Transcript commodification of climate change

Framing Ecosystem Services and Human Wellbeing (FRESH)
seminar series http://www.nottingham.ac.uk/fresh/
4th FRESH seminar*
Beyond Monetary Valuation
held at the University of Birmingham 15/01/09
*Organised by Dr Dan van der Horst ([email protected])
Atmospheric Services
Professor John E. Thornes
School of Geography, Earth &
Environmental Sciences
University of Birmingham
[email protected]
culture
Hindmarch et al 2006
Atmospheric Services
A New Paradigm?
• Commodifying the Atmosphere: Pennies From
Heaven? Geogr.Ann. (2007),89A, 273-285
• Costanza et al explicitly excluded the
atmosphere apart from where ecosystems:
• Regulate atmospheric composition, global
temperature and precipitation
• A Resource Geography of Atmospheric Goods
and Services is unexplored?
• Managing the Atmosphere? Multidisciplinary
• Fragile and thin - like the varnish on a globe
Atmospheric Commodities
• There are three basic atmospheric commodities
with potential exchange value:
• The Material Atmosphere: eg oxygen,
nitrogen,carbon dioxide, (short and longwave
radiation), spatial dimensions
• The Physical Properties: eg temperature,
pressure, wind, clouds, precipitation: Weather
• Information about the Atmosphere: weather
or climate data, weather forecasts, climate
predictions, weather derivatives, weather
insurance: climate and climate change
15 Basic Atmospheric Goods
and Services
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1. The air that we breathe – respiration
2. Use of oxygen for combustion of fossil fuels
3. Extraction of atmospheric gases eg O2 & N2
4. The hydrological cycle and precipitation
5. Cleansing capacity of the atmosphere and nutrient cycling
6. Photosynthesis for agriculture/food
7. Direct use by air transport, insects, birds, pollen etc
8. Wind, wave, hydro and solar power
9. Transmission of sound waves - speech, music, comms
10. Dispersion of air pollution
11. Protection from UV radiation, asteroids & meteors
12. Natural global warming of 33 degrees Celsius
13. Recreational use of the atmosphere
14. Aesthetic qualities of the atmosphere/sky
15. Information about the atmosphere
1. The air that we breathe:
respiration
Breathed Air
Nitrogen
78.62%
Oxygen
20.85%
CO2
0.03%
Water Vapour 0.5%
Expired Air
74.9%
15.3%
3.6%
6.2%
6.5 Billion population produces 3.8 Billion tonnes of CO2
We are all insiders to climate change!
Current Gas Prices (m3)
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Compressed Air
Oxygen
Nitrogen
Argon
Hydrogen
£1.79
£1.42
£1.83
£5.36
£4.47
• We breathe about 20 m3 of air per day
• Atmosphere worth £10 million trillion (£1019)!
• That is more than £1 billion each!
2. Use of oxygen for combustion
of fossil fuels
• 14 m3 oxygen is needed for the
combustion of each litre of petrol
• If oxygen had to be bought at current
market rates this would add £20 to each
litre of petrol/diesel!
• If you drive 20,000 km per year and use
the equivalent of 4,000 litres of oil you will
consume about 112,000 litres of oxygen
worth £150,000!
3. Extraction of atmospheric gases eg
Oxygen and Nitrogen
4. The hydrological cycle and
precipitation
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Who owns the clouds?
Who owns precipitation?
Commodification of water?
Climate Change?
Weather Modification?
5. Cleansing capacity of the
atmosphere and nutrient cycling
• Evolution of the Earth’s Atmosphere
• Gaia hypothesis
• Trace gases removed by oxidizing
chemical reactions involving ozone and
hydroxyl free radicals.
• Self-cleansing process
• Gas regulation and Nutrient cycling
6. Photosynthesis for agriculture
and food
7. Direct use by air transport,
insects, birds, pollen etc.
Air Transport
Insects, Birds, Pollen etc……
8. Wind, Wave, Hydro and Solar
Power
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Huge potential for Wind and Solar Power
Generation of Electricity
To save 1 Billion Tonnes of CO2 by 2050
Will require about 2 million windmills
And about 20,000 sq km of solar cells
9. Transmission of sound waves
speech, music, communications
• We certainly take this service for granted!
• Huge music industry $40 billion global
turnover
10. Dispersion of air pollution
• An atmospheric service that is regulated in
most parts of the world.
• CO2 emissions now been regulated eg
Climate Emissions Trading
• Kyoto 2
• Carbon Economy worth $50 Billion?
• Negative externality costs
11. Protection from UV radiation,
asteroids & meteors
• The Ozone Layer – 5 Billion Tonnes of
Ozone protect life beneath the atmosphere
• Hole in the Ozone Layer led to:
• The Montreal Protocol which has been
called the most successful environmental
regulation to date
12. Natural global warming of 33
degrees Celsius
• The Climate System: microclimates
13. Recreational use of the
atmosphere
• Sport:
• Weather Reliant Sports eg sailing,
skiing, gliding
• Weather Interference sports eg
football, rugby, tennis
• Weather Advantage Sports eg cricket
• Recreation and Leisure
• Tourism
14. Aesthetic qualities of the
atmosphere/sky
• As I contemplate the blue of the sky, I am not
‘set over against’ it as an acosmic subject .... I
am the sky itself as it is drawn together and
unified, and as it begins to exist for itself; my
consciousness is saturated with this limitless
blue. Merleau-Ponty
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Environmental Art
John Constable
Monet
James Turrell
Skyspace James Turrell
Yorkshire Sculpture Park
15. Information about the
atmosphere
• Provides $10 Billion dollar business in
weather forecasting and atmospheric data
and atmospheric research
• Weather Insurance and Reinsurance
• Weather Derivatives
• Climate Branding
Results
Total Notional Value of weather risk
contracts: 2000/1-2005/6
(in millions of U.S. dollars)
$45,244
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$9,697
$2,517 $4,339
CME Winter
CME Summer
OTC Winter
OTC Summer
$4,188 $4,709
$5,000
$0
2000/1 2001/2 2002/3 2003/4 2004/5 2005/6
Note: CME Notional Values for all years have been revised to reflect CME-reported values.
Conclusions
• Very early days in identifying and
quantifying Atmospheric Goods and
Atmospheric Services
• How do we assess value?
• What are the regional differences eg
Atmospheric Services in the UK?
• Provisioning? Regulating? Cultural?
Supporting? Do these labels Fit?