Since we’ve heard a lot about infrastructure improvement, I thought it might be interesting to look at the economics of interstate highways and where enviromental impacts are considered.
Here’s an interesting paper published in 2006.
Author: rickpace1
The Politics of Climate Change
The Guardian yesterday published an article quoting Jim Hansen, head of the Goddard Institute for Space Studies, as saying Barack Obama only had four years to act to avoid an ecodisaster….and that cap and trade markets for carbon have failed….quite the statement!
http://www.guardian.co.uk/environment/2009/jan/18/jim-hansen-obama
There have been over three hundred comments published on the article and many of them are ugly. I generally try to avoid over-dramatizing problems….and this article points out what happens when you make stark generalizations.
One of the comments, however, caught my eye:
We have manged to design economic systems that have been an utter failure, why do we not think it in the realms of humans ability to also destroy the environment. If we are willing to invest trillions globally on propping up financial institutions why should not billions be spent on enhancing the air that we breathe.
Ponzi Schemes Compared
I received a comment from the fellow who transcribed and first published the 2005 letter to the SEC about Bernie Madoof …and decided (at 4am in the morning…) to review his blog site.
Came across this interesting graphic which compares two Ponzi scheme liabilities…Madoff’s and the Social Security, Medicare, Medicaid Ponzi scheme. Wait a minute!…Social Security, Medicare, Medicaid isn’t a Ponzi scheme is it?….it’s just ‘unfunded liabilities’….now I feel better!
Is America about to become a societal dinosaur?…trying to sell vinyl records in the Internet era.
http://www.vanguardist.org/index.php?/archives/1246-Ponzi-Schemes-Compared.html
Global Warming and the Internet
Here is an article on a trend in use of the Internet and information on global warming….I’m not sure I see it the way the author does….but there are some interesting observations.
http://www.huffingtonpost.com/kevin-grandia/a-troubling-trend-in-glob_b_158288.html
Carbon Market Financial Projections
The global carbon market will remained shielded against the worst effects of the economic slowdown and grow by over 27 per cent this year to $150bn, according to the latest projections from analyst firm New Carbon Finance.
For the entire article:
http://www.businessgreen.com/business-green/news/2233791/carbon-market-grow-150bn
And you thought differential equations were difficult…
Here is a link to the letter that Harry Markopolous sent to the SEC in 2005 about Bernie Madoff. Not only does it give you insight into the nature of the world in which Bernie Madoff was living…..it also gives you insight into the quality of thought…and the underlying ethic…of financial markets in the last 10 years.
http://finances.unanimocracy.com/money/2009/01/07/harry-markopolous-markopolos-letter-to-the-sec-2005-against-madoff/
Sallie Mae and Our Environment
Over the weekend I read an article about the college loan fund Sallie Mae. The article told the story of a father and son. The son wanted to be a Marine, so Dad said ok, but go to college first. He went to college, double majored in engineering, graduated and enlisted to join the Marines. Before he was to report, he was killed in a car accident.
The son had student loans with three lenders, two private and Sallie Mae. The father sent letters requesting that, given the difficult situation, the loans be forgiven. The two private lenders were understanding and forgave the debt. Sallie Mae sent a form letter denying the request.
The author of the article summarized – ” It is beyond obscene that a government now handling billions in bailouts to boardroom executives whose idea of risk is using a 9-iron instead of a wedge on an approach shot could spawn a lender like Sallie Mae to soak the family of a young man willing to spill his blood for others.”
I recently also read that some government responsibility group had tried with thirty banks to find out how they were using bailout funds…none of them were willing to release any detail.
How can we respect and improve our environmental sustainability if we do not have accountability in our institutions?
Abrupt Climate Change
From a USGS Press Release:
The United States faces the potential for abrupt climate change in the 21st century that could pose clear risks to society in terms of our ability to adapt.
“Abrupt” changes can occur over decades or less, persist for decades more, and cause substantial disruptions to human and natural systems.
A new report, based on an assessment of published science literature, makes the following conclusions about the potential for abrupt climate changes from global warming during this century.
- Climate model simulations and observations suggest that rapid and sustained September arctic sea ice loss is likely in the 21st century.
- The southwestern United States may be beginning an abrupt period of increased drought.
- It is very likely that the northward flow of warm water in the upper layers of the Atlantic Ocean, which has an important impact on the global climate system, will decrease by approximately 25-30 percent. However, it is very unlikely that this circulation will collapse or that the weakening will occur abruptly during the 21st century and beyond.
- An abrupt change in sea level is possible, but predictions are highly uncertain due to shortcomings in existing climate models.
- There is unlikely to be an abrupt release of methane, a powerful greenhouse gas, to the atmosphere from deposits in the earth. However, it is very likely that the pace of methane emissions will increase.
The U.S. Geological Survey led the new assessment, which was authored by a team of climate scientists from the federal government and academia. The report was commissioned by the U.S. Climate Change Science Program with contributions from the National Oceanic and Atmospheric Administration and the National Science Foundation.
“This report was truly a collaborative effort between world renowned scientists who provided objective, unbiased information that is necessary to develop effective adaptation and mitigation strategies that protect our livelihood,” said USGS Director Mark Myers. “It summarizes the scientific community’s growing understanding regarding the potential for abrupt climate changes and identifies areas for additional research to further improve climate models.”
Further research is needed to improve our understanding of the potential for abrupt changes in climate. For example, the report’s scientists found that processes such as interaction of warm ocean waters with the periphery of ice sheets and ice shelves have a greater impact than previously known on the destabilization of ice sheets that might accelerate sea-level rise.
To view the full report, titled Synthesis and Assessment Product 3.4: Abrupt Climate Change, and a summary brochure on abrupt climate change, visit http://www.climatescience.gov/default.php.
USDA Announces New Office of Ecosystem Services and Markets
WASHINGTON, Dec. 18, 2008–Agriculture Secretary Ed Schafer today announced the intention to establish a new USDA Office of Ecosystem Services and Markets and the creation of a federal government-wide Conservation and Land Management Environmental Services Board to assist the Secretary of Agriculture in the development of new technical guidelines and science-based methods to assess environmental service benefits which will in turn promote markets for ecosystem services including carbon trading to mitigate climate change.
“Our Nation’s farms, ranches and forests provide goods and services that are vital to society – natural assets we call “ecosystem services,” said Schafer. “The Office of Ecosystem Services and Markets will enable America’s agriculture producers to better compete, trade their services around the world, and make significant contributions to help improve the environment.”
Agriculture producers provide many ecosystem services which have historically been viewed as free benefits to society – clean water and air, wildlife habitat, carbon storage, and scenic landscapes. Lacking a formal structure to market these services, farmers, ranchers and forest landowners are not generally compensated for providing these critical public benefits. Market-based approaches to conservation are proven to be a cost-effective method to achieve environmental goals and sustain working and natural landscapes. Without financial incentives, these ecosystem services may be lost as privately-owned lands are sold or converted to development.
Secretary Shafer intends to name Sally Collins Director of the Office of Ecosystem Services and Markets (OESM). Organizationally, OESM will be located within the Office of the Secretary providing direct access to the Secretary. Collins will assume this position after serving as Associate Chief of the USDA Forest Service for the past 8 years, where she pioneered concepts for ecosystem services and markets as part of that agency’s sustainable land management mission.
OESM will provide administrative and technical assistance to the Secretary in developing the uniform guidelines and tools needed to create and expand markets for these vital ecosystem services and will support the work of the Conservation and Land Management Environmental Services Board. As directed by the authorizing legislation the first ecosystem services to be examined will be carbon sequestration. The Office of Ecosystem Services and Markets and the Conservation and Land Management Environmental Services Board will be established to implement actions authorized by the 2008 Farm Bill.
The Conservation and Land Management Environmental Services Board will be comprised of the Secretaries of Interior, Energy, Commerce, Transportation, and Defense; the Chairman of the Council of Economic Advisors; the Director of the White House Office of Science and Technology ; the Administrator of the Environmental Protection Agency; and, the Commander of the Army Corps of Engineers. The Secretary of Agriculture will Chair the Board. The Chairman of the White House Council on Environmental Quality and the Administrator of Office of Information and Regulatory Affairs will serve as vice-chairs.
Nominations will be sought in the near future for a federally chartered public Advisory Committee to advise the Board. The Advisory Committee will include farmers, ranchers, and forest landowners, Tribal representatives, as well as representatives from State natural resource and environmental agencies, agriculture departments, and conservation and environmental organizations.
Cash for Trash
This is a wonderful article by economist Joseph E. Stiglitz, about the evolution of our current financial crisis. A very concise history written in an ethically sound manner.
Richard Pace 