Archive for the ‘Climate Change’ Category

Friday, December 18th, 2009

As I wait to do my strategy exam (I’m in absurdly early to avoid snow related transport disruptions that never materialised), world leaders are busy carving up their rights to the sky. Global temperature increases of 2 degrees equate to about 3-4 degrees for Africa. The Copenhagen conference is provoking worrying memories of the Berlin Conference, which legitimised the scramble for Africa, behind the facade of humanitarian concern.

Afrikakonferenz

This time rich world leaders are professing their concern for the world, knowing that they will not bear the brunt, despite being largely to blame. Poor countries in Africa and elsewhere are being fobbed off with a climate change target that sentences them to disaster. It’s the scramble for Africa all over again. Except this time they’re not looking for African resources, they’re looking for the sky, their right to emit carbon, but by a twist of fate that comes at the expense of Africa and other extremely poor countries.

In fact it’s not a coincidence. Jared Diamond’s work (e.g. Guns Germs and Steel) argues that it is Africa’s geographical history (it’s admittedly more complicated than that alone) that condemned it to be the laggard of world development.  It’s still paying the price.

Tuesday, December 8th, 2009

We had a great speaker visit our final marketing lecture. A semi-retired head of marketing from one of the major US airlines. He now spends his time touring business schools talking about his experiences. The airline industry sounds like a tough place – a startling fact he told us is that since its beginnings, airlines have in total made an overall loss!

However when it came to answering a question about carbon emissions he was a bit disingenuous. He began by saying that we should “separate fact from rhetoric” and asserted that aviation only contributes 1.8% of global CO2 emissions. He then went on to ridicule climate change hypocrites who preach about climate change but keep flying. I’ve been googling to try and find the provenance of the 1.8% figure and can’t find it. I vaguely remember it being the figure used in one of the IPCC reports, or maybe the Stern report. I’d be interested to hear from anyone who can find the origin. I don’t doubt the truth of the figure but much more important is what it represents and what future trends are.

Everything I’ve read about this shows that this is a very complicated issue. Because planes fly so high, calculating the simple emissions may not be useful as at that altitude climate change emissions have a much bigger impact.

It is estimated that flying is responsible for about 13% of climate change emissions from the UK. Also flying accounts for a very high proportion of the typical Imperial student’s climate change contribution. I’m guessing that as a group we fly more than most – I just calculated that a return trip to New York, and a couple of trips in europe (to Rome and Madrid) come to about three tonnes of CO2. That’s about a third of the average UK emissions per person in 2005. So by this speaker’s logic, no one else in the world should be allowed to fly, to allow the ones who fly now to continue.

So the problem with flying is that they account for a very large proportion of our CO2 emissions and over the next 30 years will account for a similar proportion of the rest of the world’s carbon footprint; flying is increasing massively with development; and there doesn’t seem to be any prospect of major technological methods of reducing the climate change impact.

The speaker ridiculed the Bishop of London who said a while ago that flying should be considered a sin. I think that was a bit ostrich-like on the part of the speaker. There are billions of people around the world who have never flown and if they are ever going to get the chance to fly, then per capita flying needs to go down. It’s simple arithmetic. The Bishop of London may have been using dramatic language, couched in his own world view, but the fact remains that flying and climate change is going to be one of the big issues over the next few decades at least.

I’ve been trying to cut my flights down to only those necessary – for me that means weddings. We’ve taken a few overland holidays over the past couple of years where we would have previously flown. Using ChooseClimate I calculated the total warming effect of the flights I’ve taken since I graduated in June 2000. It’s the only carbon calculator I’ve found that takes into the extra effect of altitude:

My warming effects from flying

Sorry about the resolution – wordpress doesn’t like me today. The table below shows the numbers and the actual holidays this involved (I’ve excluded my one and only work flight!)

My holidays

I went to Morocco a lot! Five of these flights were for weddings. As you can see we have reduced our flying quite considerably – but we have the massive advantage of living near our immediate families. But even then we have had to make special efforts to miss out on all sorts of nice trips. Please, somebody, come up with a clean fuel for flying!

Monday, November 30th, 2009

We’ve been learning a lot in both strategy and marketing classes about how adjusting your perspective can yield insights into how you can market products in new ways. Product centred business mentality – where products are designed with the producers’ tastes or perceptions in mind – hardly ever yields great returns. I’ve posted below about the dangers of marketing, but in an example of great marketing thinking, customer focus and diligent research could help get electric cars ‘off the ground’.

Electric cars are currently bought by the “affluent, environmentally conscious, or technically enamored”. McKinsey suggests that electric car makers could widen their market by focusing on the trips that drivers actually take. Different trips, say commuting as opposed to driving around town, call for different battery requirements.

“The optimal battery size required for a plug-in hybrid driven around town is one-quarter that required by a sales rep.”

mckinsey electric car usage

(more…)

Saturday, November 14th, 2009

I loved the original Freakonomics book – it really got me interested in the power of data. However Levitt and Dubner seem to have boobed with their follow up, which makes me doubt the stuff in the original too. In a scathing critique of their treatment of climate change, Elizabeth Kolbert in the New Yorker ridicules their understanding. I haven’t read Superfreakonomics and frankly don’t plan to as it has been badly reviewed by almost everyone. It seems Levitt really messed up on the climate change stuff in the new book and he has even received an open letter from a fellow professor at Chicago dismantling a lot of his assertions. I agree with Levitt that it would be nice to avoid having to reduce carbon – but we can’t just hope for wildly dangerous geo-engineering projects that are uncertain to deliver. We need to reduce carbon emissions!

I agree with Kolbert on almost all points. However I think she dismisses some of the geo-engineering ideas a bit too quickly. I am all for carbon reduction but also believe that we should explore geo-engineering with our brains in gear. So the carbon eating trees actually may be a possibility – the main problem is getting them to work, rather than massive risks associated with them working (like with pumping SO2 into the atmosphere).

It’s a shame that Levitt didn’t use his brilliant mind to tackle the problems with incentive structures to reduce carbon emissions (carbon taxes, carbon finance etc).