Archive for the ‘The New York Times’ Category

Ethanol Round II: The Glut.

Sunday, September 30th, 2007

Today the New York times has an article on the collapse in Ethanol prices. The article is a well written overview of the industry and the current impact and reasons for a collapse in the prices. I’m not going to go through all the points the article makes, go read it here — its really worth it. I’m going to talk about what I think is the most important challenge facing the ethanol industry, the federal government and the farmers who are growing the corn and producing the ethanol.

First off most people don’t understand how fragmented the industry is. Most ethanol producing plants, or at least a good majority of them, are owned and operated by farmer cooperatives. This means that the industry has a lot of room to consolidate which will lead to larger margins and less volatility. In the past 2 years, ethanol plants have sprouted (pun) up in hundreds of places throughout the midwest — these plants are relatively inexpensive to build and the technology is well tested. The real issue however is one of transportation. As you can see production is not a problem — there is lots of corn out there for ethanol and there are lots of people turning it into ethanol, but there are not a lot of people getting it from point a to point b. Ethanol, unlike oil and Natural Gas, is difficult to transport — its an organic good and has a sort of sell by date by which it has to be blended into oil if that is the final destination.

Interestingly this transport issue is a common one in the Energy industry. The electrical grid is suffering from the same lack of underinvestment. Why does this dilemna exist? Well most transport networks — for ethanol (pipelines), for electricity (transmission lines), require massive amounts of capital expenditure, with a lot of sunk costs. I’m not sure about this, but as we saw with the bridge collapse this summer in Minnesota, the federal government has stepped back on its responsibility to build and maintain our networks (roads, grids…).

The article makes an interesting point about the likelihood of the federal government having to expand its subsidies to ethanol farmers to protect them during this glut in the market — maybe instead of funding the expansion of an industry already in an overproduction stage, maybe they could pour that money into getting rid of the transport bottleneck. This will allow ethanol to reach end users for its traditional uses of being blended into oil or as a substitute for MBTE, and potentially allow for continued expansion of our inclusion of ethanol into other energy systems.

Ah but what about the effects of increased ethanol production of food prices? on the environment? I’ve already written about my dislike of ethanol as the ’solution’. I don’t think its a solution, i think its a delay mechanisms, but I also see that if we can leverage ethanol through an improved transportation network then people can be allowed to be more creative with the uses and applications of ethanol. Its a complicated situation for sure, but the federal government will continue to be involved and I just hope its in a more constructive way then just giving farmers a check because the market for their product isn’t strong.

Original post by mysustainablefuture

Is an offset card, good or bad credit?

Wednesday, July 25th, 2007

I got a lot of good responses and links from my last post — clearly nuclear is a heavy issue for people, as it should be. I’ll be responding to a couple of comments in a later post because I want to make sure I get my facts/opinion right. So look back for my take on electric cars, hydrogen as a transport fuel and yes, some more nuclear.

In the meantime, this is my subject of the day:

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GE, in partnership with AES, has launched a Carbon Offset Credit Card. Both Treehugger.com and the New York Times have articles about it, but I’ve linked here to the New York Times piece.

“We are not sending a message that you can buy your way out of your environmental responsibility,” said Lorraine Bolsinger, vice president of GE Ecomagination. “We’re offering another tool in the kit for reducing carbon footprints.”

Thats their media bite on the whole idea, but what do I really think about the idea?

1. I think it is VERY important that people understand that you can’t buy your way out of climate change/global warming/driving too much etc… And that goes for both sides of the debate. Environmentalists who oppose offsetting accuse it of doing very much that — allowing people a guilt-free ride in their gas guzzlers. I disagree with that idea but only as long as there is a concerted effort by ‘offsetting’ companies tonot mislead their customers as to the meaning of offsetting. Environmentalists who oppose this concept, in my mind, are actually preventing a constructive and useful dialogue to open up between business and themselves. Offsetting is valid — when done well and done in an ecologically considerate way. Which can be done, is being done, and can only be done better if people really work together.

2. Treehugger.com made a good point in one of their posts a few days ago about how Green products are actually counter-productive in many cases. People who don’t need new things, go out and buy Green things because it makes them feel better or they think they are benefiting a cause. However, all they are doing is accumulating more goods, causing more pollution and using up more resources. Sure, this idea is correct but thats only if we assume people are buying green replacements. I think most green consumers who aim to buy something because they need it (or, yes, think they do) will, instead of choosing the main stream “bad” good, go for the green one. Not particularly harmful or helpful but time will tell. So back to this offsets card — I like the idea because it allows people to impact in an environmentally positive way all the purchases they make, whether they are green or not, by choice or by lack of availability.

3. I wonder if the green credit card fashion — which is just really taking off with this idea — will really work. A lot of causes have gone the way of the credit card and didn’t really get much traction or impact. And i also wonder if there is a scale limit to this idea. That is if every CC holder in this country switched to the GE offset card, I doubt they would be able to buy/fund/create enough offset credits for everyone. And it works the other way, if only a few people sign up will their cumulatitive effect be enough to really impact the offset/emission credit business? Guess we will have to wait and see.

Original post by mysustainablefuture

A few notes

Friday, July 13th, 2007

A couple of things caught my eye this week so I thought I’d write a weekly-roundup post rather than being specific to one topic:

1. US gas consumption as seen by the rest of the world:
Economist World Petrol [thats gas for Americans] Consumption

I saw this chart on treehugger.com, it comes from the BP by way of the Economist. I’m a pretty visual person so I find the information depicted to be rather jaring. I think everyone understands that US gas consumption is high, in fact the highest in the world. Its quite another thing to see it contrasted to the amounts consumed in a large selection of other developed countries.

I also think that its only by making people see this kind of easily digestible very visual information, within a context of better understanding of life in other developed countries, will we possibly effect consumption patterns. The silver lining? At least the 2007 Energy Bill passed last month dictates a that American car makers must build cars with higher mpg rates.

2. Climate Change actually not so good for the Northeast United States:

I think the conversation on Climate Change is getting a bit lost in a all the optimisim of Live Earth and pessimism of complex IPCC announcements. This article from the New York Times outlining a recent report by the Union of Concerned Scientists brings us back to a look at the real impacts of Climate Change.

It seems to me that acceptance of freak weather patterns has started to enter into our daily dialogue and because of this people might be starting to loose track of what is so dangerous about Climate Change. Ah, so there are a few more storms — will adjust. This report points out that the risks are much higher with the real changes being major coastal flooding in the big cities of the Eastern Seaboard, massive enough changes in weather that cold winters wont happen anymore — having a huge impact on natural habitats, wildlife and the economy of New England, and a lot more. Basically, its good to keep in mind that Climate Change isn’t something we can just adjust too — it is likely to have huge, unrealisable and dramatic effects on some very essential elements of the world as we know it.

3. Now for something cheerier, How cool are these shoes?9201-tan-prod.jpg

I came across this company and I’ve decided I really like these shoes. I also don’t know for sure how really eco they are, but hey, fashion can be good sometimes. Check out www.simpleshoes.com

 

 

4. On a more personal note:

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I went for a hike with a friend in Rock Creek Park this weekend. For those not familiar with Washington D.C., it is a surprisingly green city with a very well kept, pretty wild and large park cutting right through the middle of it. I happen to be staying this summer in a house that abutes the park making it easy to go for walks there.

Last weekend, odb showed me the beginning of a few trails and I thought I would give them a try. Now if only more city planners understood the immense value of something like a non-manicured park in an urban area. Buildings can be beautiful, but quick access to nature definitely offers something special as well.

Original post by mysustainablefuture

Can I really offset my lifestyle?

Thursday, June 21st, 2007

Ah carbon offsets! Can you imagine life before them?

I find it particularly fascinating how a brand new term and concept has so easily slipped into the present reality of so many people. A year ago, even less for some people, very few people knew or understood what offsetting was or that they even had a carbon footprint. But within that time suddenly everyone wants to offset their entire life — travels, car, shopping, eating, farting… (yes you could theoretically offset your farts, they are methane after all).

So what is offsetting? How does it work? Who benefits? How do people make money from it? Is offsetting the same as trading?

The best article I’ve found in a while on the subject comes, unsurprisingly, from the Economist. The article explains how credit emissions are created and how they are priced and where they are traded. It also covers the sources of emissions and how they are being brought into the larger carbon offset market.

The author also provides a very good definition for what  the trade in carbon credit is about:

“The trade is not actually in carbon, but in not-carbon: in certificates establishing that so many tonnes of carbon dioxide (or the equivalent in other greenhouse gases) have not been emitted by the seller and may therefore be emitted by the buyer.”

There you go. This means that when you decide to offset your traveling you are in essence paying someone not to pollute for you. Its a nifty idea but does it actually happen?

This article dates back to March, but I think its a good snapshot of how carbon offsets work for the regular consumer.

[Treehugger.com is a good site for all sorts of up to date and relevant information and news on living a more sustainable life.]

I guess the question I’m left with, beyond the ones offered up in the Economist article on the workings of future carbon markets, is whether its really possible to just offset your life and keep living as we have for the past 150 years? I.e. could you just buy lots of relatively cheap — they are really affordable — and drive your fast car, fly to bermuda and not recyle?

The answer to that is probably no. Its not a zero sum game, its more like Commener’s closed circle. This offsetting business is offering us a nifty way to clean up our atmosphere, but for it to be really effective we do have to change our lifestyles. I’m not advocating for a radical change or that offsets aren’t a good idea. But a lot of the money that is getting poured into offsetting could maybe be better placed in developing new technologies that immediately reduce our carbon footprint.

This brings me to the current debacle in the Congress on upping CAFE standards.  Its been an interesting debate to observe, mostly because of the American car industry’s switch last week from full on misinformation campaign directed to keeping standards at the level they are now to a sort of half-hearted compromise.

The way the bill stands now by 2020 US car CAFE standards would increase to 35 mpg (currently at 25 mpg) with a 4% increase in mpg every year. The American auto industry (I specify American on purpose, Japanese and EU car makers are are already building cars with that level of mpg, it seems only Detroit lacks the techy know-how to catch up) changed its tack from all out opposition to support for an admendement to the bill. They are agreeing to the hike in CAFE standards but don’t want the 4% annual increase.

That kind of politics and lobbying makes me sick to my stomach. Some of the ads the car companies screened were full on misleading and pandered to American’s sense of fear. My personal favourite was one that went along the lines of “I want a safe car, not one with higher mileage” implying that you sacrifice safety for better mpg efficiency. I can read or hear that and think how misleading that is, but there are consumers out there who don’t see through the mixed messages and truly walk away thinking an SUV must guzzle to keep me safe.  Argh!!!

So back to what set me off down this road. Offsets are good, the markets are struggling but I think will work, however they are not a replacement for innovative technology and atmosphere-friendly choices.

Original post by mysustainablefuture

The common sense thing to do

Tuesday, June 19th, 2007

The New York Times has a interview of Barry Commoner today.

First off the man is 90 and  able, still living an independent life. Maybe I’m a little traditional, but I can’t help but respect people who’ve been around that long and seen so much. Not to mention having lived through most of the 20th century as an able bodied and involved thinker.

Commoner is worth mentioning because he was a big part of the movement to bring politics in touch with the environment. He published a pretty seminal book in the 1970’s called The Closing Circle which highlighted the importance of thinking of our environment as a complete cycle in which our every action had a reciprocal reaction/effect. He initiated the concept of ecological economics — the idea that there is no free lunch with our relationship with nature, that what we do has a cost somewhere in the cycle that we too belong to. Without his ideas I don’t think there would have been the MIT “Limits to Growth” ideas or, more importantly, the now commonly held and believed notion that the environment, our planet, isn’t finite.

I recommend reading the interview not because you’ll get a feel for these ideas — you wont, in fact I don’t think it will make sense to a lot of people who aren’t familiar with his concepts — but because its an insight into how to live a more conscientous life. As he puts it he’s not an “eco-freak”. I would agree with him that people who live lives that are so off-the-grid or whose identity is so bound up in their ability to prove they don’t harm the environment don’t bring, or bring very little, that is constructive to the table to solve the world’s environmental problems. Its a brand of self-righteousness that I find particularly unappealing.

Commoner’s philosophy is simple and direct : we should prevent problems before they arise because once they happen its much harder, if not impossible to fix them.

The problem is I don’t know if I agree with his take on how to prevent problems. An interesting comment he makes is on the use of DDT to stop malaria in Africa — he’s against it and believes that economic aid is a more usefull tool and better for the environment. Sure, theoretically, but economic aid wont act as quickly as DDT, and if the use of this pesticide saves the lives of people who will go on and become productive members of society than it becomes part of a bigger solution.

Original post by mysustainablefuture



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