Why Efficiency Rocks

Back in July, two fellow members of my Toastmasters club gave speeches outlining their views on global warming. The first explained why he believed the science was shaky and that the issue was being used mostly as a political power-grab. The next week another offered a rebuttal, arguing that global warming is a genuine, imminent danger.

Naturally I decided that I’d like to speak on the topic as well. It seemed as if our members were fairly polarized on the issue though, so I decided to take a little different route.

It’s rehashed a bit from the outline, but the speech I gave on 9/14 was similar to this:

While the science behind the global warming debate is certainly important, I don’t believe the uncertainty should affect our actions much.

Imagine that we conclude that global warming is not a threat, and realize in 20 years or so that we were wrong. At that point we’d probably be up a creek.  But what about the opposite error? If we agree that global warming is a serious threat, and happen to be wrong, it might just be the most beneficial mistake in history.

The reason is because many of the solutions that fight global warming will benefit the entire planet, regardless of whether global warming exists at all. One such solution is the cheapest, cleanest, and most readily abundant source of energy that we have today- efficiency.

By focusing on the demand side, efficiency means that we don’t have to create as much energy in the first place, and this directly benefits us in several ways.

1.)  The first benefit should be obvious- efficiency saves money.

We simultaneously have a *likely* climate crisis, and we’re in a long-term financial mess, so why not attack both problems at once? No matter what your stance on global warming is though, it’s hard to argue against a fatter wallet.

Some changes, such as driving more sensibly, can literally save money in an instant. Others, like installing a programmable thermostat, require an upfront investment but will easily pay for themselves in time.

2.) In addition to saving money, efficiency would help us become more energy secure.

The energy crises of the 70s proved how overly dependent we were on foreign energy. In response, tax credits were rolled out to promote clean energy, speed limits on highways were lowered, and President Carter even had solar panels installed on the roof of the White House.

But in time the crisis passed, cheap oil returned, and President Reagan tore down the solar panels. Now here we are, over three decades later, and energy imports are still our lifeline. Somewhere along the way we must have missed the memo that said- “those who fail to learn from history are doomed to repeat it.”

Then there’s the even bigger issue of how much oil is left. Less than a century ago Texas and Oklahoma were practically drowning in the stuff. Now the world uses over 80 million barrels every single day, and we have to go to the ends of the earth to find it.

Some scientists think we’re near the point of peak oil, which is where global oil production tops off and then gradually falls thereafter.  If we weren’t ready for it, which at this point we are not, peak oil could be extremely painful and destructive. Prices would skyrocket as we’ve never seen before ($150 oil might seem cheap before long) as a falling supply fails to meet demand.

To correct these mammoth problems, we need to things; clean, domestic energy and more efficient lifestyles. Moving towards renewable energy sources takes a great deal of time and money, but many efficiency practices can be implemented today.

3.) The third reason to embrace efficiency is for the sake of the earth.

Humanity has wreaked an enormous amount of damage upon the earth, a good portion of which can be attributed to our voracious energy appetites.

In the March 2009 issue of National Geographic, there’s a lengthy article discussing the oil sands projects in Alberta, Canada. Since traditional oil fields are becoming more and more difficult to find and drill from, our friendly neighbors to the north are tapping into less conventional sources of black gold. The oil flows at a tremendous cost to the environment though.

At this point in my speech I had the magazine passed around after pointing out two pictures- one showing the pristine landscape before the oil companies move in, and the second showing the barren world after operations began. You can see these same pictures here.

The irony is, that drilling is considered economic progress. The oil company will probably see its profits increase, shareholders will be happy, and the GDP will increase as well. Econ 101 would consider that to be a success, but it’s hard for me to see how anyone actually wins when we treat our planet like that.

We don’t all have to become full-fledged tree-huggers, but we do need to work to lower our personal impact on the environment. Living more efficiently happens to be one of the simplest ways to do just that.

~

The U.S. is numero uno in many different ways, many of which aren’t worth bragging about. Here is one such statistic- with about 5% of the world’s total population, we use about 25% of the world’s energy. Global warming or no, we would reap many benefits by working to reduce this imbalance. It should be a no-brainer.

Even If Global Warming Isn’t a Threat

The debate continues as to whether human activity is likely to cause harmful and irreparable climate changes.  Until there is concrete, indisputable proof either way, it will continue to be deliberated.  It’s entirely pointless to waste so much time and energy arguing this issue though.

Let’s say that we conclude, beyond a reasonable doubt, that global warming is nonexistent, and the environmental movement receives a crushing blow as a result.  Then imagine that, 20 years from now, we realize we were wrong.  Not good. As Scooby Doo would say, “Ruh roh, Raggy!”

But what if we decide that global warming is a threat to humanity, make a committed, unified effort to fight that hazard, only to find out 20 years later that there was no serious threat in the first place?  Were our efforts wasted?  Nope.  Far from it.

If global warming doesn’t exist, yet we believe it does, our “blunder” will be a tremendous benefit to all who inhabit our planet.  Consider the following:

1.)  Energy Security:  Since our imported energy is composed entirely of dirty fossil fuels, transitioning to cleaner sources of energy necessarily means fixing our energy imbalance.  No longer will we be at the mercy of OPEC.  No longer will our nation instigate conflict in the Middle East to secure energy supplies.  Instead we will power our nation with the natural, renewable resources that we have in abundance.

2.) Less Environmental Destruction:  Conversationalists have been around since long before global warming was on anyone’s radar (like this dude), but their efforts have certainly been aided recently by broader environmental movements.  Conservation is now accepted as far deeper than simply preserving the beauty and diversity of natural ecosystems for future generations to enjoy.  Now we see conservation as vital to the well-being of the planet as a whole; to our very existence.  We’re discovering how interconnected we are with the entire living world.

3.) Less Human Injustice:  We remain in trade agreements that foster continued exploitation of the poor for the benefit of the rich, all the while creating more and more environmental damage.  Our corporations travel to remote corners of the globe, blatantly violating human rights (often of indigenous populations) in the ruthless exploitation of resources ranging from oil to cheap labor.  The way we treat each other and the way we treat our planet is highly correlated.  A movement to address one is almost invariably related to the other.

4.)  Stronger Communities:  We’re learning that it’s not sustainable (nor desirable) to live in the franchised, outsourced, isolated world we do.  Small-town America has been overrun by fast food chains (”do you want fries with that?”) and box stores, causing local businesses to fail.  Our inner cities struggle as suburbia continues to expand.  Our clothes come from China, many of our fruits and vegetables from Central America, and a good portion of our fuel from the Middle East.  More efficient, locally-based economies are not only better for the earth, but arguably much more rewarding as well.

~

The movement to combat global warming is about far more than the possibility of rising temperatures.  It’s about bringing meaning back to our lives.  It’s about questioning our values (why again are we working so hard to buy more stuff we don’t need?).  It’s about reconnecting with our planet, with each other, and with ourselves.

Global warming or no, we have the chance to go down in history as either those who ushered in a new era of meaningful existence, or those who perpetuated the status quo and handed our successors an even bigger mess.  What’s there to debate?

Note: For my next Toastmasters speech (mid-September), I’m planning to give a speech similar to this.  My first two speeches have been more of the informative type; now I’d like to try my hand at a persuasive style. I’ll probably post it here when it’s done.

Beyond Economic Growth

Does economic growth by its nature include positive development, or vice-versa? I certainly don’t think so. These concepts are not always positively correlated, and it is a mistake to use the terms interchangeably.

Paul Hawken said it best in The Ecology of Commerce:

“A growing economy is getting bigger; a developing economy is getting better.”

It would make logical sense to focus the brunt of our efforts on the development of our economy, but a quick browsing of the Wall Street Journal or a few minutes of watching CNBC proves this is not the case. The GDP apparently is the all-important measuring stick. It’s simple, really. GDP falling = bad, GDP rising = good. Most economic policy is based in some way off of this assumption. Sadly though, it’s an assumption that desperately needs to be challenged.

Just because something is growing does not automatically it is improving. As it is, we ask “Is our economy growing?” and “Are profits rising?”. If we can answer yes to both of these questions, then the economy is generally thought to be moving in the right direction.

But what about the questions that really matter?

• Are people genuinely better off, or happier, now than before (not just materially)?
• Are businesses adding actual value?
• Are we becoming healthier?
• Are our ways sustainable?
• Are the 49ers in the playoff hunt?

These are questions of development, and they unfortunately get less attention than the questions of growth.

I’d like to point out two industries in which growth clearly takes precedence over development.

1.) Energy:

The fossil fuel energy sector grows by degrading the planet and exploiting its resources. Ecosystems are destroyed by expanded drilling and mining. More CO2 is released in the atmosphere as we burn fossil fuels, and we remain ever-addicted to finite, dirty sources of energy. Yet, the economy, as measured by GDP, grows, and supposedly this is good. This is economic “progress”.

On the other hand, energy development might not increase the GDP much, but we would certainly be better off. We could make our transportation more efficient, walking, biking, and utilizing public transportation more than we do (bonus: Americans get more exercise!). We could build more efficient buildings, or better yet, retrofit the buildings we already have to be more efficient. We could foster the development of food networks that provide locally-grown options. In this environment development would take precedence over unconditional growth; any growth that results is a byproduct of achieving true progress.

The alternative energy field represents an area where growth and development are in alignment. Installing wind turbines helps the economy grow and develop at the same time, as we simultaneously reduce our dependence on dirty fuels. This is desirable as well, but we should not expect to solve the energy and climate crises simply on growth alone.

2.) Health Care:

Isn’t it ironic how the “health” care industry grows as people become more and more unhealthy? Sick care would clearly be a more appropriate name.

This is an industry that thrives on treatment, not prevention, because treatment is where the big bucks are. When people are sick (or think they are), we can prescribe them expensive pills and put them through expensive treatments. This boosts the profit of everyone from shareholders of Merck to the physician down the street, and the GDP grows (as health-care costs and insurance premiums skyrocket). This is clearly another instance where growth does not equal progress, yet the nightly news would be giddy over the rising economic figures.

Instead, if we put aside our concerns for the stock prices of the pharmaceutical companies and focused on development, we would be immensely better off. We could actually concentrate on, rather than paying lip-service to, preventative medicine; simple things like eating healthier and exercising. Instead of sending an obese person home from the doctor with a handful of new prescriptions, they would be sent home with an earful about their couch-potato lifestyle and poor eating habits.

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Eventually, we will need a new economic paradigm that isn’t entirely dependent upon infinite growth. This shouldn’t be a surprise, given that our resources are finite in nature. In fact, we’re probably already close to surpassing (if we haven’t already) our planet’s sustainable carrying capacity.

Such a model is hard to fathom right now, as our entire capitalistic structure is supported by future growth prospects, but there are ways us individuals can do our part. Most of them have to do with minimizing our negative impact on the planet, and/or taking better care of ourselves.

• Use less energy.
• Use more human-powered transportation.
• Reduce, reuse, recycle.
• Shop for value and longevity rather than the cheapest price.
• Fully wear things out before discarding.
• Eat locally grown food.
• Scrutinize your wants vs. your needs.
• Exercise consistently and eat healthy.

In the grand scheme of things, some of these actions may seem miniscule. I believe in the extraordinary potential that grassroots movements have though (Ron Paul 08! haha). As more and more people begin to take notice of these vitally important issues, I think we’ll naturally move towards a society that rightfully values development above all else.

Save Energy, Money, and the Planet with Negawatts

Eco-conscious citizens are crying out for clean sources of energy; wind and solar power, geothermal, smart grids, hybrid, electric, and fuel cell cars…the list goes on. We know that, with the climate crisis threatening the well-being of the entire planet, developing cleaner energy sources is crucial and urgent.

Lucky for us, the quickest, easiest, cleanest, cheapest, and most readily available source of energy is already within our capacity. On a widespread scale, we can tap this resource far more than we currently do. Best of all, it hardly costs a thing. In fact, in many cases it will actually put money back in our pocket.

I’m referring of course to becoming more energy efficient. We focus a great deal of attention on where our energy comes from, more so than we examine how we actually use it.

Even with a monstrous effort, it will take decades to overhaul our sources of energy. Advances in technology, infrastructure development, and capital raising can only progress so quickly, especially since our country has grown into an empire entirely dependent upon cheap, abundant fossil fuels.

Energy efficiency can help close the gap between the supply of clean energy and our energy needs, a gap that is currently filled by burning fossil fuels. In reducing the amount of energy that we need to create, efficiency is essentially a source in and of itself (this is the Negawatts concept). Despite the numerous benefits of becoming more efficient, we’re still a nation that apparently enjoys being wasteful.

We have made positive strides- CFLs are now commonplace in American homes, compact cars have reemerged from the dead, and we’re a bit more mindful about our thermostats. However, we are still embarrassingly wasteful, from seemingly trivial individual habits to the global operations of Fortune 500 companies. We’ve picked a lot of low-hanging fruit, but there is much more work to be done.

Consider our driving habits. If you jump on any highway in the U.S. and drive the speed limit, it won’t be long before you feel like a slug. Even semis will blow your doors off. Our lead-feet bode well for the budgets of police stations and the Highway Patrol, but we burn through copious amounts of fuel in the process. Of the 20+ million barrels of oil our nation uses every day, I wonder how much is burned simply by speeding drivers. How much money and energy could be saved literally overnight if we would simply change behaviors like these? It would be substantial.

Seriously, the speeding thing irks me. We’re in an economic meltdown and 90%+ of all American drivers are still voluntarily throwing money down the drain by little habits like these. What gives?

Efficiency has been mostly ignored in the United States, probably due in large part to our cheap energy supply. We could afford to be ignorant to our wasteful ways. People don’t conserve resources that are abundant and cheap. That spells big trouble when those same resources suddenly aren’t so plentiful, nor inexpensive.

It would have amounted to political suicide to even mention the possibility, but had we gradually made burning fossils fuels more expensive (as Europe does with their high gas taxes) long ago, our economy would be light-years ahead of where we are today. Unfortunately though, the crooked politicians in Washington seem to care more about their own special interests than the well-being of this country. The lobbyists working on behalf of Exxon Mobil and Chevron have far more clout than anyone pushing for bills that will actually reduce our energy needs, so our government has done next to nothing on this matter.

Then there’s the almighty GDP. We believe that growth is king and our savior. We somehow believe we can develop new technologies that will simultaneously save the planet and grow our economy, no sacrifices needed. Come on, this is America! We don’t save energy, we create new sources of it.

A smaller, simpler economy is all but certain to be our future reality however.  Growth was a major cause of our problems; downscaling is one the solutions. The previous economic model was characterized by gluttony and excess, but the new model won’t be able to accommodate such waste.  We will be efficient by necessity.

Our individual ability to influence national policy may be fairly small, but we can sure make many positive changes in our own lives, which is where real change and progress begins anyway. All Americans are going to reexamine and transform how we live, whether we want to or not. Becoming far more efficient is one of these changes, and it’s beneficial all-around; we can save money (at least in the long run), save energy, and help the planet at the same time. Might as well embrace it now.

Here are some resources that might be of use:

Treehugger
Planet Green
Mother Earth News
National Geographic Environment

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Experiments in Hypermiling

In recent years, expensive gas changed a lot Americans’ driving habits, and even spawned a new term- hypermiling. By making adjustments to one’s driving techniques and car maintenance, it’s possible to achieve significant savings in fuel consumption (check here for specifics from the guy who coined the term).

Not too long ago, the EPA updated their testing to reflect more typical driving conditions. The effect was that mileage estimates dropped quite a bit- the window sticker on my ‘04 Civic says 29/38, but with the new testing methods the revised estimate is 25/34.

^That’s her and I during our spring break trip.

By driving sensibly and taking care of your vehicle, you can easily get far better mileage than what the sticker says. My car has 112,000 miles, but I still routinely get between 33-38 overall. The majority of that is highway miles, but it’s still better than estimates.

Basically, I do the following:
-Drive the speed limit.
-Limit hard accelerations and braking.
-Keep up on maintenance.
-Keep tires well-inflated.
-Limit idling time.
-Try to cut back on A/C use when possible.

Most of these things should be common sense, but it blows my mind how many people still waste way more fuel than necessary by driving like maniacs. Ironically, it’s very likely that many of these lead-foot drivers are the ones who complain the most about high gas prices. That’s like complaining that you’re overweight as you down a Big Mac meal.

Why hypermile? There are several good reasons too.

1.) You help the environment. Less fossil fuel burned, less emissions, less carbon in the air.

2.) You save money at the pump. Even global warming conspiracy-theorists can’t argue against this one.

3.) Your car will likely require fewer repairs and last longer. My grandpa’s old Ford Escort is still running at 230,000+ miles. His secret? Regular maintenance and driving sensibly. Imagine that.

4.) You help reduce our dependence on foreign oil. President Obama acknowledged this one. Remember the off-shore drilling debate during the presidential race? Obama stated that if Americans would simply keep their tires inflated to the recommend levels, we would save as much oil as what would be produced by proposed off-shore drilling plans. The “drill-baby-drill” Republicans criticized him heavily for this remark, not surprising given their coziness with big oil. Obama was absolutely right though, and I hope at least some people took note.

Maybe I’m just nerdy, but I enjoy trying to get the best gas mileage possible. It’s like a game; I just tap into my competitive side and try to beat my mileage on the last tank. I keep a log in my car, then enter the numbers into an Excel Spreadsheet (screen shot below), where I can easily see my MPG’s over time while keeping a running average (35.567 since buying the car).

I’m also beginning a new experiment (which is noted in the last entry). Here in Iowa the 10% ethanol blend usually sells for 8-12 cents cheaper than the regular unleaded, so I always used to fill up with it without even thinking. However, it’s a well-known fact that ethanol burns less efficiently than gasoline, but enough to make up for the price difference? I figured that warranted a test. So for the next 10 fill-ups, I’m putting in the regular unleaded blend. Then I’ll calculate whether or not the (likely) increase in mileage is enough to make up for the higher price. It’ll probably be a matter of nickels and dimes either way, but it will interesting nonetheless.

Paul Hawken Commencement Address

I’ve dropped Paul Hawken’s name here before, and I’d like to mention him again. Hawken is an environmental entrepreneur, writer, and activist. Lately I’ve been devouring his writing (currently, Blessed Unrest).

There is no shortage of negativity when it comes to the most daunting issues we face. Hawken is different though- he acknowledges how frightening our self-inflicted problems are, yet is cautiously optimistic in his outlook. He believes that humanity has the resources to overcome the challenges before us and thrive like never before. It’s refreshing to read such a perspective.

Hawken recently gave a commencement address to the graduating class of 2009 at the University of Portland. It’s a powerful message in print; I can’t imagine the profound effect it had in person. I think it’s certainly worth passing along.

Paul Hawken’s U. of Portland 2009 Commencement Address

Consumerism, Part 2: Effects

We’re led to believe that buying stuff is generally good. After all, we’re stimulating the economy when we do so. The GDP goes up, stocks go up, employment goes up, and economic progress is made. One might even feel patriotic by spending money, especially on domestically-originated goods or services (the American automakers have been playing that card big-time).

The above effects in and of themselves are certainly positive developments, but there is far more to the picture. Let’s consider a few less-desirable consequences of a material-crazed culture.

1.) Environmental destruction:

The American way of life has literally been destroying the planet. We’re addicted to big houses, big vehicles, big malls, and tons and tons of stuff. The resources to fill our wants don’t come from nowhere- we’ve been overexploiting the world’s resources to get them.

Everything about our current economic system, from destructive resource harvesting to the end waste products, is completely unsustainable. A big problem is that we don’t feel the harmful effects of our decisions. Most of us don’t personally see the clear-cutting of Amazon rainforests, the destruction of acid-rain, or the extinction of another native species. Sure we hear about such tragedies, but hearing and feeling are too completely different things; the former doesn’t often overcome our earthly desires.

We’ve all probably heard the following statistic-with roughly 5% of the world’s population, the U.S. consumes around a quarter of world’s energy. The figures for the solid waste we generate are also extremely disproportionate. The world does not have enough resources for many more people to live a similar lifestyle (or even to sustain the current imbalance for much longer). Unless we quickly move towards embracing a lifestyle that doesn’t trash the environment to fill our gluttonous ways, we are in serious, serious trouble.

I have Paul Hawken to thank for truly opening my eyes on this issue. I recently read “The Ecology of Commerce“, a book I will most definitely never forget. I can’t wait to get my hands on some more of his work, primarily “Natural Capitalism“. I couldn’t recommend Hawken’s writing enough.

2.) Financial health:

Consumerism has absolutely wreaked havoc upon our nation’s financial health , in large part leading to the recent financial crisis (I kind of touched on this here).

We largely set ourselves up for great unleveraging that began last year. Without a lick of common sense, we collectively chased houses, cars, clothes and hoards of other material goods without the means to actually pay for them. Since we didn’t have the money to pay for something right away, nor the patience to save up until we did, we just tapped into the great river of easy credit. Foreigners supplied much of this credit, allowing government and individuals alike to spend beyond our means.

The financial crisis was a major wake-up call- it was if someone rattled our cage and woke us from our dreamland.. The bill (the first installment of it anyway) arrived, and we stared at it in awe wondering how we could have been so foolish.

Thankfully Americans are doing much better nowadays. The personal savings rate is the highest its been anytime over the past decade- imagine that, Americans actually spending less than they earn! Businesses and individuals who provide repair services are thriving, because we’re fixing things rather than automatically throwing them away and buying new. People are flocking to libraries, thrift stores, Craigslist, garage sales, and bulk retailers. We have generally become more thrifty in the past year.

Of course, the big test of our newfound frugality will come when the economy starts to improve. When the nightly news talks about something other than economic Armageddon, will we maintain our sustainable financial ways? Or will we fail to learn from history once again and revert back to material-crazed lunatics?

I believe there’s a pretty strong negative correlation between excessive consumerism and our nation’s financial health. By placing such a high value on physical stuff and wanting it now, we’ve been borrowing against our future.

3. Quality of Life:

This one is definitely more subjective than the first two, but I think it’s still worthy of mention. It’s easy to lose a sense of what’s really important when we get caught up in the rat race of working harder and harder to fund our ever-growing material desires.

Does more stuff actually add more quality to our lives? To an extent, probably. But not to the extremes that we pursue it. Much of the stuff that we buy isn’t to aid in fulfilling a deep desire, or help us pursue something that we’re passionate about. Rather, it’s often a purchase made because of the influence of advertisers, as temporary ego boost, or to use as a status symbol.

Would replacing my reliable Civic with a brand-new ride increase the quality of my life? I’d be on a high for a little while, and the bells and whistles would undoubtedly be cool, but I would conclude that it really would not add more value to my life, so long as my Honda keeps running efficiently and reliably. I don’t have any deep desire that would be fulfilled by having a sweet ride.

I think I’ll keep my trusty Civic and instead continue saving money little by little to fund things like travel opportunities in the future. A trip to the UK would easily provide me personally with more lasting value than trying to appease materialistic impulses.

I don’t want to come across like I’m denouncing the ownership of physical goods altogether. Ever since coming home bruised and beaten after my first time on a snowboard, I knew I would enjoy having a board of my own. At some point in the future, I think I could make that purchase completely on my own accord. Likewise, if a person thoroughly enjoys and derives plenty of satisfaction from owning a sports-car, there’s nothing wrong with that (my vehicle example was about me personally, not a universal criticism of new-car purchases).

What I am trying to illustrate is this; if we act on impulse, let our ego affect how we spend, and succumb to outside influences, our financial habits likely aren’t congruent with who we are. That’s how we can spend years and years chasing money and stuff and yet become more and more unsatisfied as we acquire additional prizes.

Think about how many hundreds of billions of dollars Americans spend every year in a futile pursuit of consumer happiness. How much better off we would be if we dropped the influences of materialism and instead managed our money with 100% consciousness?

I think we would astound ourselves.

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