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Economics Environment Politics & government

[1257] Of a sensible US proposal but a better German option

Anthropogenic climate change is a contentious issue in the international arena; it is a tragedy of the global commons. The latest high profile debate took place at the Germany-hosted G8 summit in the week of June 6 2007. The discussion stayed true to the current trend that no longer doubts the existence of human-induced climate change but rather, seeks to mitigate the effects of climate change. At the meeting, two road maps were presented: one by Germany and another by the United States with the former being supported by a clear majority. Within this context, I fall within the majority but that does not necessarily mean I reject the US version outright.

The German proposal calls for the halving of the 1990 global carbon dioxide level by 2050. Such suggestion would limit temperature increase to between 1.5 and 2.5 ºC. If it is adopted as the son of Kyoto, it would be binding just like Kyoto. As a note, the Kyoto Protocol demands a 5% cut of carbon dioxide as well as five other greenhouse gases from the 1990 level by 2012.

The US has refused to that proposal and has come up with an alternative of its own. Instead of reducing the level of carbon dioxide in the atmosphere, it seeks to concentrate on reducing carbon intensity. Carbon intensity is simply a fancy word describing the ratio of carbon emissions to gross domestic product (GDP): the lower the figure, the more efficient the economy operates in term of carbon emissions.

While politically angry at the US, I am sympathetic to the US suggestion after giving it a fair inspection.

It is typical to blame countries with the larger total annual emissions of contributing to climate change. Applying the total annual national emissions as a basis of comparison is dependent on the size of the country, population and geography-wise. The larger a country is, the higher the emissions would be with all else equal. For instance, Malaysia contributed 0.6% of global emissions in 2002. If ASEAN is to be taken as a state, it, inclusive of Malaysia, would produce approximately 3.7% of global carbon emissions in 2002. That would rival a smaller Germany which contributed 3.3% of global emissions in the same year; Germany according to Wikipedia, based on figures produced by the United Nations Statistics Division, was the sixth largest emitter of carbon dioxide in 2002. Such comparison does not control for population or economy size. Without such control, the data is noisy and produces misleading conception.

In other words, using annual national carbon emissions for comparison purpose is almost meaningless and unfairly put too much blame related to climate change on the shoulders of large countries. What would be better for comparison purpose is the carbon intensity measurement as proposed by the US. Or, perhaps, my favorite, emissions per capita.

Take a look at annual national emissions in 2002:

GFDL. Wikipedia. http://en.wikipedia.org/wiki/Image:Ratio_of_GDP_to_carbon_dioxide_emissions.PNG

Then, observe carbon intensity in 2005 (in this graph, the red is below world’s average and green is above; the dimension is GDP/emissions. The inversed dimension means higher figure equals to higher efficiency):

GFDL. Wikipedia. http://en.wikipedia.org/wiki/Image:Countries_by_carbon_dioxide_emissions_world_map_deobfuscated.png

For emission per capita in 2003:

GFDL. Wikipedia. http://en.wikipedia.org/wiki/Image:Countries_by_carbon_dioxide_emissions_world_map_deobfuscated.png

Despite me preferring carbon intensity used as comparison purpose to annual national emissions, why would I not lending my support to the US proposal?

The answer is this: we need to lower the level of carbon dioxide in the atmosphere. In fact, not just carbon dioxide but other sensible greenhouse gases. Lower carbon intensity alone does not do that job. Indeed, effort to lower carbon intensity does not mean lower global carbon level. During a period of economic boom and technological progress, efficiency as well as the carbon level could increase. Depending on the rate and volume, it would lead to increase in carbon level in the atmosphere.

How is that possible?

Efficiency is essentially a multiplier and it basically could reflect emissions reduction know-how. Greater technological level could permit greater efficient; lower rate. Then we have volume which could be interpreted as economic activities. Finally, of course, there is some rate of carbon absorption by nature. The diagram below illustrates the flow versus level model which is typical in economics:

By Mohd Hafiz Noor Shams. Some rights reserved.

The product of efficiency and volume, subtracted with the amount of absorption could be positive. To make it clearer, assuming increased efficiency leads to lower emissions, ceteris paribus, a sufficient increase in volume could erase any reduction made possible through higher emissions if volume is held constant.

The US proposal does not address that but the German proposal does. Hence, my support. Despite that, the German proposal should incorporate the other suggestion without losing sight of the level reduction goal.

Categories
Economics Environment Politics & government

[1254] Of G8 on climate change

Categories
Activism Photography Politics & government

[1245] Of KJ refused the invitation

I attended the DAP forum yesterday.

By Mohd Hafiz Noor Shams. Some rights reserved.

The son-in-law did not come but that is not at all a surprise because he had made it clear right from the onset.

Regardless, while I have made up my opinion on the matter, the forum did enlighten me on a few matters. So, I must say, it was not a waste of time.

Categories
Politics & government

[1237] koo-koo-ka-choo Mr. Khairy

Sitting on a sofa on a Sunday afternoon.
Going to the candidate’s debate.
Laugh about it, shout about it
When you’ve got to choose
Every way you look at this you lose.

— Mrs. Robinson. Simon & Garfunkel

Today in The Star, Khairy runs away from debate:

KUALA LUMPUR: DAP’s economic adviser Tony Pua said his statement on the civil service had been misconstrued by Khairy Jamaluddin and he challenged the Umno Youth deputy chief to a debate on May 30.

Pua said he was issuing an open challenge to Khairy to participate at the public debate on “Civil Service Excellence — Quality Vs Quantity” to be held at the Selangor Chinese Assembly Hall, “or at any place and time of his choosing.”

However, in an immediate response, Khairy said that he would not entertain Pua’s challenge to a debate, adding that it was an attempt by the Opposition to divert the subject to something else. [Khairy misread statement on civil service, says Pua. The Star. May 26 2007]

Remember the last time Khairy tried to challenge another DAP politician?

That was mate in one, not unlike this chicken run on the civil service.

Anyway, roasted chicken anyone?

Categories
Economics Environment Humor Politics & government

[1228] Of too witty to be serious

Panda Kong:

Copyrights by The Economist. Fair use.

Roar!

IF THE guest list determined a meeting’s value, the Strategic Economic Dialogue between China and America on May 22nd would be a roaring success. Almost half the Chinese cabinet is trooping to Washington, DC, for the second of the twice-yearly discussions, conceived by Hank Paulson, America’s treasury secretary, between the world’s largest economy and its fastest-growing one. The process was designed, in large part, as an antidote to the latest case of Asiaphobia among America’s politicians. [America’s fear of China. The Economist. May 17 2007]

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

p/s — also at The Economist:

Conservationists—and polar bears—should heed the lessons of economics.

[]

One reason for this taxonomic inflation is that the idea of a species becoming extinct is easy to grasp, and thus easy to make laws about. Subspecies just do not carry as much political clout. The other is that upgrading subspecies into species simultaneously increases the number of rare species (by fragmenting populations) and augments the biodiversity of a piece of habitat and thus its claim for protection.

In the short term, this strategy helps conservationists by intensifying the perceived threat of extinction. In the long term, as every economist knows, inflation brings devaluation. Rarity is not merely determined by the number of individuals in a species, it is also about how unusual that species is. If there are only two species of elephant, African and Indian, losing one matters a lot. Subdivide the African population, as some taxonomists propose, and perceptions of scarcity may shift. [Hail Linnaeus. The Economist. May 17 2007]