Resource Economics at Towson
Tuesday, January 3, 2012
Sunday, December 18, 2011
Wingnuts on the march
Things are a little different in Virginia, where a local plan to protect the low-lying area from intruding seawater is being hailed as an attempt by the UN to subvert local autonomy. The Tea Party has some pretty interesting beliefs: "'Environmentalists have always had an agenda to put nature above man,' said Donna Holt, leader of the Virginia Campaign for Liberty, a tea party affiliate with 7,000 members. 'If they can find an end to their means, they don’t care how it happens.'"
Saturday, December 17, 2011
Quote of the day
Final exam question: "What does a government marketing order do?"
Student answer: It encourages them to buy something that the government subsidizes. Example is, "Where's the Beef?" campaign.
For those of you who don't get it, I think the student meant the "Beef- It's what's for dinner" campaign....
Friday, December 16, 2011
Coping with Economic Pressure on popular species
Garrett sent along this article that highlights an intelligent, market-based approach to saving a wild animal and its habitat from the pressure of the exotic pet market. Economics in action!
Friday, December 9, 2011
Ethanol: Is It Worth It?
As gasoline becomes more and more unavailable society pushes to a new fuel. Scientists are working around the clock in order to produce this new fuel. The fuel that happens to be the next best thing is ethanol. Ethanol is made from corn (renewable resource) and then it is mixed with gasoline. The resulting mixture is called E85 for 85% Ethanol. This ethanol will help demand for gasoline go down and help bring in more money to local farms and our government. This ethanol happens to cost 10 to 30 cents less than gasoline. This sounds like a good thing. The down side is that the E85 mixture produces 72% the amount of energy that regular gasoline produces. This translates into a lower mpg for your vehicle if you use E85. If you have a 23 mpg of gasoline then using E85 you only will have 16mpg. The other draw backs are you must have a "flex fuel" vehicle in order to burn E85. The general public however is not aware that they are able to burn this new fuel even if they have a "flex fuel" vehicle. Out of the people that are aware they could burn the E85 only 10% actually do use E85.
I believe that this new fuel will be the answer. Even though it is more expensive to burn then gasoline, in the future it will be cheaper. As gasoline becomes more and more scarce the price will rise and this price will drive consumers for the cheaper E85. It is not the best thing but it is the better thing. Gasoline needs to be in the past and we must move to a new source of energy.
--Lee Single
Fracking Earthquakes
This article is brief but explains that basically there are people that suspect earthquakes in Ohio have been caused by drilling for natural gas. They have gone as far as setting up four new seismographs in the area of Youngstown, Ohio. The new seismographs have seen eight minor earthquakes already this year. The last one on November 25 was a 2.1 magnitude quake. The latest quake was also just a few blocks from the brine injection well.
This source is much longer but pretty much suggests the same conclusion, that natural gas drilling is increasing the chance of an earthquake. The first quake at the drilling site near Lancashire, England on April 1st was a 2.3 tremor. The second one was recorded on May 27th was a 1.5 magnitude quake, which is lower than the first but caused all the drilling to be suspended. The drilling companies said it was a "freak event" that only happened when the process disturbed a fault line, want to start the drilling again. They are currently going through a process of deciding whether or not drilling will start again.
My opinion on the whole thing is that we can't ignore the earthquakes any longer and we have to come to the conclusion that fracking is directly associated with these reported quakes. The drilling companies should be responsible for any damages caused by these quakes and should have to research more into where to drill and where not to. However I think like most of the time, money and profits will win out and the process of drilling for natural gas will continue in England and Ohio. Unless there is a major earthquake that causes tremendous damage there isn't enough yet to scare these companies away. Also it is a lot better for the US and England to be producing energy on their own rather than having to import it. In this video, the CEO of Chesapeake Energy claims that we have twice as much shale gas in the US than they have oil in Saudi Arabia. The England article also claimed that they have discovered 200 trillion cubic feet of gas, which 10% of it could last the UK over six years.
So we have to make a judgment call on what's better for us right now and for the future, cheaper energy with the risk of earthquakes or importing energy for a much higher cost.
Question to the Class: At what point do you think we should say enough is enough? Say you were in placed in charge of deciding when to call it quits. Would you wait until a major earthquake, or you cut them off now knowing because the risks are higher than the rewards?
--Pratik Patel
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