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The US government needs to understand marginal returns on complexity and the role of energy

A few weeks ago on This Week (ABC, http://abcnews.go.com/ThisWeek/video/exclusive-sen-alexander-9969974) US Senator Lamar Alexander (R) of the said the United States is now too complex for there to be very large sweeping bills to pass that will be good for the country. The reasoning is that the bills are now so long that there are too many unintended consequences and surprises embedded in them. He thus pushed for more incremental bills to make continuous progress. On the other hand, President Obama says the health care system is so complex that you can’t overhaul it in a piecemeal fashion. So which is it?

What does these conflicting statements from the US elected officials say about the state of governing the United States, or perhaps generally the industrialized world, regarding the reaching a point of diminished marginal returns on the complexity of how we are organized? And in the reasoning of Joseph Tainter (http://www.cnr.usu.edu/htm/facstaff/memberID=837) are energy resources, or the lack of the abundance per capita of the past, have something to do with our inability to solve new problems? I’ll quote from an article in Slate’s website (http://www.slate.com/id/2225820/):

“Over the last several decades, the number of bills passed by Congress has declined: In 1948, Congress passed 906 bills. In 2006, it passed only 482. At the same time, the total number of pages of legislation has gone up from slightly more than 2,000 pages in 1948 to more than 7,000 pages in 2006. (The average bill length increased over the same period from 2.5 pages to 15.2 pages.)

Bills are getting longer because they’re getting harder to pass. Increased partisanship over the years has meant that the minority party is willing to do anything it can to block legislation—adding amendments, filibustering, or otherwise stalling the lawmaking process. As a result, the majority party feels the need to pack as much meat into a bill as it can—otherwise, the provisions might never get through. … And as new legislation is introduced, past laws need to be updated. The result: more pages.”

So governing the country is becoming more and more difficult to increasing size and complexity. Theoretically, this requires more and more money and energy to operate the government and distribute services among the citizens. Given that US energy consumption has been effectively flat at between 99 and 101 quadrillion (1 quad = 1 x 10^15) BTUs since 2004, perhaps this has finally caught up to us in the form of the mortgage and financial crisis causing the current recession. The economists are stating that they don’t see jobs recovering much at all this year even if the overall economy does grow by any percentage.

It is disappointing to hear, or rather not hear, more of a discussion among politicians of how energy resource quality (measured by energy return on energy invested (EROI), net energy, etc.) is not brought more into the general discussion as an indicator of the future path of our society. I hosted a panel session at the American Association for the Advancement of Science Annual Meeting on “The Consequences of Changes on Energy Return on Energy Invested” (see: http://aaas.confex.com/aaas/2010/webprogram/Session1710.html). During this session we discussed how the quality of energy resources (being primarily fossil fuels) as measured by EROI are getting lower. Thus, the same amount of energy production (in total Btus/yr) at a low EROI is not able to sustain the same level of complexity and growth as when that same quantity of energy has a higher EROI. More fuel and parts of the economy are literally needed to support the functioning of society, and society must rearrange itself. Many people believe this rearrangement is happening by switching to alternative energy resources such as renewables for liquid fuels and electricity, but these resources are inherently inferior (when thinking only from an EROI standpoint) that the fossil fuels we have used in the past and are still consuming today. Thus, energy systems must inherently get simpler not more complex. It is not clear whether the “smart grid” is more simple or more complex. In some instances, it allows decisions to be made more locally and that sounds simpler. On the other hand, there are more decision-making nodes or locations, and that sounds more complex. I’m inclined at the moment to think that the smart grid is an increase in complexity, but this is a ripe area for future research.

I send out a call to the energy community to call for a more integrated approach to thinking about how critical energy quality is to economic production and societal organization. Instead of blaming the current politician in office for running up the budget or spending too many tax dollars, we need to show that our future options for private and public services are fundamentally limited by the quantity and quality of the energy resources we consume. Thus, we should not be surprised when our politicians are having extreme difficulty in solving the current challenges. The lesser amount of excess energy floating in the economy simply demands that actions be performed much more precisely with less and less room for error. When there is excess energy available, you can simply more easily afford to mess up, and for that matter, clean up your mess.

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Comments (3)

  • 1 Joao Batista Gomes March 15, 2010 7:40 PM

    SMART GRID – CHALLENGES FACED BY THE UTILITY…

    In addition to the diverse communications requirements - the Smart Grid communications network implemented by the Utility will potentially be subject to many demanding communication needs - that the Smart Grid communications network must support, the Utility faces a number of other potential challenges when implementing such a network. Similar to the Internet, the budding technology promises to give two-way communication between utility companies and customers that will allow consumers to shop for the best energy deals as electricity costs fluctuate during the day.
    The technology is beginning to catch hold across worldwide, and utility experts hope the required infrastructure will eventually result in the development of Smart Appliances that don’t merely switch on and off, but automatically hunt for energy bargains. While some parts of the technology are more science fiction than household fact, Utilities officials expect the next generation of infrastructure will be information-driven.
    Utilities experts expect smart grids will acknowledge that the cost to produce energy changes during a day. They also hope the smart grids will reduce peak usage, which is a capacity benchmark that can be costly for energy companies to maintain.
    While the consumer is pacified with the promise of lower utility costs, it is the utility company who will enforce the policies set at the regional, national and global regulators. Thus, if a neighboring system has a shortage of electricity, your appliance might automatically be turned down to compensate; if you have exceeded your monthly daytime quota of electricity, energy-consuming tasks like washing and drying clothes, could be limited to overnight hours. Meters can be monitored remotely, turned off at utility headquarters and can amass large quantities of data to show how people consume energy. Smart Grids will allow them to save money by increasing efficiency, a savings that will be passed down to the customer. For example, instead of getting out a truck and sending an employee to turn on a meter at an apartment, that function could be done remotely by clicking a mouse at utility headquarters.
    Consumers and Utilities may learn some sharp lessons about government intervention: When the government shows up on your door and offers to help you save money, everyone knows that is an contradiction. Government does not function to help people or companies to save money or to be more efficient; rather, it functions to maintain and increase its own power and control over its citizens. No one really knows the real advantages. The bottom line is: How can we be more efficient in our day-to-day operations so our rates don’t have to go up ?