Showing posts with label incentive. Show all posts
Showing posts with label incentive. Show all posts

Wednesday, November 7, 2012

Guest blog #27: Adrianna Bojrab's thoughts on little city nudges


Nestled in the heart of a culturally rich and active local community, the University of Michigan’s goals seem to mirror the objectives of local Ann Arbor.  Ann Arbor is a buzzing hub of innovation; start-up entrepreneurial enterprises, and cutting edge technology and research firms seem to make up the nucleus of the local economy. As such endeavors prove costly, efficiency seems to be a priority amongst local people, a primacy that is reflected in their business approaches.  Efficiency can be achieved on a variety levels: capital allocation, minimal time and energy expenditure and strategic business structures that minimize costs and boost profits.  Such efficiency standards can be met with numerous approaches; however, Ann Arbor companies seem to set the standard by equating efficiency with green sustainability, and considering local options and mindful environmental practices to reach the bar.

While residing in Ann Arbor for four years, I noticed incentives for reducing waste around the city.  Many food businesses receive base ingredients from local farmers, and donate leftovers to the homeless population.  Local farmers' markets are highly publicized and well frequented by students and locals alike.  Clothing and product drives reallocate excess, and a noticeable shift towards biodegradable materials for disposable products has become widespread in University and local business food and product packaging. A new wave of businesses promoting increased accessibility to public transportation has emerged.  Through the means of more expansive bus routes and initiatives to provide larger capacity cabs, Ann Arbor is moving more people and burning less fuel simultaneously.  Within the community, there is a strong biking population and more recently, an emerging skateboard culture.  Governmental regulations have rejected proposals for increasing parking accessibility, and this has proved to deter individuals from driving--a positive for fuel conservation.  Additionally, the physical layout of Ann Arbor makes walking or alternative transportation an easy, viable and reasonable option, along with the construction of new dormitories, co-ops and apartment buildings on Central Campus; people are being brought closer to their destinations.  Ann Arbor makes it easy to be environmentally conscious by providing the means to promote desired actions.  

Recently, I have moved to a neighborhood just north of downtown Chicago, Illinois.  My fascination with urban living and sustainability was redefined.  Generally speaking, subways and buses are the predominate mode of transportation for many city dwellers.  As a graduate student, I have the option to purchase an unlimited public transportation card for six months.  My commute to school on the subway has opened my eyes to the amount of fuel, finances, energy and time allotment that is being saved per person. Calculate $2.50 per one-way ticket, the price of a car, gas, parking and time in the context of city, and number is likely astounding. Chicago utilizes public transportation in a way unlike most other big cities, by utilizing both above ground and underground subway transport.  By doubling the expansive public transportation network, Chicago transports more people and employs more individuals to service and maintain the tracks and trains.   Read: Public transportation is quick, efficient, expansive...and arguably entertaining. 

Additionally, the state of Illinois encourages and provides a number of incentives for renewables and efficiency efforts--a mixture of grants, shorter permit process timelines and tax cuts.  These opportunities are available for commercial, industrial, residential, educational and institutional interests, and help to further the employment and adoption of new technology and environmentally beneficial practices.  Some of these practices involve: green building designs, geothermal heat pumps, solar space and water heaters, photovoltaics, hydroelectricity, LED lighting, renewable fuels and biomass.  The implementation and employment of new technology through state and federal incentives encourages a healthier environment and provides a financially feasible way to reduce operation costs and conserve valuable resources, materials and energy.  Such information for your own city is available through DSIRE, an online database funded by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.

On a smaller scale, I have noticed a number of changes within my two short months of residence: public restrooms are beginning to remove paper towel dispensers and replace them with strong air current dryers. Inner city farmers markets are extending their hours of operation to weekdays, specifically lunch hours, providing an alternative for the working world’s lunch break and grocery run.  Recycling containers are found on every corner and clothing dispensaries for the needy are numerous.  Water bottle fillers that provide a “number of bottles saved” to users are engineered into many of the public water fountains, becoming a city norm. By providing such numbers for users, individuals are tangibly made to feel as though they are furthering change, thus encouraging usage.   A number of restaurants provide cloth napkins, regardless of their level of formality.  Chicago provides easy ways for people to minimize waste and reuse or reallocate resources.  Small incentives and practices add up, and the collective result could be major.   

We are the generation that will turn the tables.  We will change and revitalize the American culture by using innovative ways to introduce and implement sustainable and efficient business regimes into our communities.  Our health, safety, and happiness derive from our atmosphere.  If we focus on sustainability, and intentionally challenge ourselves to reuse materials in innovative ways, we will revitalize our communities.  Look at your lifestyle, identify the source of waste, start small scale and take an active role within your community to further new practices and become a catalyst for reform. 

~Adrianna

For more of Adrianna's thoughts on this blog, click here, here, and here.

Wednesday, December 28, 2011

A market for everything

When I was in Montreal for the ICAO Sustainable Alternative Fuels in Aviation, I met man, who I will not name, who is very influential, especially in the financial world and the powerful (and old school) Organisation for Economic Cooperation and Development. He told me something that I believe is both arrogant and unimaginative at the same time: "Look, the world economy is at around $60 trillion right now, and it needs to be [emphasis added] at $300 trillion in fifty years. In order to achieve that, the concept of waste cannot exist in fifty years; waste will not exist in fifty years. Every output of one process will serve as an input to another process."

I can admire such a statement, and can be repulsed by it. On the one hand, who likes waste? No one, really, apart from those who make their earnings from waste. On the other hand, it is an argument for continued technologisation of our world (something that Ted Nordhaus and Michael Schellenberger would gladly accept), and it signifies something that I've been feeling for a long time--that in our control of nature, we have continually striven to recreate nature itself, or create our own "nature", as autonomously operating as possible. But, I digress. This isn't the main argument of this post. I want to go back to what this man said, that the concept of waste doesn't exist.

I can understand that cultures change, and that things that existed fifty years ago no longer exist today, and things that exist today might no longer exist fifty years from now. But I find the issue of waste (and trash) fascinating, especially because there is a market for something that we are all repulsed by. As I have said previously, regardless of your politics, trash and waste are things that most all of us want to be away from, and therefore, we do send it away. But at the same time, as Vanessa Baird has argued, maybe our economy is based around the generation of waste itself. This shouldn't come as a shock, for waste is big business in this country, and likely the same abroad.

It's true that we have made efforts to lessen "waste" and "trash" by doing something termed "recycling". But this doesn't fundamentally change the fact in our efforts to be less ecologically degrading (one can argue whether recycling is less harmful on the whole), we still have competition from landfills. When I visited the Ann Arbor materials recovery facility with Caroline, where recyclable materials from many neighbouring communities arrive to be processed, the good many that was giving us a tour of the facility said that because of the recently increased capacity of the facility, and because the facility started accepting #4, #5, and #6 plastics, that the amount of trash going to the landfills has now decreased, so much so that the fees associated with dumping trash at landfills has gone down, creating an "incentive" for communities and townships to send material to landfills, rather than paying more for recycling. There is indeed a market for trash, and a powerful one at that. How do we fight the market? Hope that "consumers will change their minds"?

When we create markets for something, we (at least for a while), accept the presence of something in the world. And with something has unwieldy, large-scale, and commonly produced as trash and waste, the larger the market, the larger the power. (A similar analogy can be made for oil and gas.) But I think that this points to something deeply fundamental and flawed in our thinking, and that is that if money can be made, even by doing something bad, someone will do it, create or coax a market for it, and then say, "Let the market dictate its presence in the world. If the market says that it shouldn't exist, then so be it." Such thinking fails to recognise that some things are inherently degrading. It is based off of the same secular, amoral thinking that has resulted in massive ecological crises and the possibilities of things degrading. We seem to confuse the possibilities of our mental capacities with real, actual, physical existence and implications in the world. The creation of options and possibilities (a market) is thought to be amoral an not value laden, and responsibility is quickly dumped on politics to messily figure out (or not) whether something is acceptable. For example, only because there is a "market" for acts like war do the possibilities of war exist. If the atomic bomb can be created, Why not it be created? many think. Why not then let the political decisions be made off of the actual presence of nuclear weapons in the world? The fact that nuclear weapons have been used "only" twice in the past sixty five years doesn't take away from the fact that nuclear weapons have been used twice, and that they have created an arms race the world over. Again, the same analogy can be made for most all of the possibilities that have been introduced into the our world because of such thinking.

I believe that such thinking can be extremely harmful. It implies a blind faith in "possibilities". People will always say that with the "good" of these possibilities comes with the "bad". But then again, this doesn't change the way we've been conducting ourselves in the world a single iota. Some things, some behaviours just do not exist in an ecologically sustainable, just world. For us to think otherwise, for us to be lead down the path of blind possibilities, means that we have not gained any wisdom from the knowledge we have; we do not learn from history and our mistakes.

Thursday, September 8, 2011

"Going green, but getting nowhere"

I borrowed today's post title from a New York Times op-ed contribution with the same title, written by Gernot Wagner, an economist at the Environmental Defense Fund. (Thank you, Colin, for sending this article to me.) The article makes for an interesting read, but it raises several issues of individualism and collective action that I do not agree with, since they stem from an old mindset of large-scale regulation driven by neoliberal economics, the same economics that has gotten us into this mess.

I agree with Wagner's sentiment on the importance and need for collective action. Of course we need collective action in the face of collectively-made problems. But Wagner almost belittles individual effort, because, it doesn't affect change. He writes,

"But, sadly, individual action does not work. It distracts us from the need for collective action, and it doesn’t add up to enough. Self-interest, not self-sacrifice, is what induces noticeable change. Only the right economic policies will enable us as individuals to be guided by self-interest and still do the right thing for the planet."

I do not agree with him. He is saying that the agency for change is not us, that individuals have no agency, but rather economic policies are what will free us from ourselves. Unfortunately, the economic system that is vague and murky, the policy of which is set by economic wonks in secrecy (look at the Federal Reserve). I agree that individual action doesn't add up when we are not communicative of our efforts, when we are not consciously trying to instill change in others. Of course it wouldn't work, because such individual action is almost selfish and elitist. I have mentioned this several times.

"And economics teaches us that humanity must have the right incentives if it is to stop this terrible trend."

Wagner implies with this statement that humans are "rational" actors, and act rationally when shown a price of their choices. Nothing could be further from the truth, because no one really acts rationally. Look at how many people smoke, and how many eat unhealthily, how many people continue to buy Hummers even when gas "prices" are so high. Furthermore, the costs for environmental compliance are terribly low. Many factories find it cheaper to pay fines for breaking regulations than upping their standards and complying. The boundaries between domestic law and transnational law further provide little incentive to think about cumulative impacts of choices. Law and economy are set up with loopholes - you can prove your case not to pay, or be luckily powerful, or just pay your way out of your problems.

Wagner raises how economic incentives allowed us to get rid of lead from gasoline. But the economy didn't stop us from creating another problem. The economy is not self-correcting, and our faith in it cannot be blind. The reason why all of these problems keep arising is because we have a structure in place that allows them to pop up. As soon as the "problem" of climate change is "solved," something else massive will come up. I know it. Because unless we change the foundation, the offspring are all rotten.

What such articles have the tendency to do is put the burden on the governing elite. But as President Obama said tonight, we all have responsibilities. I have continued to believe in the ability of human emotion and benevolence. Constantly we are surrounded by stories and images and media that tell us stories that are inspiring, not because a price is put on their actions, but because they speak to something deeper, something that is more powerful than rational action and choice. We are guided ethically and emotionally as individuals, so why should we be guided by "rational market principles" that in no way question the status quo? Aren't we more than that? I am not convinced that we are. We are animals, and we have a conscience. It is for that reason we find things beautiful, and some things despicable. Unfortunately, right now, such emotion shows up only when we are manifestly and tangibly distressed, when we actually see something going wrong in front of us.

As individuals, we cannot act in isolation. Rather, we must recognise that we are a part of a community - of people, of species, of ecosystems - forming this Earth. A restructuring of our lives, individual and collective, is in order.

Wednesday, April 13, 2011

Guest blog #17: Laura Smith on durable change and rethinking incentives

"I should preface this post by saying that what you are about to read is 100% my interpretation on the writing and teaching of my adviser in the School of Natural Resources, Raymond De Young. He teaches a course on the Psychology of Environmental Stewardship, and has written articles with such titles as “Changing Behavior and Making it Stick.” So, in writing this post, I find myself in what I refer to as another “channeling Ray” moment.

When we talk of scaling up environmental behavior change, the question of incentives inevitably arises.  It is a commonly held belief that monetary incentive, in particular, is the only way to insight individual change on a massive scale. There is no doubt that financial payoff for do-gooding has magical powers. However, as a behavior change strategy, it has its pitfalls, not least of which is durability. But I will get to that in a moment.

Perhaps the first question regarding financial incentives or disincentives is this: who pays? Incentives for going green are often temporal in nature, and the kitty eventually runs out. Recent politics around budgetary issues suggest that these pots of money could be even more rare in the coming years.  Disincentives, on the other hand, force the consumer to pay up, which is perhaps a dicey proposition in "economic hard times."  From a purely economic standpoint, there are good reasons to rethink monetary incentives to drive environmental behavior change.

There is another compelling reason – behaviors driven by reward have a notorious “back to baseline” effect when the incentive is removed. In other words, materially incentivized behavior typically goes back to previous unsustainable levels when the rewards go away. Research has shown this effect time and again with a multitude of environmental and health-related behaviors. So, unless someone is willing to pay the price indefinitely, we can hardly expect durable change.

Disincentives are a slightly different story, since these can be put in place for lengthy periods of time, perhaps yielding the desired trend over time (think gas tax). Like incentives, this is a technique of coercion, and because of that, it poses some interesting challenges. Psychological reactance is a common one, and describes the behaviors of people who go out of their way to mess with the system.  

The driving law in Sao Paulo, Brazil illustrates well some of some issues with disincentives. To reduce its daunting pollution and traffic problems, the South American mega-city put a law into effect that allows license plates with odd numbers to drive on certain days of the week, and even numbers the other days. Unfortunately, the city did not simultaneously provide reasonable alternative transportation choices. As a result, many people ended up changing the times they drove to skirt hours of enforcement, and in some extreme cases, bought a second car so that they could legally drive every day. Neither behavior was an intended consequence of the law that was supposed to curb unnecessary driving and encourage carpooling.
So, the behavior change goal can’t conflict with needs basic to one’s livelihood. But say we are dealing with behaviors more benign.  How do we encourage durable change?

Change from within
One alternative to techniques of coercion (change from the outside) is helping people to construct their own internal motivations for the behavior in question (change on the inside). This can be spurred through our relationships with inspiring people, time in nature, time spent learning about environmental issues, and the list goes on. Personal change is ideally bolstered with a supportive social network. So, in some ways, the strategy implies an incentive program that is individually tailored, and maintained, by each person…in their own heads…and supported by a loving community. 

Durable change, in this light, may take effort to get people started, but becomes self-maintaining over time. 

Now, if you need to change behaviors of a lot of people and fast, and you don’t necessarily need the behavior to stick, get out your wallet! There is no doubt that incentives and disincentives have a valid role to play in environmental behavior change. But isn’t it nice to know that they’re not the only way?"
~Laura "Smitty" Smith
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This post on durable change dovetails wonderfully with some of the thoughts from a recent post. I have written about durable change a few times (here, here, here), too. Laura raises some very interesting points, some of which I have been trying to articulate over the past year. The notions of "incentive" and "disincentive" in our world almost always seems to boil down to a monetary issue, and money viewed under the economic structures of today has different powers than maybe another framework you might conjure up. I personally believe that when it comes down to it, the talk about things being "economical" and "efficient" must be moved away from, particularly when viewed under our current framework, and especially because of the nature of the compromises that this framework results in.