Japan

According to the Economist, Japan’s economy is officially back in recession. I don’t fully understand these things, but I do find them interesting, so here’s my attempt at an explanation. They’re in a deflationary spiral, which means prices are falling, and people aren’t spending money because they expect prices to keep falling. It makes sense – if you want to buy something, and you expect it to be cheaper next week than it is this week, you will wait. It’s hard for an economy to grow under these circumstances. The government combats this by printing massive amounts of money and loaning it to itself, which it can then spend. Normally that would create massive inflation, but it doesn’t because no matter how much they print, everybody just sits on it and won’t spend it. If you think about it too much, you can’t help wondering whether money actually has any value or meaning under these conditions. It’s best if people don’t sit around wondering about that too much.

land economics

Here’s a long open article from Ecological Economics about studying the competition for land. Land exists at the intersection of economics and ecology, and it is conspicuously absent from a lot of economic thinking. It can be thought of as capital, in a sense, but obviously it is not manufactured capital. We can’t make more of it, but we can intensify our activities on a given piece of it (for example, more intense agriculture or taller buildings). Land is the obvious source of a lot of ecosystem services, but the value of those services tends to accrue regionally or globally rather than to the landowner. These are my own thoughts, but anyway here is the abstract:

Possible negative effects of increased competition for land include pressures on biodiversity, rising food prices and GHG emissions. However, neoclassical economists often highlight positive aspects of competition, e.g. increased efficiency and innovation. Competition for land occurs when several agents demand the same good or service produced from a limited area. It implies that when one agent acquires scarce resources from land, less resource is available for competing agents. The resource competed for is often not land but rather its function for biomass production, which may be supplanted by other inputs that raise yields. Increased competition may stimulate efficiency but negative environmental effects are likely in the absence of appropriate regulations. Competition between affluent countries with poor people in subsistence economies likely results in adverse social and development outcomes if not mitigated through effective policies. The socioecological metabolism approach is a framework to analyze land-related limits and functions in particular with respect to production and consumption of biomass and carbon sequestration. It can generate databases that consistently link land used with biomass flows which are useful in understanding interlinkages between different products and services and thereby help to analyze systemic feedbacks in the global land system.

smart, sustainable infrastructure

This long report is called Infrastructure Crisis, Sustainable Solutions: Rethinking Our Infrastructure Investment Strategies. They try to take all the talk about sustainable and smart infrastructure and boil it down to some actionable recommendations and goals. It’s worth a skim. Just to give some highlights, here are four goals they recommend for 2040:

  • Convert 95% of all types of energy use to renewables; fully deploy efficiency to cut demand 60%

  • Wring out water waste by 60%; integrate across water-wastewater-stormwater silos

  • Upgrade 75% of neighborhoods to“Very Walkable”; connect cities with high speed transit

  • Ensure 90% of products are managed by producers after use, and most ‘waste’ material is recovered by local industry

They talk about green infrastructure elsewhere in the text. Actually, it is now called “natural infrastructure”. People are probably a little burned out on the green buzzword. Some other interesting buzzwords they use are “sustainable asset management” and “performance-based infrastructure”.

more from Herman Daly on natural capital

Herman Daly reminds us that the concept of natural capital does not necessarily have to be measured in money:

it is worth clarifying that the word “capital” in its original non-monetary sense means “a stock or fund that yields a flow of useful goods or services into the future.” The word “capital” derives from “capita” meaning “heads,” referring to heads of cattle in a herd. The herd is the capital stock; the sustainable annual increase in the herd is the flow of useful goods or “income” yielded by the capital stock–all in physical, not monetary, terms. The same physical definition of natural capital applies to a forest that gives a sustainable yield of cut timber, or a fish population that yields a sustainable catch. This use of the term “natural capital” is based on the relations of physical stocks and flows, and is independent of prices and monetary valuation. Its main use has been to call attention to and oppose the unsustainable drawdown of natural capital that is falsely counted as income.

This is a long article that covers a pretty wide range of loosely related topics. But Herman Daly is always worth a read.

the U.S. and the middle east

I can’t fact check everything in this Tom Dispatch article, but even if only half of it were true, the U.S. military footprint and spending in the Middle East is eye opening.

Soon enough, that Rapid Deployment Force grew into the U.S. Central Command, which has now overseen three wars in Iraq (1991-2003, 2003-2011, 2014-); the war in Afghanistan and Pakistan (2001-); intervention in Lebanon (1982-1984); a series of smaller-scale attacks on Libya (1981, 1986, 1989, 2011); Afghanistan (1998) and Sudan (1998); and the “tanker war” with Iran (1987-1988), which led to the accidental downing of an Iranian civilian airliner, killing 290 passengers. Meanwhile, in Afghanistan during the 1980s, the CIA helped fund and orchestrate a major covert war against the Soviet Union by backing Osama Bin Laden and other extremist mujahidin. The command has also played a role in the drone war in Yemen (2002-) and both overt and covert warfare in Somalia (1992-1994, 2001-).

more trees!

This article in Landscape and Urban Planning is all about street trees. You would think this topic would have been exhausted, that is the technology would have been perfected, by now. And it has, in a few places. I am convinced it is not that leading edge knowledge about trees needs to be advanced all that much, but most cities are completely ignorant of what the best practices are. People in charge don’t know what they don’t know and have zero interest in finding out.

Street trees are an integral element of urban life. They provide a vast range of benefits in residential and commercial precincts, and they support healthy communities by providing environmental, economic and social benefits. However, increasing areas of impermeable surface can increase the stresses placed upon urban ecosystems and urban forests. These stresses often lead tree roots to proliferate in sites that provide more-favourable conditions for growth, but where they cause infrastructure damage and pavement uplift. This damage is costly and a variety of preventative measures has been tested to sustain tree health and reduce pavement damage. This review explores a wide range of literature spanning 30 years that demonstrates the benefits provided by street trees, the perceptions of street trees conveyed by urban residents, the costs of pavement damage by tree roots, and some tried and tested measures for preventing pavement damage and improving tree growth.

World Economies

According to NPR, the U.S. economy has picked up, which is nice.

In the most recent quarter, this country grew at 3.5 percent — a very robust pace for a mature economy.

In the United States, the stock market is booming, budget deficits are melting away, corporate profits are breaking records and the unemployment rate is falling, down to nearly half the level set five years ago.

U.S. success shows “the resilience and determination of the American people,” Lew said. “It also reflects the ease of starting businesses, our highly competitive product markets, and the ability to reap rewards from entrepreneurship.”

In fact, the U.S. is doing so well that we have resumed wagging our fingers at other countries.

Meanwhile, Japan’s economy is stuck, with its inflation-adjusted growth rate running at less than 1 percent over the past decade. Europe may be on the brink of its third recession in six years.

Lew says that to grow, countries need a “comprehensive policy approach” that involves not only better fiscal and monetary decisions, but “structural” changes. When he talks about “structure,” he’s referring to the policy frameworks that hold back growth.

This sounds pretty good. We should also remind ourselves to have a comprehensive policy approach to not crash the world financial system again.

green web

From a blog called Better Institutions, I like this concept of a “green web”, which combines a more traditional green belt outside the city with a network of green spaces and corridors inside the city. This is the real green infrastructure vision – a system that connects patches and larger habitats and brings people, plants, and animals together and allows them to move around in a safe and low stress way. This post isn’t about that though, it’s about urban planning – green infrastructure is potentially one of the key intersection points of water, energy, transportation, air, food, climate, ecology, and urban planning.

Source: http://www.betterinstitutions.com/2014/11/green-webs-connecting-not-containing.html

Source: http://www.betterinstitutions.com/2014/11/green-webs-connecting-not-containing.html