Austerity Empowering Your Bottomline Shane Williams, M.S. Candidate

Austerity:
Empowering Your Bottomline
Shane Randel Williams,
International Studies: International Business and Economic Relations, M.S. Candidate

Austerity : Empowering Your Bottomline

1 Introduction: What is Austerity?

2 Green Movement Translates into Business Strategy

3 Current Environment of Economics, Austerity and Energy

4 Trends

5 Comprehensive Energy Planning Application

6 Is Energy Planning a Solution?


Austerity is a measure that invokes extreme economic
situations, as in significant cuts to budgets, benefits
and services.

Benefit
Cuts

Service Budget
Cuts Cuts

Austerity


Austerity Examples
Entities such as the IMF, UN and other
international organizations often have
Bailout Money financial assistance for countries in
economic distress.

Many public sector employees often face
Pay Cuts significant pay cuts (5-15%) and
furloughs

Often times across the board budget cuts
Budget Cuts are put in place for governments and
other times more precise cuts are made

Many governments often trim down to
Service Cuts essential services and reduce other
services to a bare minimum


Significant Historical Austerity Measures
Argentina 1952
Brazil 1953, 1983, 1998-1999
Canada 1997, 1984, 2011
Chile 1968-1986
China 1989, 1993
Cuba 1991
Czech Republic 2010
Egypt 1949-1958, 1985
France 1968-1970, 1983, 1993
Germany 2011
Greece 2010-2011
India 1992, 2008-2009
Ireland 2010
Israel 1949-1959
Italy 2010
Japan 2010
Latvia 2009
Mexico 1985
Netherlands 1982-1990, 2003-2006, 2011
Nicaragua 1997
Nigeria 1993-1998
Palestinian Authority 2006
Portugal 2010-2011
Romania 2010
Saudi Arabia 1988, 1991, 1999
South Africa 1948, 1983-1985
Spain 1979 2010
United Kingdom 1939-1954


Overview of Green/Environmental Movement Timeline
March 1872 Yellow Stone National Park
May 1892 Foundation of the Sierra Club
March 1954 Lucky Dragon 5
September 1962 Silent Spring is published
March 1967 Torrey Canyon runs aground in England
January 1969 Union Oil Co. platform blows out
September 1969 Sen. Gaylord Announces Earth Day
April 1970 First Earth Day Celebrated
1971 Minamata Mercury Poisoning Case
October 1972 Clean Water Act is Passed
October 1978 US Bans CFCs
March 1979 Three Mile Island accident
September 1979 Jane Fonda & Ralph Nader speak at demonstration in NYC
May 1980 President Carter announces Love Canal toxic waste exposure
November 1980 Superfund legislation passed in reaction to Love Canal
1983 Triana, Alabama residents win lawsuit over DDT
April 1986 Chernobyl Nuclear Reactor explodes
November 1988 Ocean Dumping Ban
March 1989 Exxon Valdez Spill
November 1990 Pollution Prevention Act
June 1992 Earth Summit in Rio de Janeiro
June 1994 Brownfields Program
October 2006 Clean Diesel
2009 Chernobyl: Consequences of the catastrophe for people and the Environment published
April 2010 40th Anniversary of Earth Day


Deregulation
of Energy
Markets

Decreased
Energy
Management Energy
Costs
Efficiency


Changes in Energy Brought about by the Green Movement & Environmentalism

 Increased awareness of energy being finite
 Increased awareness that there are negative impacts of unregulated energy use
 Alternative sources and uses of energy
 Efficiency became an achievement

Deregulation Technology Best Practices
Increased competition Cheaper versions Impact Awareness

Hold utilties accountable New technology Lean and Green

Improvements demanded Applications changed Timing

Advanced modeling Environmental Awareness


Energy Cost is not fixed

RGY
NGS
Energy Cost is not fixed

1. Once one energy measure has taken place,
savings from the measure can pay for the
next measure, and so on.

2. Initial capital is not needed when the low-
hanging fruit are taken care of and those
savings are used to fund the next set of
energy measures.


2(2011).
Navigating Energy Management: a Roadmap for Business. The Conference Board and U.S. Environmental Protection
Agency. Washington, D.C. http://www.energystar.gov/index.cfm?c=guidelines.roadmap


Size of Current Debt (USD$) Size of Current GDP (USD$)

United States $9,131,809,400,000 $14,660,000,000,000
Canada $1,322,202,840,000 $1,538,000,000,000
Brazil $1,270,910,912,000 $2,090,000,000,000
Chile $1,113,200,000 $203,300,000,000
Egypt $2,157,300,000 $218,500,000,000
Saudi Arabia $75,871,161,000 $443,700,000,000
Nigeria $154,700,000 $216,800,000,000
South Africa $115,394,657,000 $357,300,000,000
Greece $436,132,620,000 $305,400,000,000
Germany $2,758,614,976,000 $3,316,000,000,000
France $2,128,002,248,000 $2,583,000,000,000
United Kingdom $1,710,313,255,000 $2,247,000,000,000
Russia $131,857,110,000 $1,465,000,000,000
Japan $10,781,272,200,000 $5,459,000,000,000
China $1,110,990,573,000 $5,878,000,000,000
India $798,204,354,000 $1,574,000,000,000
1(2010) Country Comparison: Public debt. The World Factbook. United States Central Intelligence Agency. Washington, D.C.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html

2(2010) Country Comparison: GDP. The World Factbook, United States Central Intelligence Agency. Washington, D.C.


Size of Processed and Potential
GDP
Austerity Measures
United States $14,660,000,000,000 $1,200,000,000,000*
Canada $1,538,000,000,000 $4,000,000,000
Egypt $218,500,000,000 $4,370,000,000
Greece $305,400,000,000 $25,399,500,000
Germany $3,316,000,000,000 $79,827,000,000
France $2,583,000,000,000 $36,285,000,000
United Kingdom $2,247,000,000,000 $82,004,100,000
Japan $5,459,000,000,000 $243,900,000,000
India $1,574,000,000,000 $1,124,100,719
2(2010) Compare Recovery Measures Across Europe. BBC. United Kingdom. http://www.bbc.co.uk/news/10388576
3(2010) Japan unveils budget austerity guidelines. AFP.

http://www.google.com/hostednews/afp/article/ALeqM5htWaDnzsgJUIJMMFraXwJX33QV8A
4(2011) Gov’t unveils austerity measures to meet deficit target. Reuters. http://in.reuters.com/article/2011/07/11/idINIndia-58200720110711

*If super-committee fails to come to an agreement by the deadline


Greece

These bailouts are
Received
contingent on
€219billion loan in
Greece privatizing
conjunction with
many of its
the EU and the
governmental
International
assets to raise
Monetary Fund
€50billion by 2015.

Some 30,000 civil
servants will be
Retirees face 40%
suspended on
cut in pensions
partial pay by the
end of the year


Ireland

Received lowered
interest rates on
Received an EU
loans to between
and IMF
3.5% and 4% and
supported bailout
an extended
of €85billion
payback period to
fifteen years

Cut its
governmental
Had to bail out its
budget by
banks that may
€6billion, with
cost up to
spending being
€70billion
reduced by an
additional €4billion


Portugal

Received an EU
5% pay cut for
and IMF
some public sector
supported bailout
employees
of €75billion

Income tax hikes
for the wealthy, in Military budget
addition to a and transportation
value-added tax of projects were cut
1%


Electric power consumption (kWh per capita)

1(2011) Electric Power Consumption (kWh per capita). World Bank, World Development Indicators (WDI).
http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=eg_use_pcap_kg_oe&idim=country:USA&dl=en&hl=en&q=energy+use+in+u
s#ctype=l&strail=false&bcs=d&nselm=h&met_y=eg_use_elec_kh_pc&scale_y=lin&ind_y=false&rdim=country&idim=country:USA:CHN:IND:JPN:RU
S&ifdim=country&tstart=655797600000&tend=1286949600000&hl=en&dl=en


Major events can affect global economy



1(2011) MSCI Index Performance - AC World Index. MSCI Berra.
http://www.msci.com/products/indices/country_and_regional/all_country/performance.html



1(2011)Provost, Claire. The rising cost of food - get the data. The Guardian. United Kingdom. http://www.guardian.co.uk/global-
development/datablog/2011/jun/07/rising-cost-of-food


International Energy Outlook – Usage Going Up

1(2011) International Energy Outlook 2011. U.S. Energy Information Administration. Washington, D.C.
http://www.eia.gov/forecasts/ieo/more_highlights.cfm#world


1 Introduction: What is Austerity?

2 Green Movement Translates into Business Strategy

3 Current Environment of Economics, Austerity and Energy

4 Trends and Energy Planning Potential

5 Comprehensive Energy Planning Application

6 Is Energy Planning a Solution?


Energy Star
Energy Star Twelve year building program
benchmarked 200,000 buildings.
Reports of experienced savings
between 10-35%

LEED & Green Globes LEED & Green Globes
Provide standards for efficiency
in new and existing facilities
(12.5% to 75% savings)

ISO 50001 ISO 50001
New ISO standard that focuses
on best practices as international
effort to reduce energy usage


National Renewable Energy Laboratory
Technical Reports Report 50% in Savings
Energy Efficiency
Optimization

Modeling

Methodologies


Potential Energy
Potential Energy(Electricity) Potential Savings for Business &
Efficiency Business
Savings (USD$) Governmental Budgets
Stimulus
United States $13,455,612,698,733.30 $403,668,380,962.00 $13,051,944,317,771.30
Canada $1,892,651,759,722.78 $56,779,552,791.68 $1,835,872,206,931.10
Brazil $1,446,541,660,900.46 $43,396,249,827.01 $1,403,145,411,073.44
Chile $194,109,473,875.87 $5,823,284,216.28 $188,286,189,659.59
Egypt $375,746,533,993.99 $11,272,396,019.82 $364,474,137,974.17
Saudi Arabia $600,976,764,097.78 $18,029,302,922.93 $582,947,461,174.85
Nigeria $62,486,069,588.36 $1,874,582,087.65 $60,611,487,500.70
South Africa $731,060,491,790.51 $21,931,814,753.72 $709,128,677,036.80
Greece $205,042,211,038.84 $6,151,266,331.17 $198,890,944,707.68
Germany $1,875,398,426,247.88 $56,261,952,787.44 $1,819,136,473,460.45
France $1,587,706,237,822.32 $47,631,187,134.67 $1,540,075,050,687.65
United Kingdom $1,187,200,877,512.19 $35,616,026,325.37 $1,151,584,851,186.83
Russia $2,954,033,159,261.13 $88,620,994,777.83 $2,865,412,164,483.30
Japan $3,319,956,074,355.06 $99,598,682,230.65 $3,220,357,392,124.41
China $10,390,405,888,140.20 $311,712,176,644.21 $10,078,693,711,496.00
India $2,068,915,451,859.09 $62,067,463,555.77 $2,006,847,988,303.32
1Based on EPA study of savings of 10-35% with buildings in Energy Star program and using 35% as the maximum realized savings -
(2009) Celebrating A Decade of Energy Star
Buildings 1999-2009. U.S. Environmental Protection Agency. Washington, D.C.
2(2008) International Energy Statistics. US Energy Information Administration. Washington, D.C.

http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&pid=2&aid=2&cid=AS,CA,CH,FR,GM,IN,JA,RS,UK,US,ww,&syid=2004&eyi
d=2008&unit=BKWH
3Calculated based of personal experience from common estimated savings from comprehensive energy management in the energy

efficiency industry


Potential Savings for Energy
Size of Processed and
(Electricity) Efficiency for Difference in Savings and
GDP Potential Austerity
Business & Governmental Austerity Measures
Measures
Budgets
United States $14,660,000,000,000 $1,200,000,000,000* $13,051,944,317,771 $11,851,944,317,771
Canada $1,538,000,000,000 $4,000,000,000 $1,835,872,206,931 $1,831,872,206,931
Egypt $218,500,000,000 $4,370,000,000 $364,474,137,974 $360,104,137,974
Greece $305,400,000,000 $25,399,500,000 $198,890,944,708 $173,491,444,708
Germany $3,316,000,000,000 $79,827,000,000 $1,819,136,473,460 $1,739,309,473,460
France $2,583,000,000,000 $36,285,000,000 $1,540,075,050,688 $1,503,790,050,688
United Kingdom $2,247,000,000,000 $82,004,100,000 $1,151,584,851,187 $1,069,580,751,187
Japan $5,459,000,000,000 $243,900,000,000 $3,220,357,392,124 $2,976,457,392,124
India $1,574,000,000,000 $1,124,100,719 $2,006,847,988,303 $2,005,723,887,584
2(2010) Compare Recovery Measures Across Europe. BBC. United Kingdom. http://www.bbc.co.uk/news/10388576
3(2010) Japan unveils budget austerity guidelines. AFP.

http://www.google.com/hostednews/afp/article/ALeqM5htWaDnzsgJUIJMMFraXwJX33QV8A
4(2011) Gov’t unveils austerity measures to meet deficit target. Reuters. http://in.reuters.com/article/2011/07/11/idINIndia-

58200720110711
*If super-committee fails to come to an agreement by the deadline


Is Energy Planning a Solution to Austerity?


Thank you for your time!

Austerity Empowering Your Bottomline Shane Williams, M.S. Candidate

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