Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Wednesday, March 16, 2011

An Excerpt from Aerotropolis: The Way We’ll Live Next

Excerpted from "Aerotropolis: The Way We'll Live Next" by John D. Kasarda and Greg Lindsay, published in March 2011 by Farrar, Straus and Giroux. Copyright © 2011.

The Sustainable Aerotropolis

If anything, a social stigma against flying has begun to settle across Europe, akin to Americans' nausea over SUVs. The EU has voted to incorporate aviation into its cap-and-trade scheme, requiring airlines to pay for 15 percent of their pollution beginning in 2012-a lot to ask from an industry barely breaking even. Three u.s. airlines are suing for an exemption, and the governments of the United States, Canada, and Mexico have lobbied the United Nations for the same. "When you look at some of the taxes and fees being discussed in Europe," said an MIT researcher, "we might as well bankrupt our industry today."
It was against this grand tableau of grandstanding, stat-slinging, politicking, and weekend homes in Languedoc that a thousand Britons all of whom, incidentally, had taken trips abroad in the past year-were asked: Just how bad is flying, anyway, as a percentage of all the carbon emissions in the world?
Nearly a third were honest, confessing they had no idea. A fifth guessed 40 percent or more. Half thought it was at least 15 percent. The remainder penciled in 5 percent or less.
The answer: 2 percent. How did they overshoot the real figure so badly? Because we tend to think of our carbon footprints as the outcome of personal choices and personal virtue -"What can I do to shrink mine?" we ask. The answers, inevitably, are drive a hybrid, eat organic, and recycle. (When it comes to flying, the Japanese airline ANA discreetly asks passengers to use the terminal bathroom before boarding, in order to lighten the load and save fuel.) Seen from this perspective, boarding a transoceanic flight is maybe the single most destructive thing you could possibly choose. But underlying our individual choices are nearly invisible networks and systems of which aviation is just one, generating 2 percent of emissions. The others that make up everyday life are much worse:
Housing. The true cost of America's housing bubble is a landscape generating half of all greenhouse-gas emissions, according to estimates based on data from the U.S, Energy Information Administration. Residential buildings alone account for 21 percent of national energy consumption-a number driven by the expanding size of the average U.S. home, which today measures twenty-four hundred square feet, a 140 percent increase since 1950.
Food. As mentioned earlier, the United Nations estimates livestock's share of worldwide greenhouse gases at 18 percent, a combination of methane produced by the animals and the fossil fuels used to raise and eat them. Even a contrarian like the agricultural historian James E. McWilliams - no fan of organic labels or Michael Pollan - readily concedes meat carries too high a price for us to keep eating it.
Driving. Every form of transport known, save those powered by foot or by wind, combines to emit 13 percent of all emissions. Aviation is a fraction of that fraction-a sixth of the exhaust from cars, trucks, and anything else powered by an internal combustion engine. And that's before everyone in the developing world receives a driver's license.
But aviation is growing faster than any of these, a statistic its critics have zeroed in on. In echoes of the Jevons Paradox, it's growing fast enough to outstrip all of the industry's earnest efforts to increase fuel efficiency, whether that means younger, lighter, and fuller planes, cleaner engines, or smoother descents-although the airlines are striving to keep up. In the United States at least, their emissions actually fell for most of the last decade due to belt-tightening by 2.6 percent between 2000 and 2007, despite carrying 20 percent more passengers and cargo over that span. For similar reasons, the price of jet fuel actually peaked ten years ago, just before 9/11. But Europe's easyJet addiction will prove harder to quit, and coupled with renewed growth in the Middle East and Asia, flying's total carbon contribution will likely rise to 5 percent by 2050.
Another caveat is that commercial aircraft release their carbon in the lower reaches of the stratosphere, where greenhouse gases collect. To account for this, the Intergovernmental Panel on Climate Change has raised aviation's effective contribution to 3 percent-a figure equal to a quarter of the traffic on the world's highways, or half the respiration of our homes. Even at its highest estimates, it isn't likely aviation will overtake driving as one of the most ergregious global warmers, let alone factories and electric turbines. So why don't we focus our energies on fixing them instead?
The biggest smokestack in the world is China, and this has nothing to do with its airports. Its power plants and factories consume a third of the world's coal-2.4 billion tons annually and growing, already double what it was burning a decade ago. China expects to have 130 million cars on its roads by 2020, and more than the United States by 2050 (or maybe 2040). It has overtaken the United States as the world's worst polluter, partly because of its size, but mostly because of its waste. China posted the highest six-month rise in carbon emissions of any nation in history through the winter and spring of 2010. The World Bank estimates as much as half of China's miraculous growth would vanish if the costs of rampant pollution and environmental degradation were factored in. If China's emissions continue climbing at the same rate as they have for the past thirty years, the country will emit more greenhouse gases in the next thirty than the United States has in its entire existence. For these reasons, China is going green by building the world's largest domestic market for batteries, wind, and solar energy, and then cornering our market via air.

Tuesday, January 18, 2011

Tracking the Trends

Back in 1964 Bob Dylan famously sang that “times, they are a-changin’.” The 1960s were a time of momentous change in the United States, but he could have just as easily been talking about the first decade of the 21st century. The demographic makeup of the United States is always shifting, but once every ten years researchers are gifted with snapshot of the country’s makeup. I’m talking, of course, about the U.S.Census and more specifically its 2010 iteration. Much has already been made of the political ramifications of the population count with Florida and Texas siphoning six seats from New York, Michigan, Pennsylvania, and others (for instance this Washington Post article). While these political changes will undoubtedly have an effect on the future of the country, there are trends that will have larger, more far reaching effects.
   Today, my Kenan Institute colleague Dr. James Johnson Jr. and I released our report “Six Disruptive Trends: What Census 2010 Will Reveal.” In this report we preview some major themes that we believe the full data from the 2010 Census will corroborate--we’ve drawn our data from a variety of sources, including intercensal statistics from the Census Bureau, the Bureau of Labor Statistics, and other government agencies. What do we mean by disruptive trends? If left unacknowledged, these trends have the ability to weaken the competitive advantage the United States still holds in the global marketplace. On the other hand, if dealt with in a deliberate and thoughtful manner, these trends offer an opportunity to reinvigorate the U.S. workforce and create new marketplaces for consumer goods and services. By putting the spotlight on these changes we hope that business and government in America will adjust accordingly to capitalize on these trends.
    So, what have we found? While our paper tackles these trends to a much greater depth, I intend to explore each of these movements in later posts.

1) The South Continues to Rise: Over half the population growth in the United States during the past ten years has occurred in the South. This has been primarily due to the migration of people from all demographic groups and higher fertility rates among some groups, particularly Hispanics.

2) America Is Browning: nonwhites made up an estimated 85 percent of U.S. population growth.

3) Marrying Out Is So In: Marriages between people of different ethnicities has doubled since 1980 with those between Hispanics and whites accounting for 41 percent of all racially mixed marriages.

4) The Silver Tsunami Is Arriving: Nearly 80 million baby boomers will be retiring over the next 20 years. The largest generation in America will put immense pressure on social security and the healthcare system as they will also have longer lives.

5) Closing the Wage Gap?: Almost half of all jobs in the United States, 49.8 percent, are held by women. Similarly, women are more likely to attend college and hold jobs that are less likely to disappear in economic downturns. Most surprising? In some metropolitan areas, women are earning up to 20 percent more than men due to higher educational attainment!

6) Grandparents as Parents: Between 2001 and 2010 over the number of children living in grandparent-headed households increased by 26.1 percent. As this phenomenon continues to grow it will put increased financial strain on older generations

These six trends point to an increasing diversification of the American populace in several different areas--especially age and racial/ethnic makeup. A new array of products and services, tailored for age, lifestyle, and culture, will be demanded. How will businesses and communities respond? Share your opinions and comments and read the full article, available on the Kenan Institute’s website.

Friday, December 17, 2010

Introductions

Welcome to my new blog! As you can see from my profile my name is John D. Kasarda, and I’m the Director of the Frank Hawkins Kenan Institute for Private Enterprise at the University of North Carolina at Chapel Hill. In my upcoming blog posts I will explore and share my thoughts about a variety of topics. Expect posts about aviation and infrastructure, economic development, demography, the Aerotropolis, and many other subjects.

Additionally, in March of 2011, Greg Lindsay’s and my new book, Aerotropolis: The Way We’ll Live Next is being published by Farrar, Strauss and Giroux. I’ll be posting more information about the book on this blog and writing about many of the concepts that appear in the book. Please take a look at the Aerotropolis website for reviews, blurbs, and more information my other publications and research.

I hope you enjoy reading this blog as much as I enjoy discussing the concepts. I encourage you to leave comments about my ideas or your own ideas, and I’ll attempt to answer your questions as best I can. I look forward to our future discussions!