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Posts Tagged ‘economics’

Photo: Alfredo Sosa/Christian Science Monitor.
Farmers who aren’t climate-action types may nevertheless be proponents of profitable wind energy. In Knox County, Illinois, the farmers above were glad to get a contract with Orion Energy for a 300-megawatt wind farm that is bringing in extra money for them and tax revenues for the county

One precept that my reading of fiction keeps hammering home to me is that people are complicated. A character doesn’t have to be one of the good guys to do something good or one of the bad guys to do something bad. Similarly, in real life, you don’t have to be on one side of a political divide to find value in something the opposing side values.

This article from the Christian Science Monitor provides an example.

Stephanie Hanes writes at the Christian Science Monitor, “For five generations, Andrew Bowman’s family has worked the land in Oneida, population 700-ish – a flat and fertile swath of Illinois his father always said was good for growing crops and kids. Today, he farms soybeans and corn, as well as specialty popcorn, which he sells under the label Pilot Knob Comforts. Mr. Bowman hopes to have a new resource to harvest soon, as well: wind.

“This past year, Mr. Bowman took a lead representing local landowners in negotiating with Orion Renewable Energy Group, one of the many companies installing wind farms across Illinois, to build a new 100-turbine project in his part of Knox County. Clean energy would not only help keep the local school open and support the fire department and library, he says, but would also offer a new income stream to farmers who agree to lease some of their land for the project – some $30 million over 25 years, according to the proposal. …

“For Mr. Bowman, embracing wind power is part of stewarding the land for the next generation – and one of many steps he and his brother-in-law, Matt Hulsizer, have taken to ensure resiliency on their 1,800 acres. They are acutely focused on soil health, low tillage, and reducing fuel consumption; they have tried organic practices and are investigating cover crops to retain nutrients and prevent erosion.

“But none of this is because they are trying to fight climate change.

“They care deeply about the environment, they say; after all, they live and work in it. But they cringe at the cries for climate action, and they bristle when city people suggest their outdoor, low-consumption life is problematic. … If human-made climate change is happening, they say – something they find dubious – they doubt there’s much anyone can do to stop it.

“For them, tending soil and harvesting wind for clean energy – two initiatives climate scholars say are crucial for reducing carbon emissions – is simply about taking the best steps economically

“And that, scholars point out, is a tremendous shift.

“For years, the dominant narrative of climate action was one of trade-offs and costs – that saving the world as we know it meant taking hard steps to reduce carbon emissions, and likely sacrificing jobs and lifestyle in the process. …

“[But] economic shifts, whether around clean energy or electric vehicles, regenerative agriculture or green construction, may be starting to defuse much of the debate over climate change.

“Instead, climate action has merged with economic progress – particularly when it comes to clean energy. And although climate activists say this awakening won’t by itself put the nation on track to meet the Paris Agreement goal of net-zero carbon emissions by 2050, some suggest it is making that path less arduous, while creating new opportunities and connections for those across the ideological spectrum.

“ ‘There’s an argument that’s been around for a long time, that somehow the economy and the environment are at odds and we can’t do two things at once,’ says Bob Keefe, executive director of E2, an organization of business groups focused on environmental action.

‘What we’re seeing today is that there’s never been more clarity about the economic costs of climate change, or the economic potential of climate action.’

“The narrative of “climate versus jobs,” though, is an enduring one. For decades, environmental protection has been presented in terms of extra costs such as regulations on businesses, requirements for companies, and restrictions on activities. While this wasn’t always divisive – the Clean Air Act of 1970 and the establishment of the Environmental Protection Agency were both highly bipartisan measures, for instance – it has increasingly become a dividing line. …

“Where the left has seen necessary checks on industry for the preservation of the natural world, and the potential for a clean environment to lead to new economic prosperity, the right has seen challenges to businesses, job losses, and economic hardship. Both sides have studies that support their views. Climate action has followed a similar pattern. …

“ ‘We’ve seen that constant conversation about jobs versus climate action,’ says Catrina Rorke, vice president of policy for the Climate Leadership Council, a centrist bipartisan group that promotes policies to price carbon. ‘We think it’s woefully incorrect. We think aggressive climate action can actually unlock a lot of economic activity.’

“In large part, says Stephen Cohen, former director of Columbia University’s Earth Institute, this is because a climate action economy is simply a modern economy – one that is moving away from a stagnating World War II-era industrial approach and into a newly automated, technologically innovative, and cleaner system. …

“ ‘It’s 100 years later and it’s time to modernize,’ he says. … ‘Most of the farsighted businesspeople – they know all of this. It’s how they think about the world.’

“This isn’t just about fossil fuels versus clean energy, he and others say. From the auto industry’s shift to electric vehicles, with all of the connected grid and battery production, to the construction industry’s work retrofitting old buildings, to wind and solar energy jobs, the impact of climate-connected development is broad. It is also spurring a new wave of innovation and entrepreneurship, scholars say.

“None of this means the end to the underlying political tension surrounding climate action. … Nor does this new economy benefit everyone. In any industrial shift, Dr. Cohen points out, some skills and jobs become obsolete. And when it comes to a climate-connected economy, those hardships are concentrated in particular communities, such as in West Virginia and Wyoming, that were built around fossil fuel extraction. In other words, it’s easy to focus on the story of a coal town dying because of a shift in the energy sector. The hardship is concentrated. It’s harder to tell a story when the benefits are diffuse, and everywhere.

“ ‘The losers are more specific and more easily identified – the winners might not exist yet,’ says Wolfram Schlenker, a professor at Columbia University’s School of International and Public Affairs and the Earth Institute.

“Still, Americans increasingly see a price to pay if rising temperatures go unchecked. The number of Americans who believe global warming will harm people in the United States a great or moderate amount grew from 51% in 2014 to 61% last year, according to polling by the Yale Program on Climate Change Communication.

“Here in Illinois and elsewhere, most workers have jobs that aren’t directly focused on climate change. But ‘green’ growth, from the booming renewables market to energy-efficient construction projects, is everywhere.  As a trip across the state shows, the positive economic story of industry that could be categorized as climate-related – even if those involved wouldn’t categorize it as such – is getting easier to observe.”

More at the Monitor, here, where among other topics you can learn about the battle between a fungi protein and chicken nuggets.

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This interesting story about reaching for a more egalitarian type of economics says that capitalism got started in the Netherlands in the 17th century, but a very good book says that says it started with the enclosure of commonly used pasture in England in the 13th century. (See Steven Stoll’s Ramp Hollow: The Ordeal of Appalachia.)

Whenever capitalism started, it’s past time for a look at whether it inevitably caused the extreme inequality we see today.

Ciara Nugent writes at Time, “One evening in December, after a long day working from home, Jennifer Drouin, 30, headed out to buy groceries in central Amsterdam. Once inside, she noticed new price tags. The label by the zucchini said they cost a little more than normal: 6¢ extra per kilo for their carbon footprint, 5¢ for the toll the farming takes on the land, and 4¢ to fairly pay workers. …

“The so-called true-price initiative, operating in the store since late 2020, is one of dozens of schemes that Amsterdammers have introduced in recent months as they reassess the impact of the existing economic system. By some accounts, that system, capitalism, has its origins just a mile from the grocery store. In 1602, in a house on a narrow alley, a merchant began selling shares in the nascent Dutch East India Company. In doing so, he paved the way for the creation of the first stock exchange — and the capitalist global economy that has transformed life on earth. ‘

“[But, asks Drouin], ‘Is it actually making us healthy and happy? …

“In April 2020, during the first wave of COVID-19, Amsterdam’s city government announced it would recover from the crisis, and avoid future ones, by embracing the theory of ‘doughnut economics.’

“Laid out by British economist Kate Raworth in a 2017 book, the theory argues that 20th century economic thinking is not equipped to deal with the 21st century reality of a planet teetering on the edge of climate breakdown. Instead of equating a growing GDP with a successful society, our goal should be to fit all of human life into what Raworth calls the ‘sweet spot’ between the ‘social foundation,’ where everyone has what they need to live a good life, and the ‘environmental ceiling.’ By and large, people in rich countries are living above the environmental ceiling. Those in poorer countries often fall below the social foundation. The space in between: that’s the doughnut.

“Amsterdam’s ambition is to bring all 872,000 residents inside the doughnut, ensuring everyone has access to a good quality of life, but without putting more pressure on the planet than is sustainable. Guided by Raworth’s organization, the Doughnut Economics Action Lab (DEAL), the city is introducing massive infrastructure projects, employment schemes and new policies for government contracts to that end. …

“Raworth says DEAL has received an avalanche of requests from municipal leaders and others seeking to build more resilient societies in the aftermath of COVID-19. Copenhagen’s city council majority decided to follow Amsterdam’s example in June, as did the Brussels region and the small city of Dunedin, New Zealand, in September, and Nanaimo, British Columbia, in December. In the U.S., Portland, Ore., is preparing to roll out its own version of the doughnut, and Austin may be close behind.

“The theory has won Raworth some high-profile fans; in November, Pope Francis endorsed her ‘fresh thinking,’ while celebrated British naturalist Sir David Attenborough dedicated a chapter to the doughnut in his latest book, A Life on Our Planet, calling it ‘our species’ compass for the journey’ to a sustainable future. …

“Amsterdam is grappling with what the doughnut would look like on the ground. Marieke van Doorninck, the deputy mayor for sustainability and urban planning, says the pandemic added urgency that helped the city get behind a bold new strategy. … She says, ‘I think in the darkest times, it’s easiest to imagine another world.’ …

“Raworth published her theory of the doughnut as a paper in 2012 and later as a 2017 book, which has since been translated into 20 languages. The theory doesn’t lay out specific policies or goals for countries. It requires stakeholders to decide what benchmarks would bring them inside the doughnut — emission limits, for example, or an end to homelessness. The process of setting those benchmarks is the first step to becoming a doughnut economy, she says.

“Raworth argues that the goal of getting ‘into the doughnut’ should replace governments’ and economists’ pursuit of never-ending GDP growth. Not only is the primacy of GDP overinflated when we now have many other data sets to measure economic and social well-being, she says, but also, endless growth powered by natural resources and fossil fuels will inevitably push the earth beyond its limits. …

“The doughnut can seem abstract, and it has attracted criticism. Some conservatives say the doughnut model can’t compete with capitalism’s proven ability to lift millions out of poverty. Some critics on the left say the doughnut’s apolitical nature means it will fail to tackle ideology and political structures that prevent climate action.

“Cities offer a good opportunity to prove that the doughnut can actually work in practice. … Van Doorninck, the deputy mayor, says the doughnut was a revelation.

‘I was brought up in Thatcher times, in Reagan times, with the idea that there’s no alternative to our economic model. … Reading the doughnut was like, Eureka! There is an alternative! Economics is a social science, not a natural one. It’s invented by people, and it can be changed by people.’ …

“When the Netherlands went into lockdown in March, the city realized that thousands of residents didn’t have access to computers that would become increasingly necessary to socialize and take part in society. Rather than buy new devices — which would have been expensive and eventually contribute to the rising problem of e-waste — the city arranged collections of old and broken laptops from residents who could spare them, hired a firm to refurbish them and distributed 3,500 of them to those in need. ‘It’s a small thing, but to me it’s pure doughnut,’ says van Doorninck. …

“The doughnut model doesn’t proscribe all economic growth or development. In her book, Raworth acknowledges that for low- and middle-income countries to climb above the doughnut’s social foundation, ‘significant GDP growth is very much needed.’ But that economic growth needs to be viewed as a means to reach social goals within ecological limits, she says, and not as an indicator of success in itself.”

More at Time, here.

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