Economics of Climate Change Lacks a Human Dimension

Paul Krugman does a thorough job of summarizing the somewhat daunting economic complexities of climate change policies in a recent New York Times magazine article (nyti.ms/agKlpe). While he certainly does a nice job of encapsulating a lot of information and concepts, his truly global analysis misses the trees for the forest, if I can badly coin a phrase. The real possibility of increased weather extremes, coastal flooding and sea level rise, ocean acidification and coral reef decline, and regional changes in weather and climate in developing countries and vulnerable areas, such as the polar regions, are the missing moral argument for immediate and strong action on climate change policy. Farmers in Iowa might be able to switch to growing more subtropical varieties of corn, and urban dwellers can better insulate their homes and turn up the A/C, but it's people and places at the margins, with little flexibility and who are forecasted to bear the brunt of climate change impacts, who will be the real victims of our past transgressions and current inaction.

The human impacts of climate change introduce an important moral dimension that is needed in the largely economic debate over climate change policies. Conservatives and opponents of taking action have certainly used this tactic (harming small businesses and job creation) for their own purposes. It is time those of us who want aggressive action used those same arguments. Impacts of climate change on global GDP will likely be low because those who are generally most affected by socially disruptive actions are "the least of these" and do not generally contribute much to money-oriented economic calculations. A similar assessment was made for the regional economic impact of the 2004 South Asian tsunami (http://tinyurl.com/y3znu3y). From the article, "...despite the unprecedented scale of the loss of human life, homelessness and displaced populations, it seems that the macro economic impact of the disaster is marginal. The businesses affected were small, local and often part of local subsistence rather than global supply and this reflects, to a large degree, the economic mix of activities and companies in those coastal, often rural, areas."

Speaking up for the "human impact" has traditionally been the responsibility of the world's faith communities and religious leaders. So it should be with climate change.

Solar Home Tours

This Saturday (March 28), local solar companies RevoluSun and Sunetric are hosting open house tours of homes in Lanikai and Kailua that have installed photovoltaic and/or solar hot water systems on their properties (Star-Bulletin article). This is a great opportunity to learn about home solar systems, talk to homeowners and installers, ask questions about installation and financing, and begin the journey toward installing solar for your own household, business, or faith community buildings. The Star-Bulletin article also has links to resources for those interested in installing a solar system for their home.

Broad Public Support for Utility-Scale Solar

A new poll has found broad public support for utility-scale solar farms on federal lands (original article). The poll was commissioned to determine public support for US Department of Interior plans to fast-track a number of solar power plant proposals on federal lands in the western US. One of the main advantages of large solar farms is that they can be built quickly because they don't require huge facilities like traditional steam turbine-driven power plants.

Hawaii Interfaith Power and Light generally supports distributed energy production, e.g. household- or business-scale solar. By putting power in the hands of the people, we have not only control over our own energy production but also the responsibility to manage our own energy demands. Distributed energy production makes clear the direct link between energy demand and energy production. Such systems are also buffered against grid failure, power plant disruptions, and of course utility rate increases.

That said, building utility-scale solar plants is preferable to more fossil fuel-powered plants. For those of us in condos or apartment buildings who can't generate our own electricity, having the option of purchasing electricity from a renewable energy source is the next best thing. With these favorable poll results, the hope is that the federal government will support private and public investment in renewable energy projects at all scales.

Stimulus Money to Help Finance Kahuku Wind Farm

The American Recovery and Reinvestment Act is providing $117 million to help finance the construction of the 30-MegaWatt wind farm in Kahuku. The construction is expected to support 200 jobs, with 6-10 full-time positions after completion...more at the Honolulu Advertiser.

Although First Wind has held meetings with the community, there are concerns by neighbors of noise pollution and shadows broadcast by the more than 200-foot tall turbine towers. A 1000-foot buffer requirement that is being proposed in the state legislature (Senate Bill 2526) may not be sufficient to minimize these impacts, but there are other procedures and regulations in place to deal with these concerns...more at the Honolulu Star-Bulletin.

Help for Financing Home Solar Systems

The state of Hawaii is considering employing a "Property Assessed Clean Energy" bond fund to provide loans to homeowners to pay for the cost of installing solar hot water and photovoltaic electricity systems. The loans would be repaid through property tax assessments, and the loan would stay with the property, not the homeowner. Although there are concerns it would add to the state's debt, helping homeowners overcome the barrier of the high upfront costs would create green jobs and strengthen Hawaii's still small but rapidly growing renewable energy sector...more at the The Honolulu Advertiser.

Financing Photovoltaics for Your Faith Community

For many religious communities and other non-profits in Hawaii, there is a real desire and commitment to promote renewable energy. For homeowners and private businesses, the tax credits available from at the federal (30%) and state (35%) levels means that the purchase price can be significantly discounted, resulting in a payback period of 5-7 years. However, non-profits like religious communities don't pay taxes and thus can't take advantage of these discounts. How can these communities afford to purchase and install a PV system?

Well, there are options available for the creative and motivated religious community. Local solar companies are now offering power purchase agreements to several local faith communities. This is essentially a lease agreement in which the company installs a PV system for no upfront cost to the community, and the community in turn agrees to purchase the power generated at a discounted rate compared to the local electric utility. The California IPL has created a financing guide for religious communities that describes the PPA plus other ways to purchase and install a PV system. There are case studies in the guide, so you can learn from their experiences.

As always, feel free to contact HIPL with questions or to share your own experience with exploring or installing a renewable energy system.

Food and Energy-Making the Connection

This week's broadcast of the Hawaii Public Radio show Energy Futures is about the energy embedded in the food we eat in Hawaii. Since 90% of our food is imported, the thousands of food-miles embedded in what we buy and eat is one of the biggest uses of energy in the state. Promoting local and sustainable food production (as opposed to export-oriented commodity crops) is one of the biggest ways we can reduce our energy use and greenhouse gas emissions.

HIPL has a documentary about how Cuba transformed its food production system after the collapse of the Soviet Union and the dramatic reduction in food as well as fossil fuel imports. It's called The Power of Community. This film documents how Cuba became a model for locally grown, organic food, the proliferation of neighborhood farmer's markets, strengthened community relations, and improved personal health. If you're interested in a viewing and discussion of this 60-minute film, email us.