Energy and Inequity Presented by Community Solutions Yellow Springs, Ohio

The Real Need For Change – Inequity n Energy concern q Most U.S. concerns are driven by environmental degradation q But environmentalists blame producers and not consumers n The world driving issue is accelerating inequity and violence q Comes from past and current colonialism q Current colonialism is Globalization and Corporatism n A world historical perspective is vital q We must understand wealth allocation (OECD and ROW) q We must understand relationship of energy to wealth q Ignorance can lead to war

Increasing Inequity n Distribution of worlds income in fifths (quintiles) n Third world view – experiencing accelerating inequity n OPEC nations fit the third word profile – they are poor! q Smaller annual income than the non-OECD world

Income by Region – 1 ($) 1820 & 1998 n The End of Poverty – Jeffrey Saks 2005 n OECD vs. ROW

Income by Region – 2 ($) 1820 & 1998 n OECD 18% (1 st world) - ROW 82% (3 rd world) No “2 nd ” world

Analyzing World Energy and Equity n Understand the World Alliances – G7, OECD, OPEC n Evaluating the fundamentals Life Span Income Equity Energy UsedMilitary Expenditures n These are more significant than politics, religion, race, sex n Identify key trends q GINI Index of Inequity Changes q Oil Consumption Changes q OPEC Dynamics

Major World Groupings n G7 – US, UK, Canada, Germany, France, Italy, Japan n OECD – Organization for Economic Co-operation and Development q 30 Nations – 18% of population q Most of Europe – 21 Continental Europe q Anglo-Americans – US, Canada, UK, Australia, NZ q China fringe states – Japan, South Korea q U.S. and Europe fringe states – Mexico, Turkey q The Rich Nations n ROW – Rest of World – All nations (~ 150 nations) except OECD q 82% of population q The Poor Nations

Key Comparative Parameters n Pop - Population Size (shown in millions) n Life Span (Years) n PPP - Purchasing Power Parity per Capita q Represents comparative income (GDP($)/population) n KgOE/c - Energy usage per capita (kilograms of oil equivalent) n GINI Index – a measure of inequity q The higher the GINI number the greater the inequity n MilExp/c - Military expenditures per capita (in $)

The World Division q Pop - Population size in millions q Life Span (Years) q PPP – Purchasing Power Parity - Income q KgOE/c - Energy usage per capita (KgOE – kilograms of oil equivalent) q GINI Index – a measure of inequity q Military expenditures per capita (dollars) CountryPop.Life Span PPP/c1997 KgOE/c PPP/ KgOE GINI Index Mil- Exp/c US28177$36,3008, $1,428 G7 w.o. US41979$26,0284, $431 OECD w.o. G743875$14,8262, $161 ROW5,09665$3, $28

Population Distribution n OECD 18%, ROW 82%

Asymmetric Energy Use – World View n Population q US (5% of pop.) ~300 mln. q OECD-L (10% of pop) ~700 mln. q ROW (85% of pop) ~5,400 mln. n Energy Consumption (BOE) q US – 57.5 q OECD-L – 30.6 q ROW – 7.3 n OECD-L is Europe, Japan, South Korea, Australia, Canada

Income Distribution

GINI Index of Inequity n U.S. ranks first in inequity

GINI Index of Inequity Changes n Inequity accelerating: q 1960 to 1980 – 10%; 1980 to 1999 – 16%

U.S. Inequity n The top five percent increased their share of the income from 16.6% in 1970 to 22.4% in n In 2001, the amount of income going to the top 20% passed the 50% mark for the first time since the Great Depression

Energy, CO2, Equity – Correlation n U.S. (5% of pop.), OECD (10% of pop.), ROW (85% of pop.) n 300 million people use 56 boe/capita yearly n 1 billion people use 30.6 boe/capita yearly n 5.4 billion people use 7.3 boe/capita yearly n U.S. Ratio to ROW – 8 to 1

Conclusions n Inequity has been increasing for a century q Now the rate is accelerating n Consumer capitalism offers rational – the Trickle Down theory q “The rich are getting richer faster but everybody is getting a little bit richer so don’t complain” n When Peak Oil arrives, salaries and wealth will decrease q Will we accept the current inequities when people are hungry? n Current institutionalized inequity cannot survive Peak Oil