Tag: Samuel Alexander

Entropia, a review.

A review of the new book by Dr. Samuel Alexander.

Back last November, not long after Jean and I had moved up to Oregon, I saw this on the PRI website: The Sufficiency Economy – Envisioning a Prosperous Way Down. Very quickly I realised the importance of the essay and contacted the author requesting permission to republish on Learning from Dogs.  That author was Dr. Samuel Alexander and permission was quickly given, leading to two essays: The simpler life and Where less is so much more.

Now fast forward to nearly a month ago and in came this email:

Samuel Alexander here, from the Simplicity Institute. I’ve recently published a new book, Entropia: Life Beyond Industrial Civilisation. Was wondering whether you were interested in posting either a review or an excerpt on your website?

I was flattered to have been asked and delighted to review the book.

First, some background. samuelalexanderDr. Alexander is a part-time lecturer with the Office for Environmental Programs, University of Melbourne, Australia. He teaches a course called ‘Consumerism and the Growth Paradigm: Interdisciplinary Perspectives’ in the Masters of Environment.

He is also co-director of the Simplicity Institute and co-founder of Transition Coburg. He writes regularly at the Simplicity Collective and posts most of his academic essays at www.TheSufficiencyEconomy.com.

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Introduction

After the review was completed, I forwarded it to Sam just to check that I hadn’t made any technical errors.  Within Sam’s reply to that email was his acknowledgement that his book fell into a genre that was not easily classified.  Ergo, the book being fiction yet not a novel.  Sam went on to muse that perhaps he should have been clearer about what the reader was going to get.  He wondered if my review should mention that aspect.  I said that I wouldn’t amend my review but would include an introduction to that effect, as now witnessed!

So to the review.  (Note: For some reason, I was unable to prevent the paragraph spacing from being deleted in the published version.  Hence the insertion of a single ‘-‘ after each paragraph.)

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Entropia-Cover

Entropia – Life Beyond Industrial Civilisation by Samuel Alexander

A review by Paul Handover

The title of the book didn’t offer this reader any clue about what might be coming. Nevertheless, very soon an experience of an ‘ah-ha’ moment arrived. Right on page one of the Acknowledgements when this sentence jumped off the page: “Henry Thoreau has been by far the greatest influence on my worldview, for it was he who awakened me to the insight that ‘superfluous wealth can buy superfluities only’.” [my emphasis] Wow, what an intriguing turn of phrase about wealth.

I plunged into the Prologue:

After the poets were banished from Plato’s Republic it is said that they set sail into unknown horizons in search of a new place to call home.

Shortly later reading:

But life proceeds in twists and turns, not straight lines. After losing consciousness in the midst of this perfect storm, the lost poets found themselves washed ashore on a small,fertile island, which was uninhabited and isolated entirely from the rest of civilisation. The boundless opportunities presented by this merciful twist of fate were immediately clear to all.

Some people believe this simple living community flourishes peacefully to this day, lost to the world in its own harmonious, aesthetic existence. But like Atlantis, the Isle of Furor Poeticus, as it has come to be known, has never been found.

* * *

The Isle of Furor Poeticus is a utopian romance of course – a myth. But we should remember that human existence has always been shaped and guided by myths and stories, so let us not dismiss the story of the lost poets too quickly or proudly. After all, we may not be so free from superstitions of our own. Modernity’s ‘myth of progress’ might itself just be a story we have been telling ourselves in recent centuries, one in fact that could soon be dismissed as a story no longer worth telling. Indeed, perhaps that book is closing before our very eyes – has already closed – leaving us to reflect on its themes from beyond as we step forth into unknown pages. And yet, it seems we have not found a new story by which to live. We are the generation in-between stories, desperately clinging to yesterday’s story but uncertain of tomorrow’s. Adrift in the cosmos, without a narrative in which to lay down new roots, humanity marches on – lost and directionless. But then again, perhaps the new words we need are already with us. Perhaps we just need to live them into existence.

Beautiful, magical writing right up to the closing sentences of the Prologue:

By choosing to do so we could again become the poets of our own lives and of a new generation, instead of merely reading out a pre-written script to an audience that is no longer listening. So open your mind, gentle reader, for the future is but clay in the hands of our imaginations.

We are being called to make things new. [again, my emphasis]

The novel, for it is a work of fiction, opens in substance with the account of Mortimer Flynn, a wealthy Texas oil magnate and son and only child of a Welsh coal industrialist, who having achieved “everything of which he had ever dreamed” comes to the realisation that he has no idea at all as to the purpose of his life. From this life-changing reassessment of his journey, his profound crisis of conscious, comes the purpose of the book. A story of a group of people who settle down in a remote South Pacific island, the island of Entropia. A “story about a community that became isolated on its small island in the wake of industrial civilisation’s collapse, during the third decade of the twenty-first century.”

Now, it’s fair to say that at this point I was truly hooked on the book. This was going to be the read of my life. Because it reflected my own belief that humanity was at the point, perhaps beyond the point, where the growing threats to our natural world threatened our moral obligations to the generations that follow.

However, somewhere during the second chapter, the style of writing started to intrude into my absorption of the story. At first the intrusion was more like a fly buzzing around; a minor irritation. Then it got to the stage where I had to stop reading and ponder on why I felt so uncomfortable with this reading experience. I was by now well into the third chapter.

Still couldn’t put my finger on what the problem was. Returned to the book but noticed that I was skim reading and had forcibly to focus on fully reading each page. After all, I was reading the book for review purposes!

Then it struck me. There were no characters coming to life off the page. Consequently, there was no dialogue. It didn’t read like a novel, much more like a report. That was the key to me re-establishing my relationship with the story; the book. Because despite the unusual style for a work of fiction, the value inherent in the pages was beyond measure. Here was a book that described in great detail the way a community discovered the reality of a sustainable way of life. How this group of a couple of thousand souls reinvented a society, a sustainable society, out of the ashes of a failed industrial civilisation.

I read on.

Later on the book described how the community looked at the way they governed themselves, how they set up representative systems and then, on page 119, came something that really punched me in the face, figuratively speaking. It was introduced, thus:

Eventually a short constitutional document was drafted by the Advisory Council and put to a referendum by the People’s Council, and this document received 94 per cent support. It is reproduced in its entirety below, as it serves as the best summary of our social, economic and political vision.

And proceeded:

Charter of the Deep Future

ENOUGH, FOR EVERYONE, FOREVER

.

We affirm that providing ‘enough, for everyone, forever’ is

the defining objective of our economy, which we seek to

achieve by working together in free association.

.

We affirm that everyone is free to create as an aesthetic

project the meaning of their own lives, while acknowledging

that this freedom legitimately extends only so far as others

can have the same freedom. Freedom thus implies restraint.

.

We affirm that our inclusive democracy does not

discriminate on such grounds as race, ethnicity, gender,

age, sexuality, politics, or faith.

.

We affirm that generations into the deep future are entitled

to the same freedoms as present generations.

.

We affirm that respecting the deep future requires maintaining

a healthy environment.

.

We affirm that technology can help to protect our

environment only if it is governed by an ethics of sufficiency,

not an ethics of growth. Efficiency without sufficiency is lost.

.

We affirm that maintaining a healthy environment requires

creating a stationary state economy that operates within

environmental and energy limits.

.

We affirm that a stationary state means stabilising

consumption and population, transitioning to renewable

sources of energy, and adapting to reduced energy supply.

.

We affirm that strict limits on material accumulation are

required if a stationary state is to maintain a just distribution

of resources and avoid corrosive inequalities.

.

We affirm that property rights are justifiable only to the

extent they serve the common good, including the overriding

interests of humanitarian and ecological justice.

.

We affirm that a stationary state economy depends on a

culture that embraces lifestyles of material sufficiency and

rejects lifestyles of material affluence.

.

We affirm that material sufficiency in a free society provides

the conditions for an infinite variety of meaningful, happy,

and fulfilling lives.

___________________________

Well that had such an impact on this reader. For this reason. The contrast between the reality of our present 21st Century life and the lives of those souls on Entropia was like night versus day. Enough, For everyone, Forever. If ever we needed a new cry from the heart, a new cry of hope and purpose, it was now and those are the words of that cry.

Entropia is a book you should read. It is a book that offers much hope, much guidance and much direction. As Samuel Alexander wrote on page 148, “Tranquillity and angst are both contagious, so it matters which of them we feed.

Time to feed that tranquillity.

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Unintended Consequences

That pesky ‘law’ regarding the power of unintended consequences.

As many of you are aware, last week was an unusual format for Learning from Dogs in that the whole of the week was dedicated to republishing Dr. Samuel Alexander’s essay The Sufficiency Economy – Envisioning a Prosperous Way Down.  If you missed that, the first chapter was a week ago today under the title of Where less is so much more.

Moving on. Many living in Northern California and South-West Oregon will have had a timely reminder that nature is tapping mankind on the shoulder in new and challenging ways.  I’m referring to the massive storm that was featured in a recent Climate Crocks article that delivered over a foot of rainfall in recent days.  Here in Southern Oregon we received over 10 inches!  Hence the growing awareness that we have to do something!

So with those musings in mind, read the following essay written by Gail Tverberg of the website Our Finite World.  Gail describes herself, thus:

I am an actuary interested in finite world issues – oil depletion, natural gas depletion, water shortages, and climate change. The financial system is also likely to be affected.

I’m very grateful to Gail for so promptly giving me written permission to republish her work.  It is very relevant to all of us.

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Climate Change: The Standard Fixes Don’t Work

World leaders seem to have their minds made up regarding what will fix world CO2 emissions problems. Their list includes taxes on gasoline consumption, more general carbon taxes, cap and trade programs, increased efficiency in automobiles, greater focus on renewables, and more natural gas usage.

Unfortunately, we live in a world economy with constrained oil supply. Because of this, the chosen approaches have a tendency to backfire if some countries adopt them, and others do not. But even if everyone adopts them, it is not at all clear that they will provide the promised benefits.

Figure 1. Actual world carbon dioxide emissions from fossil fuels, as shown in BP’s 2012 Statistical Review of World Energy. Fitted line is expected trend in emissions, based on actual trend in emissions from 1987-1997, equal to about 1.0% per year.
Figure 1. Actual world carbon dioxide emissions from fossil fuels, as shown in BP’s 2012 Statistical Review of World Energy. Fitted line is expected trend in emissions, based on actual trend in emissions from 1987-1997, equal to about 1.0% per year.

The Kyoto Protocol was adopted in 1997. If emissions had risen at the average rate that they did during the 1987 to 1997 period (about 1% per year), emissions in 2011 would be 18% lower than they actually were. While there were many other things going on at the same time, the much higher rise in emissions in recent years is not an encouraging sign.

The standard fixes don’t work for several reasons:

1. In an oil-supply constrained world, if a few countries reduce their oil consumption, the big impact is to leave more oil for the countries that don’t. Oil price may drop a tiny amount, but on a world-wide basis, pretty much the same amount of oil will be extracted, and nearly all of it will be consumed.

2. Unless there is a high tax on imported products made with fossil fuels, the big impact of a carbon tax is to send manufacturing to countries without a carbon tax, such as China and India. These countries are likely to use a far higher proportion of coal in their manufacturing than OECD countries would, and this change will tend to increase world CO2 emissions. Such a change will also tend to raise the standard of living of citizens in the countries adding manufacturing, further raising emissions. This change will also tend to reduce the number of jobs available in OECD countries.

3. The only time when increasing natural gas usage will actually reduce carbon dioxide emissions is if it replaces coal consumption. Otherwise it adds to carbon emissions, but at a lower rate than other fossil fuels, relative to the energy provided.

4. Substitutes for oil, including renewable fuels, are ways of increasing consumption of coal and natural gas over what they would be in the absence of renewable fuels, because they act as  add-ons to world oil supply, rather than as true substitutes for oil. Even in cases where they are theoretically more efficient, they still tend to raise carbon emissions in absolute terms, by raising the production of coal and natural gas needed to produce them.

5. Even using more biomass as fuel does not appear to be a solution. Recent work by noted scientists suggests that ramping up the use of biomass runs the risk of pushing the world past a climate change tipping point.

It is really unfortunate that the standard fixes work the way they do, because many of the proposed fixes do have good points. For example, if oil supply is limited, available oil can be shared far more equitably if people drive small fuel-efficient vehicles. The balance sheet of an oil importing nation looks better if citizens of that nation conserve oil. But we are kidding ourselves if we think these fixes will actually do much to solve the world’s CO2 emissions problem.

If we really want to reduce world CO2 emissions, we need to look at reducing world population, reducing world trade, and making more “essential” goods and services locally.  It is doubtful that many countries will volunteer to use these approaches, however.  It seems likely that Nature will ultimately provide its own solution, perhaps working through high oil prices and weaknesses in the world financial system.

Elastic Versus Inelastic Supply

It seems to me that many bad decisions have been made because many economists have missed the point that crude oil supply tends to be very inelastic, while other fuels are fairly elastic. Let me explain.

Elastic supply is the usual situation for most goods. Plenty of the product is available, if the price is high enough. If there is a shortage, prices rise, and in not too long a time, the market is well-supplied again. If supply is elastic, if you or I use less of it, ultimately less of the product is produced.

Coal and natural gas usually are considered to be elastic in their supply. To some extent, they are still “extract it as you need it” products. Supply of natural gas liquids (often grouped with crude oil, but acting more like a gas, so it is less suitable as a transportation fuel) is also fairly elastic.

Crude oil is the one product that is in quite short supply, on a world-wide basis. Its supply doesn’t seem to increase by more than a tiny percentage, no matter how high the price rises. This is a situation of inelastic supply.

Figure 2. World crude oil production (including condensate) based primarily on US Energy Information Administration data, with trend lines fitted by the author.
Figure 2. World crude oil production (including condensate) based primarily on US Energy Information Administration data, with trend lines fitted by the author.

Even though oil prices have been very high since 2005  (shown in Figure 3, below), the amount of crude oil has increased by only 0.1%  per year (Figure 2, above).

Figure 3. Historical average annual oil prices, (“Brent” or equivalent) in 2011$, from BP’s 2012 Statistical Review of World Energy.
Figure 3. Historical average annual oil prices, (“Brent” or equivalent) in 2011$, from BP’s 2012 Statistical Review of World Energy.

In the case of oil, both supply and demand are quite inelastic. No matter how high the price, demand for oil doesn’t drop back by much. No matter how high the price of oil, world supply doesn’t rise very much, either.1

In a situation of inelastic supply, the usual actions a person might take appear to work when viewed on a local basis, but backfire on a world basis, if not everyone participates. When one country tries to conserve crude oil (whether through a carbon tax, gasoline tax, or higher automobile mileage requirement), it may reduce its own consumption, but there are still plenty of other buyers in the market for the oil that was saved. So the oil gets used by someone else, perhaps at a slightly lower price.  World oil production remains virtually unchanged. Thus, a reduction in oil usage by an OECD country can translate to more oil consumption by China or India, and ultimately more development of all types by those countries.

Adding Substitutes Adds to Carbon Emissions

If we don’t have enough crude oil, one approach is to create substitutes. Because crude oil supply is inelastic, though, these substitutes aren’t really substitutes, though. They are “add ons” to world oil supply, and this is one source of our problem with increasing world emissions.

What do we use to make the substitutes? Basically, natural gas and coal, and to a limited extent oil (because we can’t avoid using oil). The catch is, that to make the substitutes, we need to burn natural gas and coal more quickly than we would, if we didn’t make the oil substitutes. Since the supply of coal and natural gas is elastic, it is possible to pull them out of the ground more quickly. Thus, making the substitutes tends to increase carbon dioxide emissions over what they would have been, if we had never come up with the idea of substitutes.

The increased use of coal and natural gas is pretty clear, if a person thinks about coal-to-liquids or gas-to-liquids. Here, we need to first build the plants used in production, and then with each barrel of substitute made, we need to use more natural gas or coal. So it is very clear that we are extracting a lot of additional coal and natural gas, to make a relatively smaller amount of oil substitute. There is often a substantial need for water to make the process work as well, adding another stress on the system.

But the same issue comes up with biofuels, and with other renewables. These too, are add-ons to the world oil supply, not substitutes. While theoretically they might produce energy with less CO2 per unit than fossil fuel systems, in absolute terms they lead to natural gas and coal being pulled out of the ground more quickly to be used in making fertilizer, electricity, concrete, and other inputs to renewables.2

Carbon Taxes and Competitiveness

Each country competes with others in the world market place. Adding a carbon tax makes products made by the local company less competitive in the world marketplace.  It also signals to potential coal users that the countries adopting the carbon taxes are willing to a leave a greater proportion of world coal exports to those who are not adopting the tax, thus helping to keep the cost of imported coal down.

Asian countries already have a competitive edge over OECD countries in terms of lower wages and lower fuel costs (because of their heavy coal mix), when it comes to manufacturing. Adding a carbon tax tends to add to the Asian competitive edge. This tends to shift production offshore, and with it, jobs.

Figure 4. China’s energy consumption by source, based on BP’s Statistical Review of World Energy data.
Figure 4. China’s energy consumption by source, based on BP’s Statistical Review of World Energy data.

China joined the World Trade Organization in 2001. Figure 4 shows clearly that its fuel consumption ramped up rapidly thereafter. It seems likely that the number of Chinese manufacturing jobs and spending on Chinese infrastructure increased at the same time.

Economists seem to have missed the serious worldwide deterioration in CO2 emissions in recent years by looking primarily at individual country indications, including CO2 emissions per unit of GDP. Unfortunately, this narrow view misses the big picture–that total CO2 emissions are rising, and that CO2 emissions relative to world GDP have stopped falling. (See my posts Is it really possible to decouple GDP growth from energy growth and Thoughts on why energy use and CO2 emissions are rising as fast as GDP. See also Figure 1 at the top of the post.)

The Employment Connection

I have shown that in the US there is a close correlation between energy consumption and number of jobs. (For more information, including a look at older periods, see my post, The close tie between energy consumption, employment, and recession.)

Figure 5. Employment is the total number employed at non-farm labor as reported by the US Census Bureau. Energy consumption is the total amount of energy of all types consumed (oil, coal, natural gas, nuclear, wind, etc.), in British Thermal Units (Btu), as reported by the US Energy Information Administration.
Figure 5. Employment is the total number employed at non-farm labor as reported by the US Census Bureau. Energy consumption is the total amount of energy of all types consumed (oil, coal, natural gas, nuclear, wind, etc.), in British Thermal Units (Btu), as reported by the US Energy Information Administration.

There are several reasons why a connection between energy consumption and the number of jobs is to be expected:

(1) The job itself in almost every situation requires energy, even if it is only electricity to operate computers, and fuel to heat and light buildings.

(2) Equally importantly, the salaries that employees earn allow them to buy goods that require the use of energy, such as a car or house. (“Energy demand” is what people canafford; jobs allow “demand” to rise.)

(3) The lowest salaried people can be expected to spend the highest proportion of their salaries on energy-related services (such as food and gasoline for commuting). The wealthy spend their money on high priced goods and services, such as financial planning services and designer clothing that require much less energy per dollar of expenditure.

The thing I find concerning is the close timing between the ramp-up of Asian coal use and thus jobs using coal, and the drop-off of US employment as a percentage of US population, as illustrated in Figure 6 below. Arguably, the ramp up in world trade is just as important, but some aspects of programs that are intended to save CO2 emissions also seem to encourage world trade.

Figure 6. US Number Employed / Population, where US Number Employed is Total Non_Farm Workers from Current Employment Statistics of the Bureau of Labor Statistics and Population is US Resident Population from the US Census. 2012 is partial year estimate.
Figure 6. US Number Employed / Population, where US Number Employed is Total Non_Farm Workers from Current Employment Statistics of the Bureau of Labor Statistics and Population is US Resident Population from the US Census. 2012 is partial year estimate.

Of course, the US did not sign the Kyoto Protocol or enact a carbon tax, and it is its jobs that I show falling as a percentage of population. It is more that the CO2 solutions act as yet another way to encourage more international trade, and with it more “growth”, and  more CO2.

Using More Biomass is Not a Fix Either

Burning more wood for fuel and creating “second generation” biofuels from biomass seems like a fix, until a person realizes that we are reaching limits there, as well.

In June 2012, twenty noted scientist published a paper in the journal Nature called Approaching a State Shift in the Earth’s Biosphere. This report indicates that humans have already converted as much as 43% of Earth’s land to urban or agricultural uses. In total, 20% to 40% of Earth’s primary productivity has been taken over by humans. The authors are concerned that we may now be reaching a tipping point leading to a state shift, because of loss of ecosystem services as use of biological products increases. With this state change would come a change in climate. Simulations indicate that this tipping point may occur when as little as 50% of land use is disturbed. This tipping point may be even lower, if world-wide synergies take place.

On Our Current Path – Lacking Good Solutions

While this list of problems relating to current proposed solutions is not complete, it gives a hint of the problems with reducing CO2 emissions using approaches suggested to date. There are many issues I have not covered.

One issue of note is the fact the cost of integrating intermittent renewables (such as wind and solar PV) increases rapidly, as we add increasing amounts to the grid. This occurs because there is more need to transport the electricity long distances and to mitigate its variability through electricity storage or fossil fuel balancing. (See for example, Low Carbon Projects Demand a New Transmission and Distribution ModelGrid Instability Has Industry Scrambling for Solutions, and Hawaii’s Solar Power Flare-Up.)

While the problems noted in these articles are probably solvable, the cost of these solutions has not been built into energy balance analyses. Energy balances (or EROEI estimates) as currently reported do not vary with the proportion of intermittent renewables added to the grid. If energy balance analyses were adjusted to reflect the high cost of adding an increasing proportion of wind or solar PV to the grid, they would likely show a rapidly declining energy balance, above a certain threshold. This would indicate that while adding a little intermittent renewables (as we have done to date) can be a partial solution, adding a lot is likely to have serious cost and energy balance issues.

Another issue that is difficult to deal with is the fact that we are not dealing with a temporary problem with CO2 emissions. The idea is not to slow down the burning of fossil fuels, and burn more later; what we really need to do is to leave unburned fossil fuels in the ground for all time. This is a problem, because there is no way that we can impose our will on people living 10 or 50 years from now. The Maximum Power Principle of H. T. Odum would seem to indicate that any species will make use of whatever energy sources are available to it, to the extent that it can. Even if we temporarily defeat this tendency with respect to humans’ use of fossil fuels, I don’t see any way that we can defeat this tendency for the long term.

Considering all of these issues, it does not appear that most of the “standard” solutions will really work.3 What other options do we have?

Nature’s Solution  

The Earth has been handling the problem of shifting conditions for over 4 billion years. The earth is a finite system. Nature provides that finite systems, such as the Earth, will cycle to new states of equilibrium over time, as conditions change. While we would like to defeat Earth’s tendency in this regard, it is not at all clear that we can. Part of this cycling to a new state is likely to be a change in climate.

A state change is a cause for concern to humans, but not necessarily to the Earth itself.  The Earth has moved from state to state many times in its existence, and will continue to do so in the future. The changes will bring the Earth back into a new equilibrium. For example, if CO2 levels are high, species that can make use of higher CO2 levels (such as plants) are likely to become dominant, rather than humans.

Exactly how this state change might occur is subject to different views. One view is that changing CO2 levels will be a primary driver. The Nature article referenced previously suggested that increased disturbance of natural ecosystems (as with greater use of biomass) might force a state change. My personal view is that a financial collapse related to high oil price may be part of Nature’s approach to moving to a new state. It could bring about a reduction in world trade, a scale back in CO2 emissions, and a general contraction of human systems.4

However the change takes place, it could be abrupt. It will not be to many people’s liking, since most will not be prepared for it.

Steps That Might Work to Slow CO2 Emissions

It would be convenient if we could slow CO2 emissions by working to produce energy with less CO2. This option does not seem to be working well though, so I would argue that we need to work in a different direction: toward reducing humans’ need for external energy. In order to do this, I would suggest two major steps:

(1) Reduce the world’s population, through one-child policies and universal access to family planning services. This step is necessary because rising population adds to demand. If we are to reduce demand, lower population needs to play a role.

(2) Change our emphasis to producing essential goods locally, rather than outsourcing them to parts of the world that are likely use coal to produce them. I would suggest starting with food, water, and clothing, and the supply chains necessary to produce these items.

Changing our emphasis to producing essential goods locally will have a multiple benefits. It will (a) add local jobs, and (b) lead to less worldwide growth in coal usage, (c) save on transport fuel, and (d) add protection against the adverse impact of declining world oil supply, if this should happen in the not too distant future. It should also help reduce CO2 emissions. The costs of goods will likely be higher using this approach, leading to less “stuff” per person, but this, too, is part of reaching reduced CO2 emissions.

It is hard to see that the steps outlined above would be acceptable to world leaders or to the majority of world population. Thus, I am afraid we will end up falling back on Nature’s plan, discussed above.

Notes:

[1] Michael Kumhof and Dirk Muir recently prepared a model of oil supply and demand (IMF working paper: Oil and the World Economy: Some Possible Futures). In it, they assume a long run price-elasticity of oil supply of 0.03, and remark that a paper by Benes and others indicates a range of 0.005 to 0.02 for this variable. The long term price elasticity of oil demand is  assumed to be .08 in the Kumhof and Muir analysis.

[2] I would argue that standard EROEI measurements are defined too narrowly to give a true measure of the amount of energy used in making a particular substitute. For example, EROEI measures do not consider the energy costs associated with labor (even though workers spend their salaries on clothing, and commuting costs, and many other good and services that use fossil fuels), or with financing costs, or of indirect impacts like wear and tear on the roads by transporting corn for biofuel.

Other types of analysis have ways of dealing with this known shortfall. For example, when the number of jobs that a new employer can be expected to add to a community is evaluated, the usual approach seems to be to take the number of jobs that can be directly counted and multiply by three, to estimate the full impact. I would argue that with substitutes, some similar adjustment is needed. This adjustment which would act to increase the energy use associated with renewables, and reduce the EROEI. For example, the adjustment might divide directly calculated EROEI by three.

A calculation of the true net benefit of renewables also needs to recognize that nearly the full energy cost is paid up front, and only over time is recovered in energy production. When renewable production is growing rapidly, society tends to be in a long-term deficit position. Typically, it is only as growth slows that society reaches as net-positive energy position.

[3] I obviously have not covered all potential solutions. Nuclear power is sometimes mentioned, as is space solar power. There are new solutions being proposed regularly. Even if these solutions would work, ramping them up would take time and require use of fossil fuels, so it is wise to consider other options as well.

[4] The way that limited oil supply could interfere with world trade is as follows: High oil prices cause consumers to cut back on discretionary goods. This leads to layoffs in discretionary sectors of the economy, such as vacation travel. It also leads to secondary effects, such as debt defaults and lower housing prices. The financial effects “concentrate up” to governments of oil importing nations, because they receive less tax revenue from laid-off workers at the same time that they pay out more in unemployment benefits, stimulus, and bank bailouts. (We are already at this point.)

Eventually, countries will find that deficit spending is spiraling out of control. If countries raise taxes and cut benefits, this is likely to lead to more lay offs and debt defaults. One possible outcome is that citizens will become increasingly unhappy, and replace governments with new governments that repudiate old debt. The new governments may have difficulty establishing financial relationships with other governments, given that most are major debt defaulters. Such issues could reduce world trade substantially. With the drop of world trade would come much more limited ability to maintain our current systems, such as electricity and long distance transport.

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Reminds me of that old saying, “The best laid plans of mice and men …” Or as Robbie Burns wrote in 1785,

But Mousie, thou art no thy lane,
In proving foresight may be vain:
The best-laid schemes o’ mice an’ men
Gang aft agley,
An’ lea’e us nought but grief an’ pain,
For promis’d joy!

Looking out to the horizon

The concluding Part Five of The Sufficiency Economy

So here we are.  Friday and the last part of this stimulating essay by Dr. Samuel Alexander.  I do hope you have found all five chapters not only of interest but also that they have stimulated new ways of thinking.  Because the only way humanity is going to pull itself into a new, sustainable way of living is by thinking ‘outside the box’.

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THE SUFFICIENCY ECONOMY
ENVISIONING A PROSPEROUS WAY DOWN
Samuel Alexander
Simplicity Institute Report 12s, 2012

Dr Samuel Alexander is co-director of the Simplicity Institute and a lecturer with the Office for Environmental Programs, University of Melbourne.

5. The Ambiguous Charge of Utopiansim

This time, like all times, is a very good one, if we but know what to do with it. – R.W. Emerson

With the notion of a sufficiency economy now broadly sketched out, and some issues about the transition raised for consideration, it may be worthwhile stepping back from the analysis to consider the vision as a whole. This should provide a new perspective and perhaps raise new issues that deserve attention. One objection that can be easily anticipated is that the notion of a sufficiency economy, as I have described it, is fundamentally utopian in its outlook, and in this section I will respond to this objection briefly.

5.1. Four Responses

The charge of utopianism can be dealt with in at least the following four ways. First, if the charge is meant to imply that the goal of economic sufficiency, as opposed to economic growth, is unrealistic, then there is a sense in which that charge must be turned on its head. It is limitless growth on a finite planet that is unrealistic. After all, what could be more utopian, in the pejorative sense, than the neoclassical growth model which takes as ‘given’ certain non-physical parameters (e.g. market price, preferences, technology, wealth distribution, etc.) but on that basis purports to be independent of the biophysical laws of nature? Recognising the biophysical (and other) limits to growth may indeed require a radical new approach to how economies are structured, as I have argued it does; but this would be in recognition of certain realities, not in any attempt to transcend them.

In a second sense, however, the charge of utopianism should be embraced, not as an indictment, but as a defence. ‘Without the hypothesis that a different world is possible,’ Genevieve Decrop has recently stated, ‘there can be no politics, but only the administrative management of men [sic] and things’ (as quoted in Latouche, 2009: 32). In this sense, the sufficiency economy is indeed a utopian vision, arising out of a defiant faith that a different world is possible. But as Serge Latouche (2009: 32) has aptly explained with respect to the degrowth movement, ‘Far from representing a flight of fancy, it is an attempt to explore the objective possibility of its implementation.’ With a nod to Latouche, the sufficiency economy described above should be understood in similar terms. Imagining the alternative is the first step toward its realisation.

But there is a third sense in which the sufficiency economy is not utopian at all – not if ‘utopia’ refers to that which does not and could never exist. Granted, there is no economy that resembles closely the one described above, which is of a growth economy that has gone through the transition to sufficiency. Nevertheless, almost all the features of the sufficiency economy do find reflection in existing economies in the developed world (and elsewhere). Indeed, real-world examples of sufficiency in practice are everywhere bubbling beneath the surface, threatening to expand into the mainstream; some are in the process of doing so, albeit slowly. For example, there are nascent movements based on notions such as voluntary simplicity, eco-villages, permaculture, transition towns, slow food, degrowth, steady-state economics, etc., all of which can be understood to be exemplifying the practice of sufficiency in disparate but overlapping ways. What this indicates is that a sufficiency economy is not at all a utopian fantasy, but rather an embryonic, fragmented reality struggling away beneath the existing economy, trying to replace that economy with something fundamentally different. It is easy to forget that social movements constantly surprise us, often moving from tiny subcultures to the cultural mainstream with startling speed. Rather than despair, we should proceed on the assumption that more surprises could still lie in store of us.

Finally, some might claim that the sufficiency economy is utopian – again, in the pejorative sense – for the reason that it posits a transformation of economy that relies on a cultural embrace of low-consumption lifestyles of sufficiency, or rather lifestyles of ‘voluntary simplicity,’ as the phrase is more widely known. Human beings are essentially consumers with insatiable material desires, the objection might run, and the sufficiency economy will never voluntarily emerge because voluntary simplicity asks people to act against their personal interests. Any response to this point should begin with the social critique of consumer culture, which would be based on the large and robust body of hedonics research ratifying what many people, perhaps, know intuitively, namely, that ‘beyond a certain threshold, more material wealth is a poor substitute for community cohesion, healthy relationships, a sense of purpose, connection with nature, and other dimensions of human happiness’ (Talberth, 2008: 21). Since the evidence suggests that many people in affluent societies are above such a ‘threshold,’ there are strong grounds for thinking that reducing consumption in such cases would actually increase personal happiness. Relying on the expansion of the Voluntary Simplicity Movement would be more problematic, of course, if voluntary simplicity were a living strategy founded solely upon altruism, or if it implied sacrificing personal well-being for the sake of ecological health. But plainly its foundations are less demanding. Although many in the Voluntary Simplicity Movement are indeed motivated by humanitarian and ecological concerns, the most promising sign for the expansion of the movement lies in the fact that almost all those who practise simplicity report being happier in their lifestyle choice, despite a voluntary reduction or restraint in income and consumption (Alexander and Ussher, 2012). A utopian theory of economic transformation seems much less utopian, I would suggest – as would any theory of social reorganisation – when it is based upon a living strategy that is demonstrably in people’s best interests, including their own happiness.

For all these reasons, I contend that the sufficiency economy is not utopian in any problematic sense. The prospects of its imminent realisation, I admit, seem slim; and certainly it will depend on human beings working relatively well together as the challenges ahead intensify. But human beings share a universal desire to work toward a better life, and if that energy can be harnessed and the transition wisely negotiated, then the sufficiency economy will be quite achievable. Seemingly impossible things have happened before.

6. Conclusion

The challenges that will be faced on the path to a sufficiency economy can hardly be overstated. One of them not considered above is our genetic composition, which is not well suited to dealing effectively or thoughtfully with long-term issues. Historically we had to worry about immediate dangers such as tigers, other tribes, staying warm, and getting enough food; now we also have to get our heads around and respond effectively to the seemingly distant and abstract issues of climate change and peak oil. Evidently, this does not come easy to us. Secondly, the very task of decarbonising our economies as far as possible will be much harder and more unsettling than most people think. As you read these words, look around your room and consider what material artefacts are not, in some way, the product of fossil fuels. Is there anything? My point is that the sufficiency economy described above is not about turning off the lights and taking shorter showers. It is about embracing a fundamentally different way of life and a fundamentally different economy. If we do not voluntarily embrace these differences, however, and instead persist with the goal of universal affluence, then soon enough ecological and / or economic systems will collapse and we will be faced with fundamental change all the same, only with much more suffering. As I noted earlier, we can go the easier way (which will not be easy), or the harder way (which will be unspeakably tragic), depending on our attitudes and actions. We are free to choose our fate, and presently we are in the process of doing so.

I have hardly presented the full picture of the sufficiency economy and I acknowledge that various issues, probably most issues, are controversial and will be contested. That is the way it will be, and that is the way it should be. What is important is that the debate gets drawn away from the question of how to maintain the existing system, toward the urgent and necessary question of what new system should replace the existing system. In this sense the humble notion of a sufficiency economy can be seen as the revolutionary proposal that it is. It will not, of course, be easy to build a new, simpler way of life from within industrial civilisation. Everything will conspire against us. But various social movements already in existence provide a glimmer of hope in these dark times, and that glimmer is everyday growing brighter.

In all movements for change, including the broad movements for justice and sustainability, it is important occasionally to hold up for examination what one understands to be the clearest expression of one’s highest hopes and ideals. That is what I have tried to do in this essay, albeit in an incomplete way. No doubt some will find the threads of underlying positivity utterly indigestible, and already I can sense the trolls gathering, waiting to unleash their pure, unconstructive negativity. But let them fester in their own negativity, while the rest of us (including the constructive critics) set about building the new economy out of the emerging ashes of Empire. All we can do is our best, and we should die trying, not because we think we will succeed, but because if we do not try, something noble in our hearts and spirits will be lost.

Notes:

  1. In forming the following views I have been influenced and inspired by many people, the most significant of whom I would like to acknowledge. With respect to material simplicity and ‘the good life,’ Henry Thoreau (1982) has by far been the greatest influence on my world view, followed by William Morris (2004) and the Greek and Roman Stoics (e.g. Seneca, 2004). I am also greatly indebted to my colleagues and fellow authors at the Simplicity Institute – Ted Trainer, Mark Burch, David Holmgren, and Simon Ussher – all of whom, in their own way, have deeply influenced the following discussion (see Simplicity Institute, 2012). The work of Ernst Schumacher (1973) and the Club of Rome (Meadows et al, 2004) first introduced me to the ‘limits to growth’ analysis, and Serge Latouche (2003; 2009) introduced me to the insight that degrowth, not merely zero-growth, is what is needed to achieve sustainability in overdeveloped nations. With respect to energy, Howard and Elisabeth Odum (2001) and Joseph Tainter (1988) have been my biggest influences, showing me how central energy is to the world we live in. I must also mention and thank Rob Hopkins (2008) and the Transition Movement, for providing what I consider to be the most promising framework for bringing about a just and sustainable, post-carbon world.
  2. It may be that tar-sealed roads and existing water infrastructure can be reimagined into decentralised water management systems, but for present purposes I will treat that as a distant possibility on the grounds that the systems for distributing and treating water collected in this manner are still undeveloped. Furthermore, I do not have the knowledge to understand how difficult it would be to secure water for consumption in this manner.
  3. I will not argue against privatisation models here, other than note that in the sufficiency economy I envision, private companies that serve narrow shareholder interests cannot be left in charge of the provision of basic needs. Instead, the universal provision basic needs, such as water, must be considered a social duty that ultimately remains under social control. No one, for example, should be denied water on the grounds that they are too poor.
  4. http://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_the_United_States
  5. http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/CAE301277A675941CA257956000E646E?opendocument
  6. http://www.waterfootprint.org/?page=files/UnitedKingdom
  7. http://hdr.undp.org/en/media/HDR06-complete.pdf p34.
  8. I will currently assume the continuation of some form of monetary economy, an issue that I will give further attention below.
  9. Between 2008-9, water in Australia (where I am writing from) was on average $1.93 per 1,000 litres, and for industry water averaged $0.12 per 1,000 litres. See Australian Bureau of Statistics:
    http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1301.0~2012~Main%20Features~Water~279
  10. See http://www.abc.net.au/science/articles/2007/11/28/2103395.htm [accessed 22 December 2011].
  11. See Sustain, ‘Eating Oil: Food Supply in a Changing Climate,’ see:
    http://www.sustainweb.org/pdf/eatoil_sumary.PDF [accessed 2 October 2012].
  12. To provide a real-world example, when oil rose to $147 in 2008, it became cheaper to make steel in the US, since the high price of oil added $90 ton to steel production, making Chinese imports less economic than local production. See Jeff Rubin (2009) 150. See also, Peter North, ‘Eco-localisation as a Progressive Response to Peak Oil and Climate Change – A Sympathetic Critique’ 42 Geoforum (2010) 585.
  13. E.g.,http://www.transport.wa.gov.au/mediaFiles/AT_TS_P_ThetruthabouttravelinPerth.pdf
  14. E.g., http://www.planning.org.au/documents/item/363

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May I close this post by thanking Dr. Alexander and the Simplicity Institute for their support in the republication of this essay in Learning from Dogs.

Down is the new up.

Part Four of The Sufficiency Economy

I am delighted to find that this essay by Dr. Alexander has been extremely well-received by you.  On Monday, there were 1,458 viewings, Tuesday there were 1,546 viewings and today (Wednesday – the day I am writing this) already over 700 viewings at 9.20am local time (PST).

The wealth of evidence that is surfacing just now as to the seriousness of our present global predicament is mind-blowing.  Indeed, a couple of the more important articles that have ‘crossed my screen’ this week will be published next week on Learning from Dogs.

In the third part of Dr. Alexander’s essay that was published yesterday, Doing nothing is not an option, the primary theme was predicated as follows:

The growth paradigm has reached, more or less, the ‘limits to growth,’ and this means that we must move away from growth-based economies if we are to avoid exacerbating existing ecological crises to the point of catastrophe. Billions of lives are at stake, as are the biodiversity and climatic balance of our planet.

Today’s essay offers a strong, positive framework for how humanity has to change – let me repeat that for emphasis – how humanity HAS to change! 

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THE SUFFICIENCY ECONOMY
ENVISIONING A PROSPEROUS WAY DOWN
Samuel Alexander
Simplicity Institute Report 12s, 2012

Dr Samuel Alexander is co-director of the Simplicity Institute and a lecturer with the Office for Environmental Programs, University of Melbourne.

4. Envisioning a Prosperous Way Down

The following exposition of the sufficiency economy is a challenging mixture of utopian and dystopian speculation. It is utopian (or at least optimistic) in the sense that I present a picture of the sufficiency economy that depends upon human beings working relatively well together to meet the challenges ahead, rather than degenerating into a war of all against all at the first signs of trouble. I also assume that a culture of consumption has arisen in which sufficiency rather than affluence is widely considered the path to human flourishing. I believe these are necessary elements to any ‘prosperous way down’ (Odum and Odum, 2001). What follows is dystopian in the limited sense that the analysis accepts that there will be no smooth transition beyond the growth economy, and that consumer lifestyles will be taken from many people against their will – although perhaps ‘realistic’ is a better word than ‘dystopian’ here. Focused broadly on urban contexts in the developed world, the following analysis is structured by considering various aspects of the sufficiency economy, for the purpose of presenting a vision of the alternative way of life it implies.

However the future plays out – and let’s face it, no one really knows – what is certain is that the same events will be much less difficult and cause much less suffering if they are anticipated to some extent and prepared for (Alexander, 2012e; Burch, 2012b). I hope the following analysis might assist in both these regards.

4.1. Water

I will begin with the issue of water security, this being one of the most essential biophysical needs. The first point to note is that in most urban (including suburban) contexts, the amount of roof space available to collect water would be insufficient to secure the necessary water supplies for such dense populations.(2) What this means is that urban contexts require the water mains to exist, for if they failed for more than a day or so, most people would quickly perish. Given that most people now live in urban contexts, it is fair to say that the first thing a sufficiency economy must do is ensure that the water mains continues to function. This may sound like a trite observation, and it is, but since our present exploration is considering the economic foundations of a very different way of life, the foundations are where we must start. Accordingly, a sufficiency economy must at least have the energy supply and stability to maintain the water mains at a sufficiently high level of regularity and safety, something resembling the existing model, but hopefully more efficient.(3) The alternative is mass population die-off and probably significant re-ruralisation (where there would be more room for large water tanks).

Despite the mains system in a sufficiency economy remaining something close to what we have today, attitudes to water consumption and collection would undergo a revolution. To provide some hard numbers, average household water consumption in the United States is around 370 litres(4); in Australia it is around 230 litres per day(5); and in Britain it is about 150 litres(6). At the other end of the spectrum, institutions like the United Nations and the World Health Organisation hold that 20 litres per person, per day, is close to the minimum needed for bare subsistence(7), and that figure is sometimes used as a baseline in refugee camps. In a sufficiency economy, I propose that domestic water consumption per person would need to fall to somewhere between 50-70 litres per person, per day, which is enough to live a dignified existence without leaving much room for waste.

Reduced water consumption should occur partly out of the desire for ecological preservation – for example, a desire to preserve river systems – but I should expect economic incentives to play a large part too. Assuming fresh water becomes increasing scarce as populations increase and the climate warms (Brown, 2011), the price of water must inevitably rise, and rise significantly(8). Currently, water is grossly underpriced(9). In itself, expensive water will provide a strong incentive for people to reduce their wasteful consumption, and much of this can occur with very little hardship at all. Government or community regulation of some sort may have to provide further incentives, in certain contexts, at least, as well as some baseline supply guarantees, irrespective of ability to pay.

In order to reduce water consumption (for either ecological or economic reasons, or both), various steps would be taken. First of all, every household would maximise its roof water collection via water tanks. Those households that prepare first will easily be able to purchase water tanks and pipes from hardware stores, but as times get tougher (e.g. plastics and concrete become harder to produce, source, or afford), more people will have to creatively use whatever containers and pipes they can salvage or make themselves. We will all become proficient in creating and connecting systems of water collection and reuse. Greywater systems, for example, will become the household norm, including the use of tank water to flush the toilet or simply collecting water when showering to flush the toilet. Eventually, composting toilets will be widely used (at least in suburbia), with huge implications on water consumption.

In order to reduce charges from the increasingly expensive mains supply, tank water will be used whenever possible, especially for watering productive gardens (more on food below). In those times when people are required to draw from the mains, there is much room for conservation. Being conscientious of water consumption when preparing food and cleaning dishes is one space for conservation, and never watering (or even having) lawns is another. But perhaps the largest savings in the domestic sphere can come from how we wash ourselves and our clothes. Showers could easily be reduced to a minute or two without interfering with their primary goal of keeping us clean and hygienic. In fact, if required we could remain sufficiently hygienic by cleaning ourselves with a bucket of water and some soap. It may be a requirement of a dignified life to be able to wash oneself regularly – achievable with a bucket of water and some soap – but we could live with dignity without showering or bathing in the accustomed fashion. Clothes would probably be washed less regularly, which might bring some balance to a culture that is arguably excessively concerned with cleanliness.

Innumerable other water-saving strategies could easily demonstrate that high water consumption is really a product of wastefulness, such that great reductions would not take away from us anything that is actually necessary for a good life. The critical point to note, which applies to all aspects of life discussed below, is that the same reductions in consumption (whether voluntary or enforced) would be experienced in totally different ways, depending on the mindset that was brought to experience. Fortunately, that mindset is within our control, even if the circumstances may not always be.

4.2. Food

A foundational issue for any economy is how it sources and produces its food, and this issue sits next to water on the list of essential needs. The globalised, industrial food production system currently in existence is highly unsustainable for various reasons. Not only are industrial farming techniques causing the severe and widespread erosion of nutrient-rich topsoil (which takes many hundreds of years to rejuvenate), but also the industrialised system is extremely fossil fuel dependent. Natural gas is needed to produce commercial fertilisers, and oil is needed to produce commercial pesticides, to fuel farm machinery, and to create the plastics used in packaging. Most importantly, however, are the extremely long supply chains that reach all around the world and which are dependent therefore on oil for transport. In Australia, for example, a basket of food from the supermarket typically travels 70,000 kilometres from producer to consumer (if the distance each item travels is aggregated)(10). With respect to the UK, one study has the figure at 241,000 kilometres(11). This fossil fuel dependency is highly problematic not only due to its link to climate change, but also because it will not be economically sustainable as oil continues to get more expensive.

In a sufficiency economy, food production would be highly localised and organic, and based on permaculture or ‘biointensive’ principles (Holmgren, 2002; Jeavons, 2012). Ideally this transition would be voluntarily embraced at once, but more likely is that it will be ushered in by the pressures of declining oil supplies and increasing prices. Cuba, during its ‘special period,’ provides a real world example of some such transition (Percy et al, 2010; Friedrichs, 2010). When the Soviet Union collapsed, Cuba almost over night found itself with drastically reduced oil supplies, and this necessitated an immediate shift away from energy-intensive, industrialised food production, toward a system of local and organic production. Notably, the government played a large role in facilitating this transition, but the driving force for change came from the grassroots level, as people realised they had to produce their own food or starve. The Cuban experience has some parallels with the ‘relief gardens’ that arose during the Great Depression and the ‘victory gardens’ during World War II. Necessity has always been a great motivator to grow food.

One of the most significant implications of the transition away from industrial food production is the increased labour needed for organic production. Environmentalists too often overlook this issue. While it widely accepted that organic production can be more productive per acre than industrial food production (Jeavons, 2012), organic production is also vastly more labour intensive. The increased labour requirements arise primarily from the absence of mechanised farm machinery, but organic fertiliser production and pest control are also typically more time intensive than industrialised techniques (although permaculture practices can reduce or negate this disparity through things like companion planting). What this means is that organic food production is entirely capable of feeding the world, but do so it will require a huge increase in the provision of agricultural labour. This must be accepted as an implication of the transition to a sufficiency economy, however it is one that has a large silver lining. Not only will it reconnect communities with the local land base upon which they depend for subsistence, but many health benefits will flow from moving away from sedentary office or factory work toward the more active and outdoor work of farming. Governments must do everything they can to support localised, organic agriculture, starting by putting a price on carbon.

As well as a proliferation of organic farms on the urban periphery, a sufficiency economy would also aim to maximise organic food production within the urban boundary. This would involve digging up lawns and turning them into productive vegetable gardens, and planting fruit trees in all available spaces. Nature strips would be cultivated; parks would be turned into small farms or community gardens; suitable roofs would become productive, herbs would grow on balconies and windowsills, and generally all food producing potential would be realised. Most suburban backyards would keep chickens for eggs, and perhaps even small livestock, such as goats for milk and cheese. Animals are also a great source of manure for compost, and many permaculturalists build animals into their organic systems. While it will probably be far too energy intensive to dig up tar-sealed roads, there is still great potential for building raised beds on driveways, some footpaths or roads, and car parks. Mushrooms could be cultivated on the shady side of the house, and household or neighbourhood aquaculture systems could provide urban centres with some of their fish supply.

Even in a sufficiency economy, however, we can expect our households to ‘import’ various foods in various forms, if not from around the world, then certainly from rural contexts. This, in fact, would be an absolute necessity in urban contexts, because growing space simply does not permit anywhere near strict self-sufficiency. A recent study of Toronto, Canada, for example, concluded that the city could possibly produce 10% of its own fruit and vegetables, if available growing space within the city’s boundaries were converted to agriculture (MacRae et al, 2010). This implies that even if urban agriculture were enthusiastically embraced, the city would still need to import 90% of its fruit and vegetables, to say nothing of its meat, minerals, and other goods. While some cities may be able to do somewhat better (e.g. Havana), the Toronto study clearly shows that urbanites around the world are extremely dependent on functioning food production and distribution systems.

Food consumption, not just production, would change drastically in a sufficiency economy. As already implied, the consumption of food would be organic and highly localised, and this also means that people would eat ‘in season’ in order to avoid having to import non-seasonal foods from the other side of the world. Preserving foods in season would be the most appropriate way to access those foods out of season. Generally, food would be unprocessed and require no disposable packaging, and people would eat much less meat (especially red meat) or become vegetarian, due to the intolerable environmental impacts of excessive meat and fish consumption. This reduction in meat consumption could also open up huge tracts of land for human food production that are currently used to produce grain for animals. People would also eat less meat and fish because the sufficiency economy would internalise all externalities, therefore greatly increasing their relative price and thus their relative demand.

Finally, as well as composting human waste for ‘humanure’ via composting toilets (Jenkins, 2005), a sufficiency economy would vigilantly compost all its organic food wastes in order to supply the growing need for organic fertilisers, and this would also vastly reduce the amount of so-called ‘waste’ that is currently ‘wasted’ by being sent to landfill. One might even say that in a sufficiency economy a good bag of compost will typically be more valuable than a bag of gold, and if readers cannot understand that, perhaps they will not understand much about the sufficiency economy.

4.3. Clothing

Continue reading “Down is the new up.”

Doing nothing is not an option

Part Three of The Sufficiency Economy

A recent item on Naked Capitalism under their links section, deserves being highlighted.  It was a reference to a recent report on OilPrice under the heading of Why Current Methods to Combat Climate Change Don’t Work  Let me offer a taster:

World leaders seem to have their minds made up regarding what will fix world CO2 emissions problems. Their list includes taxes on gasoline consumption, more general carbon taxes, cap and trade programs, increased efficiency in automobiles, greater focus on renewables, and more natural gas usage.

Unfortunately, we live in a world economy with constrained oil supply. Because of this, the chosen approaches have a tendency to backfire if some countries fail to adopt them. But even if everyone adopted them, it is not at all clear that they would provide the promised benefits.

The Kyoto Protocol was adopted in 1997. If emissions had risen at the average rate that they did during the 1987 to 1997 period (about 1% per year), emissions in 2011 would be 18% lower than they actually were. While there were many other things going on at the same time, the much higher rise in emissions in recent years is not an encouraging sign.

The standard fixes don’t work for several reasons ….

Not going any further because the author, Gail Tverberg has given me permission to reproduce her article and I shall be doing that next Monday.  If you can’t wait until then the article may be read on Gail’s website.

So yesterday, Dr. Alexander set out a series of aspects that showed just how challenging is the present global predicament.  The fundamental argument being that growth is now utterly inappropriate for where mankind now is at the end of 2012.  Part three of the essay examines how, whether we like it or not, change is on its way.

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THE SUFFICIENCY ECONOMY
ENVISIONING A PROSPEROUS WAY DOWN
Samuel Alexander
Simplicity Institute Report 12s, 2012

Dr Samuel Alexander is co-director of the Simplicity Institute and a lecturer with the Office for Environmental Programs, University of Melbourne.

3. Embracing Life After Growth (Before it Embraces Us)

Earlier I mentioned that eventually we are likely to have a sufficiency economy whether we choose it or not. It should now be clearer why this is so. The growth paradigm has reached, more or less, the ‘limits to growth,’ and this means that we must move away from growth-based economies if we are to avoid exacerbating existing ecological crises to the point of catastrophe. Billions of lives are at stake, as are the biodiversity and climatic balance of our planet. But even if we do not choose to give up on growth, energy and resource constraints are in the process of bringing growth to an end all the same, and no amount of ‘quantitative easing’ or technological advances are going to provide an escape from this biophysical reality. When, in the foreseeable future, the world reaches the ‘end of growth,’ we will have a form of ‘sufficiency economy’ imposed upon us, in the sense at least that we will have to make do, as best we can, without further growth. This may well imply radically reduced consumption, compared to levels prevalent in consumer societies today, because when growth-based economies do not grow, debts cannot be repaid, and economic contraction, not merely stagnation, tends to ensue. If this situation is not well managed – for example, if we persist blindly with expectations of limitless growth and continue to structure our economies accordingly – then this phase in history is probably going to mark the beginning of civilisational collapse, although it is impossible to be sure whether this would be a rapid breakdown of the existing order (Korowics, 2012) or a slow deterioration over many decades (Greer, 2008).

Nevertheless, the fact that there are biophysical limits to growth from which we cannot escape sometimes obscures the fact that living within those limits is something that we should want to do, simply to be good stewards of Earth. It is obviously in our self-interest to preserve the life-support systems upon which all life depends, a point that is too often overlooked. Furthermore, the social and psychological evidence noted immediately above implies that ‘the good life’ does not actually consist in the consumption of material things, contrary to the promises of advertisements, and this means that denying ourselves consumer lifestyles need not be considered a hardship, as the ‘voluntary simplicity’ movement, for example, already understands (Alexander and Ussher, 2012). Certainly, consumer culture must not be accepted as the peak of civilisation. We must explore alternative ways to flourish without relying on material abundance, and I will argue that embracing a sufficiency economy is one means of doing so, and probably a necessary means. I will now briefly elaborate on some of the values underlying the sufficiency economy then proceed to unpack their practical implications in some detail.

3.1. The Principle of Sufficiency – ‘Enough, for Everyone, Forever’

The fundamental aim of a sufficiency economy, as I define it, is to create an economy that provides ‘enough, for everyone, forever.’ In other words, economies should seek to universalise a material standard of living that is sufficient for a good life but which is ecologically sustainable into the deep future. Once that is achieved, further growth in material wealth would not be an economic priority. As noted above, for individuals and economies that are already overconsuming, the attainment of sufficiency implies not merely resisting further growth, but first entering a phase of planned economic contraction. Once sustainable sufficiency has been attained, prosperity should be sought in various low-impact, non-materialistic forms of well being, such as enjoying social relationships, experiencing connection with nature, engaging in meaningful work or spiritual practice, or exploring various forms of peaceful, creative activity. There are no limits to the scale or diversity of qualitative improvement of life in a sufficiency economy, but to achieve sustainability in a world of seven billion people (and counting), material standards of living must not aim for consumer affluence but only for what is minimally sufficient for a good life. The basic economic reasoning here is that once basic material needs are met, human beings are not so strictly bound by materialistic concerns and are thus free to dedicate more of their energy and attention to things other than increasing material living standards. ‘As wealth increases,’ John Hicks (1959: xiii) once wrote, ‘wealth itself becomes (or should become) less important,’ a dynamic that Hicks mischievously called ‘the diminishing marginal significance of economics.’

These broad comments obviously require (and will receive below) more concrete expression, but they nevertheless provide a normative starting point that contrasts sharply with the materialistic ‘more is better’ ethos underpinning existing growth economies. The sufficiency economy is based on an alternative economic perspective that accepts that ‘just enough is plenty,’ and this alternative perspective implies that producing more than is sufficient is not required for an individual or society to flourish. In the words of Henry Thoreau (1982: 568): ‘Superfluous wealth can buy superfluities only.’ Furthermore, we have already seen that the growth paradigm has produced high-impact economic systems that are grossly unsustainable and certainly not universalisable, so the sufficiency economy treats consumer lifestyles, and the growth economies that are required to support them, as neither desirable nor sustainable.

Determining exactly what level of material provision is ‘sufficient’ cannot be defined with any analytical precision, and will always be context and culturally specific (Sen, 1998). But material sufficiency can be broadly understood to include meeting basic biophysical needs for food and water, shelter, and clothing, as well as having access to basic medical services and some minimal level of social education. Access to extra energy supplies for heating will also be required in certain climates, and since energy is required to sustain any level of social complexity, some indeterminate level of energy supply, beyond food, fire, and labour, should also be considered a basic requirement for a full, human life. (Only those anarcho-primitivists, I presume, who think hunter-gathering is the only acceptable form of social organisation, would object to there being a basic need for energy beyond food, fire, and labour.) Sustainability may not necessarily mean living like the Amish – I am sure people will creatively salvage the wastes of industrial civilisation to live in ways that lie beyond the Amish lifestyles for some time. But using the Amish as a rough touchstone or benchmark may not be so far from the truth. At least this evokes a serious image of what low-consumption ‘simple living’ could look like in an energy descent context, a scenario that is entirely absent from mainstream sustainability discourse (perhaps because such simplicity of life is politically unpalatable). The most important point to understand is that nothing much resembling consumer lifestyles today are sustainable or universalisable.

Although these comments on sufficiency remain highly indeterminate – especially with respect to the amount of energy required – my position is that the concept of sufficiency is so important to sustainability discourse that its indeterminacy must not be a reason to reject it. I contend that universal sufficiency, like justice, is a fuzzy goal towards which humanity should be moving, and the most important thing is that there is a debate over the meaning of sufficiency and an attempt to practice our theory as best we can (Princen, 2005). Currently, in the developed nations, at least, sufficiency does not enter our economic or political vocabulary, which is why so few are asking the question, ‘How much is enough?’, and why fewer still are trying to answer it.

In an age that has done so much to link ‘the good life’ with material abundance, some will think the pursuit of sufficiency means giving up happy and fulfilling lives, but such an objection is based on a particular conception of human beings that the sufficiency perspective I am outlining rejects (Alexander, 2012d). If it were true that happiness and fulfilment consisted in the consumption and accumulation of ever more material things, then, admittedly, a sufficiency economy would seem to be inconsistent with ‘the good life.’ But that is far too narrow a conception of the good life and it is based on a misunderstanding of human beings. It may be that affluence can produce well being, but that does not prove that well being depends on affluence. Indeed, the conception of human beings upon which the sufficiency economy is based is one in which there are an infinite variety of fulfilling lives that can be lived while consuming no more than an equitable share of nature. Put more directly, the sufficiency economy is based on the premise that ‘a simple life’ can be ‘a good life,’ a truth that is obscured only to those who have not sufficiently explored their imaginations. Since consumerist conceptions of ‘the good life’ are causing devastating social and ecological problems, it follows that our economies should promote conceptions of the good life based on far lower resource and energy consumption, and that is the defining characteristic of the sufficiency economy.

3.2. The Macro-Economic and Lifestyle Implications of Energy Descent

The necessity of highly reduced energy consumption is perhaps the critical issue (Odum and Odum, 2001). Such a reduction will arise whether it is enforced by declining oil supplies or voluntarily embraced as a response to climate change. However, even the most progressive ecological economists who argue for decarbonising the economy do not seem to realise quite how revolutionary this proposal is – which is not to say the proposal is misconceived (Hansen et al, 2008), only that its economic implications may be misunderstood. If the global economy managed to wean itself off fossil fuels over the next few decades in response to climate change, then a ‘steady state’ economy would be impossible, if a steady state is meant to imply maintaining anything like existing levels of affluence. It would be impossible because fossil fuels currently make up around 80% of global energy supply (IEA, 2010b: 6), and given the close relationship between energy and economics, nothing like existing production or distribution could be maintained when we are talking about that level of energy reduction. Without fossil fuels, the world just would not have the energy supply to maintain a steady state of economic output; the economy would have to contract significantly. This is not a consequence many people seem to understand or dare to acknowledge, but it is a reality that we must not shy away from if a post-carbon world is indeed what we seek.

The implications of drastically reduced energy consumption primarily means two things for economies. First, it means significantly reduced production and consumption, commensurate with the available energy supply. In order to meet basic needs for all, this will require much more efficient use of energy and a radical reassessment of how best to use what limited energy is available (Alexander 2012b). Secondly, energy descent will mean an inevitable transition to highly localised forms of economic activity, for the reason that trade over large distances would be simply too energy-intensive and costly to afford, especially in an era of stagnating or declining oil supplies and rising prices (Rubin, 2009).

In short, a sufficiency economy is an economy that has low energy and resource requirements (relative to developed economies) but which sufficiently provides for mostly local needs using mostly local resources. These defining features of a sufficiency economy may receive some vague support in certain areas of the ‘deep green’ literature on sustainability, but to date almost no attention has been given to describing in any detail what economic life would be like if such an economy were ever to arise (but see Morris, 2004; Trainer, 2010; Burch, 2012a). Accordingly, the remainder of this essay is dedicated to providing some of those details, in the hope of advancing the debate on what real sustainability actually means for daily life. Until we have some clearer vision of the alternative society, it is very difficult to work effectively and prosperously toward its realisation.

(The full set of references will be included in the concluding Part Five to be published on Friday.)

Part Four – Envisioning a Prosperous Way Down will be published on Learning from Dogs tomorrow.

Where less is so much more.

The Sufficiency Economy – Envisioning a Prosperous Way Down

For some time now I have been subscribing to the news feed from The Permaculture Research Institute of Australia.  It originally caught my eye because Jean and I want to adopt some of the techniques of permaculture here in Oregon.  However, the ‘news’ from the PRI ranges across such a broad range of topics that rarely is their regular email not worthy of detailed reading.

No less so than on the 24th, just a couple of days ago, when I saw the essay by Dr. Samuel Alexander of the Simplicity Institute under the heading of The Sufficiency Economy – Envisioning a Prosperous Way Down.  I started to read the essay and very quickly realised that I was reading something of profound importance, not just to me and Jeannie, but to millions of other people right across the planet.  I sent an email to both Dr. Alexander of the Simplicity Institute and Craig Mackintosh, Editor of the Permaculture News asking if I might have permission to republish.  Dr. Alexander quickly replied in the affirmative and also approved my suggestion of breaking the essay down into separate chapters.

So, in a radical departure from my normal pattern of different topics each day, this week is going to be devoted entirely to Dr. Alexander’s essay. Tomorrow, I will include information on the Simplicity Institute, an organisation that I hadn’t heard of before, but one that deserves the broadest promotion.

Please, please, dear reader, stay with the topic all week if you possibly can.  I guarantee that it will change your outlook and offer real hope that mankind can turn away from the suicidal path we presently seem to be on.  Indeed, I can do no better that introduce Part One using the opening words written in Permaculture News by Craig Mackintosh.

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I would exhort readers to ignore the potentially off-putting length of this piece, to instead step into, and allow yourself to be absorbed by, this important and worthy attempt at future-visualising. Readers who have been following my own work over the last several years will recognise and appreciate the themes covered. From my own perspective, what follows is a highly pragmatic view on the potential near-future of civilisation, and I truly feel that the speed and shape of progression (i.e. objectively and cooperatively planned and peacefully implemented), or, regression (i.e. unplanned, reactive, desperate, monopolistic and individualistic), and ultimate form of that future will largely depend on how many people are objectively considering these themes and adjusting their lives, and their influence, accordingly.

THE SUFFICIENCY ECONOMY
ENVISIONING A PROSPEROUS WAY DOWN
Samuel Alexander
Simplicity Institute Report 12s, 2012

Dr Samuel Alexander is co-director of the Simplicity Institute and a lecturer with the Office for Environmental Programs, University of Melbourne.

When [we have] obtained those things necessary to life, there is another alternative than to obtain superfluities; and that is, to adventure on life now, [our] vacation from humbler toil having commenced. – Henry David Thoreau

1. Introduction

If a society does not have some vision of where it wants to be or what it wants to become, it cannot know whether it is heading in the right direction – it cannot even know whether it is lost. This is the confused position of consumer capitalism today, which has a fetish for economic growth but no answer to the question of what that growth is supposed to be for. It is simply assumed that growth is good for its own sake, but of course economic activity is merely a means, not an end. It can only ever be justified by some goal beyond itself, but that is precisely what consumer capitalism lacks – a purpose, a reason for existence. It is a means without an end, like a tool without a task. What makes this state of affairs all the more challenging is that the era of growth economics appears to be coming to a close, due to various financial, ecological, and energy constraints, and this is leaving growth-based economies without the very capacity for growth which defined them historically. Before long this will render consumer capitalism an obsolete system with neither a means nor an end, a situation that is in fact materialising before our very eyes. It seems that today we are living in the twilight of growth globally, which implies that the dawn of a new age is almost upon us – is perhaps already upon us. But as we turn this momentous page in history we find that humanity is without a narrative in which to lay down new roots. We are the generation in between stories, desperately clinging to yesterday’s story but uncertain of tomorrow’s. Then again, perhaps the new words we need are already with us; perhaps we just need to live them into existence.

It is not the purpose of this essay to offer another critique of growth economics, the details of which have been laid down comprehensively many times before (Schumacher, 1973; Meadows et al, 2004; Jackson, 2009; Latouche, 2009). Instead, after briefly summarising the critique, this essay will attempt to describe in some detail an alternative economic system, which I will call ‘the sufficiency economy.’ This term is typically applied to so-called ‘developing economies,’ which either have not yet industrialised or are still in the early phases of industrialisation (see e.g. Suwankitti and Pongquan, 2011). These economies are sometimes called sufficiency economies because they do not or cannot produce material abundance, or do not seek material abundance. Instead, sufficiency economies are focused on meeting mostly local needs with mostly local resources, without the society being relentlessly driven to expand by the growth-focused ethics of profit-maximisation. My point of differentiation in this essay will be to consider the notion of a sufficiency economy within the context of the most highly developed regions of the world – where an economics of sufficiency is most desperately needed – and to explore what such an economy would look like, how it might function, and how the transition to such an economy might transpire. I address this subject having been convinced that the growth paradigm has no future and that some alternative vision is therefore needed as humanity begins its inevitable transition to a world beyond growth. I put forward the sufficiency economy as the most promising alternative model, although it is one that I believe may ultimately be imposed upon us whether we want it or not, for reasons that will be explained. We can go the easier way or the harder way, so to speak, depending on our attitudes and actions.

Defined and defended in more detail below, a sufficiency economy can be understood in direct contrast to the dominant macro-economic paradigm based on limitless growth. Whereas existing economies in our increasingly globalised world are predicated on the assumption that ‘more production and consumption is always better,’ the sufficiency economy described below is shaped by an acceptance that ‘just enough is plenty.’ As will be seen, the implications of this alternative economic perspective are nothing short of revolutionary. Rather than progress being seen as a movement toward ever-increasing material affluence, the sufficiency economy aims for a world in which everyone’s basic needs are modestly but sufficiently met, in an ecologically sustainable, highly localised, and socially equitable manner. When material sufficiency is achieved in these ways, further growth would not continue to be a priority. Instead, human beings would realise that they were free from the demands of continuous economic activity and could therefore dedicate more of their energies to non-materialistic pursuits, such as enjoying social relationships, connecting with nature, exploring the mysteries of the universe, or engaging in peaceful, creative activity of various sorts. How to spend this ‘freedom from want’ is the exhilarating and perhaps terrifying question all human beings would face in a well-established sufficiency economy, so defined.

Such an economy recognises that there are fundamental limits to growth (Meadows et al, 2004), and in this it obviously shares some conceptual ground with the notion of a steady-state economy developed by ecological economists in recent decades (e.g. Daly, 1996). But to date the steady-state economy has remained largely at the level of theoretical abstraction, and this has made it difficult to envision the alternative society it vaguely implies. Unfortunately, this has hurt the movement for change, because if people cannot picture the alternative society, it is very difficult to desire it; and if we do not desire it, no social or political movement will arise to bring it into existence. Many have been persuaded, as I have been, by the insight that economies are a subset of the natural environment, not the other way round, as neoclassical economists assume. Very little attention, however, has been given to describing in detail what economic life would be like if an ecologically sustainable economy actually emerged. How would we feed ourselves? What clothes would we wear? What forms of transport and technology would we use? How much and what types of energy would we require? And what material standard of living would we have if we were to successfully decarbonise the economy? Most importantly, perhaps, what would the quality of daily life be like? These are some of the concrete questions to which this essay will offer some tentative answers, acknowledging all the while that the nature of the sufficiency economy described, like any economy, must ultimately be shaped and understood in context-specific ways. (1)

The analysis begins in the next section by briefly outlining the multi-faceted problems the world finds itself facing, not for the purpose of providing a thorough review of the global situation but simply to contextualise the discussion that follows. Unless one understands the magnitude of the overlapping problems we face, the relevance, importance, or even the necessity of the sufficiency economy may not be immediately apparent. Once the global predicament is outlined, the analysis proceeds to define in more detail the principles that underpin the sufficiency economy, although again this will be more a matter of exposition than comprehensive defence. The main part of the analysis then explores in some detail what economic life might be like if developed nations gave up the pursuit of growth and transitioned to some form of highly localised ‘sufficiency economy’ based on far lower resource and energy consumption. It is hoped that this analysis might provide some guidance on what it will actually take to transition to a just and sustainable society, as well as provide some deeper insight into what life might be like if we were ever to succeed.

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Notes:

  1. In forming the following views I have been influenced and inspired by many people, the most significant of whom I would like to acknowledge. With respect to material simplicity and ‘the good life,’ Henry Thoreau (1982) has by far been the greatest influence on my world view, followed by William Morris (2004) and the Greek and Roman Stoics (e.g. Seneca, 2004). I am also greatly indebted to my colleagues and fellow authors at the Simplicity Institute – Ted Trainer, Mark Burch, David Holmgren, and Simon Ussher – all of whom, in their own way, have deeply influenced the following discussion (see Simplicity Institute, 2012). The work of Ernst Schumacher (1973) and the Club of Rome (Meadows et al, 2004) first introduced me to the ‘limits to growth’ analysis, and Serge Latouche (2003; 2009) introduced me to the insight that degrowth, not merely zero-growth, is what is needed to achieve sustainability in overdeveloped nations. With respect to energy, Howard and Elisabeth Odum (2001) and Joseph Tainter (1988) have been my biggest influences, showing me how central energy is to the world we live in. I must also mention and thank Rob Hopkins (2008) and the Transition Movement, for providing what I consider to be the most promising framework for bringing about a just and sustainable, post-carbon world.

(The full set of references will be included in the concluding Part Five to be published on Friday.)

Part Two – The Global Predicament will be published on Learning from Dogs tomorrow.