Category: Living Sustainably

Managing Split Incentives as a Better Way to be Energy Efficient While Renting?

 

Brendan Beecham is an undergraduate Computer Science major at Michigan Tech. He can be reached at blbeecha@mtu.edu.

Understanding the Need

In the present-day variable economy, split incentives could be used as a method of lowering the overall energy bill for a renting tenant. By sharing the cost of energy between the landlord and the tenant, the difficulty that arises with paying for high-cost energy services is mitigated. This in turn allows the renter to use the saved money to pay for other goods and services and inspires sustainable living through spending less on utilities.

 

Source: nucherenonagel.com

 

The power of utilizing split incentives comes from the motivation from the landlord and tenant to be energy efficient. If the landlord accepts one lump sum fee from the tenant as a substitute for the tenant paying the utility themselves, they have much less reason to be mindful of how much energy they use. On the other hand, if a tenant pays their own electric bill every month themselves, the landlord might not see it as worth their money to install energy efficient lights and appliances. This is where split incentives shine.

When each party in the landlord/tenant relationship is responsible for their own half of the electric bill, there is much more pressure to be energy efficient. This is present in many more cases than just rental housing, but for simplicity I will focus on just the landlord/tenant relationship instead of hotels or big businesses.

 

Affordability For Those That Need It

Split incentives are especially important when discussing energy poverty. This is where lower income renters will end up allocating significantly more of their household income to energy bills than other renters. In this case, split incentives can cripple the financial stability of that renter and affect their quality of life. Additionally, this renter’s landlord will most likely be affected by the instability of the renter’s financial situation, which could lead to possible missed rent payments and cause for both parties to be in an unstable financial relationship. Implementing split incentives effectively can help both the renter and the landlord.

Energy poverty is an issue that arises from the infrastructure and behavior of the energy industry as it stands today. This is a huge issue. Until people are able to afford the energy that they need to take part in society, the thought of living efficiently is much less a choice for some than it is a requirement. There is hope, however, as the idea of split incentives is a versatile one and can help to push forward renewable energy technology.

 

Source: thebalance.com

 

Creating A Better Transition For Renewable Energy

Split incentives could be managed in ways that create energy poverty solutions, but they could also be helpful in mitigating the cost of installing renewable energy solutions like solar panels. Where many cite the initial sunk cost of installing solar panels as the number one reason for never transitioning to using renewable energy solutions, a program that effectively splits incentives could mean a lessened financial impact on each one of the parties involved, the renter and the landlord. While no tenant wants to pay for their landlord to install solar panels out of their own pockets, a cooperative action as well as the promise of lower energy costs in the future could cast a much more appealing light on the transition. In fact, this is not unlike the benefits that come from a government incentive program, one that gives tax breaks to parties who install renewables or who have a portion of their power grid being powered by renewables.

 

Sharing the Cost to Save Energy

Split incentives may mean that landlords have no reason to invest in energy efficiency or renewable energy, because they don’t see the benefits of lower utility bills themselves. By acknowledging and effectively managing split incentives, the solutions for reducing energy poverty and the transition to renewable energy can be streamlined. Like with most improvements to infrastructure systems, it is the programs that are put in place to reduce sunk costs and reduce risk on one party that will push forward for the most change. No landlord will front the cost of installing solar panels if they know there is no incentive to do so. In most private rental situations, there will need to be a push to get an incentive.

 

Source: energynews.us

 

The cost of renewable energy installation makes it a very unrealistic option for most tenants, even those in long term rentals. Even with the price of solar panels dropping as the market expands, for many tenants, the cost of installations are still too high, and the split incentive of renting (when they might not directly benefit from the reduction in utility expenses) is a huge barrier. While renting is an increasing trend in the housing market, tenants won’t want to put money into rental housing, since they don’t own it and won’t see the benefits from the housing value. Most renters are less financially well off that their landlords, so spending their income to install solar panels for the benefit of the landlord is not likely.

 

Conclusion

Split incentives can be managed in ways that have the potential to improve quite a few factors that all relate to energy and the way it’s used in rental housing. Dividing the costs between the landlord and the tenant could provide a stronger reason to be more energy efficient for both parties. Most importantly, incorporating  sustainability into the way we live is quite a daunting task, especially if money is an issue. So to share the burden with others is possibly the biggest leap to see the biggest benefits. Whether it is minimizing the energy footprint that we are leaving, or attempting to save money to be able to afford the everyday essentials in life, managing or leveraging split incentives to provide maximum benefits and incentives to both landlords and tenants is a smart first step.

Life Cycle Assessment and Sustainability

This is a guest post from Dante Paglia, who is a fourth year computer science undergraduate at Michigan Tech. He can be reached at dfpaglia@mtu.edu

 

Life cycle assessment, also known as life cycle analysis, is used to assess environmental impacts associated with all stages of a product’s life. The stages include the collection of the raw materials, processing those materials, manufacturing the product, distribution via various transportation techniques, use of the product as well as the repair, disposal and recycling during the products end of life. This kind of assessment is used by companies and product designers to better understand their products impacts, discover where the product can be improved, and work toward implementing those improvements. Below is a visual of the stages of a products life that are looked at during a life cycle analysis.

 

The National Institute of Standards and Technology (NIST) [Public domain] image of Life Cycle Thinking, Wikimedia Commons
Photo from: https://commons.wikimedia.org/wiki/File:Life_Cycle_Thinking_Product_System.jpg

 

There are four main phases of a life cycle analysis. The first phase is the goal and scope. This sets the outline of the study and depicts the format of the results as well as who will receive the results of the assessment. The second stage is the life cycle inventory. In this stage the inventory flow of inputs for a product are recorded. Examples of inventory flows include, water, energy, raw materials and waste releases to either land, air or water. In this step, all of the inputs and outputs that are used or created during the products life are recorded. The third stage of a life cycle assessment is the actual impact assessment. The data gathered in the previous step is sorted and assigned impact categories to help weigh the impact the product has on the environment. Lastly, interpretation is done. The information from the results of the analysis must be checked and evaluated. In other words, the results of phases two and three are summarized in the interpretation phase. The completed assessment is then reviewed to understand the impacts of the product and to see where improvements can be made to lessen the overall impact on the environment.

Life cycle analyses are a widely popular tool to increase a company’s sustainability. This is because the analysis usually includes information that fits into all three pillars of sustainability. While the overall goal of the assessment is to review environmental impacts, social and economic impacts are considered as well. You can learn more about the three pillars of sustainability by clicking here.

There are many variants of a life cycle assessment where different stages of a products life are analyzed. The three most common kinds are cradle to gate, cradle to grave, and cradle to cradle. Cradle to gate only looks at a product when it is in the hands of the producer, once it leaves the factory its impacts are no longer considered. Cradle to grave takes it a step further and follows a product from the very beginning all the way until it is disposed of. Lastly, cradle to cradle takes things even further and instead of disposal of the product, it is recycled and reused in the process again. Often a cradle to cradle design leads to the least amount of environmental impact. One example of cradle to cradle is discarded asphalt pavement being reused to create new pavement. Below is a graphic showing another example of cradle to cradle design with steel production. This shows how everything, including the waste bi-products of steel production can be used for something useful or simply recycled back into the steel making process.

 

Life Cycle Assessment – What is it?

Photo from: https://www.flickr.com/photos/mitopencourseware/3247853726

 

An example of the use of life cycle analysis is the U.S. Department of Energy produced report that shows the energy and environmental benefits of LED lights over incandescent and fluorescent lights. LED lights proved to be more energy efficient and less harmful to the environment to produce as well as transport than both other kinds. This led to a rise in popularity of LED lights hence providing an overall benefit of large energy savings and significantly less environmental harm. The full study can be found by following this link.

Additionally, life cycle assessment is something that many solar panel producing companies are required to do and have planned out prior to receiving funding from the government. Since solar panels include hazardous materials like cadmium and cadmium compounds, it is not only important to make sure that the raw resources are being retrieved in a safe manner but the end of life of the products needs to be taken into account. If a solar panel is to be disposed of for any reason, whether it be because it broke during production or it is no longer being used or is being replaced, companies need to make sure that their product with these hazardous chemicals is properly disposed of. This means it cannot be tossed into landfills but needs to be recycled in a manner where the harmful compounds are disposed of properly or reused for new solar panels. This article on solar panel recycling explains some of the options there are for safe disposal of unwanted or old panels.  A life cycle assessment helps find issues in these stages and brings them to the attention of the product’s producers allowing them to change their ways.

Life cycle assessment is an important concept to be aware of because every company should be doing some variant of a life cycle analysis for their products. Not every company needs to do cradle to cradle analysis, but they should assess their production in some way. By doing so they can discover issues in their production cycle as well as make improvements to make their product better in terms of energy and environmental harm. With this, their product and company as a whole will become more sustainable and attractive to the large number of investors and customers who are paying closer and closer attention to companies sustainability policies. Most importantly in modern day, the end of life portion of production needs to be analyzed and understood so companies can mitigate the environmental impact their product does. The more recycling options that can be found for products the better to reduce the amounts ending up in landfills causing more harm with their pollution than good they provided overall. Without these kinds of analysis, companies would be able to do whatever is the most cost effective in production, which almost never coincides with sustainability and being environmentally friendly.

 

 

 

 

 

 

 

 

Is climate change mobilization the best we can do?

On September 21st, an estimated 400,000 people gathered in New York City for what is being hailed as the “largest climate march in history.” Organized by the organization 350.0rg and dubbed “The People’s Climate March,” this event drew hundreds of thousands of individuals from around the world, representing a diverse array of organizations and groups affected by climate change, from indigenous groups to labor unions, as well as involving those who think they have some solutions, like renewable energy advocates. Celebrities of all kinds, from actors to politicians, attended the event and brought even more public attention to it. The event already has a wikipedia entry, and the organizers claim that 2,646 “solidarity events” in 162 countries also took place that day.

This kind of social movement mobilization is meant to draw attention to the public outcry about environmental issues, specifically climate change. By gathering such a mass of people together, the event is meant to indicate that there is large scale public concern about climate change and public support for policies and actions that mitigate the environmental damages being caused by our consumption, particularly of the fossil fuels that contribute to changes in the global atmosphere.

Yet therein lies the irony: people used commercial airlines to fly from across the country and around the world to participate in an event meant to draw attention to the damaging consequences of fossil fuel consumption. According to The New York Times, people came “from as close as the Bronx to as far as at least Rome.” The photo slideshow on The New York Times website highlights an art installation of melting ice, obviously intended to draw attention to the melting of glaciers already taking place as a consequence of climate change. Yet did those artists consider the fossil fuel consumption necessary to make their art sculpture? 

It would be complicated indeed to calculate the environmental footprint of “the largest climate march in history” – although I suspect it would be quite large. Even though events took place in other locations, many people choose to travel to New York to participate in the big event. For me, this raises an important question: is mobilization the best we can do? Social movement scholarship suggests that we need these kinds of large scale public events to draw attention to an issue, to demonstrate public awareness and support for social change. Yet, in the specific case of climate change, how can we mobilize without further contributing to the relatively mindless consumption of fossil fuels that has become such an engrained part of our society that we may fail to see the contradiction in flying from California to New York to protest climate change? What if all the people who attended that rally simply gave up the largest contributors to climate change, like fossil fuel powered transportation and agriculture? Can we mobilize with more intention, to demonstrate the possibility of living within responsible limits in the face of climate change? How can we balance the need to mobilize for change with a need to simply, as Ghandi aptly taught, be the change we wish to see?

 

Goodbye glaciers

The US-IALE conference in Anchorage was short but sweet — great science, wonderful colleagues, and new ideas.

However, as picturesque as the setting was, it was deeply unnerving. This winter was one of the warmest on record for Alaska, and indeed for much of the past winter, Alaska was warmer than much of the eastern US. When I arrived in Anchorage, it was at least 20 degrees (F) warmer than Houghton had been, and the trees were already fully leafed-out and blooming. Several wildfires contributed to a haze around the city that marred views and made our clothes smell like a campfire; the fire season started early and is expected to be a severe one, thanks to warm weather and dry conditions in the forests.

My son and I went on a glacier tour…. truly impressive! The blue hues and striations of black sediment made them far more beautiful than I had imagined. As we watched one of the glaciers calving, I wondered if any of those glaciers would be around for my son to show his children; odds are against it. Many speakers at the conference spoke of the difficulty that our “no analog” future presents us when we try to develop management plans for our ecosystems more than a few decades out. While they were talking about the vast reorganization of species and ecosystems that we are likely to see, I thought about how I might describe things like glaciers and tundra to my grandkids….. I am certain that my words, and even my photos, won’t do them justice.

Bringing Solar Energy Technology to Campus

Have you ever used solar energy to charge your laptop or cellphone? Have you ever had the chance to watch a battery’s charging meter go up as it takes in power from the sun? Would you like to learn more about the efficiency and potential of solar electric technology?

A study is about to begin on campus involving solar energy technology. Goal Zero is a leader in portable solar equipment technology, and eight of their systems are now here on campus. Two of these systems are meant for larger scale use (for a family or group housing situation); six of them are smaller, relatively portable, and meant for individual usage. A collaborative project between Dr. Joshua Pearce’s lab and Dr. Chelsea Schelly of the Department of Social Sciences, the goal of the project is to temporarily install these systems into Greek housing, shared student houses, dorms rooms and university apartments so that students can get firsthand experience using solar energy technology. After they’ve spent some time living with solar electricity, participants will be asked about their energy behaviors – how they use and think about energy. This project was recently discussed in the Lode.

Solar electric technology provides one means of decreasing our reliance on fossil fuels and localizing energy production. Participating in this study will provide students with exposure to the latest in portable and small scale solar electricity generation, and will provide researchers with information regarding how technology impacts our energy behaviors and attitudes. If you live in Greek organization housing, share a house with other students, or would be interested in participating as an individual, we’d love to hear from you! Please contact cschelly@mtu.edu.

Dollarocracy and transitions to sustainability

John Nichols and Robert McChesney have a new book out, Dollarocracy: How the Money and Media Election Complex is Destroying America. They discuss the many problems created by the infusion of massive money into our elections, particularly the erosion of locally-produced journalism (replaced by political ads) and the impact of that loss on the ideas that we discuss in our society. In their recent interview with Bill Moyers, I was struck by something that John Nichols said:

“Dollarocracy has the ability to animate dead ideas. You can take an idea that’s a bad idea, buried by the voters — Dollarocracy can dig it up, and that zombie idea will walk among us.”

This has profound implications for the ability of communities and regions to begin their transitions to more locally-based sustainable systems. When we are forced by the interests of wealthy elites and corporate interests to discuss (and defeat) the same bad ideas over and over again, it leaves us no time to discuss the transformative ideas that will lead us to more economically and environmentally sustainable systems. When we have to discuss the solvency of Medicare in every election cycle, we have no time to discuss local heath care cooperatives. When the national conversation about the continued malfeasance of Wall Street distracts us from the benefits provided by our local credit unions, we have a harder time supporting our Main Streets.

National conversations will always be important; we talk about ourselves first and foremost as Americans. However, the volume of national discourse has overwhelmed our local discourse, and we need to focus more attention on our ailing communities and what we can do to strengthen them, especially against the winds of monied outside interests.

Living Sustainably? The case of burning wood

The coming of the colder weather means that the wood stove in my living room has been brought back to life, and I have spent several nights already this fall watching the fire flickering through its glass front. I, like many of my neighbors and I presume many other residents of the UP, burn wood at home as a source of heat. Although there’s another heating source in my home (propane), I prefer to use the wood burning stove. Yet I’ve recently been reading up on the down sides of burning wood, and have been contemplating what it means for living sustainably.

There’s a lot of science out there about the harmful emissions from burning wood. One report claims that it could be as harmful for you as cigarette smoke or as toxic as what comes out of a diesel tailpipe. Apparently, some physicians in Utah have even proposed banning wood burning stoves in the state (although at least one Utah resident is starkly opposed). The Environmental Protection Agency has set emissions limits on wood burning stoves, and recommends using only newer, more efficient, EPA certified stoves. Yet despite concerns about their negative environmental impacts from emissions, people are arguably driven to burn wood for heat for economic reasons – it’s less expensive than other, fossil-fuel derived heat sources.

The appeal of a wood burning stove, for me, goes beyond economic considerations. Burning wood for heat means that the individual or family seeking heat becomes entirely responsible for their own comfort. Instead of having to pay a monthly bill and rely on a system of technical experts, invisible technologies, and far away bureaucracies, burning wood for heat requires that we rely on ourselves. Burning wood as a heat source mirrors, to me, what energy expert Amory Lovins said long ago when contrasting energy systems on the “hard path” and the “soft path” – it puts energy usage into the hands of the user, making us reliant on our own knowledge, experience, and participation.

At least, that’s always been my experience with using wood as a heat source. Perhaps I would feel very differently about it if I’d ever had to pay for wood to burn, instead of relying on resources on my private property. Not everyone is fortunate enough to have access to land with suitable wood to burn, a real issue of justice that I would be remiss to ignore. Nonetheless, when I look at the flickering firelight in my wood burning stove, I can’t help but contemplate how we define, measure, and pursue sustainability. Is it just about emissions calculations? Do issues of ownership matter? I am interested in pursuing alternatives where individuals and communities can take more ownership and be more responsible for the resources we all depend upon – like clean water, healthy food, and enough energy to provide for our needs and comforts. Does the concept of sustainability captures my concerns about social organization or community resilience, or do I need to look elsewhere for a concept that more accurately represents my interest in ‘sustainable’ living?

Open-source 3D Printing Technologies: Toward a Sustainable Future?

At the end of July, I had the opportunity to sit in on a workshop on open-source 3D printing technologies happening here on Tech’s campus. Sponsored the Square One Educational Network, this workshop brought teachers from across the state of Michigan to campus to learn about desktop 3D printers and, most importantly, gave them the opportunity to build their own printer that they took back to their classrooms and students.

Researchers here on campus have shown that open-source 3D printing technologies allow individuals to make necessary things for a fraction of the cost required to buy them; this is incredibly exciting for those of us interested in economic resiliency as well as social equity. Nevertheless, 3D printing technologies have also received a lot of negative attention. In response to the negative media attention 3D printing technologies have received, A “3D Printers of Peace” contest was launched here at Tech (there’s still time to enter!) to encourage 3D printing innovation that is socially beneficial. This is a great way to bring positive attention to this emerging technology. For me, these mixed reports on the potentials of 3D printing technology raise the question: what’s the future of these technologies, and what role can they play in creating a more sustainable society?

After watching teachers build their own printers, observing their interactions with one another throughout the workshop, and talking with them about why they attended the workshop, my tentative answer is this: 3D printing technologies have the potential to empower us to build, shape, and create our own worlds. As students and as humans, we have become used to living in a world where we can’t fix the machines we use everyday or make simple things that we use to live. 3D printers allow us to make things (from replacement parts for your snow blower to a complete chess set) less expensively, and without the carbon required to get most plastic things from point of production to point of consumption. More importantly, they empower us to become makers of things, which has the potential to radically transform the economic and social arrangements in society.  A second thing I learned from the 3D printing workshop is this: the technologies we use in society are embedded in the fabric of that society, they ways we think about and use technologies are shaped by society, and it is important to think about, talk about, and constantly refine our own ideas about technology as we work to apply them to the creation of a more sustainable future .

Botanical Medicine courses in the Keweenaw, Sept. 14-16

If you have ever been interested about the medicinal properties of plants (note that the billion dollar pharmaceutical industry is!), there will be several classes offered in mid-September at the Marsin Nature Retreat Center just outside of Houghton; see the “Keweenaw Peninsula: Plants, People and Planetary Healing” section on the “Special Events – Classes” page.

Also note that the Houghton & Keweenaw Chapter of the group Herbalists Without Borders will be having a potluck at Marsin on the evening of September 17th.