Richard Ha writes:
It’s not whether or not the energy is green; it’s the price of
the energy that matters.
High price energy results in people having less
discretionary income. We know this to be true in our gut.
Professor Charles A. S. Hall explains how this works using
the concept of “Energy Return on Investment” (EROI). This concept takes the world of economics and ties it in with our physical world.
It’s a different way of understanding economics in that it
explains how things actually work, and it’s a way that Hawaiians can relate to
at a gut level.
Ancient Hawaiians had a gift economy that was land- and environment-based: The more one gave, the more one received. This traditional system is quite different from the modern market economy, where the more one receives, the more one receives.
Many modern-day Hawaiians can play in both worlds. But there
are many other Hawaiians that just don’t feel right. Me included.
Professor Hall will give a series of lectures at UH Hilo and
UH Manoa. At UH Hilo, he will speak on January 4, 2012 and at UH Manoa, on
January 9th and 10th. Details to follow.
He is retiring soon, and we have asked him to be a guest lecturer here during the Winter/Spring semester. He has agreed. He will be using his new book Energy and the Wealth of Nations.
This video, titled Peak Oil, Declining EROI and the New Energy-Economic Reality with Dr. Charles A.S. Hall, is very much worth watching. It’s 1:38:18. Watch it straight through, or jump straight to specific topics as follows:
Minute:
4:54 Importance of energy to economics
26:39 Peak Oil is not the focus. Cessation of oil and energy production is the problem
27:54 Energy Return on Investment (EROI)
33:35 U.S. has lots of coal – in an emergency
34:30 EROI is driving prices
38:55 The trouble is, we need high EROI. How do we do that?
45:15 Cheese slicer model. Higher energy price in, less discretionary income out
50:44 Conclusions for the U.K. The principles are the same everywhere
1:32:40 Charles Hall talks about guest lecturing in Hawai‘i