Last Blast of Energy Econ: Mark Roberts Bids Farewell

Mark Roberts in front of his solar panels at his house.

Damp wind and scattered flurries were cold leftovers from an overnight slush event: a perfect late-April Keweenaw send-off after 29 years of teaching at Michigan Technological University.

Mark Roberts, professor of economics, lectured on alternative sources of electricity on his last day in front of a class.

“Keeping up to date with the constant change,” was his biggest challenge, he said before class. And, given the dramatic energy transformation over three decades, that wasn’t hard to believe.

He proved it in his last lecture, covering a lot of ground and wishing he had more time.

Solar makes more sense in the sunny southwestern US, like in the Mojave Desert, he said. Drops in the price of solar cells made adding more of them more cost effective than panels with specialized lenses.

Wind has possibilities in certain locations, Roberts said, but the windier air 80 meters up makes it a better option for commercial ventures than for individuals.  The middle of the Great Plains up to Canada and the California mountain passes are promising places for wind energy..

He showed a map of coastal winds with potential for 50-meter high turbines. There are more offshore wind turbines in Europe, he said.

“As we’ve mentioned, the problem with the Keweenaw is not the amount of wind, but the lack of a population to use it and the need for transmission to other areas,” Roberts pointed out.

Wind turbines can be considered an eyesore, and their power is intermittent, he said.

Hydroelectric power is most prevalent in the far western US, but was excluded from many federal parks and lands, such as the Grand Canyon, Yellowstone, the Sierras.

He mentioned famous examples of dams: Hoover and Grand Coulee (which generates three to four times the power of Hoover). They are operated by a giant rotor and spinning magnetic fields.

A student asked about residents displaced by the projects.

“They were compensated, but not fairly,” Roberts said.

Geothermal is another western-centric energy source in the US. Roberts described it as a “hot rock area, but you need to live close to it to do any good.  Iceland, Italy and the Philippines are all heavily invested in it.

Another alternative is biomass–both forest and crop residue–which is economical to collect and use where available.

Ethanol and biodiesel are the best-known examples of biomass-based energy. The first biodiesel was actually peanut oil, a fact verified by a student.

Roberts passed around a chunk of oil shale, “a precursor to oil” found in the cliffs of Colorado. It’s not economical, he said. “They’ve been promising it for 100 years!”

I finally saw a supply and demand chart, for hydrogen (which is an energy carrier, not a source, Roberts emphasized). Waves of memories flooded me as I recalled one of the rare tidbits of econ that made sense to me long ago.

He discussed power generated from dried manure, municipal waste, waves and tides, and the most out of this world–literally–solar collectors in space, which would generate super-intense light and heat.

“There’s concern about birds hitting wind turbines, but can you imagine the birds getting cooked by that?” Roberts remarked. The class chuckled.

“The issues changed every year,” the professor reiterated after class. “In the 1980s and ’90s, the price of oil was low and it was abundant, but there were natural gas problems. Recently, there was a run-up in oil prices, in 2000 to 2008. We were afraid of running out of oil.”

Now fracking is the big concern, he said, but without it gas prices could have soared.

“Nuclear is having a revival, and there is great potential with new ideas,” he said. “But the political climate and problems with waste disposal aren’t helping it.”

Roberts said he’s changed the course over the years to account for the influx of international students.

He’ll miss Gary Campbell, who taught mineral economics with him for years, and many other people in the School of Business.

He’ll continue with his own energy econ at home, with a wood-heated, solar-powered house.

“This has been a great place to work,” he said. “I enjoyed it here.”

This story was written by Dennis Walikainen for Michigan Tech News. Please click here to see the original posting.

Alumni Spotlight: Maggie Chen

In late April 2014, Associate Dean and Professor of Economics, Tom Merz, met up with School of Business and Economics alum, Maggie Chen, while he was visiting Hong Kong.  Chen was very involved as a Tech student, participating in the Applied Portfolio Management Program before earning her BS in Finance in 2004.  She also completed a fellowship at Columbia University and continued on to receive her MBA from Yale University in 2010.  Chen currently resides in Hong Kong with her husband Max and their two-year-old son Mickey, where she is a foreign equities portfolio manager in the State Administration of Foreign Exchange Investment Company.  She aspires to be a visiting lecturer in finance at Tech’s School of Business and Economics.

Are you an alum of Michigan Tech’s School of Business and Economics?  We’d love to hear your story!  Send it to business@mtu.edu today!

FinanceU Is Most Exceptional!

At the 20th Annual Student Leadership Awards on Friday, April 18, FinanceU received the honor of Exceptional Program of the Year.  FinanceU, an event in financial literacy put on by the Office of Financial Aid and the School of Business and Economics’ Finance Club on November 20, owes some of its success to its partnership with Michigan Tech’s Office of Financial Aid and Wells Fargo Bank.

The Finance Club and the Office of Financial Aid have partnered to produce the successful FinanceU events in order to help students make informed financial decisions.  FinanceU’s mission is to foster a greater sense of financial literacy among all students, regardless of major.  Topics discussed at this year’s event included financial aid opportunities, how to manage one’s personal finances, starting and continuously funding a substantial retirement plan, and provided students with online tools to help manage all of these aspects.  Financial Aid Advisor, Cindy Cowell, and Wells Fargo Store Manager, Ellie Freeman, were on hand to answer questions from audience members, but the main focus of the event was for students to present information to other students, since research shows that individuals are better able to understand a message when it is delivered by a peer.

This second consecutive FinanceU event held at its roots the same message as last year’s activity; Michigan Tech students were given the knowledge and power needed to enable them to begin making sound financial decisions before even graduating from college.  Similar to the previous year’s event, a survey was administered to participants, asking them to rate their knowledge of budgeting.  This year’s FinanceU event was so successful that the number of participants doubled, with over 200 students completing the surveys.

Brett Ludwig, 2013/2014 President of the Finance Club was extremely proud of FinanceU’s accomplishments.  “With this year being the second time FinanceU has put on the event,” Ludwig remarked, “we were hoping that it would be bigger and better than last year.  Mission accomplished.  With Donzel Dixson [Finance Club member] on the bullhorn outside, the flow of students coming to the booth as well as Finance Club members going throughout the library to ask people questions were astounding.  We’re excited to host more events in the future.”  Ludwig will be graduating in a few weeks, but will leave the Finance Club in the capable hands of Heath Johnson, 2014/2015 President.

Marketing Student Shines at 2014 UPISRC

MTU and NMU combine for the 2014 UPISRC to showcase undergraduate student research.

The 2014 Upper Peninsula Interdisciplinary Student Research Conference (UPISRC) was organized to showcase and publicize the research being done by local students in human and behavioral sciences. This event was developed to organize a conference involving student research in: psychology, human factors, education, human effectiveness, human-centered design, social science, kinesiology, and other related fields. This year 30 students submitted abstracts, and many of the authors presented on their research at the conference for the first time. Presenters came from several departments across both MTU and NMU.

Each student gave an oral presentation for fifteen minutes in addition to a poster presentation on their research topic. The School of Business and Economics had one student participate in the UPISRC. Haley Florinki is a senior Marketing major and she presented on Assessing the Effect of a Salesperson’s Customer Service Duration Up-selling and Cross-Selling.

The abstract for her research is presented below:

The purpose of this research project is to empirically test how a salesperson’s time spent with the customers impact on their purchasing decision. More specifically this project focuses on the duration of a salesperson’s customer service and its effects on up-selling and cross-selling. Up-selling takes place when a salesperson attempts to sell a similar but better quality product than the first product exposed to a customer. Cross-selling happens when complimentary products adding to the main product that customer initially looks for creates extra customer value. Regarding the research method, this project used observation research to capture important independent variables (Time spent with customers, and product display method) and dependent variables (Whether or not the sale was made, and sales results – up selling & cross-selling). Responses from shoppers in a large local mall were recorded into the IBM-SPSS software. The questionnaire was designed for the associate to be able to interact with a customer and complete the questionnaire afterwards. The expected outcome was that the amount of time spent with a customer would increase the likelihood of up-selling and/or cross-selling. The results from the Chi-square test greatly supported the evidence that the time spent with the salesperson had a positive impact on sales. I specifically found that while a salesperson’s short time spent with customer (less than 30 sec) increased the likelihood of up-selling, her long time spent with customers (more than 90 sec) promoted that of cross-selling.

This event was sponsored by the MTU Human Factors Student Chapter and the MTU Department of Psychology.

No Longer ‘Broke and Hungry’

Front left moving clockwise: Heath Johnson, James Sturos (Treasurer), Daniel Olson, Derek Menard (Secretary), Brett Ludwig (President), and Cory Sullivan pose with Shelly Larson and Dan Dalquist, Edward Jones advisors

On Wednesday, April 9th, The Michigan Tech Finance Club hosted their second event of “Broke and Hungry?”.  53 students attended the event, lured by the promise of knowledge and pizza.  This year, local Edward Jones advisors Dan Dalquist and Shelly Larson took the time to talk to students about investing their money.  The main topic for discussion was the transition from college life to getting that first job, as well as the importance of saving for retirement.  Dalquist preached to students from all majors about technical financial topics such as tax savings, retirement plans, and asset securities.  Presenting some scary statistics about the current financial situation of most Americans, Dalquist and Larson appealed to audience members about the merits of getting their finances in order.  Since Tech students are numbers-driven, students were able to clearly see the drawbacks of waiting to save for retirement.  Ensuing the presentation was a barrage of questions.  Students were very interested in both advisors’ opinions of the future states of the market, social security, inflation, and how Edward Jones operates.  Even after the session concluded, both advisors spoke with many students one-on-one to answer specific questions.

Brett Ludwig, President of the Finance Club, talked to a few of the students in order to gauge their reactions to the presentation.  Overall, everyone seemed to enjoy the event and got a lot out of it.  One student, who is going to work for a company in Texas after graduation commented, “I’m looking at all this right now and this is exactly what I needed to know.”  The event was a hit and the Finance Club hopes to be able to host more events of this nature in the future for students.  A huge thank you goes to Dan Dalquist and Shelly Larson for making this one possible.

On behalf of the Finance Club, we hope you don’t wait until you’re broke and hungry to join us for the next event!

**This article was written by Brett Ludwig, with contributions from Emanuel Oliveira and Laura Bucci.