Course:ECON372/OK2019WT2/Topic5
Efficiency and Sustainability
Group #1
https://interestingengineering.com/the-bleak-future-of-petroleum
Summary:
This article comes from the interesting engineering online publication, it talks about the changing landscape of our energy systems. Emphasizing the necessity of transiting our energy sources towards more sustainable and efficient means of energy production. Demonstrating that to accommodate the increase in population combined with our changing climate will require a change in our energy infrastructure. As the cost of most renewable energy has decreased over the past 10 years due to increased efficiency. These technologies are now able to rival non renewable sources of energy and could mean a more sustainable and efficient means of energy production.
Analysis:
Renewable are not only more environmentally sustainable as it relies on self replenishing resources and have a smaller environmental impact but are also economically sustainable. As it only takes a one time investment to generate the infrastructure necessary to produce energy with no other later inputs. It could be argued that due to their nature of instant energy production renewable are not only more sustainable but also more efficient. As most non renewables require infrastructure, extraction, refining and transportation. There are many more processes necessary to produce energy than renewables which only require infrastructure and transportation through the grid. When comparing long term cost it should be noted that nonrenewable like fossil fuels come with extra price tag. Combating the consequences of climate change or oil spill are extra cost that are attributed nonrenewable. However there are still major issues regarding the supply and use of renewable energy. This is because transmission constraints on the grid like stabilizing angular disturbance for renewables is difficult to achieve. Additionally supplying renewable energy at peak demand hours is still a challenge as most do produce constant energy and therefore must be stored.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 8 | Quality of writing and some unsupported assertions |
| Article Relevance (10) | 10 | |
| Summary (20) | 8 | Rather incomplete summary |
| Course Related Analysis (30-50) | 25 | Didn't really tie to class concepts. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 61 |
Group #2
Helsinki Stock Exchange tops sustainability disclosure ranking while most flatlined
Full report (click on "Free Results")
Summary
The report measured the percentage of companies in a stock market at which sustainability practices are disclosed (a.k.a. disclosure rates), the growth rate of these disclosure, and their respective timeliness. Although the indicators (turnover, energy, greenhouse gases, injury rate, payroll, water, and waste) encompasses a wider range of issues, they mostly relate to the consumption of natural resources as discussed in the course.
According to the report, growth rates of corporate disclosures about sustainability performance indicators has been close to zero, and sometimes slightly negative. While Argentina's Bolsa de Comercio de Buenos Aires, Hong Kong, and Shanghai improved greatly in this matter, the rest of the stock markets do not have any significant boosts. Across different metrics, injury rate and employee turnover has seen significant boosts, and reports on greenhouse gases emissions even decreased. The article identified a transition to tech-heavy industries, which tends not to disclose too much emission information, and the increased litigation and accounting risks of disclosure, as the main reasons for this fall.
In the 49 stock exchanges examined, the Finnish Helsinki Nasdaq tops the disclosure rate list, along with that of many European countries, and notably Thailand. The article also identified that larger companies tend to communicate sustainability more than those of smaller sizes, and with exception in payroll information, this trend is also the same in the case of developed economies versus emerging ones. With regards to sectors, the utilities sector performed best, and the consumer discretionary sector performed worst.
The article calls for better regulations, both voluntarily and compulsorily, to encourage more reports to happen to contribute to the goals of the UN SDGs and the Paris Agreement.
Analysis:
Disclosure in sustainability practices of corporations has a lot of ramifications about firms' attention to produce in a intertemporally efficient manner. However, as these rates halted, it seems like firms are more interested about present financial benefits than their values on the triple bottom line basis.
This lack of information, as the article stated, hampers the decision-making of environmentally-caring investors and clients alike, and therefore distort the allocation of funds from the optimal mix. Although companies do well in revealing payroll details, this is mostly due to the development of accounting standards like the IFRS. The unchanged rates were probably also caused by the voluntary nature of reporting sustainability with few legislative requirements - as companies are not incentivized to do so, they don't. While the utilities sector performed well in most metrics, this may just be because they're the industries that specializes in providing water, power, and emissions. Even more alarming, emerging economies - those who are most likely to be affected by climate change - do not report as much as developed ones. Essentially, necessary information such as the real social benefits of these firms' activities, as well as the validity of these conclusions, were not purposefully met. Companies in general seem to take a laisseiz-faire approach to sustainability, and their announcements are only existent due to pressure from their key stakeholders.
To the socially optimal quantities of products from being unknown, it is suggested that the social-benefit-maximizing governments of the world to strictly upgrade accounting standards, survey "green" practices, and set up specific requirements about these sustainability reports. Although these may incur additional marginal current costs (MCC), they help realize a more rational and accurate user cost (MUC - net future benefits of current production). From then, we can quantize whether companies are performing well in offsetting the value used up by natural resource capital with sufficient values in productive nonresource capital.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 45 | Stretching the concepts a bit, but overall good |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 95 |
Group #3
https://www.cbc.ca/news/canada/north/green-building-centre-yellowknife-1.5109859
Summary:
The Northern Ecology Centre and Yellowknife Dina First Nations have already worked in the Northern Centre for Sustainable Development, the first negative carbon building in Canada by 2020. This green building has four floors and is constructed from solar panels, water recycling, used wood and local materials. The building has cafes and public spaces, innovation centers, offices and residential units. The goal of construction is to prove what green building technologies can reduce carbon emissions, use gas efficiently, and create jobs. To reduce carbon emissions, buildings can use biomass boilers, which are large pellet heating systems that track carbon emissions in Yellowknife. With low-carbon technology, energy efficiency can be used effectively and can reduce the energy costs of building owners who spend twice as much time buying energy in southern Canada. Although the building received some funding from the government, universities, Canada's Tidal and private donors, for couples, the funding is still scarce and will be completed by November 2020. The North Center's sustainability project is not only energy-efficient and environmentally friendly buildings, but also the plan to create 87 jobs for the industry each year and create $ 11.8 million in GDP.
Analysis:
This article states that green buildings can reduce emissions for the environment and use the natural resource to be more efficiency and suitable to build the buildings. In Yellowknife, because of its geographical location in the Arctic, the demand for using heating systems is very strong. Yellowknife has been consumed lots natural resource on heating system, and the heating system will emit pollution which has a certain impact on the environment. Green building technology can minimize air pollution, and the building material of green building is environmental friendly, which enables natural resources to be used effectively and sustainably. In recent years, the City of Yellowknife has made a lot of contributions in sustainable development. According to CBC News, "the City of Yellowknife has won a sustainability award for its plan to reduce the city's emissions with new wood pellet boilers" (CBC News, 2018).https://www.cbc.ca/news/canada/north/yellowknife-sustainable-energy-award-1.4524478 In order to effectively use energy, Yellowknife has invested a lots of funds and manpower to develop energy construction. Moreover, this new heating system is more environmentally friendly and less costly than traditional ones. Yellowknife addresses the issue of global warming by combining green buildings and low-carbon technologies. However, the cost of green buildings is more expensive than traditional buildings. With the technology development in the future, the cost of building green buildings may decrease and be popularized. Green buildings provide an option to effectively use natural resources and maintain sustainably for the future generation.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 16 | My read is that the building has not been built, but rather they are looking for money to build it. |
| Course Related Analysis (30-50) | 35 | Should be tying to class concepts more. How does this relate to economic efficiency? How does this relate to supply and demand? Sustainability and substitutability, as we have talked about. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 81 |
Group #4
https://globalnews.ca/news/6132170/kfc-canada-bamboo-buckets/
Summary
The article produced by CBC aims to report on the Canadian movements towards sustainability, and Canada wants to do it by changing the materials that make up every day plastic containers. As of now chain restaurants are looking to serve up food (specifically chicken and poutines) in bamboo buckets. Restaurants are now looking for compostable solutions in addition to recyclable and reusable ones. This may be difficult to implement in Canada on a national scale as each province has jurisdiction over recycling and composition rules. Federalism may make it difficult for companies to ensure that they meet all requirements for every individual province.
The goal to replace polypropylene poutine packages with bamboo ones is not only cheap but also fast. Bamboos grow and reach the perfect age for extraction in 3 to 4 years. The plant also sequesters about 40 percent more carbon than trees given the same amount of land. This is initiative is drawing academic research and praises from Professor Chunping Dai, an associate professor of forestry at UBC. This initiative by KFC has drawn A&W Canada, Tim Hortons and other big chain industries to create more sustainable packaging as well.
Analysis
As mentioned in the summary, because of provincial jurisdiction over recycling laws, it would be difficult, or the cost may be too high for companies to have an incentive to go through all the trouble for every province, the provinces may need to work together to lower the cost/provide imitative for companies to implement the bamboo containers while still maintaining the integrity of the product. The overall message of the article is a positive one and it fits the theme of sustainability in the class, this ensures that an everyday disposable product can be not only recycled/reused but also decomposable. This is something I believe that is very overlooked when talking about sustainability. When that word is brought up, many would first think about fuel and energy production, but replacing the materials used by everyday individuals on such a large scale will have a huge long-term impact on future generations. The bamboo buckets created and used by KFC fits the exact common definition of sustainability (“development that meets the needs of the present without compromising the ability of future generations to meet their needs.”). As mentioned in the article, Bamboos are very easy and fast to grow, and the cost of production will be as cheap as plastic if done on the same scale.
One major weakness of the article is that it does not mention the cost and requirements in order for companies to produce bamboo buckets. Big Chain restaurants would have to purchase these bamboo buckets from big suppliers but are they properly equipped to transition from plastic production to bamboos? What are the costs for the transition period and how will those bamboos be grown, or will they be imported? As many already know, bamboos are not native to Canada, and if they plan to grow it in the country, how are they allocating the land and creating the facilities in order to house the bamboos. These are key questions that must be answered or this initiative will bare too much of a cost for this to be able to be profitable
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 18 | |
| Course Related Analysis (30-50) | 48 | Good job identifying some questions. Beyond the jurisdictional issue, the drive for this seems to be consumers - a demand shift - as mentioned towards the end of the article. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 96 |
Group #5
https://www.cbc.ca/news/politics/sustainable-growth-green-markets-1.5175001
Summary:
According to the federal government's expert panel on sustainable finance, Canada needs to put a lot of effort to attain sustainable growth. Financial markets will play a critical part in unlocking the economic potential of the country. Although Canada has a lot to do in contrast to Asian nations and states in the European Union, if the fifteen recommendations are acted upon, then Canada has the likelihood of transforming into a leader in the greener economy. Sustainable finance will lay the foundation for Canada to accomplish economic and environmental sustainability. Shifts in consumer patterns are creating an atmosphere where environmental stewardship is establishing a platform for competitive advantage. The government and investors in the economy of Canada need to focus their attention on investment schemes that are environmental-friendly to foster the aspect of sustainability.
The global switch from carbon toward cleaner energy sources presents an occasion for the country to transform the Canadian financial system into the modern era. The critical aspects that are likely to foster the transition of Canada to a greener economy are incentives to enhance the clean energy segment, and a comprehensive plan by the government to minimize emissions. Also, standards set for companies in terms of disclosure on risk climate changes posed, and establishing a Canadian center for climate information and analytics are essential in the transition. Pecuniary incentives for investors to pick from joint funds and equities that are more climate-friendly will inspire market advancement for climate-cognizant ventures. A long-term carbon pricing plan has the potential of significantly reducing green gas emissions. Getting its priorities right regarding the transition from carbon to cleaner energy sources will lay the foundation for Canada to achieve sustainable growth.
Analysis:
The news article that relates to the chapter of efficiency and sustainability is titled “Canada has a lot of catching up to do on sustainable growth, says panel” by Karina Roman from CBC News. In the paper, Roman argues that the panel of experts on Sustainable Finance was calling on Canada to be prepared for prosperity by shifting to a greener economy. According to the news article, the report that was released by the panel argues that Canada has a lot to achieve in comparison to other countries within the EU and Asia and that it can only become more efficient and enhance sustainable economic growth by working on the 15 recommendations provided by the panel. If it acts upon the recommendations, then it will be the leading country towards the transition to a greener economy. Under the quoted statement by who chaired the panel, Tiff Macklem, and former Bank of Canada’s senior deputy governor, finances alone will not be the solution to climate change, but rather it supports the activities that will solve it, as environmental investments are crucial. Therefore, for Canada to attain its economic and environmental goals, it needs to make sustainable finance a priority. This point would however, involve changing consumer preferences to enhance economic efficiency and sustainability, especially with regards to the consumption of natural resources. As the impact of climate change continues to wreak havoc on various parts of the globe (even with effects felt in Canada), the country has vowed to make shifts in the consumer preferences, especially with regard to the economic activity, innovation, wealth creation, and competitive advantage. To this end, the state is working on boosting investments in the clean energy sector, establish and enforce standards on how firms report how climate change impacts them, and have a finance plan to support “super deduction” for green investments, as one of the incentives to encourage investments.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 30 | In the context of course concepts, this article relates to investment and consumer demand. Demand is shifting, as people are more concerned about climate change. Investments in response to climate risk would shift things, but investors don't have the information. This all relates to shifting the location of the benefits from fossil fuels relative to other energy sources. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 80 |
Group #6
https://www.weforum.org/agenda/2015/06/why-energy-efficiency-is-key-to-sustainable-development/
Summary:
We know every aspect of our daily life is inseparable from the use of energy. The energy allocation of a country is closely related to the country's economic development. This article describes the key to the efficient and sustainable use of our energy. The United Nations in 2000 helped tackle global poverty, hunger, disease, education, gender inequality, and environmental sustainability that is Millennium Development Goals (MDG). In 2015, we launched a new goal, the Sustainable Development Goals (SDG). The SDGs revolve around six elements: (1) dignity, (2) basic human needs, (3) prosperity, (4) planet, (5) partnership, and (6) justice.
The firstly was why we should focus on energy issues. Due to the rapid development of the world economy, the use of energy is also increasing. So world energy reserves also face significant challenges. So we need to use our limited energy in a planned way. The second point is the overall goal about the energy. That is, our general direction is to save energy consumption and waste as much as possible based on the use of energy. The thirdly is the problem of energy. (1) Lack of professional information and knowledge (2) Energy projects does not have priority (3) Energy projects are small in scale (4) Investment is a challenge. The last point is our response to the energy issue. (1) The government subsidizes the energy industry (2) Use the proceeds of bonds to attract investors to invest in the energy industry.
Analysis:
This article is about “energy efficiency is key to sustainable development”. As the world's population continues to increase, especially in Asian countries, population growth and economic growth have led to energy shortages. But energy is generated in only a few areas, so improving energy efficiency is crucial. The energy efficiency is too low. One is the waste of precious natural resources, and the other is the serious pollution of the natural environment, which poses a challenge to the sustainable development of society. The fundamental way to reduce energy intensity is to improve the industrial structure and energy efficiency.
This article proposes three main obstacles to the implementation of energy conservation: lack of expertise, priority treatment of energy projects, and lack of investment in energy conservation projects. Correspondingly, some solutions have been proposed, such as the government subsidizing the energy industry.
According to Chapter 5 “Efficiency and Sustainability”. For scarce energy sources can be improved in the following ways. First, look for alternative energy sources and allow admit substitution. Second, there is a mutual substitution between capital types. For example, improve the knowledge reserve and technical level of human resources. Third, attract investors to invest in the energy industry. In this article, the author proposes that professional energy efficiency funds can be used to attract investors. The author believes that energy funds can also attract industrial customers and technology providers. Investment in energy resources can not only sustainably develop resources but also provide a lot of employment opportunities and reduce dependence on imported energy.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | It is a bit of a sales pitch, but facts are generally good. |
| Article Relevance (10) | 10 | |
| Summary (20) | 15 | A big part of the article was financial issues making it hard for investments in efficiency to be made. You don't mention this in much detail. |
| Course Related Analysis (30-50) | 40 | Got the financial bit here. Link to supply and demand - there is a growing demand for energy efficiency, but there is a poor market for supplying it. Hence, the need for financing tools. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 85 |
Group #7
https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-iea-warns-oil-companies-doing-nothing-on-emissions-is-not-an-option/
Summary:
In the recent World Economic Forum (in Davos) a discussion opened up which touched upon how oil and gas companies (in all parts of the value chain) need to do more to help the push to curve global warming. The article quotes that "around 15% of global energy related emissions come from getting the gas out of the ground and into consumer lives" although not a huge piece of the global emissions pie, this percentage is still a fraction of the global warming issue that needs attention in many eyes of the population and the IEA leader said "doing nothing [about it] is not an option". Overall the oil and gas industry is facing increase demand and answers on how they are going to improve on their emissions, and the public expects this industry to invest more of their capital into clean energy. The first step is to reduce their business carbon foot print, then invest in clean energies. The estimated current amount of capital spending on green energies by oil & gas companies is around 1% of total capital spending.
Analysis
This article in the Globe and Mail titled "IEA warns oil companies doing nothing on emissions is not an option" is very relevant in todays global issues of climate change and can connect to our course in a few ways. As we as a population near the year 2030 our emissions deduction is becoming a very heated topic of concern and conversation. Oil and gas companies provide an essential service to its customers (everyone on earth) but find themselves in a bind between profit and, efficiency and sustainability. Due to the nature of these resources being non-renewable, the companies that extract these resource are faced with a dynamic efficiency issue which they must weigh the benefits and costs of not only the current generation but also the multiple generations after them. The rate of extraction and resource availability as well as the correlated emissions released through are some costs and benefits to be considered.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | Concise, and got most of the key points. |
| Course Related Analysis (30-50) | 25 | The issues we have talked about to date are supply and demand and markets, and dynamic vs. static efficiency. A bit issue here is the demand for alternatives, and for evidence that all that can be done is being done. Consumer demand is driving the change, both in regulations and in products. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 9 | |
| Total | 74 |
Group #8
Summary:
This article talks about plastic and the need for a sustainable future. Plastic is recognized as a waste and environmental concern by the public but in reality, plastic is a good thing. We have to find a way to eliminate plastic waste and at the same time maximize the use of natural capital. Plastics play a vital role in our society as we use it to make almost everything, it takes significantly less energy and water than other substitutions, and has a very low carbon footprint, making it one of the most useful materials This article goes on to explain the megatrends that has driven the packaging revolution. The six trends are a global affluent middle class, technology, sustainability, shiftingdemographics and social change, rapid urbanization, climate change and resource scarcity. The article brings up the need for a circular economy where plastic never becomes waste in order to be able to create a sustainable environment. Valgroup is a big part of this article as it talks about their company and the ways their technology can eliminate plastic waste and pollution at its source. With their technology and recycling facility they are able to recycle things that were previously thrown in the garbage such as laminated packaging, soap bars, squeeze tubes and so on. Sustainability is transforming businesses across the world and Valgroup is just one company that is developing sustainable technologies, processes and solutions.
Analysis:
Sustainability of our plastics is the main focus of this article and a great example of how we can create a more sustainable environment. Plastics are needed in order to build a better future and are used in almost everything we produce. The article relates to chapter 5 sustainability and efficiency because it goes into detail about the need for efficiency and sustainability of plastic. Having plastic waste eliminated would create a more sustainable environment for future generations. Valgroup is a company the article goes into detail about as they are focused on creating a more sustainable environment and have developed new technology which optimizes the recycling process. Valgroup recognizes dynamic efficiency and that the costs of plastic will increase in the future and the benefits of their technology will not only be gained in the present but also in the future. This technology has a high initial cost but then provides a larger benefit as time goes on and the recycling facility is further into operations which shows the dynamic efficiency.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 6 | Article is definitely a sales pitch for a particular company. |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 35 | There is some throwing in terms without clearly linking them to points in the article. The innovations are a change in the cost of recycling, resulting in more recycling than would occur under the old technology. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 81 |