Presentation from Graciela Chichilnisky on Green Futures as a guest speaker for Peter Eisenberger's Class at Columbia Universty. October 31, 2011

7. Globalization

8. Program on Information and Resources Columbia University Source: World Trade Organization (WTO) 2005 data

9. Program on Information and Resources Columbia University Source: World Trade Organization (WTO). World Trade Overview 2005. http://www.wto.org/english/res_e/statis_e/its2006_e/its06_overview_e.pdf

10. Program on Information and Resources Columbia University Source: Baker, E, Bournay, E, Harayama, A, & Rekacewicz, P (2004). Vital Waste Graphics. UNEP/DEWA/GRID-Europe, RetrievedJan. 24, 2009, from http://www.grida.no/_res/site/file/publications/vital-waste/wastereport-full.pdf

11. Program on Information and Resources Columbia University Note: The graph corresponds to the regression system in Table 3, column 2 (next slide). The curve shows the partial relation between the Gini coefficient and the log of per capita GDP, holding fixed the estimated effects of the explanatory variables other than the log of per capita GDP and its square. Source: Robert Barro. Inequality and Growth Revisted. ADB January 2008. http://aric.adb.org/pdf/workingpaper/WP11_%20Inequality_and_Growth_Revisited.pdf

12. Increasing Global Divide

13. Energy = Economic Progress

14. Emissions follow GDP

15. North South Divide

30. Why Negative Carbon? Page

31. Negative Carbon is needed NOW Page

32. Blueprint for Transformation Global Thermostat Page

36. ● This is not a ”service economy” as previously thought. ● It is a new economy using knowledge rather than capital as the most important input of production. ● Fossil fuels are now replaced by information technology

37. Leading The Way to Eco-friendly Profits Some major manufacturers have decided to do more than reduce waste and clean up pollution. They are developing products and processes that make it profitable to be environmentally friendly. DUPONT has co-developed 3GT, a bioengineered polyester fabric made from cornstarch that is lower in cost than oil-based polyester and can be recycled indefinitely. SONOCO has created an rectangular “paper can” for Lipton Iced Tea that is 70% recyclable. 3M has developed a plastic coating for the Navy to replace paint on trucks, ships and trains. It’s lighter than paint, which leads to greater fuel efficiency.

38. S.C. JOHNSON reformulated Raid roach killer, converting from a solvent-based to a water-based formula. Its Greenlist Process has slashed 1.8 million pounds of volatile organic compounds from its Windex line of products. Another 4 million pounds of polyvinylidene chloride has been eliminated from Saran Wrap. ELECTROLUX’ environmental products, including solar-powered lawn mowers, chain saws lubricated with vegetable oil, and water saving washing machines, generated 3.8% higher profits last year than the company’s conventional products. TOYOTA is introducing a hybrid car that gets 66 mph on a combination of gasoline and electricity. A. FINKL & SONS , a Chicago steel forger, recycles more than 955 of its solid waste and has cut energy use by 36.4% over 10 years, making it one of the most efficient forgers in the world.

39. BRITISH PETROLEUM has invested $160 million in developing solar energy and is building a completely solar-powered Olympic village for the 1998 Summer Games in Australia. EXXON – Making $600 million investment to develop algae-based biofuel. HONDA – Developing next generation hybrids, hydrogen fuel cell powered “FCX” vehicle and taking steps to create an entire infrastructure for hydrogen. GE – Developing consumer-minded energy cost-cutting appliances like hybrid water heaters, energy-efficient aircraft engines and factoring carbon costs into deal approval processes.

40. INTEL - Reducing energy consumption of its chips while increasing their speed. Strong programs to reduce waste and release of toxics. Largest corporate purchaser of renewable energy in the US, equivalent to 46% of company's US energy use. STARWOOD HOTELS – Building highly-efficient, earth-friendly luxury properties, including a $200 Million Sheraton in Seattle. NiIKE – Introduced shoe made from "environmentally preferred materials", such as recycled polyester, and packaged in a 100% recycled fiber box.

41. Source: “Comparing economic and scientific wealth” of the article “The Scientific Impact of Nations” by David A. King, Nature, July 15, 2004, p. 311-316.

42. Sources: Pisa. www.pisa.oecd.org . World Bank. www.worldbank.org .

43. Sources: Pisa. www.pisa.oecd.org . World Bank. www.worldbank.org .

44. Knowledge Sector (% of GDP) U.S. BEA 2007, Knowledge Sector: Computer and electronic products; information; finance and insurance; professional, scientific, and technical services; management of companies and entreprises Sources: US Bureau of Economic Analysis (BEA) 2007 data www.bea/gov. World Bank. www.worldbank.org

45. Sources: US Bureau of Economic Analysis (BEA) 2007 data www.bea/gov. World Bank. www.worldbank.org

46. Sources: US Bureau of Economic Analysis (BEA) 2007 data www.bea/gov. World Bank. www.worldbank.org

47. Sources: US Bureau of Economic Analysis (BEA) 2007 data www.bea/gov. World Bank. www.worldbank.org

48. Sources: US Bureau of Economic Analysis (BEA) 2007 data www.bea/gov . World Bank. www.worldbank.org

49. Sources: World Bank. www.worldbank.org . World Resource Institute (WRI). www.wri.org

50. Sources: US Bureau of Economic Analysis (BEA) 2007 data. www.bea/gov Energy Information Administration (EIA). www.eia.doe.gov/

52. Markets are widely used institutions They are decentralized, and can be efficient. But global environmental markets trade unusual goods: privately produced public goods ● Biodiversity is one ● The planet’s atmosphere is another Program on Information and Resources Columbia University

59. With private goods efficiency requires that MRS=MRT, but with public goods the formula changes: Lindahl-Bowen & Samuelson proved that: Sum of MRS across people = MRT Program on Information and Resources Columbia University

60. ● Therefore free choice must lead every trader to select the same overall trade-off between private goods and atmospheric quality ● For this to happen, trader’s wealth should not be too far apart Program on Information and Resources Columbia University

61. ● Efficiency and distribution are connected in markets with PPP goods ● A measure of equity is necessary for efficiency ● Markets with knowledge and environmental assets require equity for efficiency Program on Information and Resources Columbia University

65. Program on Information and Resources Columbia University

66. Knowledge/ Wealth Correlation: High Income Countries Source: World Bank KI and KEI indexes, 2009

67. Source: World Bank KI and KEI indexes, 2009 Knowledge/ Wealth Correlation: Low Income Countries

68. Knowledge/ Wealth Correlation: Regions/ Income Groups Source: World Bank KI and KEI indexes, 2009

69. Green Markets lead the way to Green Capitalism Global Thermostat Technology and Other Carbon Negative Solutions are the Future of Energy Resolving the Global Climate Negotiations Providing Clean Energy and Growth for North and South that is Harmonious with the Earth’s Resources Building the Future A Vision of Green Economics