into question. I'm not going to claim he's wrong, just that his arguments are far from persuasive. First, let's also have some disclosure, Michael Lynch is President and Director of Global Petroleum Service, part of Strategic Energy & Economic Research Inc [LINK]. This is a consulting firm, and I have a sneaking suspicion that a lot of their clients are oil companies. He's also been associated with other energy policy organizations as well as MIT. I'm not saying he is not credible, I'm sure he's an expert, I'm just saying Lynch is probably as biased as the people he is criticizing.

Lynch dismisses the statement that the "easy oil is gone." This is a common point made by people concerned with peak oil, as Lynch points out. The idea is that 100 years ago, there were oil fields that literally had oil coming out of the surface. Remember the Beverly Hillbillies? Now there aren't such high-pressure fields. Instead of accepting that as true, Lynch says the argument is "vague and irrelevant." He then says that Persian oil drillers 100 years ago wouldn't think that oil was "easy." This is a false analogy. Nobody is saying that the labor of extracting oil was ever easy. The point is about how much energy has to be spent to extract a given amount of oil, which then produces a given amount of energy. It's not easy to quantify, but as I understand the state of oil today, more energy is used to extract oil per unit energy now than it was, say, in the 1950s.

A point made just after the one above revisits the oil crises in 1973 and 1979. Lynch points to predictions from "experts" saying prices would just keep going up. Then they didn't go up. This is supposed to be part of Lynch's op-ed about arguments of political instability playing a part in oil production; he's saying that political instability is nothing new. In my reading of his article, I find that this whole section is really a straw-man argument. He brings it up because, "When their shaky claims on geology are exposed, the peak-oil advocates tend to argue that today’s geopolitical instability needs to be taken into consideration." So he sets up an argument that is not about peak oil just to shoot it down. The question of peak oil is essentially one of geology and technology; geopolitics certainly plays a role in oil production (well, maybe not according to Lynch), but it isn't part of the peak oil theory except that if production ceases in a region, then the peak would be pushed back in time.

Finally, Lynch ends with this:
In the end, perhaps the most misleading claim of the peak-oil advocates is that the earth was endowed with only 2 trillion barrels of “recoverable” oil. Actually, the consensus among geologists is that there are some 10 trillion barrels out there. A century ago, only 10 percent of it was considered recoverable, but improvements in technology should allow us to recover some 35 percent — another 2.5 trillion barrels — in an economically viable way. And this doesn’t even include such potential sources as tar sands, which in time we may be able to efficiently tap.

Well, there's a bit of an appeal to authority here, but I'm not going to claim that there's a real logical fallacy. This might just be a case of presenting (without evidence) a number that differs from the estimates I've seen before. Because there are no sources or evidence presented, it is impossible for the reader to know if this point is true or not. My guess is that there are some large error-bars on that 10 trillion barrel number, and this value is probably at the high end of them. I would hazard to guess that the 2 trillion barrel number is too low (and I have heard that number before), but that 10 trillion barrels is a pretty high estimate. The recoverable part of whatever the true number is the real question. The truth is, though, that at some point the extraction of oil becomes cost ineffective compared to other energy sources. It might be when the oil has to be mined from 5000 feet below the ocean surface or when they have to drill miles into continental bedrock or when tar sands have to be utilized, but there must be a point where the amount of energy going into the extraction of oil is nearly the same as the amount of oil extracted. At that point, there's no need to extract any oil since becomes a zero sum gain. I've always heard the argument that alternative energy sources will become much more cost effective in the run up to the zero sum gain on oil, so we'll probably never reach that extreme.

The bottom line seems to be that there are still disagreements about whether peak oil theory will pan out or not. The oil consultants say no, and a bunch of academics say yes. Hmm, interesting. Like other, strangely similar, "debates," the answer will likely be learned in the next couple of decades. And also like those other issues, by the time we find out the answer, it might already be too late to change course without drastically impacting all of our lives.

2009-08-17

Hectic summers and big monies

The dearth of posts the last week or so has been because of a ramp-up of activity around here, including giving talks, traveling and buying a house. Speaking of which, don't forget to click those adverts!

Anyway, I'm still trying to get caught up on things, and haven't stumbled on anything all that blog-worthy. However, I just remembered that I had found some interesting numbers that I'm happy to share. The question is, how much research money is really available for climate research? And how does that compare to money for other things, other science topics and completely different endeavors?

Well, I can't answer completely, but we can start putting some things in perspective. First off, let's just restrict our attention to the United States, which isn't fair, but let's do it anyway. What is the total annual budget for the USA? According to the USA Office of Budget and Management, the typical fiscal year has about 2.8 TRILLION DOLLARS of spending. Unfortunately for the USA, it only has around 2.5 Trillion of income (the difference each year is the national deficit) [LINK]. Amazingly, the deficit is 1-2% of the gross national product. Just under half of the total budget is allocated in "discretionary spending," which I think means that Congress gets to dole it out more or less as it sees fit (and the president approves it). More than half of the discretionary spending goes to "security;" which means that about 25% of the total budget, somewhere in the neighborhood of $600 BILLION goes to security. That's a spicy meatball! About $400 billion goes to everything else; yes, I know these numbers are rough, that's why I am supplying the link for you to go take a look yourself. Let me know if I'm totally misinterpreting something.

Of the remaining $400 billion, we can start to see how it gets distributed by looking at which departments get a piece of the pie. It looks like Health and Human Services and Education are the biggest beneficiaries of this money, getting about $70 and $55 billion respectively. The National Institutes of Health is mainly funded through the Dept of Health and Human Services, and is able to dole out about $30 billion annually [LINK]. Moving into physical sciences, much more of the research comes through the Dept of Energy, NASA, the Dept of Commerce, and the National Science Foundation, with lesser contributions from other departments (e.g., $1billion to all of USGS through Dept of Interior).

The total budgets for those organizations are roughly $24billion for DoE, $6billion for DoC, $16billion for NASA, and $6billion for NSF. The first three all have significant non-research allocations, while the NSF is the dominant source of funding for all basic science research in the USA.

Let's say that somehow if we were combing through the budget, we could take that NSF money and double it from other agencies. That gives around $12 BILLION for basic physical sciences (excluding biology/medicine money from NIH). That is about 2% of the USA's annual defense budget, and LESS THAN 1/10th of 1% of the USA GDP. Isn't that shocking?!

So I can't tell you how much of that is available for climate-related research, but bear in mind that that money covers most of physics, chemistry, mathematics, geology, astronomy, and a lot of engineering research in the USA, along with quite a lot of biological sciences, climate, and multidisciplinary science. The bottom line is that science in general is a drop in the proverbial bucket, and funding for climate research is a tiny fraction of that drop.

We're throwing around some crazy numbers here. How about comparing against some non-governmental values? The annual payroll for the National Football League teams this year is hovering around $3billion [LINK]. Football players are getting paid half as much as the entire NSF. There are 53 players per team on the 32 NFL teams, giving 1696 players getting paid $3,000,000,000. There are somewhere around 250,000 scientists and engineers employed just at research universities in the USA; this includes non-physical scientists, but doesn't include government labs [LINK].

Just as another number to compare with, USA and Canada citizens spend about $8-9 billion per year in cinema tickets [LINK]. Full a third more than the entire NSF budget.

2009-08-01

The Indian problem

I was just reading a Grist article about India wanting a global agreement on combatting climate change, while at the same time opposing binding emissions limits [LINK]. This has been, and I think will remain, a key issue for international agreements and negotiations concerning climate change. India and China have a couple of billion people, many of whom live in abject poverty. Both countries are making long strides in their development, becoming global powerhouses in terms of manufacturing and providing low-cost services to the "developed world." In this dash to bring the standard of living in China and India into alignment with the developed countries, the fossil-fuel use in these nations has increased tremendously. Of course, at the same time most Indians still burn biomass for cooking and heating [LINK, see also video].

So on the face of it, this seems to be a dilemma. India and China want to lift their populations out of poverty, expand their economies, and become global leaders. Doing this requires dramatic increases in infrastructure, and includes expanding electricity and water resources. The apparent consequence is increased carbon emissions. So, from the perspective of these developing nations, to improve the standard of living for their populations requires intensive use of fossil fuels and increased emissions, and from their perspective it's not fair that just when they are making progress the "West" tells them that they can't use the cheap (and dirty) energy that will accelerate their endeavors. From the outsider's point of view, though, ramping up the carbon emissions is bad for the whole world.

The only solution that I see to this dilemma is actually exactly what India says it doesn't want: binding emissions restrictions. Such restrictions could be quite complicated in their details, but the point is to prevent the infrastructure in developing nations from building in a dependence on fossil fuels. The world's developed nations are now addicted to fossil fuel, and it is obvious that this has become an impediment to combatting climate change. Introducing the same addiction for another 30% of the world's population doesn't seem useful. Instead, by introducing binding emissions cuts for everyone (and that is key!), the developing nations will be able to practically leap-frog the fossil-fuel phase that the west has been stuck in for a century. It'll be cost efficient, too, since all the western nations are transitioning away from fossil fuels, driving the prices of renewable energy technology down. So while all the developing nations are spending gads of money to deconstruct their antiquated systems while building up entirely new infrastructure for a low-carbon future, India and China should be able to simply begin with renewable systems (for much of their countries at least). This strategy would actually accelerate China and India's progress in catching up with developed countries because they'd avoid what will undoubtedly be a painful transition away from fossil fuels, while pioneering the large-scale use of renewable energy technologies.

Of course, this has all been about energy and money. There are a host of issues related to the impacts of climate change that will disproportionately hurt developing nations, so avoiding those impacts should be a very high priority for those countries. Maybe we should review some of those issues in a future post.


2009-07-22

It's not just about polar bears

I just sat down to have a quick look at some of the (too many) RSS feeds I subscribe to, and I clicked on ClimateArk.org, which is essentially an environmental news aggregator. Five headlines appeared in my Google Reader screen. They highlight one of the directions that seems more and more relevant to climate science and policy: regional impacts of climate change. As the entire planet warms slightly, there will be substantial, life-altering changes to some regions, while others will be largely unaffected. Well, at least not as directly affected as some. Understanding these regional variations and predicting where they will occur and estimating the impact of changes in the physical system to ecosystems and populations is an emerging science. Even with relatively well-understood effects, like decreasing snow cover and melting permafrost in the far north, have unknown consequences (like understanding how much methane will be released when the permafrost melts).

The articles that came up on ClimateArk.org show some additional examples. First, form the Senate Foreign Relations Committee held hearings about how climate change will impact national security. Essentially, this is an example of how regional climate change will amplify unstable political situations around the world by stressing food and water supplies, changing coastlines, and shifting weather patterns. Second, a study coming out of the University of Colorado and CIRES assesses the water supply in the Colorado River Basin, and the authors suggest that persistent drought associated with climate change could lead to severe water shortages in the basin, which supplies water to some 30,000,000 people. This article reminded me of Brian Fagan’s interesting book “The Great Warming,” which looked at the so-called Medieval Warm Period and the rise and fall of societies around the world. One of the take-home messages of that book was that a little warming isn’t too bad for a lot of societies, but persistent drought destroys them. The third news item that was sitting on the top of the ClimateArk.org feed was covered by two articles, and is about crops in California’s central valley. A UC Davis study finds there has been a decrease in the “chilling hours” that cropland experiences, and several important crops rely on this cold winter weather. I would venture to guess that this regional effect is partly due to land use change and partly due to global warming, but that is just a guess. The important thing is that this becomes a serious concern to the food supply for the whole country, and many other countries, not to mention that California’s economy had long depended on agriculture. If crops start to falter in California, it really could have a destabilizing effect on the national economy and will impact jobs (agriculture, packing, shipping) and food supply and prices.

It’s also worth noting that two of the above articles contain sentences that say something like, “climate change isn’t just about polar bears, it’s about security.” In the first it is national security and in the last food security.

2009-07-01

Waxman-Markey, or some derivative thereof

The NYTimes has an article about the wheeling and dealing going on to get the Waxman-Markey climate/energy legislation through the House [LINK]. It sounds so dirty and counterproductive, but I guess that is how things work in Congress, and without substantial changes to the system, it is the way it has to be. In the end, the Senate is likely to pass the bill, and Obama will sign it into law, and then the USA will finally enter the 21st Century on energy/climate legislation. The questions will remain though: Is it enough? Will it be regulated strongly enough? Do the new rules constrain more powerful action in the future? I don't know the answers to these questions, but with the atmosphere holding 386+ ppm of CO2 [LINK], something has to be done now, so I have to at least support the spirit of the bill. With the recent Copenhagen Synthesis Report urging action, the USA needs to position itself as a leader (if a tardy one) in the mitigation of climate change.

2009-05-27

The future of energy: oil sands

According to an article from Agence France-Presse, ExxonMobil's Canadian subsidiary is going ahead with a $7BILLION project in Alberta to mine oil out of the oil sands. It's supposed to eventually produce 300,000 barrels per day. That's a spicy meatball.

The company is also touting (read: "greenwashing") it's carbon emissions and efficiency standards, claiming to have reduced emissions by 7% last year. To their credit, they aren't talking about reducing their use of fossil fuels, just being more efficient with them.

What does it all mean? ExxonMobil's products account for a gigantic chunk of fossil fuel carbon emissions, and the fact that they are pouring billions of dollars into expansion means they don't expect to be selling less fossil fuel any time soon. That they are getting more efficient in their treatment of fossil fuel just indicates that they are trying to squeeze every last penny from the cheap fuel (and also get to claim they are being "green"). At the end of the day, these stories are the ones that make me pessimistic that anything will abate humanity's appetite for cheap, dirty energy. Sure there is hope in increasingly aggressive restrictions and regulation of carbon emissions, but with the power/money behind the ExxonMobils of the world, it's hard to imagine that they don't have plenty of wiggle room, nor that they will fail to get more wiggle room built into future regulations.

Or maybe I'm just having a bad day. Read more about ExxonMobil's intersection with climate and environmental issues in a WaPo piece from a couple years ago by Steven Mufson.

2009-04-21

China gently asked to please think about playing nice someday

The International Energy Agency (IEA) has approached China, "warning" the country that it needs to reduce carbon emissions. [LINK] Will China take this warning to heart, and start cleaning up its act? Well, considering that 80% of China's electricity is from burning coal, and the well-used statistics that China is opening a new coal-fired power plant every week, I think not. 

Maybe I'm just feeling pessimistic today, but I just don't see China and India shaping  up in time to stop atmospheric CO2 levels reaching 450, and probably 550, ppm. The two countries have more than 2 billion people, and are both "developing" nations, which now seems to mean nations that are trying to replicate what the USA and other "Western" nations did 50 years ago. The desire to "catch up" with the developed world is so great that these giants can not rationally address climate issues. 

What is the solution? Well, ignoring geoengineering for now, the only way to get China and India to shift away from fossil fuels is to demonstrate a better system, that is more efficient and at least as cheap as the fossil fuel based one that has taken hold. One big obstacle on that front is that China has enormous coal reserves, so burning coal is amazingly cheap in China, and it's hard to imagine an energy system that will be cheaper for China than coal. That even holds for a system that will be cheap in, say, the USA, since such a system would either be sold to China or reverse-engineered, which would incur additional costs.

The IEA warns of some kind of regulation, which I guess could be effective if such regulations were very widely adopted. That would add up to the same kind of carbon tariffs that India wants to avoid. The problem is that China is such a gigantic manufacturer that it would be difficult for many countries (e.g., the USA) to penalize China without hurting themselves. Clearly this is a sticky issue, and there's not a good solution. The problem is that a solution is desperately needed to avoid dangerous levels of anthropogenic climate change.

UPDATE:
I just came across an article in New Scientist that suggests China and the USA might be coming together on plans for reduced carbon emissions. In actuality, these are two unrelated stories. The one about China is kind of interesting. China's climate negotiator, Su Wei, says that in their next 5-year plan, China will likely reduce the "carbon intensity" of their energy production. Here's what he says, "China hasn't reached the stage where we can reduce overall emissions, but we can reduce energy intensity and carbon intensity." What does that mean? Not much. As I have to keep saying, it doesn't matter what the carbon emissions per capita are, only the total amount of carbon. Just because China will become more efficient in their use of energy doesn't mitigate global warming. In fact, by continuing to increase carbon emission, China continues to exacerbate the problem.