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Jan 02, 2008

"What’s Your Consumption Factor?"

Jared Diamond continues to worry about overshoot - using up resources faster than they can be replaced - and the eventual collapse of consumption, though he does see encouraging signs:

What’s Your Consumption Factor?, by Jared Diamond, Commentary, NY Times: ...The average rates at which people consume resources ... and produce wastes ... are about 32 times higher in North America, Western Europe, Japan and Australia than they are in the developing world. That factor of 32 has big consequences. ...

People in the third world are aware of this difference in per capita consumption, although most of them couldn’t specify that it’s by a factor of 32. When they believe their chances of catching up to be hopeless, they sometimes get frustrated and angry, and some become terrorists, or tolerate or support terrorists. ... There will be more terrorist attacks against us ... as long as that ... difference of 32 in consumption rates persists.

People who consume little want to enjoy the high-consumption lifestyle. Governments of developing countries make an increase in living standards a primary goal... And tens of millions of people in the developing world seek the first-world lifestyle on their own, by emigrating...

Among the developing countries that are seeking to increase per capita consumption rates at home, China stands out. It has the world’s fastest growing economy...

Per capita consumption rates in China are still about 11 times below ours, but let’s suppose they rise to our level. Let’s also make things easy by imagining that nothing else happens ... China’s catching up alone would roughly double world consumption rates. Oil consumption would increase by 106 percent, for instance, and world metal consumption by 94 percent.

If India as well as China were to catch up, world consumption rates would triple. If the whole developing world were suddenly to catch up, world rates would increase elevenfold. It would be as if the world population ballooned to 72 billion people (retaining present consumption rates).

Some optimists claim that we could support a world with nine billion people. But I haven’t met anyone crazy enough to claim that we could support 72 billion. Yet we often promise developing countries that if they will only adopt good policies — for example, institute honest government and a free-market economy — they, too, will be able to enjoy a first-world lifestyle. This promise is impossible, a cruel hoax: we are having difficulty supporting a first-world lifestyle even now for only one billion people.

We Americans may think of China’s growing consumption as a problem. But the Chinese are only reaching for the consumption rate we already have. To tell them not to try would be futile.

The only approach that China and other developing countries will accept is to aim to make consumption rates and living standards more equal around the world. But the world doesn’t have enough resources to allow for raising China’s consumption rates, let alone those of the rest of the world, to our levels. Does this mean we’re headed for disaster?

No, we could have a stable outcome in which all countries converge on consumption rates considerably below the current highest levels. Americans might object: there is no way we would sacrifice our living standards for the benefit of people in the rest of the world. Nevertheless, whether we get there willingly or not, we shall soon have lower consumption rates, because our present rates are unsustainable.

Real sacrifice wouldn’t be required, however, because living standards are not tightly coupled to consumption rates. Much American consumption is wasteful and contributes little or nothing to quality of life. For example, per capita oil consumption in Western Europe is about half of ours, yet Western Europe’s standard of living is higher by any reasonable criterion, including life expectancy, health, infant mortality, access to medical care, financial security after retirement, vacation time, quality of public schools and support for the arts. Ask yourself whether Americans’ wasteful use of gasoline contributes positively to any of those measures. ...

Just as it is certain that within most of our lifetimes we’ll be consuming less than we do now, it is also certain that per capita consumption rates in many developing countries will one day be more nearly equal to ours. These are desirable trends, not horrible prospects. ...

Fortunately, in the last year there have been encouraging signs. Australia held a recent election...; the new government immediately supported the Kyoto Protocol on cutting greenhouse gas emissions.

Also in the last year, concern about climate change has increased greatly in the United States. Even in China, vigorous arguments about environmental policy are taking place, and public protests recently halted construction of a huge chemical plant... Hence I am cautiously optimistic. The world has serious consumption problems, but we can solve them if we choose to do so.

Though he does end on an optimistic note, at least for him, I can't be as gloomy about the future. Somehow, we'll figure it out and keep moving forward. Won't we?

    Posted by Mark Thoma on Wednesday, January 2, 2008 at 01:26 AM in Economics, Environment, Productivity, Technology | Permalink | TrackBack (1) | Comments (84)



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    » Oh Dear Jared, Oh Dear. from Tim Worstall

    Im afraid that Jared Diamond has got things terribly, fatally, wrong here. Well, fatally for his argument, at least. Per capita consumption rates in China are still about 11 times below ours, but lets suppose they rise to our level. Let... [Read More]

    Tracked on Jan 02, 2008 at 03:01 AM


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