1. BA 447: Environment Note to students: scan links provided. Consider this lecture a survey to get you started.

2. Exercise: Step 1 Is there a relationship between changes in the price of crude oil and deaths in a large city like San Francisco?

3. Selected Topics Global warming Sustainable energy use Ecological issues –Conserving natural resources –Protection of plant and animal life Role of NGOs (sometimes referred to as activists) Impact on global business

4. Global Warming Increase in earth’s temperature Greenhouse effect - increase in carbon dioxide and other emissions and effect on atmosphere Most of the warming seems to have occurred in last 50 years, therefore due to human activity

5. Global Warming - sources International Panel for Climate Change EPA - info on climate change http://en.wikipedia.org/wiki/Global_warmin ghttp://en.wikipedia.org/wiki/Global_warmin g http://www.realclimate.org/index.php?p=12 1http://www.realclimate.org/index.php?p=12 1

6. Efforts to Reduce Emissions Alternatives to reducing emissions –Government mandates –Free market Existing systems –US: Clean Air Act places a cap on emissions –EU Greenhouse Gas Emission Trading Schemes –UN Framework Convention on Climate ChangeUN Framework Convention on Climate Change

7. Kyoto Protocol Agreement to reduce emissions 5% below 1990 levels by 2008-2012. If they can not do so, country can buy Green House Gas (GHG) emission reductions. –Certified Emissions Reductions Exemptions – developing countries, including China US objections

8. Emissions Trading World Bank facility: –http://carbonfinance.org/http://carbonfinance.org/ European Bank for Reconstruction and Development –http://www.ebrd.com/country/sector/energyef/c arbon/http://www.ebrd.com/country/sector/energyef/c arbon/

9. A note on sites on global warming Most sites are supportive, a few raise doubts –http://www.lickglobalwarming.org/http://www.lickglobalwarming.org/ –http://www.globalwarming.org/about.htmhttp://www.globalwarming.org/about.htm –http://www.globalclimate.org/http://www.globalclimate.org/ Pay attention to who is behind the site –A good number of sites raising doubts are industry funded, primarily “fossil fuel sources” –Key issue is fear of regulation –Politics tend to cloud the issue also

10. Sustainable Energy Use Nominal prices of crude oil over time –http://www.eia.doe.gov/cabs/chron.htmlhttp://www.eia.doe.gov/cabs/chron.html Real price comparison –http://www.forbes.com/static_html/oil/2004/oil.shtmlhttp://www.forbes.com/static_html/oil/2004/oil.shtml US Gas prices (components and history) –http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis _publications/primer_on_gasoline_prices/html/petbro.h tmlhttp://www.eia.doe.gov/pub/oil_gas/petroleum/analysis _publications/primer_on_gasoline_prices/html/petbro.h tml –http://www.randomuseless.info/gasprice/gasprice.htmlhttp://www.randomuseless.info/gasprice/gasprice.html

11. Some myths about energy Are gas prices really that expensive? Some myths about energy –http://dieoff.com/page132.htmhttp://dieoff.com/page132.htm

12. Long term prospects Hubbert's peak Example of debate/discussion –BBC article on long term oil prospectsBBC article on long term oil prospects

13. Addressing alternative sources Amount of crude oil currently consumed Infrastructure dependent on crude oil Capacity to produce key raw material Net change in conversion to alternative –Amount of crude oil consumed in production of alternative, e.g. as energy, as raw material –Amount of energy gained –Compare apples to apples?

14. Addressing alternative sources Net change in conversion to alternative –Amount of crude oil consumed in production of alternative, e.g. as energy, as raw material –Amount of energy gained –Compare apples to apples? OSU study on Biofuels

15. Ecological Issues - examples Forest cover Spotted owl Dolphins Sea Turtles Chilean sea bass

16. Resource Issues Natural resources such as trees and minerals Water –For consumption: human and production –For transport Food production

17. Genetically Modified Crops and the Environment Examples: –Seeds genetically modified to be pesticide resistant –Seeds modified to produce organisms that kill other organisms Issues: –How to increase food production? –What are impacts on environment? –Is it a shortage issue or a distribution issue?

18. Understanding Dissent Appreciate that issues are complex Different sides will use information technology to disseminate their message Look into science if possible Ask questions, investigate Check background of sources of information

19. Role of Activists In general call attention to an environmental issue. Methods (for example, against GM): –In Brazil, filed or caused law suit to be filed to ban the introduction of modified seeds –In Europe, lobbied parliament –In other countries, lobby congress or executive branch –Target key players as a way of attacking industry –Good use of the press – public relations –Need “good publicity” to survive

20. Examples of Political Strategy Procurement and Tax Reform Anti-Global Warming Campaign/Anti-Global Warming Campaign Components: –Objective is an enabling legislation –Proponent – draft legislation, negotiates/lobbies legislators, e.g. door to door, press –Coalition of supportive individuals and organizations –Craft clear set of messages to be disseminated – press –Use events to create impact, e.g. face to corruption

21. Exercise Other relevant environmental concerns Name an opportunity and/or threat to a global company given the discussions on global warming, energy, etc.?

22. Conclusions – implications on global businesses Reality of world-wide movements –Climate change is supported by both public and private entities globally –Response to genetically modified seeds –Other environment-related movements These have spawned “targetting”/legislation Direct costs to global firms including legal costs, energy costs, etc. Indirect costs in terms of negative publicity, etc.