15 November, 2007

Maslow's recommendations for strategic environmentalism

Christoph W. Frei, Director of the Energy Industry & Strategy Departement of the World Economic Forum, recently provoked a controversial debatte on the right strategy to pursue from a environmentalist point of view. His paper "The Kyoto Protocoll - a victim of supply security?" (abstract), which was published in Energy Policy, raised the spectre that energy policy priorities ought be put in a clear hierachical order in a similar way as Maslow once did with his now famous pyramid of needs.

The Argument
The argument goes as follows: energy (policy) needs are not subject to trade-offs but to a hierachry (see below graphic). This implies that lower-ranking energy needs have to be satisfyied first, in this case "access to commercial energy" and, as soon as this is granted, "security of supply". Only if these basic needs of the energy pyramid are given, society will be able to pursue higher ranking goals such as "cost efficieny", "natural resources efficiency" and "social acceptability". The latter three energy policy needs exactly correspond with the three-pillared paradigm of sustainability.

Therefore, a sustainble energy policy can only be achieved if, first, the underlying and more fundamental energy needs have been satisfied. This insight has not been morally justified by Frei. He just "observed" it. But all over this observation has been stated again and again as natural order of things throughout the history. A conclusion out of this historical analysis is that supply security issues will always prevail over ecological concerns, so Frei.


New Strategy for Environmentalists
Based on this view, Frei recommends environmentalists to fundamentally rethink their strategy and then to adopt three action lines:

  1. opt for large energy producing cartels (aka OPEC, emerging gas cartel) to control energy prices and facilitate much needed energy investments for the fight against energy poverty
  2. focus energy-related R&D that focuses on simple energy solutions rather than high-tech capex-heavy technologies such as nuke power and carbon sequestration and storage
  3. apply free trade rules to energy commerce, especially in the field of biofuels instead promoting inefficient local production of biofuels
Frankly, for most environmentalists, quite a new perspective!

1 comment:

Anonymous said...

A structured summary and review of Frei's article provided by a friend of mine...

The Environmentalists' Struggle with Energy Security or: If Maslow were in Energy Politics By Christoph W. Frei

Summary

1. Maslow's pyramid as a description of today's energy policy priorities

1.1 Maslow's pyramid describes a hierarchy of human motivation. The satisfaction of lower order needs is most likely to be desired over the fulfillment of higher order needs.

1.2 The analog is:

2. Supporting arguments and analysis of policy decisions as reflective of this hierarchy

2.1 Security versus cost efficiency and environmental agenda

2.1.1 US subsidy of homegrown biofuel over Brazilian sugarcane

2.1.2 Questioning market liberalization which promotes efficiency but threatened supply security

2.1.3 Chinese cost-intensive constraints on mileage consumption were driven by security concerns as the market expands and dependency correspondingly increases

2.2 Cost efficiency versus natural resources efficiency

2.2.1 Internalization of external costs versus market liberalization in the interest of economic efficiency; latter is more popular

2.2.2 Putin's words that poverty is more urgent than Kyoto protocol (and liberalizing electricity market)

2.3 Social acceptability versus energy security

2.3.1 Germany's moral dilemma: choosing natural gas security over Ukraine's self-determination

2.4 Social acceptability versus natural resources efficiency

2.4.1 Nuclear waste and esthetics debated only in affluent countries

3. Purpose of this analogy: by a firm grasp of reality, inform effective and directed action

3.1 Understanding historical energy policy needs hierarchy

3.2 Estimating range of political feasibility with regard to balancing priorities

4. Strategy: analysis of implications on current energy policy issues

4.1 Fundamental importance of public understanding of adequate energy security

4.2 Political strategy of GHG mitigation: tie instead of tension with security

4.3 Energy poverty must be addressed before GHG measures

4.4 Examination of OPEC's stabilizing function; should we have a similar energy organization focusin investments

4.5 Investment in advanced technologies based on elasticity between capital and energy; may widen the energy divide

4.6 Security will trump cost: Support of a hydrogen economy must be contingent on whether it can be produced, stored and transported from well-distributed sources

4.7 Biofuel economy could contribute to diversification. the real barrier to trade and uptake is silly agricultural protectionist stances

5. Poetry and revolution: Maslow's pyramid does not explain a minority which may well serve to challenge us with new visions. However, in the interest of feasibility, we must work in alignment with the world's current priorities.