Global Warming: India, China and the US January 10, 2007
Posted by BongoP'o'ndit in Environment, India.6 comments
Over at Marginal Revolution, Tyler Cowen outlines various options/scenarios vis-a-vis India and China’s fossil-fuel consumption (and consequent contribution to global warming) and possible responses from the US.
1. China and India are less locked into fossil fuels than is the United States, and as Brazil has done they will take the lead in moving toward energy alternatives. America does not need to get them “on board,” and given their cooperativeness American energy policy will matter at the margin.
2. We can cut a deal with China and India at a suitably presented international convention. China and India will enforce this deal and abide by it, overcoming previous problems they have had ruling their provinces and avoiding excess decentralization.
3. Forget about the international conference, we can pressure China and India by twisting their arms. Like we’ve done with the Chinese currency. We also can threaten them with trade taxes, as has been discussed in Europe.
4. We are best saying nothing to China and India and calling no conference. There is some chance they will act unilaterally, out of pride and the desire to upstage the United States. External pressure will be counterproductive, remember British imperialism and the Opium Wars?
5. China and India will continue to be major polluters. If we tax American-generated carbon we pay a big price in terms of economic growth but make no real progress on global warming.
6. We do not know what China and India will do, but the United States is a world leader and ought to move first, set a good example, and do the right thing.
As noted later in the post, the cost for either India or China to be reduce global warming contribution might not be very high in real terms, but the important problems are institutional.
There are potential incentives (#2) and disincentives (#3), both political and economic, that might compel the two countries to overcome such barriers. But I doubt that either country will act unilaterally (#4) out of pride or to upstage the United States, even if under the remote possibility that USA is able to set a ‘good example’. Conventional wisdom says that while protecting the environment and reducing fossil fuel consumption are noble goals, China and India’s interest at this stage is obviously better served through economic growth and that is where all policy will be directed.
What interests me though is the flip side question: will investment in cleaner energies now actually make the Chinese and Indian economies grow at at a more rapid pace ? I am not an expert by any stretch and would welcome comments from those who are. However, a couple of intuitive points come to mind.
First, cleaner burning systems means more efficient systems, which should be beneficial in economic terms, right ? Second, independence from natural gas might serve the political interests of the country, since it would not have to pander to the interests of oil rich countries to ensure smooth economic growth.
As noted in the original post, Brazil has taken a lead in innovation towards energy independence – would be interested to know if how that has helped the growth of their economy.
Energy conservation as an obsession January 6, 2007
Posted by BongoP'o'ndit in Environment.1 comment so far
It is perhaps not very surprising that Japan is leading the developed countries in energy conservation. According to this New York Times story, the country has achieved this by a combination of technology development;
In many countries, higher oil prices have hurt pocketbooks and led to worries about economic slowdowns. But here in Japan, Kiminobu Kimura, an architect, says he has not felt the pinch. In fact, his monthly energy bill is lower than a year ago.
A reason is his new home fuel cell, a machine as large and quiet as a filing cabinet that sits in front of his house and turns hydrogen into electricity and cold water into hot — at a fraction of regular utility costs.
….
Energy-efficient appliances abound in the many corners of his cramped home. There is the refrigerator that beeps when left open and the dishwasher that is compact enough to sit on the kitchen counter. In some homes, room heaters have a sensor that directs heat only toward occupants; there are “energy navigators” that track a home’s energy use.
and a conservation ‘mindset’ :
“It’s not just technology, it’s a whole mind-set,” said Hitoshi Ikuma, a specialist in energy issues at the Japan Research Institute. “Energy conservation is almost an obsession here among government, companies, regular citizens, everyone.”
Of course, since this is the New York Times reporting, the benevolent and sensible involvement of the government needs to be highlighted:
The guiding hand of government has also played a role, forcing households and companies to conserve by raising the cost of gasoline and electricity far above global levels. Taxes and price controls make a gallon of gasoline in Japan currently cost about $5.20, twice America’s more market-based prices.
The government in turn has used these tax revenues to help Japan seize the lead in renewable energies like solar power, and more recently home fuel cells. One way has been a subsidy of about $51,000 for each home fuel cell. This allowed Mr. Kimura to buy his cell last year for about $9,000, far below production cost. His cell, which generates one kilowatt per hour, provides just under half of his household’s electricity, and has cut his electricity bill by the same amount, he said.
China Going Green? January 4, 2007
Posted by Confused in Environment.add a comment
As China rapidly develops, it’s getting increasingly concerned about the envoironment.
Is China getting serious about the environment, albeit out of concern for its continued economic growth? Seed magazine (via AFP) picks up two telling stories: First, China has just released its first official report on global climate change. The report concludes that greenhouse gases from human activity are leading to climate change, and that economic growth could be hindered if global warming continued. The report warns that temperatures could rise in the Middle Kingdom by 1.3-2.1 degrees Celsius by 2020, and by as many as 6 degrees Celsius by the end of the century. Given that 2006 was China’s hottest year in half a century and thousands died from widespread droughts, the new report no doubt reflects a concerned Beijing.[link]
Two short comments-
a. China is concerned that envoironmental damage could potentially affect it’s growth.
b. It’s increasingly clear that as nations develop and are able to meet primary needs of their people, they do get concerned about more abstract aspects like envoironment. However, it would be futile for the West to expect them to be concerned before economic development happens.
Retail giant pushing environment friendly product January 2, 2007
Posted by BongoP'o'ndit in Environment.2 comments
Walmart, the retailer everyone loves to hate, has decided to push the environment-friendly compact fluorescent light bulbs in its stores. These bulbs use about 75% less energy and last almost ten times longer – but their high cost has been a barrier to widespread use.
…the long-lasting, swirl-shaped light bulbs known as compact fluorescent lamps are to the nation’s energy problem what vegetables are to its obesity epidemic: a near perfect answer, if only Americans could be persuaded to swallow them.
But now Wal-Mart Stores, the giant discount retailer, is determined to push them into at least 100 million homes. And its ambitions extend even further, spurred by a sweeping commitment from its chief executive, H. Lee Scott Jr., to reduce energy use across the country, a move that could also improve Wal-Mart’s appeal to the more affluent consumers the chain must win over to keep growing in the United States.
[link]
It would be interesting to observe the outcome of a giant like Walmart using its retail might to push a environment-friendly product.
Update- (by confused) Patrix is not too happy with how Walmart is selling the compact fluorescent bulbs-lack of choices and expensive prices. Perhaps, they are just teething troubles.
