Category Archives: Ecological Economics

"Beyond Fuel" at the Space Coast Green Living Festival

Green Living Festival

Tweet I am presenting “Beyond Fuel: From Consuming Natural Resources to Harnessing Natural Processes,” a discussion of the hidden costs, or “economic externalities,” of nuclear power, coal, and oil, and the non-obvious benefits of wind, solar, marine hydro and efficiency at the Sp ace Coast Green Living Festival, Cocoa Beach, Florida, Sept 17, 2011.

The festival is sponsored by the Cocoa Beach Surfrider Foundation and the Sierra Club Turtle Coast Group. It will be at the Cocoa Beach Courtyard by Marriott.

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The Crash of 2011

Tweet I thought the market would crash in the wake of the Earthquake / Tsunami / Nuclear Meltdowns at Fukushima. It didn’t. However, something much less serious may be bringing the market – and the economy – to it’s knees. Politics. The Voice of America reported here that Standard & Poors downgraded US debt from AAA to AA+. Click here for the S&P’s Special Report and here for the full report.

S&P’s analysts wrote:

The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.

John Boehner It is clear that the emphasis on cutting government spending, eliminating government jobs, eliminating benefits to unemployed citizens, rather than raising revenues and developing infrastructure is not in the long term or short term interests of the United States. As the 512 point drop in the Dow Jones Average, and the downgrade of US debt indicate, Republicans and the Tea Party should be careful for what they wish for – they just might get it.

In the discussions over the debt ceiling, John Boehner said something to the effect that if a family or a business is borrowing too much it simply must tighten it’s belt. Continue reading →

Roughing It

Tweet A s they struggle to pay their bills, forced to work, the wealthy cope as only they can. By sending their children to summer camp in private jets. In “To Reach Simple Life of Summer Camp, Lining Up for Private Jets” Christine Haughney, in the New York Times, July 24, 2011, wrote:

“A turboprop Pilatus PC-12 carrying Melissa T., her daughter, her daughter’s friend and a pile of lacrosse equipment took off for their home in Connecticut, following the girls’ three-week stay at Camp All-Star in nearby Kents Hill, Me. Shortly after, a Cessna Citation Excel arrived, and a mother, a father and their 13-year-old daughter emerged carrying a pink sleeping bag and two large duffel bags, all headed to Camp Vega in Fayette. … as the economy limps along, more of the nation’s wealthier families are cutting out the car ride and chartering planes to fly to summer camps. One private jet broker, Todd Rome of Blue Star Jets, BlueStarJets.com, said his summer-camp business had jumped 30 percent over the last year.”

A quick check on the Camp All Star web site’s “Dates & Rates” page suggests that 3 weeks will cost about $4500. Trips, horseback riding and hockey are extra. Getting there on a private jet, would add $6,318 to $15,240 per party, $2,106 to $5,080 per camper for a camper, his or her mom, and a friend. As I tell people, it’s the trip, not only the destination.

Tell me again, Mr. Boehner, why the wealthy can’t afford to pay taxes?

I did some checking. Went to Blue Star‘s website, priced a charter for three (3) from Allaire Airport in Monmouth County, New Jersey to Augsta State in Maine. I was surprised at how affordable it is. Blue Star offered 5 alternatives, all turboprops:

A Ratheon Super King BE 350, a 9-passenger aircraft, $6,318, which is $2,106 per passenger,
The BE-C90, a 6 passenger turboprop, $11,270, or $3,757 per passenger,
The BE-100, an 8 passenger turboprop: $12,151 for the trip, $4,050 per passenger.
The BE 200, in a 9-passenger configuration, for $13,043, $4,348 per passenger, and
The BE-200 in an 8-passenger configuration: $15,240, $5,080 per passenger.

These data are summarized in the table below.

Plane	Trip	Per Passenger, 3 passengers	Per Passenger If Full
Ratheon Super King BE 3509 Passenger Turboprop	$6,318	$2,106 per person.	$702 per person for 9.
BE-C90, 6 passenger Turboprop	$11,270	$3,757 per person.	$1,878 per person for 6.
BE-100, 8 passenger Turboprop	$12,151	$4,050 per person.	$1,519 per person for 8.
BE-200 9 Passenger Turboprop	$13,043	$4,348 per person.	$1,630 per person for 9.
BE-200 8 Passenger Turboprop	$15,240	$5,080 per person.	$1,905 per person for 8.

I don’t know if the airline serves food, drinks, or offers in-flight movies. But caviar is only $115 per oz (Russian Sevruga, Caviar Express, Glendale, CA).

Clean Energy, Good Jobs, and a Vibrant Economy … But

courtesy NASA (our tax dollars at work)

Tweet It sounds too good to be true:

*   100 gigawatts of offshore wind, $300 Billion,
*   100 gw of landbased wind, $200 Billion,
*   75 gw of solar, $300 Billion,
*   75 gw of geothermal, $200 Billion.
*   200 gigawatt equivalents of efficiency – $200 Billion.
*   100 & Clean, Renewable, Sustaianble Energy: 1.2 Trillion.
*   2.7 Million New Jobs and a Healthy Economy: Priceless!

This is happening, slowly, inexorably, by the “invisible hand of the market.” But it will happen faster if the “invisible mind of the community” acts. This means the government!

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Do you Really Want a Balanced Budget Amendment?

The rainbow in the grey skies is magical and alluring. But take a look at history before suggesting that the USA should operate under the limitations of a balanced budget. A good place to start is by searching on milestone wars that made or saved this country. Try a search such as “US Revolutionary War debt,” “US Civil War debt,” or “US WW2 debt.”

Then try to decide if the US Constitution had such an amendment from day one would we:

Be a British colony?
Have slaves?
Speak German?

Would we have climbed out of the Great Depression without Roosevelt applying Keynes’ ideas on government projects?

The idea of sending America’s youth into battle without proper equipment and financial support is powerful motivator for me. I was in the Air Force during a budget battle and we literally could not fly our fighters because Congress did not approve enough money for fuel while they argued about the overdue budget! Thankfully that was peace time.

Let’s take a look at the financial meltdowns this country has encountered and the effects that a Balanced Budget amendment would have had. Take a look at just two, the Great Depression and the 2008 meltdown. The government did not do all the right things to prevent or solve these problems. The solutions (i.e. the recovery) required combination of forces including government spending, Wall Street and Main Street.

Search on “US Depression debt” and read current events to see the impact of such economic events on the deficit. Thank you Uncle Sam for pitching in to take away the pain and suffering that literally millions of Americans faced during these crashes. I am glad you had a credit card to use to save us!

The metaphorical Atlas – is he the government or the taxpayers? Ours is an experiment in government of the people, by the people, for the people.” Is there a difference?

I probably should stop here but …
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Ask Obama – Internet Town Hall

What would I #AskObama (on Twitter or in person)?

1: #AskObama Economists think in terms of resources. How do we change the conversation to think in terms of processes, systems, interactions?

2: #AskObama Neoclassical Economics: Resources & Wastes. Ecological Economics: Systems: Stocks, Flows, Processes. Burn Coal: Fuel ergo Waste. Solar: No fuel ergo no waste.

3: #AskObama Ecological Economics: “Like neoclassical but a better understanding of time and costs.” Marlboro MBA Managing for Sustainability.

At 2pm EDT, July 6, 2011, President Obama will participate in the first Twitter town hall at the White House to discuss the economy and jobs with Americans across the country. The entire event will be streamed live at WhiteHouse.gov. Right now, thousands of people are talking about the event and asking questions on Twitter, using the #AskObama hashtag. Take a moment to join the conversation and ask your own question.

GDP or GPI? – My metric is better than yours.

As any freshman economics student should know, the Gross Domestic Product, GDP, is a measure of spending, derived from the Gross National Product, GNP, defined by Simon Kuznets during the Depression (click here for econlib). GDP is, at best, an indirect measure of wealth. The Genuine Progress Indicator, GPI, defined by Think Progress in 1995, measures genuine progress.

Consider the case of Joeseph Q. Bloggs, MBA, J.D., Esq., an investment banker. Bloggs has a J.D. from Harvard or Yale, an undergrad degree from Princeton, Dartmouth, Cornell, or another ivy league school, and a high school diploma from the Citadel or an acclaimed private school. As with his colleagues on Wall Street, he is self-proclaimed “Master of the Universe.” He leaves work one night after negotiating a highly leveraged hostile takeover, buys a Lamborghini, and rents the time of an expensive “friend.” He buys her an expensive outfit, and takes her to dinner at an the Four Seasons, or a similar expensive restaurant. He has a few drinks before dinner, a bottle of wine with dinner, and a glass or two of port after dinner. On the way to the Hamptons, he crashes his Lamborghini into a Ferrari driven by another lawyer / banker / actor / “Master of the Universe.”

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Keynes, Reluctance to hire, & 21ST Century Energy

in black and white, because some ideas are.

Tweet During the Great Depression the Classical Economists said “Unemployment is voluntary. Business owners will not voluntarily keep the means of production idle.” While he had been a student of classical economics, John Maynard Keynes observed that the data didn’t fit the theory. And, he reasoned, if the observable data don’t fit the theory, the theory must be flawed. “Business owners are risk averse,” he saw. “A employee needs to be productive, needs to make widgets. But if no one is buying widgets, then contrary to classical theory, factory owners will fire workers and keep capital idle rather than hire workers to create excess inventory. That’s just common sense.”

We see this today.

When unemployment was low, for example in the United States during the tech boom of the 1990’s, people acted on the premise that “There is so much work that we could hire and good people and train them.” Today hiring managers seem to be acting on the premise that “There are so many people looking for work that they can wait for the perfect candidate.” Perfection being unattainable, jobs go unfilled. This is ok, in this context, because

“Budgets are tight.”
“The future is uncertain.”
“Money not spent on a new hire can be saved or used to pay down debt.”

Keynes also observed that the government is an employer that does not need to worry about going out of business. Building infrastructure is government employment that is investment for the future. These observations are as valid today as they were 80 years ago.

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Earth Day, 2011, Where Are We?

Earth from Space, courtesy of the American taxpayer. Reto Stöckli, Nazmi El Saleous, and Marit Jentoft-Nilsen, NASA GSFC

Tweet

Earth Day, 2010, I looked to the future on Popular Logistics. In 2009, I wrote about water pollution and agricultural waste in the Chesapeake. Today I am looking at the present and recent past. While a comprehensive look at where we are can be found on the web pages of the World Watch Institute, the New York Times, and the World Factbook of the Central Intelligence Agency, I want to make a few points.

Our energy policy is “when you flip a switch, the juice gotta flow.” It ain’t magic. It’s engineering and classical physics, with an understanding of radioactive fission and decay and a profound lack of long term thinking. It ain’t magic, but it might as well be. But we really need to base our energy policy on an understanding of ecological economics and sustainability.

We’ve had a few problems with nuclear power and fossil fuel in the last few years. Yet, there’s some light on the horizon.

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21 Century Energy or Business As Usual?

NY Times Special (Business As Usual) Energy Section

Clifford Krauss’ “Can We Do Without the Mideast?” sets the tone for the “Special Energy Section” in the NY Times, March 31, 2011. “The path to independence – or at least an end to dependence on the Mideast – could well be dirty, expensive and politically explosive.” Is this an April Fool’s Day joke? The path to sustainable energy requires vision and hard work. a solar array on every roof and insulation in every wall and every attic. It will be better for the economy, better for the environment, and better for ourselves, our children, and our grandchildren. Continue reading →

Is Fukushima Dai-ichi Worse than Chernobyl?

Nicole Polozzi, as "Snooki"

Are there differences between Fukushima Dai-ichi and Chernobyl?

And is Fukushima worse than Chernobyl?

A teenager might say “Du-uh!”

My friends from Brooklyn might ask “Is the Pope Catholic?”

Even “Snooki” and “The Situation” might ask “Are you stoopid or what?”

But the people at CNN, ProPublica and the NY Times are asking nuclear power industry experts. That’s like asking Charlie Sheen if cocaine is bad, or asking Lindsay Lohan if she really stole that necklace. They should be asking people like Amory Lovins at the Rocky Mountain Institute, Roger Saillant at Case Western’s Fowler Center for Sustainable Value, Jeremy Grantham at GMO, Cary Krosinsky at Columbia University CERC, anyone connected with academic programs in Sustainability, such as at Marlboro College, the Presidio, Bainbridge, ecological economics, systems dynamics, etc.

So for the record – here are six real differences (as opposed to the nonsense at Pro Publica here and here) and two major points of congruence.

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Egypt, Wisconsin – It's the Economy, Stupid

The James home, Knoxville Biz.

Wisconsin Governor Scott Walker is trying to stimulate the economy by eliminating corporate income taxes and regulations on businesses and cutting taxes on wealthy people (click here or here). These kinds of activities do stimulate GDP. Here’s how.

Wealthy people, like Lindsay Lohan, Brittney Spears, Mel Gibson, and Charlie Sheen have people, including paparazzi and media people following them around. That costs money. They do things in a spectacular way, and when they do stupid things in a spectacular way they have lawyers get them out of trouble. Economists call this “multipliers.” The lawyers, paparazzi and media folks need to eat, sleep, rent hotel rooms, etc. And they don’t camp out and chow down on toast, water, and dried fruits and nuts. Celebrities often require high powered consultants from the sex and pharmaceuticals industries. When they trigger rapid increases in the entropy of hotel rooms, by “trashing” them, carpenters, electricians, decorators, architects and others need be hired to restore the room – all this costs money, and stimulates GDP.

When regulations are lax or eliminated businesses regulate themselves. This stimulates GDP. Consider the recent GDP stimulus of Wall Street, when those now-legendary credit default swaps raised real estate values (until they crashed). Similarly, when industries are releived of the burden of environmental regulations, they create products which increase GDP and pollution which is not counted in GDP. When the pollution is cleaned up, at taxpayer expense, the GDP again increases. We see this dramatically in Tennessee, at the site of the Kingston Steam Plant. When a flood released 1.2 billion gallons of toxic coal ash sludge from the coal-fired power plant, December, 22, 2008, the cleanup costs were added to the bills of the people who buy power from the TVA.
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Solar Energy Saves Money, Could Provide Free Electricity and CASH to Municipalities & Schools in New Jersey

1.5 MW Solar Array, Rutgers University, Livingston Campus

New Jersey taxpayers could net $36.9 million per year, $369 million over 10 years, with the installation of 152.5 megawatts (MW) of photovoltaic (PV) solar electricity systems on public schools, community colleges, and each of the public universities in the state.

The systems would pay for themselves within the first 8 years. At 2010 values of electricity and Solar Renewable Energy Certificates (SRECs), these systems would generate electricity worth approximately $300 Million and SRECs worth $1.2 Billion over the first 10 years, approximately $369 Million in excess of the cost of the systems, and provide virtually free electricity over the remainder of their 35 to 40 year lifespan.

Widespread deployment of solar energy increases the resilience of the electric grid, strengthens national security and can enhance local emergency response capabilities.

These are the conclusions of a feasibility study by Lawrence J. Furman, principal of Furman Consulting Group, LLC during the course of his studies for an MBA in Managing for Sustainability at Marlboro College Graduate School.

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The Furman Paradox & The Cornick Postulate

The Furman Paradox: “You want to be ahead of the curve, but not too far ahead. When the word on the street is sell, and you understand something others don’t, it may be time to buy. And remember, it’s a systems phenomenon, look for the feedback.”

The Cornick Postulate: “There are things that seem too good to be true, and yet are true – love, a child, sunset. These cannot be bought and sold; these are non-transactional phenomena.”

For the Future

Arklow Bank Wind Farm, offshore of Ireland. Copyright, C, GE Energy. Used with permission.

Conferences –

In New Bedford, Mass, the Marion Institute presents Bioneers by the Bay. Van Jones delivered the keynote. I was there last year. It was great.
In Washington, DC, The Green Festival. A friend of mine from the Pentagon will be there.
In Long Branch, NJ, The Social Venture Network Fall Invitational. Ralph Meima, MBA, PhD, and Director of the Marlboro College, MBA in Managing for Sustainability will be there.
Back in DC, the USA Science & Engineering Festival Expo is on the National Mall.
AEE presents the WORLD ENERGY ENGINEERING CONGRESS (WEEC) in Washington, DC for 2010.

Academics – An MBA for Changing the Climate of Business (click here). Continue reading →