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A Running Out Story







A Running Out Story

A Running Out Story 03/14/2005 06:21 PM

smartcarMore on the End of Oil:
And we're nearing the End of the Bubble:
But if you Ask the People:
  • They think too much is spent on defense and war and not enough on health, education, renewable energy, jobs and deficit reduction;
Meanwhile Nero Keeps Fiddling:
  • Bush appoints a redneck who hates the UN as the ambassador to the UN, paving the way for US withdrawal, and
  • Robert Byrd warns eloquently that the new legislation to end filibusters means the end of free speech, the end of the right of dissent, and the end of minority rights in America
And Don't Count on Business to Help Out:
  • Two new surveys show US investment in innovation is in a tailspin.
There are disturbing signs that hot on the heels of the End of Oil will come the End of Water. So put a rainbarrel on your shopping list along with the hybrid or Smart Car.

Thanks to reader David Parkinson and
Innovation Weekly for some of the links.




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world population
When I was researching the article One Billion Americans?, I got thinking about the implications of the wildly conservative Census Bureau projections of US population, and the embarrassing drastic upward revisions that have been made to them, for global population projections. What made the US projections so wrong (US population peaking at 295 million was predicted as recently as fifteen years ago) was the compound error of underestimating the extent of immigration and overestimating the rate at which immigrants adjust their family size to the average of their new country, or the global average. It's an understandable error -- there's lots of evidence that population growth rates in the developing world are falling quickly. But that's not because third world countries are evolving to two-child-or-less families as infant mortality drops. Rather, it's because those countries are simply unable to sustain more children, so parents are reluctantly, temporarily reducing family size as a result. Give them the option to emigrate to a developed country, and cultural preference, religious dictates, and improved health care will jump their family size (and life expectancy) back up again. And as inevitable ecological and humanitarian catastrophes arise in the 21st century in dozens of third world countries, compounded by the scourges of new diseases, horrendous shortages of clean water, and desertification and crop flooding due to global warming, the pressure to increase immigration quotas by orders of magnitude will be fierce.

Back in 1990 when the pundits were predicting US population would peak at 295 million (it passed that level last year and is now expected to peak at between 550 million and 1.2 billion, if it peaks at all), they were saying global population would peak at around 9-11 billion in 2100. But for that to happen with a US population of, say, 900 million instead of 300 million, would mean average third world family size would be much smaller than average US family size. The UN projections, for example, assume annual average growth rate for Africa, Asia and Latin America of 0.5% in the latter half of this century, compared to a current growth rate in those areas (even including China with its already-low birth rate) of 2.1%, and compared to a current US growth rate of 0.9%, which is trending back up to a projected 1.3% rate for most of the current century, thanks to immigration.

So the 9-11 billion global peak population just doesn't add up. While it doesn't make sense to get Malthusian and project population will grow indefinitely at current rates (1.3%, i.e. a doubling every 50 years to 24 billion by 2100), it's equally illogical and irresponsible to suggest that the whole world will start immediately radically reducing its fertility rate to achieve in just two generations the low fertility rate that Europe took one hundred generations to reach. If you assume that the levels of immigration now projected by the US Census Bureau will prevail throughout the developed world, that first- and second-generation citizens of developed countries will continue to have considerably larger-than-replacement level families in their new adopted countries, that the prevailing pro-fertility population dogmas of organized world religions will not suddenly be changed, that population pressure in the third world will be eased somewhat by immigration and that modest drops in family size in those countries will be largely offset by longer life expectancy, as has been observably the case in almost every third world country except China, then instead of the 9-11 billion peak the UN is currently talking about, you end up with population soaring past 14 billion in 2100, with no end in sight (left chart above).

The curved red line shows the carrying capacity of Earth, assuming a modest annual increase in productivity from the current 30 billion acres (productive-capacity adjusted), assuming average footprint per capita continues to increase by a modest 1% per year, and assuming no land on the planet is reserved for wilderness or natural space for the rest of Earth's creatures. It shows in 2000 that the world could sustain 5 billion humans at the then-prevailing level of consumption. That's a billion humans less than actually inhabited the planet then, possible only by depriving much of the world of a subsistence level of resources, and by taking more from the Earth (in non-renewable resources) than we replaced, essentially stealing the excess from future generations. At the expected global level of per-capita consumption in 2100 (still well below today's North American consumption levels), carrying capacity drops to 2 billion humans. That number is substantiated by a recent C ornell study that says the choice in 2100 is between 2 billion people living a comfortable but not lavish life (achieved by a drastic population reduction) or 12 billion "struggling in misery". And if you want to allow 50% of the planet's surface for other life forms, you need to achieve double that reduction (green line), to one billion people, the level both Jim Merkel and Bill McKibben think we should strive for. That's only achievable, short of coercion, by an average one child family worldwide for the next century.

The right chart shows that the increasing average footprint, driven both by North American excess and the surging resource use of China's billion plus people, will drive the aggregate human footprint up even more sharply than aggregate population, from 37 billion acres today (20% more than Earth's carrying capacity) to 210 billion acres in 2100 (six times Earth's carrying capacity). Now remember, these assumptions are much closer to the wildly optimistic assumptions of population levelling that the UN and other global agencies optimistically hope for, than to the Malthusian no-change projections that would see nearly double these numbers. Nevertheless, train wreck ahead.

We simply have no choice. We must immediately and aggressively reduce our family sizes worldwide, and we must immediately and aggressively reduce per-capita resource consumption, waste and footprint. That means we must confront religions that don't actively encourage birth control and small families, and show those religions to be socially irresponsible. That means, too, we need to introduce ecological taxation measures to make excessive resource consumption and waste prohibitively expensive, and reward those who tread lightly on the Earth.

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07/26/2004 12:14 PM
This morning, it seems like the big Wall Street tech story is the official release from Google about what they think they'll raise from their IPO. Looking over all the different coverage, it appears that many (especially in the financial press) seem to be getting the story a little mixed up. The basic facts seem to be that approximately 24.6 million shares will be put on the market with a range of $108 to $135 per share. As noted in the story, some seem to think that breaking $100 may prove to be a psychological barrier for many retail investors, even if the actual price per share is meaningless. Still, if the price is a psychological barrier, rather than a calculated decision, the investor probably shouldn't be buying anyway. A minimum bid from anyone must be for five shares, so anyone who wants in is spending over $500. The range is higher than expected, and could lead to a valuation pushing $40 billion. One analyst makes the bizarre statement that: "The question is not what the company is worth, but instead what people will pay for it," which misses the fairly simple, but important, point that the price people are willing to pay for the stock is what the company is worth. Meanwhile, many news articles are claiming that Google will raise $3.3 billion in the offering, which is not true at all (or at least, extremely unlikely). The details show that Google is likely to bring in about $1.66 billion (and possibly as high as $1.9 billion at the top of the range). That's because only 14.1 million of the 24.6 million shares are actually being sold by the company. The other 10.5 million are being sold by insiders. Now, that's a curious point that no one seems to be focusing on. While insiders do sometimes sell during an IPO, it generally doesn't look too good. While there are plenty of reasons (liquidity, liquidity, liquidity) that people might want to sell, usually insiders get locked up for a bit. It does happen, but in this case, an awful lot of that $3.3 billion (or whatever the amount actually is) isn't going to the company, but to others. The initial IPO filing tried to spin all this insider selling as a good thing, but that's pretty questionable. If people really believe in the stock, why are so many selling it at the very first chance they get? Doesn't inspire the most confidence in the world.

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The reason I am not yet asleep is that I've spent the past eight hours in the Ropecon after-party, which - all as con workers know - is the true reason why anyone works for free for three days: the chance to eat food, drink beer, talk, go to sauna, play games and really have a few hours to feel good about what they have just accomplished. No pressure, no shifts, no deadlines.

I did miss the annual nude wrestling competition this year (again), but for good reason: Erick Wujick gamemastered an impromptu game, with a few really nasty twists. My character ended up as a hermit somewhere in Colorado, hiding in the forest, shooting at people, and being very, very afraid of the moment when he eventually dies. Not bad for an hours game. Plenty of fun.

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The downside, though, is that I was huffing and puffing before the first mile - a far cry from the effortless nine milers I was doing a few months ago. Of course, I attribute part of this to my eight week "beer and pizza" recovery program, which led me to gain more than a few extra pounds (ahh, but it was worth it!).

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