Sustainable Economic Development By John Dunker Business Development & Investments, LLC Pikes Peak Economics Club The Vanguard School.

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Presentation transcript:

Sustainable Economic Development By John Dunker Business Development & Investments, LLC Pikes Peak Economics Club The Vanguard School Colorado Springs, CO June 7, 2011

Sustainability Green is real … and can really be green. Definition: Brundtland Commission (March 20, 1987). “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Definition: John Dunker “Forever”“Productivity” Economics drives sustainability!

Green is Real: Perception or Reality? PerceptionReality Earth’s assets are finite … other than renewables Consumption of the Earth’s assets is by people

Sustainability is not new

Triple Bottom Line Traditional: Venn diagram People ProfitsPlanet

Triple Bottom Line My approach: Power triangle Society Environment Society EnvironmentEconomics!

Hierarchy of Human Needs AirWaterFoodShelter/ClothingProcreation Energy (pertains to all the above)

ENERGY Fossil Fuels: OilCoalGas Renewable Fuels: Wind Solar Wood/Peat.BiofuelsMethaneHydroNuclearGeothermal

Conflicts to Sustainability Food vs. energy BiodieselEthanol Energy vs. ‘snail darter’ WindmillsDrillingAgriculture Corporate farms vs. family farms Food vs. Rain Forests Food vs. animal production for food Dairy

The Information Unit on Climate Change takes methane pollution caused by cattle seriously. Scientists now believe that methane gas is responsible for 15% of “man induced climate change”. Livestock contributes 15-20% of the methane. The Information Unit also states that livestock farming results in more methane pollution than “fossil fuel production, biomass buring, landfills, and domestic sewage.” Natural vs. rBST: 2008 study by Dr. Dale Bauman. 157,000 fewer cows. 491,000 m/t corn. 158,000 m/t soybeans. 2.3 m/t feedstuffs. 541,000 acres of production.

Agricultural Consumer Choices John Barnett of Stockholm Environment Institute of York, UK Dog – 2 acres (Jeep for 6200 miles). Cat – 0.75 acres (Volkswagen Golf for 1 year). Hamster – 0.5 plasma TV. Consumer Perception vs. Economics (Nov study by AP & NBC): Cans – 70% agree to recycle; of 133b cans only 50% recycled. Water bottles – 58.8b/year; 168/person; 23% recycled.

Sustainability in Business Driven by Economics (mostly food and agriculture) Dairy Farms: Productivity = Economics 1944=25,000,000 cows vs. 2011=9,00,000 cows. Milk per cow 4500 lbs. or 525 gals vs. 20,000 lbs or 2325 gals. Serving 138 million people vs. 350 million people. 2.5 X more people with 65% fewer cows. Dairy Plants: 1980 vs % less energy and twice the throughput. GSA – 4 dairy companies; Capper-Volsted Act 1923.

(Dairy Plants - continued …) SWC Transport fuel savings $26,280,000. Dryers – heat recovery system. Methane – from waste treatment. Water for irrigation … Cooperation with city of Clovis, NM. Other Companies Schwann’s Express Foods Inc. Miller-Coors JV GM

Summary Economics Drives Sustainability Economics … is … Productivity (more output from less input)! Reduce factors of production Raw materials. Capital.Labor.Water.Energy.Land.Waste. Green is real … and can really be Green!