Posts Tagged ‘environment’

Breaking the Bedplate of Economics

Wednesday, September 9th, 2009
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Shanghai skyline
Creative Commons License photo credit: johnkoetsier

As the Climate Conference of Copenhagen keeps approaching the conversation on who should do what and who pay for it all heats up as well. The argument coming from many of the developing countries (and up till recently the US and few other industrialized countries as well) is that tackling climate change is something they cannot afford. Furthermore, it has been stated by for example China that since a lot of this warming has been caused by the emissions made by developed countries historically they are also the ones who should fix it. The argument continues by saying that developing countries can take part, yet their primary concern lies in reaching same prosperity levels that people have accustomed  in the developed countries.

Nobody seems to really disagree about the overall importance of slowing down climate change. It just seems to be very much a question of financial resources, and as always, it seems to be the economy that has the upper hand over environment. Developing countries are not wrong either by stating the historical facts that point responsibility towards the industrialised countries. Something has already been to that, for example the EU set out a 15 bn € climate aid plan. It is very much under what the developing countries hoped for, but still a start (even though one could question some developing countries ability to make sure that money goes into good use).

Unfortunately, climate change is not a question on who is right and who is wrong. It is bound to take place no matter whose fault it turns out to be. Excuses won’t do any good either. The statement on “cannot afford” does not hold much water either, not on the long run. The view over economy prevailing over environment is even more ridiculous. One has to remember, that climate change as such has nothing to do with people’s right to get rich, even though indirectly it might seem so on short term. Curiously enough, if the climate changes ‘sufficiently’ and environmental destruction keeps on continuing, it might make the question on who is rich and who is not even quite irrelevant.

How so? For one thing, putting economics on one side and environment on the other is a very outdated way to view the world. Tackling climate change comes with a cost, but according to the Stern review and others doing nothing is going to be even more expensive. Therefore, the latter option is simply bad business and bad for the development. Furthermore, the longer one waits the more one pays. Better still, wait long enough and there might be even no price to be paid anymore, since there is nothing or very little that can be done in the first place.

Second, as Stern and comp.  show with their report, economics and environment are not separated from each others, they are very much interconnected. Moreover, uncontrary to the understanding of many, it is the economics that is the luxury good in the world of environment, not vice versa. Our, and everybody’s economy is very much built on the proper working of the environment: to be able to work, start a business, do research one has to have air to breath, food to eat and water to drink, just to remain more or less healthy. All these things depend on the environment, more so than from the economics. Economies, big and small, developed and developing,  are ultimately built on the bedrock of the environment, not the other way around.

Thus, it makes little sense to argue whose fault is all this. No matter how justified that might be, at the moment it seems more of a luxury we can concentrate on after having first dealt with the problem itself. Furthermore, even for the developing countries (or especially for them) it makes good economic sense to participate in full in order to stop climate change and environmental degradation . China, among others, should do so already for its own sake, some years ago 16 of of the 20 most polluted cities in the world were in China, and river pollution threats sixth of its population.

Eventually it is of little use to have a nice car or a house or whatever if you cannot breath, drink or eat. And it might not be much better if you have to spend all the fortunes you made on a tank of fresh air and bottle of fresh water. Then again, who knows, if you are rich enough you just might be able to buy a decent carrot to go with that water.

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Ranking Green Electronics

Friday, July 10th, 2009
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Greenpeace has been publishing this “Guide to Greener Electronics ” for 3 years or so, where they rank the leading manufacturers of consumer electronics according to their stance and actions on toxic chemicals, recycling and climate change. I see it is an excellent example on how to provide consumers information that will help them to make  more enlightened consumer decisions. The info Greenpeace provides is the kind you will not be able to find from the typical tech magazines or websites, very seldom enviromental friendliness gets named as one of the criterias in the evaluation of this and that gadget.

Greenpeace also presents its findings in a very simple and understandable way (see image above), no need to go through hundred-page reports and hold a degree in physics in order to see which ones are good and which ones bad. Sure, that might mean that we will miss some aspects and the reasons behind them, but the ranking gives us a some perspective to the issue. In addition, taking Greenpeace’s fame I find the data they provide reliable, at least in the sense that the organisation does not have a reputation on being soft on the companies or favoring one over the other.

I do not know how much influence the listing has. For what it is worth, the only reason why I have not bought Nintendo‘s Wii is the position of the company in this ranking. However, I seem to be in the minority, despite the crisis Nintendo is making record profits. It is a bit of a shame, I find consumer activism one of the most efficient ways to get companies to change their policies to the better direction. However, if their is no activism, that is, people do not really care, then it is of little use. The consumer that is not enlightened is, well, only a consumer.

I suppose a little more publicity would not hurt either. The ranking always gets noticed in Finland, thanks to Nokia‘s position in the top. However, I have not really come across the news in any of the major news agencies (BBC did cover it last year though),  even though green topics in general seem to be very popular at the moment. It is possible that I have just missed them, but I was wondering could the reason be Greenpeace’s controversial reputation? If so, I find it a little bit odd. At least in this context, I find no reason for Greenpeace not to be objective. Then again, maybe it is the other way, maybe it is the big media that has become too close to the leading companies in the bottom of the ranking.

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Break Now to Fix Later..?

Wednesday, May 20th, 2009
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car

Zapatero’s government and few other actors will subsidy a purchase of a car in Spain with 2000 euros (news here (Yahoo)). I already have a car,  but if i didn’t I would be very much tempted to buy one. I don’t know all the details of the deal, but it sounds to me that if you get a discount of 2000 euros it is something worth looking into, especially since I would buy one of the tiny ones, a.k.a cheaper ones (I understood the discount is the same no matter which kind of car you buy). From a consumers point of view it all sounds very nice, especially if you have you have the cash to pay the remaining part of the price.

On a more meaningful level, I wonder if this new policy is really the right way to go. I suppose the grand idea behind the plan is to save the jobs of the industry etc. In general there is nothing wrong with that, I just think the money could be spent better: instead of just giving it away it might be directed toward retraining of the people or in creating new opportunities or social safety nets when/if things get really bad. Overall the policy reminds me of the one made few years ago in order to increase birth rates; the government promised 2500€ for every new born baby. That is just fine, but as most parents commented, the problems lie ahead. There is lack of daycare places, the working hours are problematic not to mention the challenges that lie in combining work and family life. In the end of the day, the 2500 euros might not help you that much. The same goes for the 2000 euros:  it seems questionable whether the subsidy will be able to save the jobs after all.

Putting economics aside, the other issue is the environment. On my opinion it all comes down to the question on whether purchasing a new car can be seen as an environmentally friendly act? My own intuitive response is no, but I suppose if we forget the production “costs” (how much of all sorts of resources does it take to product a car) and assume that the buyer already has a car,well, the question becomes at least one worth asking. If an old car, which consumes a lot of gasoline and pollutes even more,  is changed into a new one that uses very little petrol and has all the high tech parts for polluting less, will the environment benefit? That again depends on what happens to the old one. Does it get recycled or will it replace an even older one that gets recycled? Or will there be just another car more on the road?

To me it seems likely that the ones who will take advantage of this offer are the ones who possess a certain level of welfare, and thus, already own a car that is reasonably new (you dont see too many poor people buying new cars at the time of a crisis). This again means that the difference in energy efficiency etc. might not be that great between the current car and the new one. Furthermore, since the current car is actually relatively new, it means that the current car will not be thrashed and recycled, but will be in any case kept in the road, no matter if sold or not. Naturally it is possible that the one who buys the current car will thrash his/hers even older one, but then again the difference on eco-friendliness is no longer that great.

The thing is, that at the same time as giving subsidies to buy a new car, “they (Zapatero’s government)  included a reduction in taxes for small businesses and a 20-billion-euro fund to finance sustainable development projects”. I suppose the most important aim of these acts is to revitalize economy, but isn’t there something funny that at the same time you try to sell more cars and establish a fund aimed to protect the environment? I mean you establish a 20-billion-euro fund to make things more green, and at the same time you put lots of money in order to make things less green:  “Lets really break things now so we have a lot more to fix later on”. Or maybe it is just that breaking and fixing are equally good, both mean jobs and boost for the economy. On the environmental side the question remains the same though, but if buying a new car is seen as environmentally friendly (?), then there is no problem. Furthermore, then I would really like to have that new car. Just miss the remaining part of the price.

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