Economics of sustainable energy

584 Pages·2018·11.403 MB·English

by  Islam, Jaan, Islam, Meltem, Islam, Rafiqul, Mughal, M. A. H

Contents
Cover
Title page
Copyright page
Dedication
Preface
Chapter 1: Introduction
1.1 Opening Remarks
1.2 Research Questions Asked
Chapter 2: Delinearized History of Economics and Energy
2.1 Introduction
2.2 The European Tract of Economics History
2.3 Transition of Money
2.4 The Nature Science Tract of Economics History
2.5 Connection to Energy
Chapter 3: The Incompatibility of Conventional Economic Analysis Tools with
Sustainability Models
3.1 Introduction
3.2 Current Economic State of the World
3.3 The Status of the Money God
3.4 The Current Economic Models
3.5 The Illogicality of Current Theories
3.6 The Delinearized History of Modern Economics
3.7 The Transition of Robotization
3.8 Yellow Gold vs. Black Gold
3.9 How Science and Economics Mimic the Same Aphenomenality
Notes
Chapter 4: State-of-the Art of Current Technology Development
4.1 Introduction
4.2 Denaturing for a Profit
4.3 Aphenomenal Theories of the Modern Era
4.4 The Sugar Culture and Beyond
4.5 The Culture of the Artificial Sweetener
4.6 Delinearized history of Saccharin® and the Money Trail
4.7 The Culture of Aspartame
4.8 The Honey-Sugar-Saccharin-Aspartame Degradation in Everything
4.9 Assessing the Overall Performance of a Process
Chapter 5: Comprehensive Analysis of Energy Sustainability
5.1 Introduction
5.2 Sustainability in the Information Age and Environmental Insult
5.3 Climate Change Hysteria
5.4 The Energy Crisis
5.5 Petroleum in the Big Picture
5.6 Science of Healthy Energy and Mass
Chapter 6: The Islamic Track of Economical Analysis
6.1 Introduction
6.2 Function of Gold Dinars and a New Paradigm for Economic Analyses
6.3 Labor Theory of Value
6.4 Zero Waste Economy
6.5 Role of Government in State’s Economy
6.6 Macroeconomy and Theory on Money
6.7 The Optimum Lifestyle
6.8 The Gold Standard for Sustainable Economy
Chapter 7: Framework of Economics of Sustainable Energy
7.1 Introduction
7.2 Delinearized History of Modern Age
7.3 Petroleum Refining and Conventional Catalysts
7.4 The New Synthesis
7.5 The New Investment Model, Conforming to the Information Age
Chapter 8: Economics of Sustainable Energy Operations
8.1 Introduction
8.2 Issues in Petroleum Operations
8.3 Critical Evaluation of Current Petroleum Practices
8.4 Greening of Petroleum Operations
8.5 Zero-Waste Operations
8.6 Characteristic Time
8.7 Quality of Energy
Chapter 9: Role of Government in Assuring Energy Sustainability
9.1 Introduction
9.2 The U.S. Government
9.3 The Wealth Paradigm
9.4 Zero Interest
9.5 Zero-Waste Economics
Chapter 10: Summary and Conclusions
10.1 Summary
10.2 Answers to the Research Questions
Chapter 11: References and Bibliography
Index
End User License Agreement
List of Illustrations
Chapter 1
Figure 1.1 Knowledge model vs. aphenomenal model.
Figure 1.2 Congressional approval rate for last 32 years (Gallup data).
Figure 1.3 Nature is inherently sustainable (From Khan and Islam, 2007).
Chapter 2
Figure 2.1 If truth criteria are not met, time only increases ignorance and false
confidence.
Figure 2.2 New science only added more arrogance, blended with ignorance to Dogma
science.
Figure 2.3 Exchange of goods can cause economic growth or collapse, depending on
the starting point (solid circle: natural starting point; hollow circle: unnatural/artificial
starting point).
Figure 2.4 Rise of bitcoin transactions.
Figure 2.5 Miner fee rise in 2016–2017 (from website 1).
Figure 2.6 Price of Bitcoin from inception to the end of 2017.
Figure 2.8 World reserve of gold. (from Gold Reserve, Inc.)
Figure 2.9 US Annual gold production. (From California Gold Mining, Inc.)
Figure 2.10 Gold price fluctuations since 1971 decoupling of gold and US dollars
(From onlygold.com).
Figure 2.11 Inflation adjusted price of gold (from Rowlatt, 2013).
Figure 2.12 U.S. mine production of silver from 1860 to 2000. Total production prior
to 1860 was estimated to be 25 metrics tons (t) (Data from USGS, 2018a).
Figure 2.13 Silver reserve in top silver reserve countries (from Statistia, 2018c).
Figure 2.14 Silver/gold price in USA (from https://goldprice.org/gold-price-
history.html).
Figure 2.15 Gold/Silver ratio distribution (From Fulp, 2016).
Figure 2.16 Showing rarest metals (from Haxel et al., 2002).
Figure 2.17 Variation in “gold dollar” and “petrodollar” (left y-axis represents gold
price in $/oz, while right y-axis represents crude oil price (in $/bbl), from American
Bullion, Inc.
Figure 2.18 Variation of gold price and oil price during 1987–2012, From American
Bullion, Inc.
Chapter 3
Figure 3.1 The rich are benefitting the most from the stock market’s historic run (Wile,
2018).
Figure 3.2 Past and future projection of shares of global wealth of the top 1% and
bottom 99% (Oxfam Report, 2018).
Figure 3.3 Past shares of global wealth of the top 1% and bottom 99% (from Khan and
Islam, 2016).
Figure 3.4 Economic disparity and movement of wealth in USA.
Figure 3.5 Economic disparity in USA Bottom (visible) pink line is the top 10%
(original data from Credit Suisse, 2014).
Figure 3.6 National debt increase during various presidencies.
Figure 3.7 Dept. of Commerce, Bureau of Economic Analysis.
Figure 3.8 Our current epoch is an epic failure of intangible values.
Figure 3.9 The change in human collective activities from 1750 to 2000 (from Adams
and Jeanrenaud, 2005).
Figure 3.10 Lung cancer mortality rate in Sweden Cancer Trends During the 20th
Century (Hallberg, 2002).
Figure 3.11 Rise in obesity (OECD analysis of health survey data, 2011).
Figure 3.12 Incidence of diabetes in children under age 10 years in Norway, 1925–
1995 (from Gale, 2002).
Figure 3.13 Robotization of humanity: the current state of the world.
Figure 3.14 US defense spending in recent history (From John Fleming/The Heritage
Foundation, 2018).
Figure 3.15 Healthcare cost as a percentage of GDP for various developed countries
(OECD Report, 2017).
Figure 3.16 Price variation in diabetes treatment chemicals (OECD Report, 2017).
Figure 3.17 Aggregated revenues reported by pharmaceutical and biotechnology
companies from 1991 to 2014 (OECD Report, 2017).
Figure 3.18 Percentage of children (aged 0 to 17) who are living in relative poverty,
defined as living in a household in which disposable income, when adjusted for family
size and composition, is less than 50% of the national median income.
https://www.theguardian.com/us-news/2017/oct/19/big-pharma-money-lobbying-us-
opioid-crisis.
Figure 3.19 Both optimism and fear lead to movements in the financial market, thereby
stimulating economy that is stacked up against sustainability.
Figure 3.20 Modern science and technology development schemes focus on turning
natural into artificial and assigning artificial values, proportional to the aphenomenality
of a product.
Figure 3.21 Lewis Dual Economy thrives on the existence of inherent disparity.
Figure 3.22 Sustainability can be defined as the inevitable outcome of a conscientious
start (1: phenomenal start with phenomental intention; 2: aphenomenal start and/or
aphenomenal intention). Figure redrawn from Khan and Islam (2016).
Figure 3.23 Good behaviors in humans lie within optimum regime of individual liberty
(redrawn from Islam et al., 2017).
Figure 3.24 Origins of the Arabic word for “happiness” – a non-Eurocentric view.
Figure 3.25 Maximizing the Rate of Return on Investments for Others – This figure
illustrates one prospect that becomes practically possible if intangible benefits are
calculated into, and as part of, a well-known conventional treatment of investment
capital that was developed initially to deal purely with tangible aspects of the process
and on the assumption that money would normally be invested only to generate a
financial return to its investor (From Zatzman and Islam, 2007).
Figure 3.26 Sensitivity of business turnover to employer-employee trust – Under a
regime guided by the norms of capital-dependent conventional economics,
trustworthiness counts for nothing. Under an economic approach that takes intangibles
into account, on the other hand, revenue growth in an enterprise should be enhanced.
Figure 3.27 The figure depicts the direction of ‘legal derivation’, the process by which
law is discerned, for each of the theorists’ models.
Figure 3.28 Both scientific and social theories have invoked aphenomenal premises
that have become increasingly illogical.
Figure 3.29 Real demand reaches equilibrium whereas artificially created demand
leads to implosive economic infrastructure that ends up with a crisis.
Figure 3.30 Knowledge has to be true; otherwise it will create false perception and
total opacity in the economic system.
Figure 3.31 From ill intention and ill-gotten power comes the onset of the cancer
model. It gains traction increasing misery of the general population upon which the
‘Aphenomenal Model’ is being applied.
Figure 3.32 Every ‘-ism’ introduced in the modern age belongs to the same false
premise that launched the current civilization in the deliberate hunger game model.
Figure 3.33 The great debate rages on mostly as a distraction from the real debate that
should be on fundamental premises that are taken at face value.
Figure 3.34 Interest rate over the years (shaded area US recessions) data from
Research. Stlouisfed.org.
Figure 3.35 Historical fluctuation of inflation rates in USA (redrawn from Website 1).
Figure 3.36 Interest rate and inflation rate.
Figure 3.37 Interest rate and inflation rate over the years (from Federal Reserve
Economic Data).
Figure 3.38 Philip’s short-run graph.
Figure 3.39 Taxes as a percentage of GDP for various countries. The darker bar is the
US; the darkest bar the average for advanced countries (OECD Report, 2017).
Figure 3.40 Pictorial depiction estates with tax concerns (from Krugman, 2017).
Figure 3.41 The Rahn curve.
Figure 3.42 Taxation is part and parcel of the government growth.
Figure 3.43 History of government employment and manufacturing employment (From
Jeffrey, 2015).
Figure 3.44 Government size or government debt hasn’t been a partisan issue.
Figure 3.45 Transition from real value to perceived value of commodities (data from
Commodity Futures Trading Commission website).
Figure 3.46 Falsehood is turned into truth and ensuing disinformation makes sure that
truth does not come back in subsequent calculations.
Figure 3.47 A new paradigm is invoked after denominating spurious value as real and
disinformation into ‘real knowledge’.
Figure 3.48 How falsehood is promoted as truth and vice-versa.
Figure 3.49 Inflation rate and world events.
Figure 3.50 Gold prices throughout modern history in US $. (from Onlygold.com).
Figure 3.51 Various uses of gold (redrawn from Thomas, 2015).
Figure 3.52 The Dow Jones Industrial Average from the years 1928/9–1934, with
annotations describing brief historical-economic events (modified from: Velauthapill
2009).
Figure 3.53 Illustrates the long-term inflation adjusted price of gold based on 2011
dollars (data from MeasuringWorth.com, as reported by Ferri, 2013). It highlights the
average $500 per ounce price over the 220 year period, which was passed through
many times.
Figure 3.54 Inflation adjusted oil price for last 70 years.
Figure 3.55 Ratio of gold price (per ounce) over oil price (per barrel). Grey areas
mark recession periods.
Figure 3.56 Net development (true GNP per capita, after subtracting foreign debt
payments & re-exported profits of TNC’s, etc.) and net dependency for various
countries.
Chapter 4
Figure 4.1 Economic activities have become synonymous with corporate profiteering
and denaturing of the society.
Figure 4.2 The outcome of short-term profit-driven economics model.
Figure 4.3 Millions of tons of sugar produced globally over the years (from Website
2).
Figure 4.4 Sugar production history by region (From Islam et al, 2015).
Figure 4.5 Sugar structure (note how all catalysts disappear).
Figure 4.6a Chemical structure of saccharin and related salts.
Figure 4.6b Chemical reactions used during saccharin manufacturing.
Figure 4.7 Saccharin consumption share in 2001 (From Khan and Islam, 2016).
Figure 4.8 The dominance of saccharin has been continuing in last 3 decades. (From
Islam et al., 2015)
Figure 4.9 Cost per tonne for various sugar products (2003 value), from Islam et al.,
2015).
Figure 4.10 Aspartame market growth since 1984 (From Khan and Islam, 2016).
Figure 4.11 Market share of various artificial sweeteners (from Islam et al., 2015).
Figure 4.12 Chemical structure of Aspartame®.
Chapter 5
Figure 5.1 Public perception toward energy sources (Ipsos, 2011).
Figure 5.2 Energy outlook for 2040 as compared to 2016 under various scenarios
(*Renewables includes wind, solar, geothermal, biomass, and biofuels, from BP
Report, 2018).
Figure 5.3 World plastic production (From Statista, 2018).
Figure 5.4 Annual per capita water consumption in metric ton in 2013 (from Statista,
2018a).
Figure 5.5 (from USGS, 2017).
Figure 5.6 Oil dependence of various countries (From Hutt, 2016).
Figure 5.7 Spider Chart of Saudi Arabia (When comparing multiple countries on a
spider).
Figure 5.8 Breakdown of Saudi Arabia’s prosperity index.
Figure 5.9 Norway’s prosperity index in spider chart form.
Figure 5.10 Breakdown of Norway’s prosperity index.
Figure 5.11 Oil dependence in terms of GDP share and historical oil prices (World
Bank, 2017).
Figure 5.12 Trends in GDP and Energy intensity.
Figure 5.13 The bell curve has been the base curve of many theories in modern era (x-
axis is replaced with time and y-axis with global oil production).
Figure 5.14 Population growth history and projection (data from CIA Factbook, UN).
Figure 5.15 Estimated, actual, and projected population growth (decline).
Figure 5.16 World population growth for different continents.
Figure 5.17 There are different trends in population growth depending on the state of
the economy.
Figure 5.18 Per capita energy consumption growth for certain countries.
Figure 5.19 A strong correlation between a tangible index and per capita energy
consumption has been at the core of economic development (from Goldenberg, 1985).
Figure 5.20 While population growth has been tagged as the source of economic crisis,
wasteful habits have been promoted in name of emulating the west.
Figure 5.21 Population and energy paradox for China (From Speight and Islam, 2016).
Figure 5.22 Oil production and import history of USA (data from EIA).
Figure 5.23 US data that appear to support Hubbert’s “peak oil” hypothesis (From
Speight and Islam, 2016).
Figure 5.24 Comparison of Hubbert curve with Norwegian oil production (from
Speight and Islam, 2016).
Figure 5.25 Association for the study of peak oil (ASPO) produced evidence of
Hubbert peak in all regions.
Figure 5.26 Actual global oil production (surface mined tar sand not included).
Figure 5.28 Production-Cost and Market-Price Realities “At The Margin” (From
Zatzman and Islam, 2007).
Figure 5.29 US public debt as percentage of GDP.
Figure 5.30 Energy content of different fuels (MJ/kg), from Spight and Islam, 2016.
Figure 5.31 Fossil fuel reserves and exploration activities.
Figure 5.32 Discovery of natural gas reserves with exploration activities (From Islam,
2014).
Figure 5.33 Natural gas production history in New York state (from Islam, 2014).
Figure 5.34 Locations of unconventional shale plays in lower 48 states (from Ratner
and Tiemann, 2014).
Figure 5.35 Moving from conventional to unconventional sources, the volume of the
petroleum resource increases.
Figure 5.36 Cost of production increases as efficiency, environmental benefits and real
value of crude oil declines (modified from Islam et al., 2010).
Figure 5.37 Current estimate of conventional and unconventional gas reserve (From
Islam, 2014).
Figure 5.38 Abundance of natural resources as a function of time.
Figure 5.39 Water plays a more significant role in material production than previously
anticipated (from Islam, 2014).
Figure 5.40 Gas hydrate deposits of Alaska (From Islam, 2014).
Figure 5.41 Known and inferred natural gas hydrate occurrences in marine (red
circles) and permafrost (black diamonds) environments (From Islam, 2014).
Figure 5.42 Future trends in some of the major future user of unconventional gas (from
EIA report, 2013).
Figure 5.43 Gas hydrates that are the largest global sink for organic carbon offer the
greatest prospect for the future of energy (From Islam, 2014).
Figure 5.44 Water: a source of life when processed naturally but a potent toxin when
processed mechanically.