A Post for the New Year: Do we Still have a Chance to Avoid Collapse?

The article below is an attempt to propose (once more) to the general public the main results of "The Limits to Growth" study of 1972. It is a brief text that appeared in a major Italian newspaper (Il Fatto Quotidiano) on Dec 30, 2022. The limits of length of these articles are, typically, under 800 words, so I had to be extremely synthetic (for an in-depth assessment, see our recent book, "Limits and Beyond"). Mainly, I was curious to see how people would react to my rather blunt statements. 

One good thing about "Il Fatto" is that there is no censorship on comments (except for extreme cases) and so people are free to express themselves as they like, including insulting the authors of the articles ("Liar!" "Idiot!" "Snake Oil Seller!"). As I said in a previous post, I listen to everyone and I trust no one. So, even the most rabid and insulting comments are a chance to grok something. For this article, as for many others on "Il Fatto," I received personal attacks because I am too catastrophistic, and also because I am not catastrophistic enough. Some comments are nearly completely incomprehensible and, as usual, people tend to take refuge in impossible nuclear dreams. But I received also a few comments from people who seem to have understood how things stand. We'll see how the debate evolves, for the time being, I am reporting a few translated comments after the main text. 

Happy new year, everybody! 

2022 has been a difficult year for climate and energy. But there is still some hope

From "Il Fatto Quotidiano" 

Di Ugo Bardi -30 Dec 2022

The year 2022 was a year of great transformation and great difficulty. To assess what lies ahead in the coming year, we might start with the fact that 2022 was the 50th anniversary of the publication of the 1972 study The Limits to Growth. It was not a prophecy, but an analysis of current trends. It said that, if nothing changed, we could expect the beginning of an irreversible decline of the world economy in the first decades of the 21st century. The result of the combined effect of natural resource depletion and pollution.

These are phenomena that occur over a multi-decade span, but the events of 2022 are in line with the trajectory already outlined 50 years ago. Today, the "World System" looks like one of those old cars that loses parts all over the place, consumes fuel like a truck, and pollutes like a coal-fired power plant. In addition, the mechanics not only do not know how to fix it, but they spend their time fighting each other.

We are in trouble on all fronts, first and foremost with fossil fuels. After the Covid-19 crisis of 2020, production showed some recovery, but only a partial one. As for natural gas, Europeans had become accustomed to cheap Russian gas, and this year they got a nasty surprise. Replacing Russian gas will not be easy, and surely the costs of liquefied natural gas are much higher. Not to mention the costs of the infrastructure needed to handle it. And let's say nothing about coal, which is expensive, impractical, and polluting. As for nuclear power, the costs are truly out of this world. It is discussed seriously only where dictatorial governments can afford to embark on expensive and uncertain ventures.

Then there is agriculture, for which fossil fuels are needed for fertilizer and all production operations. At present, the world's agricultural production is fairly stable, but prices are rising everywhere. This is putting the poorest in dire straits. According to FAO data, we are close to having one billion hungry people, and the numbers are growing. In parallel, the growth of the world population has seen a remarkable slowdown. Globally, it is still growing but, if current trends continue, in a few years we may see the beginning of an irreversible decline. On this point, The Limits to Growth was even too optimistic, proposing that the human population could continue growing despite the economic downturn.

About climate, The Limits to Growth saw climate change (part of the general pollution problem) playing a major role only after the beginning of the collapse of the economic system. It may be that, even in this area, the analysis was correct. For the time being, climate change caused regional disasters, rather than global catastrophes. That does not mean we can ignore the problem. The concentration of greenhouse gases in the atmosphere continues to increase and, with it, the earth's temperature. At the same time, no one seems to care about doing anything serious about it anymore, as seen with this year's Cop27.

In short, we are in bad shape. It certainly seems that The Limits to Growth was even more prophetic than its creators themselves expected.

But there are also positive findings that the 50-year-old study could not account for. One is the discovery that the Earth's ecosystem can have an important cooling effect on climate. Not that this will get us off the hook but, if we treat both forests and marine ecosystems better, we can do something good to reduce the effects of greenhouse gases. Another positive factor is the disruptive growth of renewable energy, which today has such low prices that it has no competitors.

If we can get a few decades of peace, perhaps even just one or two, we can expect solar and wind power to replace most fossil fuel energy production. By coupling renewables with higher efficiency of use, we could greatly reduce the problems of both energy availability and emissions.

Can we do it? Maybe we can. And if we work at it, the most pessimistic scenarios of the Limits to Growth will not come true. So happy new year to all!

____________________________________________________________

Some examples of comments (translated from Italian)

From "Diomedes01" (insults)

The usual idiocies of the end of the year! The author is not an ecologist but an anti-nuclear and is willing to write baloney. The IEA wrote that the most economical energy ever is nuclear energy in any way you count! Instead the author says it is the most expensive when the most expensive are renewables that are made competitive by excluding from costs more or less everything! At the end of the day for the author better fossil and gas than nuclear and we talk about green transition! Ha ha ha.

From "Cortisol0" (nearly completely incomprehensible)

... If we are to have any hope people like you must be relieved of the social role you have, as you of how to solve this crisis from innate human behaviors incompatible with having developed science and technology that combined in tools=machines allow you to release and apply monstrous amounts of energy modifying both the natural energy flow, and the ecosystem, you will never admit it, as it is to develop precisely science and technology claiming endless growth, that the current environmental disaster is being produced and it is only possible with your PRIMARY contribution and denying that it is the fault of this combined conjugate because you are the most guilty of all and once it emerged you would be immediately prosecuted popularly for it and your career and life would be irremediably ruined, while the state and its power demand more and more science and power for weapons and social control, so you pretend to seek a solution when the solution as the initial act is to eliminate this dynamic you are part of with the state.

From "MarcoMx" (good understanding of the matter)

"One is the discovery that the Earth's ecosystem can have an important cooling effect on climate." I'll bet a coffee on that. The planet will not watch unresponsive to our stupidity, it will find a way to cool itself, plants and greenery we are late in defending will grow them themselves. If, however, in the equation we were able to bring the war factor, including armaments and related costs, to zero, or almost zero, the equation would become solvable without much difficulty. We would have much more resources for everything, hunger, energy transition, and pollution. By the way, the popularizers of the climate crisis almost never talk about the burden of weapons and wars (to think the worst...). But one only has to look at the figures to see that it is decisive, over $2 TRILLION each year.  If we fail to do this, well then all the consequent problems we deserve, including eventual extinction. In that case, we would be left with billions of cell phones full of the latest selfies ... the aliens who find them after thousands of years will come to the inevitable conclusion, "What a cocksucker civilization."

The Limits to Growth 50 years later: an Indispensable Book

 

A Comment by Bernard Paquito on the New Report of the club of Rome, "Limits and Beyond" 

Reproduced with the kind permission of the author

25/08/2022 BERNARD PAQUITO

Bardi & Pereira did a great job with this collective book: Limits and Beyond. Authors have different backgrounds, cultures, point of views about the Limits to Growth consequences and perspectives.

For instance, the first chapter is absolutely necessary. Bardi presents a brief history of this report, and most importantly a history of critics and misinterpretations (e.g., market vs physical factors in economy).

Other authors highlighted that the original messages of the LtG book were misunderstood: “the message of overshoot caused by decision delays was not picked up by the Limits to Growth readership”. They remind us that the most important variable of Limits to Growth was the well-being of people and not the gross domestic product.

Dennis Meadow’s chapter presents a short answer for the most frequent questions about the Limits to Growth, e.g., How can the world’s population be reduced ? Does World3 take wars into account ?

Also, a chapter (written by Gianfranco Bologna) presents the links between Limits to Growth readership, understanding and the current model of Planetary Boundaries, Safe Operating Space and Doughnut Economics.

Other chapters introduce the authors' personal experience and reception of Limits to Growth in South Africa, Asian countries or soviet bloc.

According to the Conway’s law, Pezeshki explains the roles of empathy (at different levels in a system) to provoke social changes.

Finally, Gaya Herrington summarize his work about the checking of Limits to Growth with current data and presents a nuanced vision of tested scenarios. She performed an updated World3 modelization with following variables: population, fertility, mortality, pollution, industrial output, food, services, non-renewable natural resources, human welfare and ecological footprint. Her discussion is brilliant.

“If we do not change the framing through which we formulate the questions and their responses there is a little chance that the general orientation of our relationships (among humans, with life, with time) could change.” Carlos Alvarez Pereira p259

Limits and Beyond: Data Check on World3

 

I have been posting a series of review of the recent report to the Club of Rome "Limits and Beyond." Here is a recent post by Ian Sutton on his blog, "Netzero205."  Many people still think that the original work of 1972, "The Limits to Growth" was "wrong." They'll have to change their minds, sooner or later. Here is a comment on how Gaya Herrington examined how the base case scenario of the 1972 book fared in 50 years. Judge by yourself! 

Chapter 18: Better Windmills

Ian Sutton

The book Limits and Beyond, edited by Ugo Bardi and Carlos Alvarez Pereira, provides a 50th anniversary review of the seminal report Limits to Growth (LtG). The following is from the back cover of the book.

50 years ago the Club of Rome commissioned a report: Limits to Growth. They told us that, on our current path, we are heading for collapse in the first half of the 21st century. This book, published in the year 2022, reviews what has happened in the intervening time period. It asks three basic questions:

• Were their models right?

• Why was there such a backlash?

• What did the world do about it?

The book consists of 19 chapters, each written by a different author, two of whom — Dennis Meadows and Jorgen Randers — were part of the team that wrote the report.

This post is the seventh in a series that reviews chapters of the book Limits and Beyond. We look at Chapter 18: I did a data check on World3 - Here’s what I found. (Previous reviews are summarized here.)

Four Scenarios

Gaya Herrington

The author of Chapter 18, Gaya Herrington, compares four scenarios from the 2004 edition of Limits to Growth with empirical data. The scenarios are:

• Business as Usual (BAU).

• Business as Usual 2 (BAU2). This is BAU with double the natural resources.

• Comprehensive Technology (CT).

• Stabilized World (SW).

She summarizes her analysis in the following four charts.

A typical example of the comparison of the LTG scenarios and Herrington's data on the real world is shown below. The complete set can be found in her thesis. 

I was reminded of Ms. Herrington’s work by a short conversation with a fellow church member this week. This person understood that the climate is changing (who could not given the events of recent days). He maintained that technology — in the form of windmills — could help save us. But he also realized that windmills have their limitations. For example, they are big and ugly. So, he asked, “Why don’t they make windmills with smaller blades?” In other words, this person accepted the ‘Comprehensive Technology’ approach. (I was restrained enough not to ask that person not look out of the window where he would have seen that the wind was not blowing.)

Currently, we are on the first track: Business as Usual track (BAU). In other words, in spite of the seemingly endless number of reports warning us of our predicament, society has not acted.

Since LtG was published additional resources, such as tight oil, have been made available, and technology has advanced. So BAU2 and CT need to be evaluated since they may represent our future direction.

Regarding BAU2, Herrington says,

More abundant resources do not avoid collapse in World3 scenarios; its cause merely changes from a resource scarcity crisis to a pollution one . . .  BAU2 essentially tells the story of ecosystem breakdown from accumulated pollutions, including greenhouse gases.

With respect to CT she says,

It assumes unprecedented technological innovation in a world that does not otherwise does not change priorities much. The new technologies do in fact help avoid an outright collapse. However, CT sill results in some declines because technology costs become so high that not enough resources are left for agricultural production, health, and education.

She does, however, point out that many of the assumptions that lie behind CT are highly optimistic, and are not validated by empirical data.

Humanity can innovate itself out of one limit, like to some extent it has with resource constraint. But in a system like our global society, creating a solution to one limit inevitably causes interactions with other parts of the system, sooner or later giving rise to a new limit which then becomes the new binding constraint on growth. This new constraint today is pollution from greenhouses gases.

The conclusion is straightforward. We should drive toward the Stabilized World (SW) scenario. Doing so will not only avoid collapse, it will maximize human welfare overall. In fact, we are heading toward either BAU2 or CT.

Need for Legislation

This post, like all the others in this series, repeats the conclusions that we have heard so often.

1. Climate science tells us that we are heading toward a calamity within the lifetime of most people reading this post.

2. The climate is linked with many other factors in ways that are difficult to understand or even identify. (Maybe Ms. Herrington’s most important point is that the first word in the phrase Limits to Growth is plural.)

3. Communication between the climate community and the world at large has been futile.

4. We are doing nothing effective about these looming calamities.

5. Therefore, we need to . . .

The many reports, books, web sites and blog posts to do with climate change generally stop at this point, or else they make sweeping statements about changing the structure of society.

I suggest that we actually need legislation to take us in the right direction. Voluntarily constraints have not worked — we need enforceable rules.

This is why the proposed Climate-disclosure rule from the U.S. Securities and Exchange Commission is so important. (Similar rules being promulgated in many other nations.) Rules may actually be welcomed by business and industry. They provide a badly needed framework and structure for designing and implementing climate programs. In other words, the rules are not designed to lock people up. They are are designed to help business and industry develop a path forward while still making a profit.

This conclusion is based partly on my experience with the development of process safety standards thirty years ago. The analogy between what happened then and what is (not) going on now in the climate world is striking.

From Limits to Growth to Regeneration 2030. An Article by Jeffrey Sachs

The 50th anniversary of the publication of "The Limits to Growth," in 1972, continues to generate interest. This is the original English version of the article by Jeffrey Sachs published in Italian on "Il Sole 24 Ore" -- courtesy of Susana Chacon. Above, the cover of the recent report to the Club of Rome, "Limits and Beyond", that re-examines the 1972 study and discusses its relevance for us

From Limits to Growth to Regeneration 2030

Jeffrey D. Sachs   |   May 26, 2022   |   Il Sole 24 Ore

Fifty years ago, Italian business leaders in the Club of Rome gave a jolt to the world in their path-breaking report Limits to Growth.  That thought leadership continues today as Italian business leaders launch Regeneration 2030, a powerful call for more holistic, ethical, and sustainable business practices to help the world achieve the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.  The 50-year journey from Limits of Growth to Regeneration 2030 shows how far we have come in understanding the critical challenges facing humanity, but also how far we still have to go to meet those challenges.
 
The half-century since Limits to Growth also defines my own intellectual journey, since I began university studies at Harvard University exactly 50 years ago as well.  One of the first books that I was assigned in my introductory economics course was Limits to Growth.  The book made a deep and lasting impression on me.  Here for the first time was a mathematical simulation of the world economy and nature viewed holistically, and using new systems dynamics modeling then underway at the Massachusetts Institute of Technology (MIT). 
 
Limits to Growth warned that compound economic growth was on a path to overshoot the Earth’s finite resources, leading to a potential catastrophe in the 21^st century.  My professor huffily dismissed the book and its dire warning.  The book, the professor told us, had three marks against it.  First, it was written by engineers rather than economists.  Second, it did understand the wonders of a self-correcting market system.  Third, it was written at MIT, not at Harvard!  Even at the time, I was not so sure about this easy dismissal of the book’s crucial warning.   
 
Fifty years later, and after countless international meetings, conferences, treaties, thousands of weighty research studies, and most importantly, after another half-century of our actual experience on the planet, we can say the following.  First, the growing world economy is indeed overshooting the Earth’s finite resources.  Scientists now speak of the global economy exceeding the Earth’s “planetary boundaries.”  Second, the violation of these planetary boundaries threatens the Earth’s physical systems and therefore humanity itself.  Specifically, humanity is warming the climate; destroying the habitat of millions of other species; and polluting the air, freshwater systems, soils, and oceans. Third, the market economy by itself will not stop this destruction.  Many of the most dangerous actions – such as emitting climate-changing greenhouse gases, destroying native forests, and adding chemical nutrients to the rivers and estuaries – do not come with market signals attached.  Earth is currently treated as a free dumping ground for many horrendously destructive practices. 

Twenty years after Limits to Growth, in 1992, the world’s governments assembled at the Rio de Janeiro Earth Summit to adopt several environmental treaties, including the UN Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity.  Twenty years later, in 2012, the same governments re-assembled in Rio to discuss the fact that the environmental treaties were not working properly.  Earth, they acknowledged, was in growing danger.  At that 2012 summit they committed to establish Sustainable Development Goals (SDGs) to guide humanity to safety.  In 2015, all 193 UN member states adopted the SDGs and a few weeks later signed the Paris Climate Agreement to implement the 1992 climate treaty.
 
In short, we have gone a half-century from the first warnings to today.  We have adopted many treaties and many global goals, but in practice, have still not changed course.  The Earth continues to warm, indeed at an accelerating rate.  The Earth’s average temperature is now 1.2°C warmer than in the pre-industrial period (dated as 1880-1920), and is higher than at any time during the past 10,000 years of civilization.  Warming has accelerated to more than 0.3°C per decade, meaning that in the next decade we will very possibly overshoot the 1.5°C warming limit that the world agreed to in Paris.    
 
A key insight for our future is that we now understand the difference between mere “economic growth” and real economic progress.  Economic growth focuses on raising traditional measures of national income, and is merely doing more of what we are already doing: more pollution, more greenhouse gas emissions, more destruction of the forests.  True economic progress aims to raise the wellbeing of humanity, by ending poverty, achieving a fairer and more just economy, ensuring the quality education for all children, preventing new disease outbreaks, and increasing living standards through sustainable technologies and business practices.  True economic progress aims to transform our societies and technologies to raise human wellbeing.  

Regeneration 2030 is a powerful business initiative led by Italian business leaders committed to real transformation.  Regeneration aims to learn from nature itself, by creating a more circular economy that eliminates wastes and pollution by recycling, reusing, and regenerating natural resources.  Of course, an economy can’t be entirely circular – it needs energy from the outside (otherwise violating the laws of thermodynamics).  But rather than the energy coming from digging up and burning fossil fuels, the energy of the future should come from the sun (including solar power, wind, hydroelectric, and sustainable bioenergy) and from other safe technologies.  Even safe man-made fusion energy may be within technical and economical reach in a few decades.   
 
On my part, I am trying as well to help regenerate economics, to become a new and more holistic academic discipline of sustainable development.  Just as business needs to be more holistic and aligned with the SDGs, economics as an intellectual discipline needs to recognize that the market economy must be embedded within an ethical framework, and that politics must aim for the common good.  Scientific disciplines must work together, joining forces across the natural sciences, policy sciences, human sciences, and the arts.  Pope Francis has spurred the call for such a new and holistic economics by encouraging young people to adopt a new “Economy of Francesco,” inspired by the love of nature and humanity of St. Francis of Assisi. 
 
Sustainable Development, Regenerative Economy, and the Economy of Francesco are, at the core, a new way of harnessing our know-how, 21^st century technologies, and ethics, to promote human wellbeing.  The first principle is the common good – and that means that we must start with peace and cooperation.  Ending the war in Ukraine at the negotiating table without further delay, and finding global common purpose between the West and East, is a good place for us to begin anew. 

Published in Il Sole 24 Ore for the Trento Festival of Economics, June 4, 2022