Monday, July 28, 2008

The Cost of a Green Planet

The Cost of a Green Planet
By: Rene Velez July 27, 2008


I doubt that anyone has passed a day without some notice on the desire to live and prosper green. High energy prices, global warming and perhaps the new desire to have America become energy independent, is making headlines. Today it seems that ordinary citizens, corporations large and small and even government is making a move in the right direction. All of this is good. I hope we stay focused and on target.

T Boone Pickens even has his own ad that says we should seek out alternative energy sources. Frankly even if he has a vested interest, I don’t care if he makes another billion. Al Gore, has recently borrowed a JFK line to become energy independent in 10 years. People seem to think that this is very optimistic. Yes it is, but….I have to agree. We need to be very wary of the nay sayers.

Technology

The average American citizen does not understand how much technology already exists to make this happen. In addition even small changes, collectively, have very profound effects. In my home its been years since I implemented two plans that have saved me thousands so far. I have purchased energy efficient CFC bulbs for my home, where ever they could be used. Even my pool light, and inside refrigerator lights are CFC. I would guess total savings monthly….about $15.00. This doesn’t take into account the bulbs, although slightly more expensive, last longer too! In addition I invested in a computerized thermostat for the home and office climate system. At about $80.00 each I suspect, the cost of each was recaptured within 4 months, since my electric bill dropped about $20.00 per month. The unit turns itself off or on as programmed saving a lot of energy. I need to mention this is old technology used in a new way. CFC bulbs are in effect florecent bulbs that have been around for a long time. The computerized time thermostat is technology from the 1960’s.

Other, things that can save energy that are old technology are, solar panels and wind generators. Solar panels have been used in some form or another in South Florida since the 1970’s. However, wind energy has not been used as much because we don’t get enough consistent wind to make it viable. However, in the Midwest there are homes that have erected their own wind generators that enable these homes not only to go off the grid, but to actually sell excess power to the electric company. If I could make a profit center out of wind I would do it in a heartbeat.

Another old technology that I have not heard too much of as of late is “cogeneration”. Here is how it works. I like most homes in South Florida have an energy efficient central air conditioner. The outside unit which is composed of the compressor and coils generate a lot of heat as a by product of cooling my home. That unit would be tied to my hot water heater so that heat would make hot water for bath water and other home uses. What this means is that less energy is used overall, since the initial energy to cool your home substantially heats all of your hot water needs. In fact it can make your air conditioner more energy efficient as water is a great heat sink. Again simple technology, it exists today, yet it’s not used very often. I suspect we will here a lot about this in the future.

Okay I know what you are thinking…why is this not used more often? Simple business decision. I rather sell you two appliances than one. Ouch! capitalism hurts!

The Future cost of a Green America

If you think that $4.00 per gallon gas is expensive, you are really going to get sticker shock when you buy your 60 miles to the gallon Ford. We can in fact become more energy efficient, but of course everything that consumes energy of some kind or another will probably cost more. In fact that may really be the biggest obstacle to over come. Why? …lots of reasons. Many companies that are committed long term on old technologies will simply pass the cost of retooling to new products. The implementation of existing and new technology into current products simply will add a layer of sophistication that costs more. Although, I suspect with some products, sales volume and economies of scale will decrease prices somewhat.

In the near term I have made a decision to hold on to my gas furnace on wheels until new technology comes to market. And I suspect many others are thinking along the same lines. So instead of buying today’s hybrid, or the Honda Civic that gets 28 miles to the gallon, I will hold off and wait until say 2010 when Honda or some other company comes out with a car that gets 50 miles to the gallon. In fact, if petro prices maintain their upward curve, what I envision are a series of mass marketing attempts by auto manufacturers, to bring new technology cars to the market fast to prop up sales, until really great advances and innovation can be made affordable.

Getting over the Rainbow

I for one do not see that going green will mean a lower cost of living for everyone. In fact quite the opposite might occur. From cars to air conditioners to the office building where we work, everything will be greener and cost more. Kind of gives the green movement a new look. But, we must move on. We most get over it. In the end we can come very close to being energy independent. We can make a a serious contribution to saving our planet. We can also maintain competitive on a global market, as we license new energy technology to other countries that have us at a disadvantage on labor. That’s hard to see for most people but advances in fuel efficiency can amount, in the long term, to trillions of dollars in investments, research and development. This means jobs, it also means value. Any country that falls behind that curve will eventually loose global market share. So advances in this area are critical for our country.

Foreign Affairs and Wars

I have long suspected that one big reason for maintaining our dependency on foreign oil has been because: (1) its easy to maintain the status quo. Why bother to fix it if it works. (2) By pulling the billions of oil dollars out of the middle east we risk a geo-political imbalance.

I wish I was smart enough to tell you what are some possible outcomes. But I suspect even the best scholars on the subject really don’t know. I will however, take some guesses. I think much of the oil money that is reinvested in the USA will stay here. We are still a safe haven for foreign investment. In fact we are a good bet on new energy technologies. Suppose the middle east falls apart, having money in those countries is not a good idea. If I was a rich oil sheik I would be investing heavily on companies that will sell and license technologies to India and China. These are two huge energy consuming giants that will have to come up to the bar if they want to compete. Another very important point. We have taken the position to be the world's policeman. Although we need to be more cautious of which fights we pick, we also need to be more efficient has to how we fight them. We also have to be more independent to maintain global supremacy. At today’s cost of fuel and with our dependency on foreign oil we can be severely impacted by unstable political regimes and the cost to fight wars could send ripples through our economy, If it does not bankrupt us first. We wouldn’t be the first great nation to go bankrupt fighting wars and maintaining our borders.

Conclusion

We will either pay now or pay later, but we have to start to go green. We need to be first. We need to gain economic and political advantage.

As I have said many times before. Don’t assume your local politician or business leader will do this on their own. Again make your voice heard. Write/email your congressman or woman and your local and city officials. Tell them in no uncertain terms what you want. Send letters and emails to business leaders. People are still wondering whether Al Gore’s statement is plausible. Who cares! We need to start moving in that direction regardless. Let’s test the theory and see if it can be done. We can talk about it later. Hey….for years after we put a man on the moon, many people still didn’t believe it. This is something we can do while we have both feet planted on our own planet!

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