Archive for the 'economy' Category

About the “Concept for an integrated energy-research program for Germany”

Friday, September 18th, 2009

There had been some uproar in mediascape-Germany about a study with the title “Konzept für ein integriertes Energieforschungsprogramm für Deutschland” (“Concept for an integrated energy-research program for Germany”). According to Financial times Deutschland” (FTD) the study was commissioned by the Federal Ministry of Education and Research however the study had been withheld from the public for 3 months.

The study is now -after the uproar- openly available. The reasons for the ministries policy of secrecy gave of course way to speculations in the press. So among others the study suggests that besides studying halite rock formations as a suitable geological formation for a final nuclear dump site, like the one in Gorleben it is meanwhile scientifically established that also Claystone formations may provide an alternative for a final nuclear waste repository. Since most of these rock formations can (according to FTD) be found in the current ministers “electoral homeland” Baden-Würtemberg and since the german elections will take place in about one and a half weeks it is understandable that the press identified this fact as a possible reason for the withheld (i.e. nobody wants a nuclear dump site in ones own backyard).

Another possible reason why the study was withheld was seen in the fact that the study suggests that an enforced research in nuclear power generation – and in particular in new nuclear fission technology could be a politically desired pathway in energy research (note the subtlety: the study does not suggest to pursue enforced research in nuclear energy, but states that enforced research in nuclear energy, in particular in new reactor types, may be a political request). This is in contrast to the current official political line of the minister and chancelor Angela Merkels party the CDU. Their official line (towards voters) is basically that power genration via nuclear fission should play NO role in Germanys future energy generation.

I have unfortunately currently not the time to study the study in full detail but nevertheless – here are some remarks to the study:

The study was made under the auspices of two german science/humanities academies, namely the National academy of science and the Berlin-Brandenburg Academy of Sciences and Humanities a third collaborator was the German Academy of Science and Engineering (Acatech), which claims itself to be a non profit agency, which represents the interests of German sciences and technology. Acatech has a strong connection to business, last but not least via funding. This has advantages and disadvantages.

Responsible for the text of the study are Prof. Dr. Frank Behrendt (Institut für Energietechnik, TU Berlin), Prof. Dr. Ortwin Renn (Abteilung für Technik – und Umweltsoziologie, Universität Stuttgart), Prof. Dr. Ferdi Schüth (Max- Planck-Institut für Kohlenforschung, Mülheim/Ruhr) and Prof. Dr. Eberhard Umbach (Forschungszentrum Karlsruhe), however the study encompasses contributions from numerous individuals (p.58 of the study) which are researchers from universities but also representatives of companies such as Siemens. As a remark: the company Siemens seems to intent to terminate its engagement within the french nuclear company AREVA, however according to this article it may replace its french engagement with a cooperation with the russian nuclear company Atomenergoprom. This should put the neutrality at least of parts of the study -namely those concerning nuclear power generation- under scrutiny.

A main argument of the study is that the challenges of Germany’s future power generation can only be dealt with in a – what the authors call- “systemic perspective” that is with an approach which integrates not only the scientific and technological demands of power generation but also the juridicial, sociological etc. aspects which are connected with it. The arguments are similar to the IPCC conclusions. For accomplishing this integration approach the study suggests among others to establish energy research clusters (similar to the US american Energy Frontier Research Center (EFRC), public-private partnerships like the british Energy Technologies Institute (ETI) and one central german energy research center which bundles the research activity and which serves as an outside representative for Germany’s energy research. The tasks and concrete realizations of such a center havent been yet not very much specified, however integrating and coordinating energy research is in my opinion definitely sound.

Moreover the study collects “no-regret” research options, like research in insulation improvements, energy efficiency, research in how necessary behavioural changes may be adressed appropriately, in how international agreements could be furthered etc. At this place I would have liked to see a stronger discussion of the problems related to patents/intellectual property rights obstructing technological development and international agreement processes.

Within the technological component the study identifies three main research sectors according to which politics can choose to put emphasis on. These are: regenerative energies, carbon based energies and finally -although as pointed out above there is currently no official political backing for this- nuclear energy. The technological aspects of each sector are introduced in the study in a socalled module.

I’d like to concentrate a bit on the nuclear energy module, since the text of the nuclear energy module is mildly put indeed controversial.

As already indicated the aspect that nuclear fission research may be pursued only with the goal of securing its safe pullback (which is the official political line!) is just a little side remark in the text.

In particular it is argued that in order to keep a fall back option on nuclear (fission) energy, Germany could feel strongly advised to support research in new fission technology and thus could feel the need to support the development of fast breeders and in particular in 4’th generation reactorsystems:

Deutschland kann sich aufgrund seiner Expertise hier an vorderster Stelle beteiligen, um unter anderem höchste Sicherheitsstandards zu etablieren.

(translation without guarantee: Germany may – based on its expertise – take part in this in the front row in order to establish among others highest security standards.)

The option that a fallback option on nuclear fission technology could also exist without a german research effort or accomplished with just a small german contribution like within an international noncommercially oriented community research project (my favoured option) is not mentioned.

The study mentions the necessity to keep a fallback option on nuclear fission due to the reason that climate change could have more dramatic consequences than expected, this was also annotated in an earlier randform post.

However the study suggests that such a fallback option may also be justified by the strong pressure which may be due to an international renaissance of nuclear fission technology and which may be due to raising energy needs (p.15) especially in regard to financial feasibility (p.12).

Yet the most problematic part of the nuclear module was the sentence:

“Außerdem müssen bei einer Wiederaufnahme der Forschungsarbeiten zu neuen Reaktoren bereits frühzeitig Ansätze entwickelt werden, mittels derer die Technologie gegebenenfalls umgesetzt werden könnte, ohne Widerständen zu begegnen oder – für den Fall, das dies nicht möglich ist – mit diesen Widerständen konstruktiv umzugehen.”

(translation without guarantee: Furthermore in case of a resumption of the research efforts concerning new reactor types one has to develop at an early stage approaches with which the technology could be realized without encountering resistance or – if this is not possible – develop approaches on how to deal with this resistances in a constructive way.)

I hope this sentence was a very unfortunate phrasing accident and that the authors do not really mean what they write here.

College for $99 a Month

Wednesday, September 16th, 2009

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Just a quick link to an interesting article in the Washington monthly about possible future developments within the US and other high-tuition-dependent-educational systems ->College for $99 a Month

very, very short summary: the article explains that cheap online education (eventually outsourced to India etc.) may lure college students into taking standard classes in the internet instead of in a typical college. This development could be accelerated due to the economic crisis. Standard courses usually “nurture” the more specialized classes, hence it can be feared that the overall quality may suffer from this.

scaling facts

Sunday, May 31st, 2009

In a recent post on his blog Terence Tao had the idea to scale the US budget and other data with the scale factor of 3/100 million. In particular the US population of 306.44 million shrinks -if one uses this factor- to about 9 people (306.44million/(100 million/3) =3.0644*3 =(approx) 9 people) which is about one to two average families. He did that in order to facilitate the comparision of the US-budget with a normal one-to-two family household budget.

I found that a useful visualization experiment and thus tried to do the same with the german budget – that is I used a scale factor which scales the population of Germany (originally 82.099 million down to 9, i.e. I used the factor 0.000 000 11 = 11/100 million (82099000*0.00000011 = 9.03..) and multiplied it with the corresponding amount in euro and in US-dollar (since I did this with an online currency calculator on different days there may be some variations). All calculations are without guarantee and I hope mistakes will be pointed out to me in the comment section. I abbreviate the number 1 billion = 10^9=1 000 000 000 with the letter B. So 1 B$ means 1 billion US dollar. Interesting figures are highlighted with an ->.

The revenues and spending in Germany are divided into the federal government (“Bund“) on one hand and the federal states (“Länder“) and districts (“Gemeinden“) on the other hand (here details in german). Both shares are very roughly the same. For example in 2005 the spending was
Bund 294.0 BEuro
Länder 259.3 BEuro and Gemeinden 153.3 BEUro
alltogether: 625.9 Beuro

I found no survey on the federal states and districts, besides this overall Länder and Gemeinden revenues and spending. The federal states are for example in charge for schools, I think they do not pay for military (?). However besides this the federal government budget (“Bund“) gives already quite a good overview over priorities.

I recovered the other data (like GDP etc.) to a great part from the federal office of statistics which hosts confusingly also the statistikportal. The website of this federal office is -mildly put- uncomfortable. That refers not only to the overall webdesign like for example it took me more than quite a while to find detailed readings on the GDP (since I started out at the statistikportal), but also to the overall accessability of data. For example I was also interested wether things like the Abwrackpraemie raise or lower the GDP or wether paying for volunteering could raise the GDP in some way…(just as a trick for the upcoming elections…), however in this GDP document it is even not possible to deduce within a reasonable amount of time which positions are summed over and which are subtracted.

Here some

general data:
  • National population 2008: 82.099 million 9 people
  • Germany Land mass: 357 021 sqkm
  • Germany Land mass/capita : 357 021 million sqm/82. 099 million persons = 4348 sqm
  • US Land mass:9 826 630 sq km
  • US Land mass per capita: 9 826 630 million sqm/306.44 million persons = 32113 sqm
  • But back to the budget discussion. The federal government (“Bund”) budget (Bundeshaushaltsplan) which is as explained above about half of the overall german budget is available as a pdf document here. From it one can read off a lot of the following figures (I tried approximately to reflect the ones Terence Tao chose). If there is no other link provided then the corresponding number in the below list is from this document.

    Example: If the federal government (“bund”) has a budget of 283.200 BEuro for 2008 then this is a scaled budget of 283 200 000 000 Euro * 0.00000011 = 31152 Euro. Since this is as explained above about one half of the overall german budget the state family of 9 has thus an approximate budget of 2*31152 Euro =
    ->(approx) 60 000 Euro (per year).

    That is 2* 383.343 B$=2*383 343 000 000$ which gives a scaled budget of 2*42167 $ =(approx) 84 000 $ (per year) which is in the same range as the US budget of 75 000 $ (per year), which appears in Terence Taos list. Compare these 60 000 Euros to the salary of 500 000 Euros which are not enough for the best.

    German budget numbers rescaled to a family of 9:

    The green number is a real budget number which is rescaled to the budget of a “family of 9 people” in Euro, the blue number gives the same amount in dollar so that it is comparable with the US budget in Terence Taos list.

  • Total revenue (Bundeshaushalt): 283.200 BEuro 42167 s$ 31 152 Euro 42 168 $
  • Total spending: 283.200 BEuro 42167 s$ 31 152 Euro 42 168 $
  • Social Security alltogether (including health insurance, unemployment payments, etc.):140.322 BEuro 189.822 B$ 15 435 Euro 20 880 $
    • Health insurance: 3.692 BEuro 4.993 B$ 406 Euro 549 $
    • Children payments (Kindergeld): 0.3 BEuro 0.41 B$ 33 Euro 45 $
    • Social Security/unemployment payments: 94.313 BEuro 127.614 B$ 10374 Euro 14038 $
    • consequence of war payments: 3.200 BEuro 4.332 B$352 Euro 477 $
  • Health, environment, sports and recreation: 0.998 BEuro
    1.349 B$ 109 Euro 148 $
  • Traffic and Infromation services: 11.149 BEuro 15.077 B$ 1226 Euro 1658 $
    • Autobahn:3.323 BEuro 4.496 BEuro365 Euro 494 $
  • ->Defense: 29.299 BEuro 39.639 B$ 3222 Euro 4360 $
  • Foreign affairs (Auswärtige Angelegenheiten):7.457 BEuro 10.091 B$ 820 Euro 1110 $
  • Education: 13.758 BEuro 18.624 B$ 1513 Euro 2048 $
    • Department of Education: 2008 budget 9.350 BEuro 12.655 B$1028 Euro 1392 $
    • Department of Education: 2009 budget (planned): 10.2 BEuro 14.262 B$ 1122 Euro 1569 $
    • DFG (Deutsche Forschungsgemeinschaft) 0.840 BEuro
      1.136 B$ 92 Euro 125 $
      • Maths & Physical Sciences: ?
        couldn’t find a total number but humanities, natural sciences (i.e. chemistry, physics, math, geosciences), life sciences and engineering hold each about an equal share) so

      • natural sciences approx: 0.210 BEuro 0.284 B$ 23 Euro 31 $
  • ->Debts, Interest payments: 41.855 BEuro 4604 Euro 6200 $
  • Savings: 0
  • Additional spending cuts: ? -> keynote of DFG president addressing potential budget cuts
  • Global War on Terror: ????
  • Energy and Water management: 4.937 BEuro 6.898 B$ 543 Euro

    759 $

    • nuclear energy:0.222 BEuro 0.310 B$ 24 Euro

      34 $

    • ->renewable energies: 0.039 BEuro 0.054 B$ 4 Euro 30 cents

      6 $
      (some additional support for renewables comes in through the Feed-in tarif)

    • mining (mostly subsidies):2.164 BEuro 3.023 B$ 238 Euro

      303 $

      • coal mining: 1.900 BEuro 2.650 B$ 209 Euro 291 $
  • ESA: ?
  • -> economic stimulus’ related to the car industry:
    • Abwrackpraemie (car scrapping bonus) (source) 5 BEuro 7.068 B$ 550 Euro 779 $
    • Opel retrieval (which is without any environmental requirements if I understood correctly):
      • bail: 4.5 BEuro 6.361 B$ 495 Euro 700 $
      • temporary loan: 1.5 BEuro 2.120 B$ 165 Euro 233 $
    • cars and electricity: economic stimulus for electromobility: 0.5 BEuro 0.706 B$ 55 Euro 77 $
      comment: de facto this amounts to a percentual decline in investments in renewable energies, which seems to be an overall trend – the International Energy Agency estimates that

      “for 2009 as a whole investment in renewables could drop by as much as 38%, although stimulus provided by government fiscal packages can probably offset a small proportion of this decline”

  • ->German Financial market stabilization package: 500.000 BEuro 700.000 B$ 55 000 Euro 77 000 $
  • ->Budget deficit:1 564.209 BEuro 2 193.921 B$ 172 063 Euro 241 331 $
  • about that wall through the streets of Berlin

    Wednesday, May 20th, 2009

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    (old GDR advertisement of the electrical engineering industry)

    There was a longer discussion on that randform post about oppression in the GDR. Within the discussion a randform reader called Ditta found my opinion that “part of all that huge mess of a wall through the streets of Berlin was plain economic warfare” absurd. This is still my opinion: there were surely people running away from East Germany for pure political reasons, but I dare say that a not to small part left for economical reasons. Moreover this reasoning doesnt justify the wall, I think it is clear that the wall was an inhuman mistake. The discussion just sheds a different light on the involved motivations.

    I currently have not the time to discuss this in detail and since this is a different thread I hereby link to the comment which led to Ditta’s reaction and ask people who wish to discuss this issue to leave their comments here at this thread.

    Blogwise – I am currently preparing a blog entry, which takes more time than I would have suspected…in particular I am not on vacation.

    no dream panorama!

    Friday, April 24th, 2009

    In a comment to my previous post I was asked wether I “want back GDR”.

    here my answer:

    I don’t want to have the former GDR back.

    But I think the bad deeds of e.g. the STASI are not automatically correlated to every GDR-feature. Like e.g. the GDR had a very good waste-management (sero-system) which was neglected in the west (images) for no good reason.

    The former GDR was not – as it claimed with its name – a german democratic state. I visited the GDR rather often (most of my relatives lived in East Berlin) and in fact GDR-authorities were threatening me already as a ten year old for my political opinions (but thats another story).

    People who were opposing the official politics were suppressed, where the methods ranged from occupational ban to imprisonment (and sometimes execution – according to Wikipedia there were 164 death penalties made to the order of the STASI).

    Although torture was forbidden in the GDR (here an excerpt of the GDR constitution) some methods of the STASI, like sleep deprivation could be called psychological torture. Also the conditions within prisons (here a panorama tourr through the STASI-prison in Berlin-Hohenschoenhausen) could be seen as torture like in particular the socalled water cells which were cells without a window and no furniture and 2 cm water on the floor. As a torture not as immediate life-threatening as waterboarding but still scary and cruel.

    broomm economy

    Tuesday, April 7th, 2009

    (more…)

    internett off

    Monday, March 30th, 2009

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    Right now and for the upcoming weeks I am without internet access at home, so basically without internet. Here thus fast a blog post related to the financial crisis.

    About 2 weeks ago the Group of 20 finance ministers and central bankers of the biggest developped economies had met in southern England in order to prepare for the upcoming G20 summit. A “sustained effort” was pledged to end the global recession and to cleanse banks of toxic assets. In particular according to Bloomberg

    “Our key priority now is to address the value of assets held on banks’ balance sheets, which are constraining banks’ lending” and damaging economies, the G-20 statement said.
    Banks are still hoarding cash after being stung by more than $1.2 trillion of writedowns and losses.”

    Meanwhile governments -in particular the US government- are pumping money into the market. For example in Europe the total amount of money has almost doubled within the last 6 years (money supply wikipedia, the Berliner zeitung march 28, 2009 Tagesthema diagram is including 2008 but unfortunately not visible)

    And still inflation is low – as if the money would disappear!

    And even more mysterious: the pumped-in money meanwhile exceeded the amount of one or two trillion dollars, which were acclaimed as possible losses. And still the money is been hoarded.

    Why?

    (more…)

    frosty

    Tuesday, March 24th, 2009

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    It’s frosty in munich today.

    a short personal note: We will leave the above beautiful garden sight by the end of the month. We were lucky to find a smaller appartment where the kids can still reach their school by bus. It is not easy to find an appartment for rent in munich without spending 2000-3000 Euros for a real estate agent. The appartment is at a rather big road. Unfortunately there is no traffic light in the vicinity and the traffic on that road is blowing too heavily for letting the kids cross that road by themselves. The architecture of the building and some buildings around it are similar to the one in the suburb of Neuaubing. We are on the forth floor so sometimes one can see the Alps.

    on the Finanz-markt-stabilisierungs-ergänzungs-gesetz-avalanches

    Sunday, March 1st, 2009

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    A reader called Hein Kleist wrote:

    I find it a little dangerous that you suggest to let problematic banks go bankrupt! Don’t you know that the collapse of Lehman Brothers almost destroyed the world financial system? There could be a chain reaktion of an unknown size!

    (more…)

    bad bad banks

    Wednesday, February 4th, 2009

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    A reader called Eve asked:

    Hi Nad! You seem to be interested in economy, what do you think about bad banks?

    Here my answer.

    (more…)