EMERGY & ENERGY SYSTEMS Session 5 Short Course for ECO Interns, EPA and Partners

EMERGY & ENERGY SYSTEMSEMERGY & ENERGY SYSTEMS

Session 5 Short Course for ECO Interns,

EPA and Partners

Emergy and EconomicsEmergy and Economics

• Emergy to dollar ratios and Emdollars

• Cross boundary exchange

• Evaluating loans/interest, operating

• Evaluating assets, capital

EmdollarsEmdollarsCalculation for US: (8 + 32 + 23 + 15) E23 sej/yr = 1.44 E12 sej/$

5.4 E12 $/yr

19921992

883232

23 Fuel23 Fuel15 G&S15 G&S

GNPGNP5.4E12 $/yr5.4E12 $/yr

EnvironmentalProduction

EconomicProduction

Non-Renewable

Renewable

Assets

$

$

Imports

FuelsGoods &Services

USA MacroeconomicUSA MacroeconomicOverviewOverview

Exports

Emergy to dollar ratiosEmergy to dollar ratios

• Other countries– From 1980-87– Currency

converted to US $

•Switzerland 0.7•Japan 1.5•World 2.0•Brazil 8.4•Liberia 34.5

E12 sej/$

Countries living more on local resources than purchased goods have higher emergy to dollar ratios.


EconomicProduction

Non-RenewableRenewable

Assets

$

$

Imports

FuelsGoods &Services

Exports

Emergy to dollar ratioEmergy to dollar ratio

• Update old economic data– Use the right year– Changes everything to sej, timeless

GNP

Calculating Benefits/DeficitsCalculating Benefits/Deficits

Environmental Product sold

Money frompurchaser

Price

Emergy of product = (flow)(unit emergy) = benefit ratioEmergy of money paid (price)(emergy/currency) to purchaser


• Different emergy consumption leads to trading disparity

Brazil8.4E12 sej/$

Japan1.5E12 sej/$

$1

8.4E12 sej

$1

1.5E12 sej

5.6:1 Japan wins


• Different emergy consumption leads to trading disparity

Brazil8.4E12 sej/$

Japan1.5E12 sej/$

$5.60

8.4E12 sej

$1.01

8.4E12 sej

Equitable trades

Loans and InterestLoans and Interest


Non-Renewable

Renewable

Assets$

$Debt

External marketGoods & Services

Investments

One way to representInterest and

Principle

Imports

Exports

SunWind

RiverRain

Soil

Forest Harvest

FuelFertilizer

Services

Market

Goods and Services, Goods and Services, Operating ExpensesOperating Expenses

• Adding to diagrams– Show interaction

with purchased goods

• As data in evaluations– Multiply by emergy

to dollar ratio for year of study

Assets and CapitalAssets and Capital

• Adding to diagrams

• Calculating contributions•Buildings,Equipment•Divide total value by expected life or use•Materials used preferred•Sometimes $$ is best you can do

SunWind

RiverRain

Soil

Forest

FuelFertilizerGoods

Services,Operating

costs

MarketLumber

Assets

Practice ExercisesPractice Exercises

What is the ratio of EMERGY benefit to expenditure in buying oil at $17.50/barrel if oil has 7E9 J/barrel, a transformity of 5 E4 sej/J and the emergy to dollar ratio that year is 2 E12 sej/$?

A farmer in Mexico sells 1000 lb of tomatoes to an Arizona grocer and receives $500. Another Mexican farmer exchanges 1000 lb of tomatoes for 500 lb of soybeans. If tomatoes have an emergy per mass ratio of 2 E9 sej/g wet weight, soybeans have an emergy per mass ratio of 7 E9 sej/g wet weight, and the US emergy to dollar ratio is 1 E12 sej/$, which farmer got the better deal? What would the trade have to be in both cases for the exchange to be completely equitable?

Practice ExercisesPractice Exercises

From the diagram above, calculate the emergy to dollar ratio for the US in 1994 and answer these questions.

• What was the environmental contribution to the emergy that year?• What was the annual emergy production that did not go into assets

because of the $$s in interest going abroad on US debt?

Production

Envr.

SoilFuels

Assets Debt Overseas$

GNP6.7E12

$/yr

$

44

1727

35

628

E12 $/yrOther countries

0.3

0.420.46

0.58

E23 sej/year

AnswersAnswersRemember, I make mistakes, too….check mine to make sure its right Remember, I make mistakes, too….check mine to make sure its right if you don’t get the same thingif you don’t get the same thing

What is the ratio of EMERGY benefit to expenditure in buying oil at $17.50/barrel if oil has 7E9 J/barrel, a transformity of 5 E4 sej/J and the emergy to dollar ratio that year is 2 E12 sej/$?

Emergy in: 7E9 J/bbl x 5E4 sej/J = 35 E13 sej/bbl

Expenditure out: $17.50/bbl x 2E12 sej/$ = 35E12 sej/bbl

Ratio: 35E13sej/35E12sej = 10

What does this mean?

AnswersAnswersA farmer in Mexico sells 1000 lb of tomatoes to an Arizona grocer and receives

$500. Another Mexican farmer exchanges 1000 lb of tomatoes for 500 lb of soybeans. If tomatoes have an emergy per mass ratio of 2 E9 sej/g wet weight, soybeans have an emergy per mass ratio of 7 E9 sej/g wet weight, and the US emergy to dollar ratio is 1 E12 sej/$, which farmer got the better deal? What would the trade have to be in both cases for the exchange to be completely equitable?

Tomato emergy: 1000 lb x 454 g/lb x 2E9 sej/lb = 9.08 E14 sej

$$ emergy : 500$ x 1E12 sej/$ = 5 E14 sej

Soybean emergy: 500 lb x 454 g/lb x 7E9 sej/g = 1.59E15sej

The Arizona grocer and the soybean farmer are getting more in trade than they are giving.

Equitability: 1000 lb tomatoes = $908 US = 2/7 x 1000 lb soybeans (285.7 lb)

AnswersAnswersFrom the diagram above, calculate the emergy to dollar ratio for the US in

1994 and answer these questions. 44 + 35 + 8 E23 sej/yr = 1.33 E12 sej/$

6.7 E12 $/yr

• What was the environmental contribution to the emergy that year?– 8 + 35 = 43 E23 sej

• What was the annual emergy production that did not go into assets because of the $$s in interest going abroad on US debt?

– 0.3 E12 $/yr x 1.33 E12 sej/$ = 3.99 E23 sej

Documents

EMERGY & ENERGY SYSTEMS Session 5 Short Course for ECO Interns, EPA and Partners