Categories
ASEAN Environment

[1069] Of a non-binding energy treaty

In the recent ASEAN Summit, member states agreed to a pact that calls for alternatives to fossil fuel:

CEBU, Philippines: Leaders from 16 Asian nations signed an energy security accord Monday that they said would reduce the region’s dependence on fossil fuels and promote the use of alternative energy sources.

Briefly mentioned was the reduction of carbon emission:

The Cebu Declaration on East Asian Energy Security, announced Monday, set a wide range of goals, including a promise to “mitigate greenhouse gas emissions through effective policies and measures.”

Those alternatives seem to mainly include biofuel and nuclear energy. Unfortunately, the pact, much like other ASEAN-initiated treaties, is practically unbinding:

The same scepticism holds good for other agreements reached at the latest summit: one to improve the rights of the millions who move between ASEAN countries seeking work; another to improve co-operation against terrorism; and a third, signed with other East Asian powers, to cut greenhouse-gas emissions and promote renewable energy supplies.

Read the fine print and you will find few significant commitments, let alone concrete targets. ASEAN leaders like the rhetoric of union but not the obligations of it.

The new energy pact is of course a step into the right direction, just like the u-turn made by Bush weeks after the ASEAN Summit. It signals the growing realization in Southeast Asia that we need to do something with our dependency on fossil fuel. Regardless whether climate change is part of the realization, the reduction in carbon emissions which is part of the target is definitely a welcoming target.

Even before the energy pact was signed in Cebu, the Phillipines, member states Malaysia and Indonesia were gearing for biofuel. Almost outrageous plans on both sides of the Malay Archipelago were buzzing. One of them included a mega palm oil plantation on Indonesian Borneo. The plan has since been defeated after protests from environmentalists:

WWF successfully defeated a proposal for the world’s largest oil palm plantation, which threatened to destroy the last remaining intact forests of Borneo.

In Malaysia, a compulsory mixed of biofuel into civilian ground vehicle-worthy gasoline will be enforced in the near future:

Malaysia has announced plans to switch from using diesel oil to a part bio-fuel alternative.

Commodities Minister Peter Chin said laws were being drafted to make the use of such fuel compulsory by 2008.

Negotiations have begun with petroleum companies, to persuade them to produce fuel using both mineral and vegetable oils, the government has revealed.

The government favours fuel from 19 parts diesel to one part palm oil, and says engines do not need modification.

Similar measure is being implemented in the Philippines:

San Fernando City, La Union (15 January) — With the signing of the Biofuels Act into law by President Gloria Macapagal Arroyo, will pave the way for the Philippines to become self-reliant on energy.

According to the Act, the law will promote the use of alternative, renewable energies such as compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and any liquid at least 85% of the volume of which consists of methanol, ethanol, or methyl ester such as coco-biodiesel.

Apart from biofuel, Indonesia is planning to construct four new nuclear power plants:

The Indonesian government has proposed building four nuclear plants at the foot of a 1,600-metre dormant volcano in central Java as part of a long-term plan to meet its energy needs.

The four reactors will cover the size of about 600 football fields near the farming village of Balong, to be built in stages over 10 years.

While the government is enthusiastic about commissioning the first plant by 2015, many are concerned about the proposed site in the shadows of Mount Muria, which has been dormant for 3,000 years.

Malaysia is also mulling the idea of nuclear power plant though nothing definite has been brought to the table yet. Instead, for better or for worse, hydro power is seen as a major source of electricity for years to come.

While the two alternatives diversify the countries’ — as well as ASEAN’s if the pact is adhered at all — energy sources, there are issues related to them.

The expansion of palm oil will eventually bring about deforestation. While biofuel is carbon-neutral, deforestation is not. In fact, Brazil is one of world’s major emitters of carbon due simply to the current massive deforestation of the Amazon. In combat climate change, the expansion of palm oil plantation for the purpose of biofuel production provides a dilemma for policymakers, if not downright paradox.

In contrast to all other energy sources, nuclear produces almost no carbon emission and does not involve deforestation the way biofuel or even hydroelectric dam requires. It is perhaps the ultimate answer to the problem of climate change. Of course, radioactive waste is a major issue that blunts environmental appeal of nuclear power.

While I prefer the pact to stress more on green renewables energy such as wind and solar, the greatest failing is not the exclusion of green renewable energy. The greatest disappointment really is the non-binding nature of the agreement.

What is the point of signing a non-binding agreement?

Categories
Economics

[1068] Of blanket subsidy is inferior to targeted subsidy

Subsidy leads to inefficiency. Notwithstanding the reasoning, sometimes subsidy could be justified; sometimes, efficiency is not the only consideration of a society. The word subsidy is commonly heard when a society tries to address the problem of inequity; subsidy is a tool of wealth redistribution.

I maintain a high dose of skepticism against any subsidy policy. Yet, I am prepared to lower my opposition if such subsidy is well-tailored. A well-tailored subsidy however does not include blanket subsidy; blanket subsidy is the worst form of subsidy one could ever think off. An example of blanket subsidy is the current Malaysian fuel subsidy.

A blanket subsidy is a lazy policy — at best, clumsy — formulated to solve a perceived problem. It generalizes society, assuming that everybody in the society is in need of the subsidy; that people are fully homogeneous. On the contrary, people are heterogeneous to a very large extent. If people were completely homogeneous, I do not doubt that communism would have ruled supreme.

That generalization is costly. The generalization, believing that the lower, the middle and the upper economic class are equally needing of or benefiting from a blanket subsidy is an expensive proposition. It is expensive because it gives benefit to those that value such subsidy the least; the rich values subsidy less than the poor. A blanket subsidy does not make that discretion. Therefore, a blanket subsidy regime pays too much to increase societal welfare whereas in fact, a better policy would have done the same job with lesser resources. One of those better subsidy regimes is a targeted subsidy.

A targeted subsidy policy specifically identifies a segment of a society that is in need of aid and then aids only those that in need of aid.

With a targeted subsidy, resources that would have been used under blanket subsidy could be used to make investment in education or other areas that could permanently and structurally increase societal welfare.

Not only that blanket subsidy as a policy is expensive, somebody has to fund it in order to maintain such policy. Resources ultimately has to be sourced from the society; the taxpayers. The society has to be taxed in order sustain any subsidy. Therefore, to defend a blanket subsidy as a mean to increase societal welfare is almost oxymoronic. The society is being taxed to support a subsidy — you pay me to pay you, all else being equal.

In my opinion, rather than support a subsidized regime as far as the current Malaysian fuel subsidy is concerned, it is better to promote tax reduction instead. Or a hybrid tax reduction-targeted subsidy policy if we are so hooked up on the crack that is subsidy. Rather than you pay me to pay you, why don’t you just keep your money for yourself?

Categories
ASEAN Sports

[1067] Of good luck, negaraku

All the best to the Malaysian national team. You guys did good the last time. Make it better this time.

I would have gone to Singapore today but the Cameron Highlands trip was a little bit too exhausting for me. Worry not though for my heart and mind are there with you.

Go get ’em Tigers.

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p/s — GOAL! GOAL! GOAL! GOAL FOR MALAYSIA!
Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
pp/s — it is full time and it is a draw, 1-1. Extra time is up soon.
Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
ppp/s — it all came down to penalty shootouts. It is a loss for Malaysia unfortunately. Good game nevertheless.

Categories
Politics & government Society This blog WDYT

[1066] Of WDYT: BN in the next general election

I am testing two new plugins. So, let us begin!

In light of current development, if a general election is held in 2008, how many seats in term of percentage would Barisan Nasional control as the result of the election?

  • 80% or above (32%, 10 Votes)
  • Between 70% and 80% (19%, 6 Votes)
  • Anywhere from 60% to 70% (29%, 9 Votes)
  • Below 60% (19%, 6 Votes)

Total Voters: 31

Loading ... Loading ...

This survey is not as nearly as scientific at all. So, if there is any statistician wannabe out there, spare me the lecture.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — The Background is probably Third Eye Blind’s most underrated song.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

pp/s — this is a sticky post. I intend to keep the poll open until next Friday. And please vote only once. I have taken the necessary basic steps to ensure one vote per unique visitor but it is not too hard to circumvent the rules I (or rather, the author of the plugin) have set in place.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

ppp/s — I changed my mind. Until Thursday instead of Friday. I need to make Metblog KL as a sticky post.

Categories
Environment Photography Travels

[1065] Of environmental stewardship in Cameron Highlands

I just got back from Cameron Highlands and I can say with confidence, environmental stewardship is meaningless there.

I saw many hills completely striped off of precious trees to make way for agricultural and other developmental purposes. Trash is unmanaged with the river so full of it. Dust as well as the crude sound of heavy vehicles fill the air. Nature has simply been overwhelmed; the rape is merciless.

This is somewhere near the entrance to Bertam Valley, a couple of kilometers away from Ringlet:

Some rights reserved. By Mohd Hafiz Noor Shams.

Somewhere in between Simpang Pulai and Kampung Raja, a great hill, much prouder than the one in the photo has one of its sides completely trimmed, raped of vegetation for a new highway; from the top all the way down.

Sometimes, I am amazed at the power humanity wields. We shape the world as if we were the gods themselves.