Category Archives: Ideas

Regime Shifts

Paul Krugman on Resilience Economics

4 Comments

On Paul Krugman’s Blog he presents a graphical model of the current financial crisis in the US that implicitly discusses how the system lost resilience. He identifies leveraged investments as a slow variable which can lead to the creation of alternative regimes, the possibility for a shock to flip the system from one regime to another, and now possibly a new regime.

Krugman RS

The other day I realized how much the Fed’s attempts to resolve the financial mess resemble sterilized foreign exchange intervention. That set me thinking about other parallels — and I realized how much the stories now being told about “systemic margin calls” and all that resemble the stories we all tried to tell about the Asian financial crisis of 1997-98. Leverage, balance sheet effects, self-reinforcing financial collapse — the details are different, but there are some clear common themes.

…Think of the demand for “securities” — lumping together all the stuff that’s in trouble, from subprime to Alt-A to corporate bonds, as if it were all the same. Ordinarily we’d think of a downward sloping demand curve. At a given point in time, there’s a fixed supply of these securities that has to be held by someone [Normal Situation]

But in the current situation, a lot of securities are held by market players who have leveraged themselves up. When prices fall beyond a certain point, they get calls from Mr. Margin, and have to sell off some of their holdings to meet those calls. The result can be a stretch of the demand curve that’s sloped the “wrong way”: falling prices actually reduce demand.

In this case, there are two equilibria, H and L. (there’s one in the middle, but it’s unstable) And this introduces the possibility of self-fulfilling panic: if something spooks the market, you can get a “systemic margin call” that causes the whole financial market to go to L, and causes a big, unnecessary price decline. [Highly leveraged investment]

Implicitly, Fed policy seems to be based on the view that if only they can restore confidence — with extra liquidity to the banks, Fed fund rate cuts, whatever — they can get us out of L and back to H. That’s the LTCM model: Rubin and Greenspan met a crisis with a rate cut and a show of confidence, and the whole thing went away.

But at this point a series of rate cuts and other stuff just hasn’t done the trick — which suggests that maybe there isn’t a high-price equilibrium out there at all. Maybe the underlying losses in housing and elsewhere are sufficiently large that the situation really looks like this [current situation?]

And in that case, the Fed can’t rescue the financial markets. All it — and the feds in general — can do is to try to limit the effects of financial crisis on the rest of the economy.

Regime Shifts

Climate Change May Transform Fire Regime in Tundra

Leave a comment

arctic tundraPhilip Higuera and collaborators suggests that based on paleo-ecological analysis of past fire regimes, climate change could lead to abrupt shifts in tundra fire frequency as climate change vegetation shifts from herb to shrub dominated tundra.

In their article (Higuera PE, Brubaker LB, Anderson PM, Brown TA, Kennedy AT & Hu FS. 2008 Frequent fires in ancient shrub tundra: implications of paleorecords for Arctic environmental change. PLoS ONE DOI: 10.1371/journal.pone.0001744) the authors write:

… paleorecords from northcentral Alaska imply that ongoing shrub expansion and climate warming will result in greater burning within northern tundra ecosystems. The geographic extent of fire-regime changes could be quite large, as shrubs are expected to expand over the next century in both herb and low shrub tundra ecosystems, which comprise 67% of circumpolar Arctic tundra [10], [15] (Fig. 1). Over this same period, annual temperatures in the Arctic are projected to increase between 3–5°C over land, lengthening the growing season and likely decreasing effective moisture (in spite of increased summer precipitation) [8]. How long might it take for the current shrub expansion to trigger a significant change in fire frequencies? Within the chronological limitations of our records, past shrub expansion and fire-regime changes at each site occurred within a few centuries (Fig. 2). The duration of this shift is consistent with the estimated rate of shrub expansion within a large area of northern Alaska [0.4% yr−1 for ca 200,000 km2; 10]. Based on a simple logistic growth model and the assumption of a constant expansion rate, Tape et al. [10] hypothesize that the ongoing shrub expansion in this region started roughly 125 years ago and should reach 100% of the region in another 125 years. Thus, if fuels and low effective moisture are major limiting factors for tundra fires, we predict that fire frequencies will increase across modern tundra over the next several centuries.

…

Despite these uncertainties, Alaskan paleorecords provide clear precedence of shrub-dominated tundra sustaining higher fire frequencies than observed in present-day tundra. The future expansion of tundra shrubs [10], [16] coupled with decreased effective moisture [8] could thus enhance circumpolar Arctic burning and initiate feedbacks that are potentially important to the climate system. Feedbacks between increased tundra burning and climate are inherently complex [3]–[5], but studies of modern tundra fires suggest the possibility for both short- and long-term impacts from (1) increased summer soil temperatures and moisture levels from altered surface albedo and roughness [24], and (2) the release soil carbon through increased permafrost thaw depths and the consumption of the organic layer [24], [25]. Given the importance of land-atmosphere feedbacks in the Arctic [26]–[28], the precedence of a fire-prone tundra biome should motivate further research into the controls of tundra fire regimes and links between tundra burning and the climate system.

Climate driven changes in vegetation cover across the most northern land surfaces on the planet will likely result in more carbon-releasing fires, according to a study published this week in PLoS ONE. Philip Higuera, currently at Montana State University, and colleagues examined charcoal and pollen samples from Alaskan lakes, which provide a historical record of plant composition and fire frequency between 14000 and 10000 years ago. Back then, the tundra was dominated by extensive thickets of resin birch Betula glandulosa, and the warming climate is likely to see its widespread return to areas currently occupied by somewhat less flammable herbs. The mass of tangled, resin-laden twigs could turn the area into a tinderbox, with the double whammy that such fires encourage vigorous birch regrowth, making it prone to further blazes. The likely consequence is that another source of carbon dioxide will enter the scene, as vegetation and long-frozen soil go up in smoke.

via SCB’s Journal Watch Online

Ecosystem services, Regime Shifts

Coral Reefs in the Anthropocene

Leave a comment

Plos OneIn a commentary Shifting Baselines, Local Impacts, and Global Change on Coral Reefs in PLoS Biology coral reef ecologists Nancy Knowlton and Jeremy Jackson write:

Imagine trying to understand the ecology of tropical rainforests by studying environmental changes and interactions among the surviving plants and animals on a vast cattle ranch in the center of a deforested Amazon, without any basic data on how the forest worked before it was cleared and burned. The soil would be baked dry or eroded away and the amount of rainfall would be greatly decreased. Most of the fantastic biodiversity would be gone. The trees would be replaced by grasses or soybeans, the major grazers would be leaf-cutter ants and cattle, and the major predators would be insects, rodents, and hawks. Ecologists could do experiments on the importance of cattle for the maintenance of plant species diversity, but the results would be meaningless for understanding the rainforest that used to be or how to restore it in the future.

…

This lack of a baseline for pristine marine ecosystems is particularly acute for coral reefs, the so-called rainforests of the sea, which are the most diverse marine ecosystems and among the most threatened [4–8]. Most of the world’s tropical coastal oceans are so heavily degraded locally that “pristine” reefs are essentially gone, even if one ignores changes associated with already rising temperatures and acidity [3]. Most modern (post-SCUBA) ecological studies have focused on reef ecosystems that are moderately to severely degraded, and we have a much better understanding of transitions between human-dominated and collapsed reefs than between human-dominated and quasi-pristine reefs.

Knowlton and Jackson’s essay is a comment on an article in PLoS One Baselines and Degradation of Coral Reefs in the Northern Line Islands by Stuart Sandin and others that describes a large scale marine community assessment across a gradient of human dominated to relatively little impacted reefs in the Pacific. The study found that large predatory fish and reef-building organisms dominated the reefs around unpopulated islands, but around populated islands the reefs were dominated by small planktivorous fishes and fleshy algae. The reefs around populated islands exhibited more coral disease and less coral recruitment, suggesting that protection from overfishing and pollution may increase the resilience of coral reefs. The authors write:

Thus, local protection from overfishing and pollution may enhance ecosystem resilience to warm episodes and coral bleaching that result from global warming. To test this we need to determine how do coral recruitment, growth, and survivorship respond to changes in local community structure due to fishing, and how do these responses interact with episodes of warming measured by DHW. We also need to determine how fish productivity, i.e., the key currency of fisheries management, varies with changes in food web structure such as those observed between Kingman and Kiritimati. The only way to answer these questions is by investigation of reefs like the northern Line Islands that have remained remarkably intact in comparison to the global norm. They are among the only baselines that remain.

Continue reading →

Ecological Economics, Networks, Regime Shifts

Ecology for bankers

4 Comments

In Feb 21 2008 Nature, ecologists Robert May, Simon Levin, and George Sugihara write about how ecological thinking can be used to illuminate financial dynamics in their commentary Complex systems: Ecology for bankers:

‘Tipping points’, ‘thresholds and breakpoints’, ‘regime shifts’ — all are terms that describe the flip of a complex dynamical system from one state to another. For banking and other financial institutions, the Wall Street Crash of 1929 and the Great Depression epitomize such an event. These days, the increasingly complicated and globally interlinked financial markets are no less immune to such system-wide (systemic) threats. Who knows, for instance, how the present concern over sub-prime loans will pan out?

Well before this recent crisis emerged, the US National Academies/National Research Council and the Federal Reserve Bank of New York collaborated on an initiative to “stimulate fresh thinking on systemic risk”. The main event was a high-level conference held in May 2006, which brought together experts from various backgrounds to explore parallels between systemic risk in the financial sector and in selected domains in engineering, ecology and other fields of science. The resulting report was published late last year and makes stimulating reading.

Catastrophic changes in the overall state of a system can ultimately derive from how it is organized — from feedback mechanisms within it, and from linkages that are latent and often unrecognized. The change may be initiated by some obvious external event, such as a war, but is more usually triggered by a seemingly minor happenstance or even an unsubstantial rumour. Once set in motion, however, such changes can become explosive and afterwards will typically exhibit some form of hysteresis, such that recovery is much slower than the collapse. In extreme cases, the changes may be irreversible.

…

Two particularly illuminating questions about priorities in risk management emerge from the report. First, how much money is spent on studying systemic risk as compared with that spent on conventional risk management in individual firms? Second, how expensive is a systemic-risk event to a national or global economy (examples being the stock market crash of 1987, or the turmoil of 1998 associated with the Russian loan default, and the subsequent collapse of the hedge fund Long-Term Capital Management)? The answer to the first question is “comparatively very little”; to the second, “hugely expensive”.

Ecosystem services, Greenlash

Nitrogen transfer from sea to land via commercial fisheries

Leave a comment

Roxanne Maranger an ecologist at the University of Montreal and other have a neat paper in Nature Geoscience Nitrogen transfer from sea to land via commercial fisheries that shows that commercial fishing removed substantial amounts of nitrogen from coastal oceans. They show that while fertilizer run-off into the ocean and fishery removal of nitrogen have increased over the past forty years, the increase in nitrogen inputs has been faster. Consequently the proportion of nitrogen removed from coastal zone has dropped from a global average of about 60% in 1960 to about 20% in 2000. This trend as well as the spatial pattern of nitrogen withdrawal are shown in figure 1 of their paper:

Nature GeoScience

Figure 1. a, Total amount of N in fertilizer run-off (Tg N yr-1=1012 g N yr-1) delivered to the global ocean (left axis, blue line) and N returned as fish biomass (left axis, red line) per year over time. The orange line (right axis) is the proportion of fish N removed relative to fertilizer N exported (ratio fish N:fertilizer N) reported as a percentage. b, The ratio of fish N removed to fertilizer N entering 58 different large marine ecosystems (LMEs) for the year 1995.

The paper shows that fishing can help reduce the impacts of nitrogen pollution. But that nitrogen pollution that destroys fisheries, through the creation of anoxic “dead zones”, can make nitrogen pollution even worse by removing a major source of nitrogen withdrawals. Similarly, overfishing the reduces the amount of fish biomass that can be removed from a system will make the system more vulnerable to eutrophication.

Ecosystem services, Greenlash, Regime Shifts, Visualization

Mapping Coastal Eutrophication

5 Comments

Current industrial agricultural practices produce a tradeoff between agricultural production and the quality of coastal ecosystems, because agricultural fertilizers that increase crop yields lead to the creation of low oxygen hypoxic areas in areas which receive a lot of nutrient rich runoff.

The World Resources Institute and Virginia Institute of Marine Science, has updated Diaz et al’s recent map of coastal eutrophication. They identify 169 hypoxic areas, 233 areas of concern, and 13 systems in recovery.

Coastal Eutrophication WRI 2008

The WRI Earthtrends weblog writes about the project:

The map shows three types of eutrophic zones:

(1) Documented hypoxic areas – Areas with scientific evidence that hypoxia was caused, at least in part, by an overabundance of nitrogen and phosphorus. Hypoxic areas have oxygen levels low enough to inhibit the existence of marine life.

(2) Areas of concern – Systems that exhibit effects of eutrophication, including elevated nitrogen and phosphorus levels, elevated chlorophyll levels, harmful algal blooms, changes in the benthic community, damage to coral reefs, and fish kills. These systems are impaired by nutrients and are possibly at risk of developing hypoxia. Some of the systems may already be experiencing hypoxia, but lack conclusive scientific evidence of the condition.

(3) Systems in recovery – Areas that once exhibited low dissolved oxygen levels and hypoxia, but are now improving. For example, the Black Sea recovery is largely due to the economic collapse of Eastern Europe in the 1990s, which greatly reduced fertilizer use. Others, like Boston Harbor in the United States and the Mersey Estuary in the United Kingdom also have improved water quality resulting from better industrial and wastewater controls.

Given the state of global data, the actual number of eutrophic and hypoxic areas around the world is likely to be greater than the 415 listed here. The most under-represented region is Asia. Asia has relatively few documented eutrophic and hypoxic areas despite large increases in intensive farming methods, industrial development, and population growth over the past 20 years. Africa, South America, and the Caribbean also have few reliable sources of coastal water quality data.

A more detailed analysis of this data set will be available in February 2008 in a policy note entitled Eutrophication and Hypoxia in Coastal Areas: A Global Assessment of the State of Knowledge (a list of related publications can be found here.

Adaptation, Greenlash

Climate foresight and building resilience

1 Comment

In a WorldChanging article Conservation Easements, Climate Foresight and Resilience Alex Steffen asks if “resilience” is a good way to describe the need for resilience:

If the nature of even non-catastrophic climate change is to make the world much more unpredictable, adaptation is impossible in a meaningful sense.What is possible is planned resilience: we can make our own systems more rugged and distributed, our natural systems protected and managed in ways that best preserve their ability to respond to (and incorporate) disturbance while preserving ecosystem services and biodiversity. We can plan to become good at dealing with chaos. But that is quite different than adapting to a singular change, and it takes dramatically different kinds of priorities.

Now, “Resilience!” is not exactly be the battle-cry we’re looking for. Anyone else got a suggest about how we might compellingly describe the goal here?

Greenlash, Inequality

Fish Piracy Feeds the Global Rich

1 Comment

A New York Times article Europe’s Appetite for Seafood Propels Illegal Trade describes how fisheries collapse is leading roving bandits to scoop up the world’s valuable fish leaving little behind for local fishers:

Fish is now the most traded animal commodity on the planet, with about 100 million tons of wild and farmed fish sold each year. Europe has suddenly become the world’s largest market for fish, worth more than 14 billion euros, or about $22 billion a year. Europe’s appetite has grown as its native fish stocks have shrunk so that Europe now needs to import 60 percent of fish sold in the region, according to the European Union.

In Europe, the imbalance between supply and demand has led to a thriving illegal trade. Some 50 percent of the fish sold in the European Union originates in developing nations, and much of it is laundered like contraband, caught and shipped illegally beyond the limits of government quotas or treaties. The smuggling operation is well financed and sophisticated, carried out by large-scale mechanized fishing fleets able to sweep up more fish than ever, chasing threatened stocks from ocean to ocean.

Cities, New Orleans, Reorganization, Scenarios

Kim Stanley Robinson on nature, architecture, and society

4 Comments

Geoff Manaugh recently interviewed ecological science fiction writer Kim Stanley Robinson about ecology, architecture and socieities on BLDGBLOG.  Manaugh writes:

Robinson’s books are not only filled with descriptions of landscapes – whole planets, in fact, noted, sensed, and textured down to the chemistry of their soils and the currents in their seas – but they are often about nothing other than vast landscape processes, in the midst of which a few humans stumble along. “Politics,” in these novels, is as much a question of social justice as it is shorthand for learning to live in specific environments.

Robinson responds to a question about the idea that catastrophe can allow new forms of social organization to emerge:

It’s a failure of imagination to think that climate change is going to be an escape from jail – and it’s a failure in a couple of ways.

For one thing, modern civilization, with six billion people on the planet, lives on the tip of a gigantic complex of prosthetic devices – and all those devices have to work. The crash scenario that people think of, in this case, as an escape to freedom would actually be so damaging that it wouldn’t be fun. It wouldn’t be an adventure. It would merely be a struggle for food and security, and a permanent high risk of being robbed, beaten, or killed; your ability to feel confident about your own – and your family’s and your children’s – safety would be gone. People who fail to realize that… I’d say their imaginations haven’t fully gotten into this scenario.

It’s easy to imagine people who are bored in the modern techno-surround, as I call it, and they’re bored because they have not fully comprehended that they’re still primates, that their brains grew over a million-year period doing a certain suite of activities, and those activities are still available. Anyone can do them; they’re simple. They have to do with basic life support and basic social activities unboosted by technological means.

And there’s an addictive side to this. People try to do stupid technological replacements for natural primate actions, but it doesn’t quite give them the buzz that they hoped it would. Even though it looks quite magical, the sense of accomplishment is not there. So they do it again, hoping that the activity, like a drug, will somehow satisfy the urge that it’s supposedly meant to satisfy. But it doesn’t. So they do it more and more – and they fall down a rabbit hole, pursuing a destructive and high carbon-burn activity, when they could just go out for a walk, or plant a garden, or sit down at a table with a friend and drink some coffee and talk for an hour. All of these unboosted, straight-forward primate activities are actually intensely satisfying to the totality of the mind-body that we are.

So a little bit of analysis of what we are as primates – how we got here evolutionarily, and what can satisfy us in this world – would help us to imagine activities that are much lower impact on the planet and much more satisfying to the individual at the same time. In general, I’ve been thinking: let’s rate our technologies for how much they help us as primates, rather than how they can put us further into this dream of being powerful gods who stalk around on a planet that doesn’t really matter to us.

Because a lot of these supposed pleasures are really expensive. You pay with your life. You pay with your health. And they don’t satisfy you anyway! You end up taking various kinds of prescription or non-prescription drugs to compensate for your unhappiness and your unhealthiness – and the whole thing comes out of a kind of spiral: if only you could consume more, you’d be happier. But it isn’t true.

I’m advocating a kind of alteration of our imagined relationship to the planet. I think it’d be more fun – and also more sustainable. We’re always thinking that we’re much more powerful than we are, because we’re boosted by technological powers that exert a really, really high cost on the environment – a cost that isn’t calculated and that isn’t put into the price of things. It’s exteriorized from our fake economy. And it’s very profitable for certain elements in our society for us to continue to wander around in this dream-state and be upset about everything.

The hope that, “Oh, if only civilization were to collapse, then I could be happy” – it’s ridiculous. You can simply walk out your front door and get what you want out of that particular fantasy.

Greenlash

How Salmon Farming Endangers Salmon

1 Comment

From Society for Conservation Biology’s Journal Watch Online:

Long-held suspicions that fish farms act as disease reservoirs for wild populations are well founded, according to findings published this week in Science. University of Alberta mathematical biologist Marty Krkošek and colleagues show that outbreaks of salmon lice Lepeophtheirus salmonis among wild pink salmon Oncorhynchus gorbuscha populations — the direct result of infestations within the open-net aquaculture pens the juveniles must swim past on their migration to the sea — can bring virtual extinction in just four generations. The pressure wild stocks are placed under by the disease risk from fish farms is much greater than that caused by over-exploitative harvesting: the very factor that prompted aquaculture in the first place. It’s surely time for a re-think on fish farming. Source: Krkošek M, Ford JS, Morton A, Lele S, Myers RA & Lewis MA (2007) Declining wild salmon populations in relation to parasites from farm salmon. Science DOI: 10.1126/science.1148744

Also see article in New York Times which quotes:

Ray Hilborn, a fisheries biologist from the University of Washington who was not involved in the study but is familiar with its findings, called the data persuasive and said they raised “serious concerns about proposed aquaculture for other species, such as cod, halibut and sablefish.”

“These high-density fish farms are natural breeding grounds for pathogens,” not necessarily limited to sea lice, he said in an interview. Dr. Hilborn noted, however, that the study involved pink salmon, not species like sockeye or chinook, which are usually larger and presumably less vulnerable to sea lice. Pink salmon are the most abundant salmon species in the northern Pacific.