economics

US Business Schools Failing on Climate Change

Laptop computer on a tree stump

By Nancy E. Landrum, Loyola University Chicago

Coca-Cola and Nestlé have recently closed facilities, and Starbucks is bracing for a global shortage of coffee — all due to effects from climate change. Climate change impacts every resource used by businesses: from agriculture, water, land and energy to workers and the economy. No business will be untouched. The Conversation

As a researcher and professor of business management, I have found that sustainable business courses across the U.S. do not align with the scientific consensus that we need radical change to avert disastrous consequences of climate change.

These future business leaders are not being prepared for the climate change challenges their companies are certain to face.

Curbing Climate Change Has a Dollar Value — Here’s How and Why We Measure It

Ambulance and cars surrounded by Hurricane Sandy flood waters in Hoboken, New Jersey.

By , Harvard University

President Trump is expected to issue an executive order soon to reverse Obama-era rules to cut carbon pollution, including a moratorium on leasing public lands for coal mining and a plan to reduce carbon emissions from power plants.

Trump and his appointees argue that these steps will bring coal miners’ jobs back (although coal industry job losses reflect competition from cheap natural gas, not regulations that have yet to take effect). But they ignore the fact that mitigating climate change will produce large economic gains.

Sure, Pipelines Are Good for Oil Companies, but What About Jobs Related to Preserving Nature and Culture?

Enbridge pipeline spill in soil near Cohasset, Minnesota

By University of Colorado Denver

On his fourth day as U.S. president, Donald Trump penned executive orders to advance construction of the Dakota Access pipeline and the Keystone XL pipeline. A week later, there were reports the new administration has ordered the Army Corps of Engineers to grant an easement that will allow completion of the disputed Dakota Access Pipeline to proceed.

The White House press secretary said completion of the controversial pipelines would increase jobs and promote economic growth — an argument Trump’s supporters echo.

However, this viewpoint focuses on the profits that go to the oil and construction industries, while ignoring the price that will be paid by other sectors of America’s economy, including tourism and preservation of our cultural heritage — a point I’m quite aware of as an anthropologist focused on the American West. A more accurate reckoning of the economic benefits of pipelines needs to consider the negative impact of pipelines on other parts of our economy.

Gutting The EPA Will Put Millions Of Lives, And The Economy, At Risk

U.S. President-elect Donald Trump has made it clear that his administration is going to be hostile towards his predecessor’s environmental policies, going as far as to promise a massive roll back of current environmental protections.

This is all  under the guise of reducing bureaucratic red tape that is supposedly hindering energy development. While there are plenty of studies available that refute the “excessive regulations hurt businesses” talking points, those studies haven’t seemed to penetrate the climate denial shield that some politicians have surrounded themselves in, so a different approach is called for.

At Oil Industry Funded DNC Event, Surprising Turn: Protests, Ex-Governor Admits "Mistake" Over Fracking

At an oil-industry sponsored event during this week's Democratic National Convention, all did not go as planners may have hoped.

The event was sponsored by Vote4Energy.org, an initiative by the American Petroleum Institute, the oil and gas industry's trade association, and featured some of the Democratic party's most ardent supporters of fracking, including Colorado Governor John Hickenlooper.

But protesters with an anti-fracking message repeatedly disrupted the panel and one of the gas industry's best-known cheerleaders, former Pennsylvania governor Ed Rendell, admitted he “made a mistake” in failing to adequately regulate shale gas extraction.

Drillers Under Pressure as Low Prices, Broad Uncertainties Put Oil & Gas Industry's Financial Prospects 'In Limbo'

At a climate change conference in Paris last week, Fatih Birol, chief economist at the International Energy Agency, had a blunt message for energy companies.

“We see some moves from energy companies in the direction of sustainable development. However, it is not at the level you would like to see,” Mr. Birol, who will be promoted to chief of the IEA in September, told those assembled. “If they think that their businesses are immune to the impacts of climate policy, they are making a strategic mistake.”

Other experts sound a similar note, calling for changes so fast and sweeping that they would be like an “induced implosion.”

New Senate Majority Puts Keystone XL At The Top Of To-Do List

The Republican Party now controls the legislative branch of the U.S. government, but even before they were sworn in, they had made their priorities for the country clear. They want the Keystone XL Pipeline to become a reality.

Republican Senator John Barrasso of Wyoming appeared on Meet The Press to push the pipeline by quoting misleading and dishonest industry talking points: “[Obama’s] own State Department said it’s 42,000 new jobs…He’s going to have to decide between jobs and the extreme supporters of not having the pipeline.”

Barrasso is playing fast and loose with the facts here. As we pointed out years ago, the job numbers used to sell the pipeline are completely fabricated. For example, his claim that the State Department estimates 42,000 jobs from the pipeline has no basis in reality. The State Department has said that the pipeline will only create about 35 permanent U.S. jobs.

The 42,000 number that Barrasso is throwing around is based on the total number of direct and indirect permanent and temporary jobs that are estimated to be created by the pipeline. Almost all of these jobs would disappear within the span of 2 years.

But even if the 42,000 figure were accurate, it isn’t a substantial gain for the United States. According to The Washington Post, the U.S. economy adds an average of 50,000 new jobs every single week, so an $8 billion pipeline that traverses some of the most delicate environmental areas of the country is hardly worth the economic and environmental costs.

As New York Bans Fracking, Calls for Moratorium in Pennsylvania Grow Stronger

This week, New York Governor Cuomo announced that his state would ban fracking, due in large part to concerns about impacts on public health. But right across the border in Pennsylvania, one of the fastest-moving shale booms in the country still proceeds at breakneck speed.

While Governor-elect Tom Wolf campaigned on promises to tax shale gas extraction, evidence continued to grow that Pennsylvania has struggled to police the drilling industry or even keep tabs on its activities. A scathing report issued in July by State Auditor General Eugene DePasquale found that record-keeping was “egregiously poor,” and environmental regulators do “not have the infrastructure in place to meet the continuing demands placed upon the agency by expanded shale gas development.”

For the past several years, Pennsylvania has had a history of lax regulation of the shale rush and its impacts on drinking water. For example, in 2011, the state made national headlines for allowing shale wastewater laced with toxic and radioactive materials to be discharged after incomplete treatment into rivers and streams that were not capable of fully diluting the waste, according to internal EPA documents. Even now, toxic waste from the fracking industry is only tracked via industry self-reporting, which a Pittsburgh Post-Gazette investigation found has led to major gaps in tracking and reporting.

“I think there is a strong feeling in Pennsylvania that what happened in New York is in large part because of the demonstrated damage caused by gas production here,” said Myron Arnowitt, State Director of Clean Water Action.

“It appears that the leadership in New York has been more responsive to what has been happening to Pennsylvanians than the leadership in Pennsylvania.”

Hard Times in a Boom Town: Pennsylvanians Describe Costs of Fracking

If you're looking for the shale gas boom, northeastern Pennsylvania is the place to start.

The Marcellus is the largest and fastest growing shale gas play in the U.S. and more than half of its 50 most productive wells were drilled in Susquehanna County in the northeast. Susquehanna and neighboring Bradford County produced 41 percent of all Marcellus gas this June.

While drilling is down in other shale gas plays across the US, with major oil companies selling off their stakes and CEO's expressing regret for buying in, the Marcellus has bucked some of the downward trends so far.

A recent report from the Post Carbon Institute, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil and Shale Gas Boom,” has grave warnings about the Energy Information Administration's figures nationwide, concluding that two-fifths of the shale gas the agency expects to be produced between now and 2040 will likely never materialize. While many high-profile shale gas plays have already peaked in terms of gas production per well, the Marcellus appears to be an outlier in terms of productivity, researcher David Hughes concludes.

Enormous amounts of shale gas are being produced in Pennsylvania. In the first six months of this year, drillers here pumped 2 trillion cubic feet of gas. And much of this gas came from the Marcellus shale's twin sweet spots, in the Northeast and Southwest corners of the state.

In the whirlwind of activity, some locals in here struck it rich – those who owned large tracts of land and negotiated their deals at exactly the right moment. Driving through the county, it seems like every back road has a red-and-white permit sign marking a shale gas well, a water impoundment, or other Marcellus-related infrastructure.

When the Shale Runs Dry: A Look at the Future of Fracking

If you want to see the future of the shale industry — what today's drilling rush will leave behind — come to Bradford, Pennsylvania.

A small city, it was home to one of America's first energy booms, producing over three quarters of the world's oil in 1877. A wooden oil rig towering over a local museum commemorates those heady days, marking the first “billion dollar oil field” in the world.

But times have changed dramatically in Bradford. Most of the oil has been pumped out, leaving residents atop an aging oil field that requires complicated upkeep and mounting costs. Since its height in the 1940's, Bradford's population has steadily declined, leaving the city now home to only 8,600 people, down from over 17,000. 

The story of Bradford these days is a story of thousands of oil and gas wells: abandoned, uncapped, and often leaking.

To drive through McKean County, home to Bradford and much of the Allegheny National Forest, is to witness an array of creative ways people have found to hide the remnants of this bygone boom. Rusted metal pipes — the old steel casings from long abandoned wells — jut from lawns and roadsides. Mailboxes are strapped to some of the taller pipes. In autumn, abandoned wells are tucked behind Halloween props and hay bales in front yards.

The aging steel pipes aren't just on land. They line creek beds, water flowing around one rusted pipe then another.

Hundreds are even submerged in the Allegheny Reservoir, small bubbles of methane gas the only visible sign of their existence. But in many cases, these rusted top hats from now deceased wells simply protrude from locals' lawns.

They are visual reminders that, for local communities where mining or drilling happens, fossil fuel wealth burns hot and short. Where there's a boom, there's bound to be a bust.

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