Category Archives: energy

Power To Choose

Below (and here) is a video of comments I made a few weeks back at an event called “Power To Choose,” sponsored by the WWF, Greenpeace, the Ontario Clean Air Alliance, Sierra Club of Canada, and the Pembina Institute. I’m honoured to have been one of the five initial presentations chosen for the web, along with people like NDP MPP Peter Tabuns and Gord Miller. Regular readers may notice similarities to two previous posts, The Triple E Crisis, Plus and My Canada Includes The Laws of Thermodynamics.

Hummer vs. Prius, Regulation vs. Market Signals

The headline on the front page of today’s Globe, Ottawa can’t shift green rebates into gear, is regrettably predictable. In short, not a single buyer of a 2006 or 2007 eligible model has yet received the rebate they’re entitled to under the ecoAuto program. Further, no one knows what 2008 models are eligible for the rebate (it hasn’t been announced), causing confusion and inconsistency that’s creating a “customer nightmare” and adding “an element of risk to doing business in Canada” according to Honda and DaimlerChrysler, respectively.

What’s worse, these rebates never made sense in the first place. Vehicles were made eligible for rebates based on their class first, and their emissions second. In other words, if you buy an “efficient SUV” you’re eligible for a rebate not available to someone who buys an “inefficient” regular car, even though your SUV emits more carbon emissions.

Add to the mix this confusing column about a study that concluded a Hummer is greener than a Prius, and early-eco-adopters must be ready to throw up their hands in defeat. The study took into account the total “dust to dust” (I prefer “cradle to cradle,” but ok) energy and material inputs for each vehicle, and concluded that a Hummer’s life-time environmental impact is less than that of a Toyota Prius.

Did the study get it right? I doubt it. Others have already pointed out a number of flaws and question marks with the methodology. For example, the study authors arbitrarily assigned the Prius a lifetime of 100,000 miles and the Hummer 300,000 miles (artificially amortizing the embedded energy required for research and production over a much longer period), despite the fact that a Prius will last at least twice as long as that. Not to mention the fact that the study was conducted not by a scientific group, but by a marketing company whose client list includes Chevrolet, a brand of Hummer-manufacturer General Motors. (I’m yet to see that reported anywhere, by the way.)

Why has this report nonetheless garnered so much attention and so little scrutiny outside of the blogosphere? Well, if it were true, wouldn’t it be great to rub it in the face of that treehugging, smug, judgmental Prius-owning neighbour of yours? In some circles, “environmentalist” is still a tainted word, hearkening back to the arrogant, ignorant EPA official in Ghostbusters who almost destroys the whole world with rash actions motivated by his presumed superiority.

And what if, on the other hand, there is some truth to the report? It’s possible. Considering the full life-cycle environmental and energy impacts of everything we make is a very important thing to do, and the results will often surprise us. That’s why it’s sometimes difficult to tackle extremely complex problems through government regulation, and why it would be more effective in this case to harness market tools as well. A carbon tax applied early in the process would help to reveal and deter hidden energy bloat at every stage in the production process.

Government regulation can’t do that. Turns out they can’t even send out a simple cheque.

The Globe And Mail Backs Me On Biofuels

Well, I mean, they didn’t name me specifically. But just in case anyone thought my post earlier this week about the danger of biofuel from food crops needed some further support, the following story was on the front page of the Globe and Mail today:

Ethanol boom helps fuel global run-up in food prices

Food prices are heating up globally as soaring energy costs, wonky weather and an ethanol boom all combine to push grocery bills higher.

Canadian food prices are 3.1 per cent higher than a year ago, Statistics Canada said yesterday, well ahead of last year’s rate of 2.4 per cent. Higher prices for meat and dairy are the main culprits, but the pickup in prices spills into everything from bread and applies to ice cream, eggs, jam and juice.

The reasons vary with each product, but one factor behind higher prices may be an ethanol boom south of the border, with Canadian chicken and dairy farmers saying they’re seeing higher feed prices.

“Corn and wheat prices are putting upward pressure on food in general,” said Ron Morency, acting chief of Statscan’s consumer price division. “We see that right now in our meat prices.”

…”It’s not going to let up any time soon,” said Adrienne Warren, senior economist at Bank of Nova Scotia. “Short term, it might be weather-related. But longer term, it’s growing demand for food in emerging economies, with growing middle classes and purchasing power, and the global demand for ethanol and biodiesel.”

This month, the Organization for Economic Co-operation and Development said higher demand for biofuels is causing “fundamental changes” to agricultural markets that could drive up prices.

They see “structural changes” under way that could well keep prices for many agricultural products higher over the coming decade.

“We haven’t seen anything on this scale before,” Martin von Lampe, an agricultural economist in Paris at the Organization for Economic Co-operation and Development, told Bloomberg News.

Net food importing countries, as well as the urban poor, will likely be hardest hit, the OECD predicts.