Material-Energy Flows for a Sustainable Society PA 5752 Fall 2015 University of Minnesota Room: Blegen 330 Time: Th 6:00 – 8:45 PM Syllabus Instructor: Anu Ramaswami Contact: HHH 154; 303-523-8130; anu@umn.edu Office Hours: Thu 3.00 to 5.00 pm or by appointment Course Description How do material and energy flows shape the development of a sustainable society? Flows of energy fuels like coal and petroleum, bulk materials like sand, recyclable metals like copper and renewable resources like fish and timber - are the topic of this class. Such material-energy flows are important in supporting human development and well-being, but they are also often poorly managed, highly-polluting, and in some cases, finite and non-renewable, placing immense stress on our planet and its web of life. We will discuss materials and energy flows in the context of: a) Economic and human development; b) Resource scarcity, renewability and recyclability, and, c) As a source of environmental pollution, with more than 4 million deaths globally attributable to fuel combustion. The central questions addressed in this class are: How much and what types of material and energy resources support health, wealth and well-being in different parts of the world? How do different units of society - consumers, producers, infrastructure providers, and governments (ranging from cities to nations) – make decisions that shape society’s material and energy flows? What actions and policies could support more sustainable use of energy and resources by these different units? Students will use an inter-disciplinary approach, integrating core topics from environmental economics, industrial ecology (resource sustainability assessments) and human health risk assessment, in the context of public policy. The course will be offered to graduate students and honors students (seniors and junior standing) from across the University. Active learning will be promoted through a hands-on case study with real-world data analysis pertaining to resource use, environmental footprint-ing, health impacts, 1 and cost-benefit analysis, coupled with literature review to understand the various leverage points for action toward sustainable development by the following different actors: 1. Producers – specific businesses or industries in the Twin Cities area 2. Infrastructure sectors – energy supply, water supply 3. Consumers – households 4. Governments at the metropolitan/city scales In addition, graduate students will complete two term papers for graduate credit – one on synthesis across the 4 disciplines; the other on identifying key knowledge gaps in the sustainability science, and priorities to inform action. Learning Objectives Students are expected to: • • • • • Understand the types of natural resources used by society, and key resource constraints that are important in addressing issues of sustainable development. For example, students will learn about renewable, non-renewable, and recyclable resources, and the impacts of their flows in society. Learn key concepts and analytic tools from environmental economics, and understand an economists’ views and assumptions about nature and society. The outline articulates specific concepts, methods and analytic tools drawn from environmental economics, such as analysis of supply-demand curves, externalities, cost-benefit analysis, financial analysis, and interpretation of economic input-output tables. Learn key concepts and analytic tools of industrial ecology, and understand the industrial ecologists’ views and assumptions about nature and society. The outline articulates specific concepts, methods and analytic tools drawn from industrial ecology, such as material-energy flow analysis (MEFA), life cycle assessment (LCA) and environmental footprinting (MFA-LCA) for sustainability assessments. Learn tools for health risk assessment and indices of social vulnerability – to estimate individual and population level health risk from exposure to various hazards. Students will review the results of the Global Burden of Disease (GBD) study understanding health outcomes pertaining to various risk factors in different nations, as well as track the Human Development Index. Bring these concepts together to inform decision-making by different units of society, and understand how people and their values, beliefs and agendas, shape potential future actions toward sustainability. Students will learn about stakeholder analysis, and theories of change for various actor groups. The course will address ethics (distributional and procedural), and offer comparative global perspectives on material-energy flows and well-being in different world nations. The course is oriented toward graduate students and, juniors and seniors from the Honors program. Graduate students will complete two term papers to receive graduate credit: (1) Discuss the strengths, limitations, assumptions, and vantage points of environmental economics, industrial ecology, environmental health and public policy. (2) Identify key knowledge gaps and 2 policy priorities to achieve action toward sustainable development, considering the different actors. Grading 30% for two quizzes (15% each) interspersed in the weeks; 30% for weekly homework (first 8 weeks) and group work; and 40% for a hands-on project (either in group or individually, TBD) Hands-On Project The hands-on project will use real-world data and case study situations to provide experience in: (A) Computing the energy and Greenhouse Gas footprints of different units of society; (B) Conduct a cost-benefit analysis of select actions to reduce GHG emissions, including co-benefits to health or other aspects of well-being. Identify areas of uncertainty. (C) Identify key actors/stakeholders and review the literature about their positions and agenda with respect to various proposed actions. These projects will provide active learning experiences and integrate the various sections of the course. Groups of students will organize around three units of society: A single industry or production sector (e.g., a primary industry like oil refining or cement production, and a secondary industry like a school or hospital) Various infrastructure sectors – such as water supply, transportation, etc. Household - in the context of designing multi-level interventions. Text Book(s) The primary text book will be: Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society, Steven C. Hackett, January 1, 2011, M.E. Sharpe, Publisher. You can purchase the eBook at: https://play.google.com/store/books/details?id=c020CYCr3bkC This text book will be supplemented with a variety of papers and on-line resources. Select resources are noted below: Weekly Topics & Learning Objective Week Learning objective – key concepts or skills Resources 1Sep 10 A. Understanding types of resource flows: Renewable, Non-renewable, recyclable, by use-phase, by pollution impacts, by governance. Developing a mental model of material-energy flows and their impact (positive and negative) on society Fukuda-Parr, 2003 B. What is human development? Introduction to Sen’s Human Capabilities approach, comparison with basic needs and utility theory. Origins, use and limitations of the Human Development Index (HDI). Distributional ethics. C. What are material-energy requirements for a good life? Cross-country assessment of primary energy use and HDI across nations. The Goldemberg corner; implications for sustainable development. Ideas of sufficiency and decoupling. 3 Two readings about HDI &HPI Steinberger et al., 2012 (Read Chapter 1-textbook as general background for Week 3) 2 Sep 17 A. Material-Energy accounts of nations. Overview of the basic structure of economic input-output tables of a nation or region. Role of resource inputs to the economy- imports, exports, inter-industry flows, final demand and final consumption. Resource inputs, economic activity and wages/employment. B. Intro to western economic thinkers and cross-cultural views on sustainable development www.eio-lca.net (Read Chapter 2 textbook as background for Week 3) C. Values and economics 3.Sep 24 A. What is a society’s optimal levels of production? The construct of Supply-Demand curves. The equi-marginal principle, market equilibrium, Pareto optimal and Kaldor Hick’s criterion Chapter 3-4 B. Market Failure: Cartels & monopolies; externalities – pollution and depletion of ecosystem services. Pigouvian taxes, common pool resources and the tragedy of the commons. 4. Oct 01 A. Governing Non-Renewable/Finite & Polluting Resource: Fossil Fuel case study: Allocating a finite resource, discount rates, Hotelling Rule Chapter 5-6 B. Debates around Resource Limits to Growth: Hotelling Rule, Club of Rome – Meadows, empirical observations, future outlook with resource nexus issues- water-energy nexus. 5. Oct 08 A. Governing the Commons: Managing renewable common pool resources. Defining the maximum sustainable yield, complexity of estimating sustainable harvest rates. Chapter 5-6 Dietz et al., 2003 B. Cooperation and Ostrom’s design principles for governing common pool resources. Application to a case study on fisheries management and/or case study of rice farming in Bali. 6. Oct 15 A. Governing Non-Renewable/Finite & Polluting Resource: Fossil Fuel case study: Air Pollution, health impacts and results from the Global Burden of Disease study Global burden of disease study: Lim et al., 2014 B. Methods for Individual and population health risk assessments with exposure to hazards, and social vulnerability. Case study of population health risk assessments. Social Vulnerability: CEC, 2012. 4 7. Oct 22 A. Basic principles of cost-benefit analysis and financial analysis: Chapter 7 B. Methods for estimating costs and benefits in practice: Valuing nature. The value of a statistical life. Valuing Well-being. Case studies and worked examples from text. 8. Oct 29 A. Methods for estimating benefits: Contingent Valuation and hedonic pricing. Case studies and worked examples from the text Chapter 7 B. Cost-benefit analysis of the US EPA’s Clear Air Act 9. Nov 05 A. Tracing fossil fuels through the US Economy – using the IO Table: Introducing the Leontief matrix. Direct and indirect energy requirements of production and consumption. www.eio-lca.net B. Approaches for conducting life cycle assessment (LCA) 10. Nov 12 A. Assigning responsibility for the impacts of material-energy flows to Producers and Consumers B. Combining material-energy flows with life cycle assessment: MFALCA: A generalizable method for developing environmental footprints for different units of society - producers, consumers, infrastructure, and cities. 11. Nov 19 A. Measuring the “greenness” of a product, business or infrastructure sector: Production based footprints. Principles of green engineering and industrial ecology for sustainable production. Do green “principles” yield good indicators/indices of “greenness”? Case study of green building performance. WRI, 2011 Chavez & Ramaswami, 2013 Zimmerman et al., 2009 Prakash and Potoski B. Factors that motivate or inhibit sustainability actions by businesses – Theory of the Firm and analysis of early adoption of the Energy Star program. Club theory and voluntary environmental programs. Explicit and implicit financial and cost-benefit analyses; split incentives in large organizations. 12. Nov 26 (TBD) A. Measuring the “greenness” of the consumer – Calculate personal carbon footprint for consumption Jones & Kammen, 2011 B. Factors that motivate or inhibit sustainability actions by households– theories of change on adopting environment-friendly behaviors. Guest lecture on behavioral economics. 13. Dec 03 A. Measuring the Green-ness of our cities– Challenges in measuring the environmental impact of cities – need for multiple footprints, complexity of metrics for equity and environmental performance B. Policy and action levers for cities – taxes, incentives, subsidies, building codes and regulations. Cost benefit analyses, financial analysis, first-cost barriers, innovations in financing mechanisms. 5 Chavez & Ramaswami, 2013 14.Dec10 A. Research Frontiers – multi-dimensional environmental resource use, pollution and health footprints of cities. Do co-benefits matter in decisionmaking? Additional readings B. Distributional and procedural ethics. Which and whose co-benefits and costs drive policies? Citizen priorities, politics and political economy. 15. Dec 17 Group project presentations ALL Select Additional Readings & Online Resources: Annenberg, et al. (2010). An estimate of the global burden of anthropogenic ozone and fine particulate matter on the premature human morality using atmospheric modeling. Environmental Health Perspectives. Bureau of Economic Analysis. (2012). Commodity-Industry Use Table 2012 www.bea.gov/industry/io_annual.htm. Bureau of Economic Analysis. (2012). Industry-Commodity Make Table for 2012. www.bea.gov/industry/io_annual.htm. Chavez and Ramaswami. (2013). Articulating An Infrastructure Supply-Chain Greenhouse Gas (GHG) Emissions Footprint for Cities: Mathematical Relationships and Policy Relevance. Energy Policy. Dietz et al. (2003). The Struggle to Govern The Commons. Science. CEC (California Energy Commission). Social Vulnerability to Climate Change in California, 2012, Website; http://www.energy.ca.gov/2012publications/CEC-500-2012013/CEC-500-2012-013.pdf Fukuda-Parr. (2003). The Human Development Paradigm: Operationalizing Sen’s Ideas on Capabilities. Feminist Economics. Jones, C. M.; Kammen, D. M. Quantifying carbon footprint reduction opportunities for US households and communities. Environ. Sci. Technol. 2011 45(9), 4088-4095; DOI: 10.1021/es102221h. 6 Lim, S. S.; Vos, T.; Flaxman, A. D.; Danaei, G.; Shibuya, K.; Adair-Rohani, H., et al. A comparative risk assessment of burden of disease and injury attributable to 67 risk factors and risk factor clusters in 21 regions, 1990–2010: A systematic analysis for the global burden of disease study 2010. The Lancet, 2013 380(9859), 2224-2260; DOI: 10.1016/S0140-6736(12)61766-8. Steinberger, et. al. (2012). Pathways of human development and carbon emissions embodied in trade. Nature Climate Change. World Resources Institute. Corporate GHG Reporting Protocol. http://www.wri.org/publication/greenhouse-gas-protocol Instructor Biography Anu Ramaswami is the Charles M. Denny, Jr., Chair of Science, Technology, and Public Policy at the Humphrey School of Public Affairs and a professor bioproducts and biosystems engineering in the College of Food, Agricultural, and Natural Sciences at the University of Minnesota. Ramaswami is among the leading scholars on sustainable urban infrastructure and has seen her work adopted as policies and protocols for developing sustainable cities in the United States and internationally. Ramaswami’s research spans environmental modeling, environmental technologies, industrial ecology, sustainable infrastructure design, urban systems analysis, and integration of science and technology with policy and planning for real-world implementation in communities. She has developed novel interdisciplinary education programs and resources in these diverse areas. She is the lead author of a graduate-level textbook on integrated environmental modeling. She will lead the course overall, and facilitate interdisciplinary linkages in education building upon work in prior NSF IGERT & PIRE projects. She has taught a graduate version of this course as a Special Topics class at the Humphrey School, which is now being modified to be a blended graduate-undergraduate class with interdisciplinary instruction from the three-four instructors noted here. 7