27 April 2006

Choosing Resource Consumption Consistent with the Purpose of Life

(My Team Ethics Essay with Ji Hee Song)

If we adhere to the natural ethic, or the use of methods, systems and materials that sustain the purpose of life, to which consumption strategy can we rightly adhere?

This essay assumes that the purpose of life in nature is to carry genetic material through time. Actions motivated by this purpose are defined as natural. Therefore, in many regards, human action is natural; it tends toward the security of the physical body and the (at least short-term) propagation –through reproduction– of human genetic material. However, not all human action is natural as defined here. Humans, in comparison to other organisms, have incredible command over their will. This command can lead to extreme reduction in present consumption that reduces the present generation’s ability to reproduce and care for its young. On the other hand, technology has allowed humans to increase their command of the environment. This command can lead to over-consumption of natural resources to the extent that future generations cannot adequately provide for themselves. Because strategies which exercise these commands to their extremes disregard the purpose of life, they are unnatural. Yet, even between these two extremes lay unnatural strategies. If we adhere to the natural ethic, we must discover and follow a sustainable consumption strategy.

Strict preservation denotes “human actions which reserve, protect, or safeguard the natural environment from natural disturbance” [Italics added] [1]. Natural in this definition is misapplied because strict preservation rejects the human role in nature. Because strict preservation subtracts human needs from the natural environment it compares the damages humans inflict on the environment to an insignificant benefit. This will always lead the preservationist to call for a reduction in human consumption. However, humans must consume resources from the environment to fulfill the purpose of life.

A major component in this fulfillment is energy consumption, whether to enhance food transportation and production, increase defense against nature and enemies, increase productivity and hence ability to purchase food, etc. Sources include fossil fuels (oil, coal, natural gas), renewable energy sources (solar, wind, hydroelectric, geothermal), as well as nuclear and hydrogen. If strict preservationists opt for any unnatural energy production, they will opt for renewable energy sources because they place the least load on the natural environment. They neglect or discount too heavily the cost that total conversion to these sources will require. This high cost is evidenced the low current usage of renewable resources (about 6% versus about 86% for fossil fuels in 2004) [2]. Strict reliance on these sources as a blanket solution is unnatural because it does not simultaneously leave many humans sufficient wealth to adequately address other aspects of life essential fulfilling the purpose of life (e.g., housing, transportation, medication, and productivity enhancing technologies).

An extreme consumption strategy is equally unnatural. It promotes the use of available resources to meet human needs and wants. Extreme consumption excludes future generations’ needs when calculating total social benefit which leads them to compare the benefits humans gain from resources to an insignificant cost (present costs of consumption). Therefore, as long as it is economically viable, the consumption strategy will call for an increase in human resource utilization. However, to fulfill the purpose of life, humans must ensure the availability of resources for future generations.

Extreme consumption, while improving human’s ability to reproduce and care for their young, leads to both a higher future population and reduced resource supply to sustain it. For example, extreme energy consumption and its related processes (fossil fuel extraction and combustion for the production of energy) reduce energy resource supplies and pollute other non-energy resources. Reducing the availability of these resources such that future generations cannot fulfill their needs is contrary to the purpose of life, violating the natural ethic.

The natural ethic requires a strategy with both preservation and consumption elements, yet at neither extreme. Sustainability is defined as "improving the quality of human life while living within the carrying capacity of supporting ecosystems” [3]. The obvious question is: where on the spectrum does sustainable consumption lie? Without perfect information about nature, we cannot pinpoint the most sustainable consumption level. However, we can begin to define unsustainable regions of the spectrum.

By definition, genetic extinction occurs when the human population reaches zero. However, risks to genetic material begin whenever the population decreases significantly. One risk is maintaining allele levels (genetic diversity) from generation to generation. As the purpose of life is to carry genetic material, it is desirable to avoid reductions in genetic diversity which may reduce adaptability to changing conditions [4]. This would suggest that sustainable consumption excludes any strategy along the spectrum that does not maintain a human population sufficient to ensure reasonable genetic diversity.

To narrow the range of strategies, we define reasonable genetic diversity as that level of diversity great enough to adapt to catastrophes that are likely to arise in the course of time relevant to the human species, perhaps 2 million years. We do not assume to know the exact severity of these catastrophes. However, their existence implies a threshold value, δ, such that sustainable genetic diversity must be at least δ above the reasonable genetic diversity level (figure 1). If not, a natural disturbance could bring the population to a level that would lead to genetic extinction in the long term. Therefore this region of the figure is labeled “unsustainable strategy” and δ is called the “safety margin.”

Figure 1. Genetic diversity versus consumption level (authors).

A likely objection is to assert that the natural ethic requires the maximization of genetic diversity and hence the likelihood of the material’s survival. In other words, only one strategy is in accordance with the natural ethic. While technically valid, figure 1 is misleading in that we do not know the exact functional relation between genetic diversity and consumption level (i.e., we do not know the shape of the curve). This uncertainty does not affect the required level of genetic diversity but it does reduce our ability to choose a precise consumption level.

As we further explore nature and the relationship between genetic diversity and consumption over a long period, we will reduce this ambiguity. The natural ethic requires genetically non-essential resources be diverted to this endeavor as it will allow for the optimization of resource utilization. Translated into practical terms, those most able (e.g., the rich, the intelligent, etc.) should reduce non-essential consumption (if it exists) to pursue this end, while those whose present needs remain unmet should increase consumption until these needs are met. A practical public policy in accordance with the natural ethic is to tax the rich’s surplus to support research into genetic diversity while concurrently reducing penalties on the poor for increasing utilization of resources that improve their ability to fulfill their purpose of life (including, if necessary, non-renewable, polluting resources).


References

1 Ministry of Forestry, British Columbia. Glossary, 2001. Accessed April 25, 2005.

2 Energy Information Administration. U. S. Energy Consumption by Energy Source, August, 2005. Accessed April 25, 2005. <http://www.eia.doe.gov/cneaf/solar.renewables/page/trends/table1.html>

3 H. Odum. Energy in Ecosystems. Environmental Monographs and Symposia. New York: John Wiley and Sons, 1986; C. Cleveland. Natural Resource Scarcity and Economic Growth Revisited: Economic and Biophysical Perspectives. Ecological Economics. New York: Columbia University Press, 1991, 289; J. Gever et al. Beyond Oil: The Threat to Food and Fuel in the Coming Decades. Cambridge, Mass.: Harper & Row, 1986; and R. Ayres and K. Martinas. Waste Potential Energy: The Ultimate Ecotoxic. Economic Applications. 43, no. 2, 1995.

4 Pearman, P.B. & Garner, T.W.J. Susceptibility of Italian agile frog populations to an emerging strain of Ranavirus parallels population genetic diversity. Ecology Letters. Vol. 8, no. 4, April 2005.




24 April 2006

Oil price conspiracy

Finding myself a new car owner would presumably lead me to flip the proverbial bird at oil companies. I mean Exxon stole $36 billion from our pockets last year, a U.S. record! The evil oil executives must be awfully proud of themselves for getting away with highway robbery (pun intended).

So what do you make of this

If we simply divide Exxon Mobil's net income by sales, we discover that the company reported a 10.7% profit margin in the quarter. That's probably a bit above the U.S. industrial average, but it is hardly remarkable.

For instance, the nation's moist prominent critic of "oil profiteering" - Fox News personality Bill O'Reilly — works for a company (News Corp.) that reported a 10.2% profit in the fourth quarter.

If you're after big earners, check out Yahoo (a 45.5% profit margin), Citigroup (33.4%), Intel (24%) or Apple (22.7%).

Read the rest here (by Peter Van Doren and Jerry Taylor) before you say, "but what about..." That said, I would love lower gas prices. That requires either lower crude oil prices or lower refining costs. If Exxon wants to continue to earn profit past the next 5-10 years, they'll use their profits today to expand refining and exploration. Otherwise, everybody will be driving hybrids and Exxon won't make much at all. The thing is, they will do this, if the government doesn't take these profits. Like the authors say, "If consumers were better served by lower corporate earnings, we'd all be visiting Zimbabwe for economic advice."

23 April 2006

Imperfection information: new car-style

From the car salesman's perspective, you want to let the customer know about all relevant features available on the car. Relevant means features that increase the customer's demand and hence offer price. Whereas a mother may care a lot about safety features, a teenager about horse-power, etc., it is hard to know exactly what each customer cares about. Sure the salesman asks questions to tease out this information. Well some features are bound to get overlooked.

From a customer's perspective discovering these features after purchase is a nice "bonus." I ascribe non-zero value to these features, yet did not calculate them into my offer price and so I essentially didn't pay for them. Two that I discovered today deal with the audio system. I'm sure they are both "old" technologies, but as they are new to me, I'm pretty excited.

First, is Auto-Scan. This feature scans the FM/AM band and temporarily stores the strongest stations as your presets. Great in unfamiliar areas, such as that no-where land between Charlottesville and Fairfax... though it is shrinking. The second is MP3 compatibility. An standard audio CD can hold about 18-25 songs, I think. Well when stored in MP3 format you can use the entire capacity of the CD, some 700 MB. At 4MB a pop, that is 175 songs on ONE CD. And you can organize it into folders so you can easily switch among different genres, artists, albums, or however you organize your music, without switching CDs all the time.

Is the minimum wage really $5.15?

If we raise the minimum wage to a "living wage," or about $11/hr here in Charlottesville, we have to worry that some employers will not be willing to pay that much and simply fire some staff and cut back production. But as Don Boudreaux notes, money isn't everything,

A worker's job quality surely matters to him. How many breaks is he allowed to take while at work? How readily does his employer forgive him for innocent mistakes? How willing is his employer to allow him to take a day off to sit with his sick child? How comfortable and safe is the workplace? These and countless other "non-price" features of a job are vitally important even though they don't show up in the wage figure.

If employers respond to this hike in the minimum wage not by hiring fewer low-skilled workers but instead by working their low-skilled workers harder, the quality of low-skilled jobs falls. Of course, these workers are now being paid a higher wage. But only those who focus exclusively on wages will conclude that this increase in the minimum wage definitely makes workers better off.

Many argue that empirical analysis show no significant increase in unemployment due to minimum wage laws. Is there any analysis of work quality? This would be pretty important, especially with respect to the current push by some UVa students to increase the wage earned by UVa employees, who will probably keep their jobs (at least initially) even after a wage hike.

21 April 2006

My split second inspiration to become a DJ

My first mixed song
Ya know y'all when you be readin a blog
And wanta spit ya thoughts at dat dawg

Ya know ya gotta tap out some crazy keys
Ta be shure you legit, not some skeeze

Ya know it be random, zeros and ones at play
Well it idn't as I found out today

And it don't need no fixin
Because it inspired anutmxn!