Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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Agricultural productivity in sub-Saharan Africa remains significantly less than the rest of the world, and 25 percent of people in the region still suffer from an insufficient dietary intake of calories. Yet sub-Saharan Africa has more arable land than Asia or Latin America, and a more diverse set of cereal grains. Agriculture also accounts for 20-25 percent of GDP for the region compared with only five percent for the rest of the world.

So why is productivity in sub-Saharan Africa so low when agriculture is such a big part of the economy, asked Rosamond L. Naylor, director of the Center on Food Security Environment at last week’s Connecting the Dots conference. Lack of irrigation is part of the problem. 95 percent of farms in sub-Saharan Africa are rainfed and rely on water from a short, 4-5 month rainy season. 

“During the rainy season kids are fed pretty well,” explained Naylor. “But during the peak of the dry season up to one-third of children are severely malnourished in parts of West Africa where we have been working.”

Sub-Saharan Africa has largely missed out on the benefits of the Green Revolution that increased crop production in Asia two to three fold. Asia’s heavily irrigated agriculture took advantage of new crop varieties that were bred to take up nutrients with sufficient water availability. Groundwater sources in sub-Saharan Africa, on the other hand, are more fractured and not well understood, and surface water isn’t necessarily close to where the people are.

“But Africa has water” said Naylor. “Groundwater resources have not been sufficiently explored and rivers such as the Nile and Niger remain underutilized due to a mindset that irrigation systems must be large scale.”

This requires big investments and institutional involvement that have thus far not resulted in great payoffs. Corruption in some areas coupled with institutional and tribal issues have also contributed to failed investments.

“We need to change our investment strategies from large-scale to small-scale irrigation systems,” suggested Naylor. “Evaluate the returns from treadle, solar-power, and diesel pumps to see what works where, so that we stop investments that aren’t working and support investments where they are.”

Treadle pumps can work well if they are close to surface water, but require a lot of labor, explained Naylor. There is a huge energetic cost and an opportunity cost for someone to work the treadle pump, so it is necessary to ‘get the right technology to suit the water and labor conditions’.

Irrigation is not just about access (drawing water). It is also necessary to think about how to best distribute that water to crops (e.g. drip irrigation) and what you use them on. Production of leafy greens, for example, leads to higher income and nutritional returns.

FSE’s solar market garden project in Benin is a good example of where appropriate technologies are being applied in a cost-effective manner. Solar-powered, drip irrigation pumps have improved incomes and nutrition for participating farming groups through the year-round production of high-value crops. Proven to be a viable and profitable investment, the project is now scaling up in other villages in Benin and West Africa.

“According to the World Bank, investment in agriculture is the best bang for your buck than any other investment,” said panel moderator Jenna Davis, assistant professor in the department of civil and environmental engineering and affiliated FSE fellow.

Fortunately, the World Bank is beginning to recognize the viability and efficiency of investments in small-scale irrigation projects. NGOs and academia also have a role to play in facilitating these projects. Through these partnerships and shifts in investment strategies, the development community has a better chance of improving access to freshwater resources for some of the world’s most vulnerable and effectively addressing sub-Saharan Africa's water and food security crisis.

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In the first decade of the 21st century, global production of ethanol and biodiesel increased nearly tenfold. If that trend continues, says Rosamond L. Naylor, director of Stanford University’s Center on Food Security and the Environment, national biofuels policies will have an increasingly powerful impact on food prices, food security, energy security, and rural incomes in the developing world.

During a two-hour symposium held on the Stanford campus last Wednesday, Naylor addressed the role of biofuels in global food price volatility and the implications of biofuels development in rural Africa and Asia. Although she acknowledged that global income and population growth have contributed to increased demand for biofuels, she also emphasized “the unbelievable dominance of policy” in driving current trends.

“The main part of this that I think is so significant is the use of mandates,” Naylor said. “Policies such as the United States’ Renewable Fuels Standard (RFS), which sets a national target of using 15 billion gallons of corn-based ethanol per year by 2015, have reshaped price and supply dynamics in both food and fuel markets. “

“When you think about the fact that the US provides half of the world’s corn…the fact that we’re using so much in our gas tanks, biofuels really is changing the nature of global markets,” Naylor said. Policies that fix demand for corn from the ethanol market, she explained, have a destabilizing effect on corn prices, especially in the face of supply shortages.

“When you have mandates you have a quantity that you’re absolutely insisting you use, regardless of the price,” she said. “That inelastic demand leads to more volatile prices with supply shocks.”

Because of the substitutability of basic food commodities, Naylor said, price volatility in the corn market has far-reaching consequences. “Prices of corn ripple through all of the world food economy markets…it affects the demand and supply of wheat and rice and soy, and other things,” she explained. And for poor households in the developing world, she said, “it has big income effects…when you’re spending 70 to 80 percent of your budget on food, you’re going to be hurt the most.”

However, Naylor also noted that biofuel mandates in the developed world could provide valuable market opportunities for developing-country farmers.

In rural Africa and Asia, she said, farmers “see the US having a big mandate, EU having a big mandate, and they think, can they supply into that mandated need?”

For now, it seems, the answer is “maybe.” In Africa, for example, efforts are underway to increase the use of jatropha – an inedible, drought-resistant shrub – as a biofuel feedstock. But Naylor said that low yields and high labor costs are likely to severely limit the economic returns from jatropha-based biofuels.

And in marginal growing conditions, the use of more conventional feedstocks is often restricted by resource availability. In India, for example, where almost all sugarcane is grown under irrigated conditions, expansion of sugarcane area to supply the ethanol market could lead to water shortages. Even if these countries can make large-scale biofuel production economically viable, the benefits to poor farmers could vary widely depending on the structure of the market.

“The implications of biofuel development are going to be quite different,” Naylor said, “depending on the organization of the value chain.”

Dr. Siwa Msangi, a Senior Research Fellow with the International Food Policy Research Institute, agreed. In comments following Naylor’s presentation, Msangi said biofuel development contributes most effectively to rural income growth “when you can have vertical integration…people all along the value chain have to be making money.”

Msangi also noted that commodity price increases, including those driven by ethanol mandates, could benefit small farmers if they are controlled and predictable. “Sharp, fast, sudden price rises – those are the ones that are bad for consumers,” he explained. But prices rises “can be positive…especially if those price rises can be gradual and sustained over time, because that gives people the opportunity to mobilize resources to make use of higher returns.” For example, small farmers at the local or national level can increase their production of crops in high demand for biofuel production.

The emerging connections between agriculture and energy markets are complex, Msangi said, but can be advantageous if handled carefully. “If there are good opportunities for agribusiness, I think there’s a case for taking them,” he said, “but also for being aware of the context and all the issues.”

This was the eighth talk in FSE’s Global Food Policy and Food Security Symposium Series

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Philanthropist and software giant Bill Gates spoke to a Stanford audience last week about the importance of foreign aid and product innovation in the fight against chronic hunger, poverty and disease in the developing world.

His message goes hand-in-hand with the ongoing work of researchers at Stanford’s Freeman Spogli Institute for International Studies. Much of that work is supported by FSI’s Global Underdevelopment Action Fund, which provides seed grants to help faculty members design research experiments and conduct fieldwork in some of the world’s poorest places.

Four FSI senior fellows – Larry Diamond, Jeremy Weinstein, Paul Wise and Walter Falcon – respond to some of the points made by Gates and share insight into their own research and ideas about how to advance and secure the most fragile nations.

Without first improving people’s health, Gates says it’s harder to build good governance and reliable infrastructure in a developing country. Is that the best way to prioritize when thinking about foreign aid?

Larry Diamond: I have immense admiration for what Bill Gates is doing to reduce childhood and maternal fatality and improve the quality of life in poor countries.  He is literally saving millions of lives.  But in two respects (at least), it's misguided to think that public health should come "before" improvements in governance.  

First, there is no reason why we need to choose, or why the two types of interventions should be in conflict.  People need vaccines against endemic and preventable diseases – and they need institutional reforms to strengthen societal resistance to corruption, a sociopolitical disease that drains society of the energy and resources to fight poverty, ignorance, and disease.  

Second, good governance is a vital facilitator of improved public health.  When corruption is controlled, public resources are used efficiently and justly to build modern sanitation and transportation systems, and to train and operate modern health care systems.  With good, accountable governance, public health and life expectancy improve much more dramatically.  When corruption is endemic, life-saving vaccines, drugs, and treatments too often fall beyond the reach of poor people who cannot make under-the-table payments. 

Foreign aid has come under criticism for not being effective, and most countries have very small foreign aid budgets. How do you make the case that foreign aid is a worthy investment?

Jeremy M. Weinstein: While foreign aid may be a small part of most countries’ national budgets, global development assistance has increased markedly in the past 50 years. Between 2000 and 2010, global aid increased from $78 billion to nearly $130 billion – and the U.S. continues to be the world’s leading donor.

The challenge in the next decade will be to sustain high aid volumes given the economic challenges that now confront developed countries. I am confident that we can and will sustain these volumes for three reasons.

First, a strong core of leading voices in both parties recognizes that promoting development serves our national interest. In this interconnected world, our security and prosperity depend in important ways on the security and prosperity of those who live beyond our borders.

Second, providing assistance is a reflection of our values – it is these humanitarian motives that drove the unprecedented U.S. commitment to fighting HIV/AIDS during the Bush Administration.

Perhaps most importantly, especially in tight budget times, development agencies are learning a great deal about what works in foreign assistance, and are putting taxpayers’ dollars to better use to reduce poverty, fight disease, increase productivity, and strengthen governance – with increasing evidence to show for it.

Some of the most dire situations in the developing world are found in conflict zones. How can philanthropists and nongovernmental organizations best work in places with unstable governments and public health crises? Is there a role for larger groups like the Gates Foundation to play in war-torn areas?

Paul H. Wise: As a pediatrician, the central challenge is this: The majority of preventable child deaths in Sub-Saharan Africa and in much of the world occur in areas of political instability and poor governance. 

This means that if we are to make real progress in improving child health we must be able to enhance the provision of critical, highly efficacious health interventions in areas that are characterized by complex political environments – often where corruption, civil conflict, and poor public management are the rule. 

Currently, most of the major global health funders tend to avoid working in such areas, as they would rather invest their efforts and resources in supportive, well-functioning locations.  This is understandable. However, given where the preventable deaths are occurring, it is not acceptable. 

Our efforts are directed at creating new strategies capable of bringing essential services to unstable regions of the world.  This will require new collaborations between health professionals, global security experts, political scientists, and management specialists in order to craft integrated child health strategies that respect both the technical requirements of critical health services and the political and management innovations that will ensure that these life-saving interventions reach all children in need.

Gates says innovation is essential to improving agricultural production for small farmers in the poorest places. What is the most-needed invention or idea that needs to be put into place to fight global hunger?

Walter P. Falcon: No single innovation will end hunger, but widespread use of cell phone technology could help.

Most poor agricultural communities receive few benefits from agricultural extension services, many of which were decimated during earlier periods of structural reform. But small farmers often have cell phones or live in villages where phones are present.

My priority innovation is for a  $10 smart phone, to be complemented with a series of very specific applications designed for transferring knowledge about new agricultural technologies to particular regions.  Using the wiki-like potential of these applications, it would also be possible for farmers from different villages to teach each other, share critical local knowledge, and also interact with crop and livestock specialists.

Language and visual qualities of the applications would be key, and literacy problems would be constraining.  But the potential payoff seems enormous.

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Rosamond L. Naylor, director of the Center on Food Security and the Environment, will join demographers, authors, activists, economists, and scientists for a daylong symposium on population at the Moving Mountains Symposium in Telluride May 25. During the daylong symposium speakers will touch on subjects like water tables, food security, women's education, immigration, and human longevity in the context of population growth.

Clip from Telluride Daily Planet:

FSE director Roz Naylor will address the challenges of feeding the growing world. According to Naylor, humans are already pushing against the limits of high yield agriculture, fisheries and habitat displacement for farming to feed a population that is trending toward a more carnivorous, and therefore higher impact, diet.

“Part of the focus is: How do we meet future demands of so many people on the planet? Another important question is, if we are successful, does it just promote and enable population growth?” she said, or does it set the stage for a population to level out.

Feeding the world goes back to agriculture and food production but also biofuels, and it will require new technologies and interdisciplinary collaboration, Naylor said.

Other participants include Stanford's Paul Ehrlich, author of “The Population Bomb” and long-time leading voice on the population issue, who will talk about what will happen when the population bomb explodes. 

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Connecting the Dots conference website

Stanford experts from a range of disciplines discuss the interconnections and interactions among humanity's needs for and use of water, food, energy, and environment. Drawing on their own research, the speakers illustrate and evaluate some of the ways in which decisions in one resource area can lead to trade-offs or co-benefits in others. Participants examine sustainable freshwater resources and uses in Africa, Asia, and the arid West. 

Panel: Africa - Water, Nutrition, Health and Poverty

China: Water, Food, Climate, and Policy


Frances C. Arrillaga Alumni Center

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More than eight of every ten homes in sub-Saharan Africa lack running water. A new study by FSE affiliated fellow Jenna Davis and Woods postdoctoral fellow Amy Pickering shows that reducing the amount of time spent fetching water can improve the health of young children in this region.
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Girls hauling water to hand water gardens in Benin.
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For most scholars the concept of security encompasses issues of state legitimacy, economic and political sovereignty, and protection from military, nuclear, or terrorist assault. Yet billions of people, particularly in the developing world, face more severe, individual security threats on a daily basis, such as inadequate nutrition, disease burdens, lack of potable water, and risks of sexual assault or human trafficking. Such human security concerns can become national security issues when citizens rise up against their governments or threaten to rebel. Human security issues can also emerge as international security threats—those that create conflict or galvanize cooperation among governments—with escalating income and resource inequities between countries. Stanford University has a strong tradition of scholarship in conventional areas of national and international security, as well as in the areas of global food security and health policy. On November 10, 2011, Stanford’s Freeman Spogli Institute for International Studies (FSI) held a major conference to integrate these areas of scholarship, and to launch the Center on Food Security and the Environment (FSE) as a major thrust of its international research and teaching agenda.

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The demand for food, feed and fuel will continue to rise as the world population grows and becomes more affluent. Meeting this demand will be especially challenging because of global warming, say climate experts, and the impacts of climate variability could make food markets even more volatile, adds Rosamond L. Naylor, professor of environmental Earth system science at Stanford University.

Naylor led a symposium on the compound effects of climate change and climate variability on food security at the annual meeting of the American Association for the Advancement of Science (AAAS) February 17th.

The symposium focused on two examples of climate variability: changes in growing-season temperature extremes beyond the range observed in the historical record, and changes in the El Niño–Southern Oscillation (ENSO) phenomenon – the most energetic form of year-to-year climate variability known.

Panelist David S. Battisti, professor of atmospheric sciences at the University of Washington, addressed key challenges in assessing the impact of extreme temperatures in coming decades. According to Battisti, global warming models forcast that temperature variability will increase as the average temperature warms, greatly compounding the likelihood of extreme heat and droughts. Unfortunately, these models typically have too much temperature variability in their simulations of present-day climate, he said. Battisti's talk focused on the cause of these modeling biases and their impact on climate forecasting.

Panelist Daniel J. Vimont, associate professor of atmospheric and oceanic sciences at the University of Wisconsin-Madison, discussed the impacts of El Niño in a warmer world. ENSO impacts can be severe in regions in and surrounding the tropical Pacific, and can extend around the globe, he said. ENSO variability – its return period and intensity – are very sensitive to changes in mean conditions in the tropical Pacific, he added, but these conditions are notoriously difficult to simulate using the present generation of global climate models. Vimont presented results from the linear ocean atmosphere model (LOAM), a new scientific tool for estimating global warming's impact on ENSO variability.

Naylor addressed the impacts of climate on global markets for major staple commodities, which are already under pressure from increased population-, income-, and energy-driven demands. She outlined the potential effects of climate variability on regional trade patterns, price volatility, policy responses and human welfare. 

 

Mark Shwartz is the Communications/Writer at Precourt Institute for Energy at Stanford University.

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