Posts tagged with: gross world product

Blog author: jballor
posted by on Monday, June 4, 2007

“If a man will not work, he shall not eat.” That’s a good rule, I think.

The Care of Creation blog is noting, however, that “people who work longer hours use more energy and generally contribute more to the decline of the ecological quality of life on planet earth.”

The basis for the claim is a report that comes from the Center for Economic and Policy Research, and “finds that if all countries worked as many hours per week as U.S. workers do, the world would consume 15 to 30 percent more energy by 2050 than it would by following Europe’s model.”

As I’ve asserted before, calculations that simply take into account the outputs of various environmentally-relevant factors, like GHGs, without also noting the relevant economic variables, are highly flawed.

So perhaps per capita American workers do work longer hours and therefore use more energy than their European counterparts. But do the American workers also contribute more to their respective country’s GNP than do Europeans? I’m betting they do…and it shouldn’t be surprising that all these factors correlate, because of the energy-dependent nature of the economy in the 21st century. But as recent trends suggest, perhaps even that doesn’t mean that economies must increase GHG emissions to grow.

Who gets more bang for their energy buck? The EU’s share of gross world product (GWP) is roughly 20%. Estimates put the EU’s population right around 490 million. The US’s share of GWP is larger than the EU’s, somewhere between 20% and 30%, but accomplishes that with a fraction of the population, numbering barely above 300 million.

So, work less and “save” the planet, but also contribute less to the global economy. That’s a formula for disaster.

For another take on how you can do nothing and save the planet, see the May 21 edition of the Joy of Tech comic.

Blog author: jballor
posted by on Tuesday, July 25, 2006

Today’s NYT editorializes: “a country that consumes one-quarter of the world’s oil supply while holding only 3 percent of the reserves will never be able to drill its way to lower oil prices, much less oil independence.”

You’ll often hear the complaint that Americans use more than their fair share of the world’s oil. We’re addicted to it, some say. After all, so goes the reasoning, we have less than one-half of one percent of the world’s population, but we “consume one-quarter of the world’s oil supply.” Seems wildly out of proportion, doesn’t it?

That is, until you take into account that the United States economy represents somewhere between 20 and 30 percent of gross world product (depending on how you calculate it). So the US also produces wealth that is wildly out of proportion to our share of the world’s population.

There is a real correspondence between economic power and the use of fossil fuels. That’s part of the reality I was pointing to in this week’s Acton Commentary: “Fossil fuels would thus have the created purpose of providing relatively cheap and pervasive sources of energy. These limited and finite resources help raise the standard of living and economic situation of societies to the point where technological research is capable of finding even cheaper, more efficient, renewable, and cleaner sources of energy.”

And here’s just one more side note. Without too much exaggeration, you could say that today’s electric cars are really coal-powered. If you look at the sources of electricity in the US, “coal provides over half of the electricity flowing into American homes.” That means that in one ideal world of the alternative fuel crowd, when you plug your car in, you’re plugging it in to a coal plant (this is also why the idea of consumer carbon credits is catching on). The energy and environmental issues in the world are about far more than “gas guzzling” SUVs.