(No) Drill, Baby, Drill
Liberia, Costa Rica
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These days, visitors can still see amazing biodiversity all over Costa Rica — more than 25 percent of the country is protected area — thanks to a unique system it set up to preserve its cornucopia of plants and animals. Many countries could learn a lot from this system.
More than any nation I’ve ever visited, Costa Rica is insisting that economic growth and environmentalism work together. It has created a holistic strategy to think about growth, one that demands that everything gets counted. So if a chemical factory sells tons of fertilizer but pollutes a river — or a farm sells bananas but destroys a carbon-absorbing and species-preserving forest — this is not honest growth. You have to pay for using nature. It is called “payment for environmental services” — nobody gets to treat climate, water, coral, fish and forests as free anymore.
The process began in the 1990s when Costa Rica, which sits at the intersection of two continents and two oceans, came to fully appreciate its incredible bounty of biodiversity — and that its economic future lay in protecting it. So it did something no country has ever done: It put energy, environment, mines and water all under one minister.
“In Costa Rica, the minister of environment sets the policy for energy, mines, water and natural resources,” explained Carlos M. Rodríguez, who served in that post from 2002 to 2006. In most countries, he noted, “ministers of environment are marginalized.” They are viewed as people who try to lock things away, not as people who create value. Their job is to fight energy ministers who just want to drill for cheap oil.
But when Costa Rica put one minister in charge of energy and environment, “it created a very different way of thinking about how to solve problems,” said Rodríguez, now a regional vice president for Conservation International. “The environment sector was able to influence the energy choices by saying: ‘Look, if you want cheap energy, the cheapest energy in the long-run is renewable energy. So let’s not think just about the next six months; let’s think out 25 years.’ ”
As a result, Costa Rica hugely invested in hydro-electric power, wind and geo-thermal, and today it gets more than 95 percent of its energy from these renewables. In 1985, it was 50 percent hydro, 50 percent oil. More interesting, Costa Rica discovered its own oil five years ago but decided to ban drilling — so as not to pollute its politics or environment! What country bans oil drilling?
Rodríguez also helped to pioneer the idea that in a country like Costa Rica, dependent on tourism and agriculture, the services provided by ecosystems were important drivers of growth and had to be paid for. Right now, most countries fail to account for the “externalities” of various economic activities. So when a factory, farmer or power plant pollutes the air or the river, destroys a wetland, depletes a fish stock or silts a river — making the water no longer usable — that cost is never added to your electric bill or to the price of your shoes.
Costa Rica took the view that landowners who keep their forests intact and their rivers clean should be paid, because the forests maintained the watersheds and kept the rivers free of silt — and that benefited dam owners, fishermen, farmers and eco-tour companies downstream. The forests also absorbed carbon.
To pay for these environmental services, in 1997 Costa Rica imposed a tax on carbon emissions — 3.5 percent of the market value of fossil fuels — which goes into a national forest fund to pay indigenous communities for protecting the forests around them. And the country imposed a water tax whereby major water users — hydro-electric dams, farmers and drinking water providers — had to pay villagers upstream to keep their rivers pristine. “We now have 7,000 beneficiaries of water and carbon taxes,” said Rodríguez. “It has become a major source of income for poor people. It has also enabled Costa Rica to actually reverse deforestation. We now have twice the amount of forest as 20 years ago.”
As we debate a new energy future, we need to remember that nature provides this incredible range of economic services — from carbon-fixation to water filtration to natural beauty for tourism. If government policies don’t recognize those services and pay the people who sustain nature’s ability to provide them, things go haywire. We end up impoverishing both nature and people. Worse, we start racking up a bill in the form of climate-changing greenhouse gases, petro-dictatorships and bio-diversity loss that gets charged on our kids’ Visa cards to be paid by them later. Well, later is over. Later is when it will be too late.Book Review - 'Hot, Flat, and Crowded,' by Thomas L. Friedman - Review - NYTimes.com: "Eco-nomics"
Thet environmental movement reserves a hallowed place for those books or films that have stirred people from their slumber and awoken them to the fragility of the planet: Rachel Carson’s “Silent Spring,” Bill McKibben’s “End of Nature” and, most recently, Al Gore’s Oscar-winning documentary, “An Inconvenient Truth.” Thomas L. Friedman’s new book, “Hot, Flat, and Crowded” may lack the soaring, elegiac qualities of those others. But it conceivably just might goad America’s wealthiest to face the threat of climate change and do something about it.
Friedman, the thrice-Pulitzered foreign affairs columnist of The New York Times, has built a following beyond readers with an interest in international relations. His last book, “The World Is Flat,” made him a best-selling author in business class, the kind of writer that those who turn left when boarding a plane feel they ought to be seen reading. Friedman does not shy away from this audience; indeed he sometimes seems to be writing especially for it. “Do half your employees use computers and half use paper, pencils and abacuses?” he asks in one passage, apparently confident that he is addressing a chief executive.
For that very reason, Friedman could perhaps touch those who have so far eluded the green movement’s reach: the hardheaded executives more worried by projections of receding profits than retreating glaciers. That constituency listened to Friedman on globalization and they might be ready to listen to him again on global warming.
The form of “Hot, Flat, and Crowded” is trademark Friedman: a series of arguments, often distilled into mnemonic formulations, some snappier than others — it’s not A.D. 2008, but “1 E.C.E.,” the first year of the “Energy-Climate Era” — all based on extensive, far-flung reporting, most of it consisting of interviews with experts, professors and, of course, C.E.O.s.
What will appeal to can-do business types is that Friedman’s book does not dwell, as, say, Gore’s movie did, on describing the problem, but concentrates most on sketching possible solutions. It is in these passages that Friedman’s argument really takes off, allowing him to give vent to his enthusiasm and unabashed idealism. Non-Americans might find his wide-eyed patriotism a touch saccharine if not naïve, but it’s hard not to be carried along by his evident passion.
To be sure, the book begins with a diagnosis of “where we are” and “how we got here” that is short on good cheer. We live, Friedman explains with reference to his previous work, in a world that is flat — a level economic playing field with fewer barriers between countries and individuals — but that is now also becoming crowded, thanks to rising population. And the problem is not just that the raw number of people is increasing, it’s that many more are gaining access to an American level of consumerism. With the world’s population of “Americans” heading toward two or three billion — all desiring the middle-class comforts of a car, a fridge and an air-conditioner — the global demand for energy is soaring to new heights. That, Friedman says, is unsustainable.
This hunger for energy is dangerous not only because it means belching more carbon dioxide into the atmosphere, so pushing the temperature to dangerously high levels, but also because it is robbing the world of precious, and beautiful, biodiversity, destroying a unique species every 20 minutes. It also means we’re lining the pockets of the autocrats who tend to control the world’s reserves of fossil fuel, the “petrodictators.” And we are opening an ever wider gap between the energy haves and the energy have-nots, those who cannot take part in the “flat” world because they cannot switch on a light bulb, let alone a laptop.
Friedman knows what is to be done. The United States needs to set an example for the world to follow, by starting over and constructing an entirely new Clean Energy System, one that will send “clean electrons” into its homes, offices and cars — generated not by dirty old oil or coal, but by solar, wind and nuclear power — and that will use many fewer of those electrons, thanks to greater efficiency. In the book’s most arresting passage, Friedman plays futurist and looks ahead — to “20 E.C.E.” — imagining a world where an Energy Internet puts each one of your home appliances in touch with the power company, drawing out only the minimal power it needs to function and at the cheapest, off-peak times. Even your car, by now a plug-in hybrid that gets the equivalent of 100 miles per gallon, can charge its battery with solar power, which it then sells back to the grid.
All this would, of course, require the most profound shift. As Friedman explains, utility companies were established at a time when the sources of power to generate electricity were assumed to be limitless. The utilities’ responsibility was, and remains, to supply a constant flow of electrons to every household; they have a direct financial stake in keeping demand high. These companies need to be fundamentally rewired so that their rewards come from persuading us all to use less, not more, of their product.
The way to do that, Friedman explains, is by “reshaping the market,” not only to make us use less electricity, but to make the power companies buy energy from cleaner sources. It will take an entirely new regime of taxes, incentives and price signals, all set by the federal government. Oh, says the ideological free marketeer, we couldn’t possibly meddle in the market like that. But guess what, Friedman replies: we already do. Washington has tilted the energy playing field for years — subsidizing oil, gas and coal and giving only puny, halting help to wind and solar power. It is, Friedman writes, “a market designed to keep fossil fuels cheap and renewables expensive and elusive.”
What’s needed is the presidential leadership of an Abraham Lincoln or a Franklin Roosevelt to command enough authority to face down the fossil fuel lobbies and create a single, national system that would instantly release the pent-up innovation and creativity that is ready to get to work, cleaning up America’s energy supply and reducing its demand. Once the United States has done that, and shown that there’s money to be made from the new industry of “greening,” the rest of the world will, as a matter of self-interest, follow suit. In the process, America will have discovered a national mission for itself once more.
Readers of Friedman’s earlier books may well pause at this point and wonder what has happened to their favorite evangelist for globalization. For it’s hard not to detect a slight shift leftward in this conversion to radical, government-led action to save the planet.
Friedman is at pains to insist that there’s nothing leftie about caring for the environment: it’s no longer “yoga mats, Birkenstock sandals, tofu.” Indeed, in a fascinating section, he meets United States Army officers who have gone green, converted by the realization that the need to transport oil to generators in the Iraqi desert left their men needlessly exposed to enemy attack. They understood that if they could use less energy, or even generate their own, they would be safer.
Nevertheless, Friedman inevitably finds himself making arguments — urging a muscular federal government to push aside the selfish interests of the big corporate lobbies — that were once confined to the left. It can lead him into contradictory terrain. Thus, he is committed to praising the globalizing forces that have flattened the world, but he despairs at their consequences. He mourns, for example, the burning of rain forests, quoting the noted entomologist Edward O. Wilson that it is “like burning all the paintings of the Louvre to cook dinner.” Yet he does not address the fact that multinational companies are able to come in and lay waste to these forests only because of the global trading rules Friedman once so admired.
He deplores the nationalization of companies, seeing privatization as an index of freedom on a par with a free press and democratic elections — yet he also looks longingly at the well-resourced mass transit systems of Europe, which keep cars off the road and emit less carbon dioxide, and which are only possible thanks either to state ownership or to enormous, taxpayer-supported subsidies. He knows that we cannot simply consume more and more from a finite planet; he understands that prosperity is threatened by the very “nature of American capitalism”; he quotes approvingly the Norwegian oil executive who warns, “Capitalism may collapse because it does not allow the market to tell the ecological truth.”
But Friedman does not surrender to these dark thoughts; he pulls himself together and recovers his faith in the American economic model. The free market will be fine, he says, so long as it’s tweaked to start telling the truth, reflecting the true cost to the earth of all that we consume.
These intellectual tensions are not the only flaws in “Hot, Flat, and Crowded.” Scholarly types will doubtless find the first-person examples excessive: they will surely want to remind Friedman that the plural of “anecdote” is not “data.” General readers, too, may wish for a slightly leaner manuscript, lighter on complex technical detail, which can be overwhelming. Some of the interviewee quotations are either too baggy or too dense, as if Friedman has moved large sections of transcript into his text. The writing style, with constant new coinages and shorthand phrases — “I call this the ‘Naked Gun 2 1/2 rule’ ” — while winning in a column, can grate over the distance of a book. Whole sentences are repeated or italicized for emphasis, in the style of a spoken lecture. And there are some horribly mixed metaphors: “The demise of the Soviet Union and its iron curtain was like the elimination of a huge physical and political roadblock on the global economic playing field.”
But these are minor infelicities when set against a book that will be accessible outside the eco-converted, is grounded in detailed research and repeatedly hits its target. It contains some killer facts — the American pet food industry spends more on research and development than the country’s power companies; Ronald Reagan stripped from the White House the solar panels that Jimmy Carter had installed as a symbolic step toward energy independence. Above all, it is fundamentally right on the biggest question of our age. If Friedman’s profile and verve take his message where it needs to be heard, into the boardrooms of America and beyond, that can only be good — for all our sakes.
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