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PeakOil is You

PeakOil is You

Tightening the belt

How to save energy through both societal and individual actions.

Unread postby Aaron » Sat 12 Jun 2004, 14:14:15

Wow great post

And I think I agree with almost all your observations.

The population issue and per capita consumption is indeed the root of the problem so to speak. But after all of this is granted, I am still left with the global economy, as the expression of the consuming masses. And since economic growth requires power, I hold that any economic growth = an increase in whatever form of energy we depend on. It's a simple step then to infer that if conservation (reductions in gross consumption of energy) and improved efficiency (getting more bang for the buck) stimulates economic growth, then we use more oil, and everything else.


In that same thread, Aaron, you posted a bar-graph with some numbers. Maybe I’m losing my mind here (I am going on two-hours of sleep in the past 48 hours right now), but the graph looks as if it’s saying that 2002 was less efficient and had more of a gasoline (energy) sink, and 1975 was more efficient and had less of a gasoline sink.


The graph shows that we had less efficient machines in 75 than today, but we use more gas now, even with, (& perhaps because of) improvements in technology.

the US economy is
40% more energy efficient than in 1971, it also uses 25% more energy.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Unread postby frankFranchesca » Sat 12 Jun 2004, 16:53:11

...My husband and I have three degrees in science and engineering between us, but we both think that graph looks like it could be representing the opposite of what it's supposed to represent.... Either we've both been out of school too long and are out of practice in reading bar graphs (maybe we should ask for the money back we paid for college), the graph is a confusing one, or maybe both those things are responsible for this phenomena--plus my lack of sleep.... What we both agree is confusing is the direction of the arrows and the way 1975 is taken as an unchanging 100% baseline amount. I think a better bar-graph would have just illustrated flat out the actual comparative change in amounts, maybe numbering the vertical axis on each side differently as one for efficiency, another for usage....oy! My head is starting to hurt.

You said:

"It's a simple step then to infer that if conservation (reductions in gross consumption of energy) and improved efficiency (getting more bang for the buck) stimulates economic growth, then we use more oil, and everything else."

--It may be a simple step to infer that, babe :wink:, but you and the references you've pointed out have not proved these two following things, at least not to my nitpicky satisfaction apparently: 1) that conservation will stimulate economic growth and 2) that improved efficiency will stimulate economic growth. Those have been part of your premises. Conservation and improved efficiency could and probably do stimulate economic growth sometimes, but I would argue that they could swing the other way and decrease growth and possibly even stimulate a recession in extreme circumstances; or they could do neither; they can also be the effects of growth and recession. I also argue that even if economic growth is increased it doesn't necessarily follow that the human population will also grow accordingly and overconsume resources. AND leading a more conservative lifestyle resource-wise and improving efficiency on many different levels in society could ultimately reduce populations. I think both conservation and improved efficiency (either alone or in combination) could maybe cause either growth, decay, stagnation, or in-between scenarios depending on the many other parameters of the specific situation in question, as I've tried to illustrate in my post above, for conservation at least.

To me, it sounds like you're afraid of recession. I'm not necessarily, and maybe that's where our difference really lies. I think our economic system needs to collapse and likely will because it is based on flawed methodology that may be contrary to sustaining a living organism over the very-long-term. That jumping through ten hoops instead of one I talked about on the first page of this thread applies here: with every extra hoop you have to jump through to achieve an end-goal, you likely lose some energy. After ten hoops, that energy loss adds up.

But since you keep sort of maligning conservation (in my opinion at least and it has been turning me off to hanging here--I have to be honest--I don't call myself "frank" for nothing) as being a solution to the potential crisis that is likely headed our way (actually, I think the crisis seems to be here already), what solutions do you personally advocate? Or do you believe there aren't any solutions to such a complex problem, at least not any that are effective enough? As much as I'm an advocate of conservation, I really feel like anything we could do now will likely be too-little too-late, just maybe the more we do now, the more time we bide and the "less late" we'll be when the crap really hits the fan. I don't see humanity (at least in the West) suddenly conserving in the extreme, and I think that's what it will take at this point to make any real difference, assuming it would be possible to make one, which as I just said, I don't think is possible any longer. Oy again! Still, that shouldn't stop people from conserving, in my opinion, and it won't stop me.

All of this isn't to say I haven't enjoyed talking with you on this--I have. I just happen to think that the existence of a "causal relationship" between/among events is likely one of the hardest relationships to “prove” in the Universe, and proving the exact nature of the causal relationship may be even more difficult. Once events have occurred, the lines are often blurred between which events may be causes and which may be effects, and all the events in the supposed causal relationship often seem to take on characteristics of both causes and effects, depending on how the events are being observed and who's observing them. For this reason--and a bunch of others--I don't like when people speak in "absolute" terms and make what I think are dogmatic declarations (I hate when I weaken and do it too--you should hear me yell at myself). When I hear that stuff, it turns on my stickler-for-"accuracy" button. That button drives my husband crazy sometimes, and his usual response is to declare I put the Gestapo to shame.

Anyway, thank you for the nice compliment about my post and sorry for posting another tome!

Fran

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Unread postby Aaron » Sat 12 Jun 2004, 18:50:59

I confess to a certain amount of playing the devil's advocate on this one actually.

The idea that conservation actually increases consumption certainly isn't my own theory. More than anything, I was hoping to find reasoned arguments to dispute Jevon and his paradox.

I think the argument that it is the mixture of influences which determines the outcome, is the strongest argument yet. Like no matter how much I conserve in the middle of a severe depression, I don't see that stimulating economic growth.

On the other hand, it does seem reasonable to me that in freeing capital through efficiency and/or conservation, we should expect some level of stimulation to the economy.

How about this...

Tomorrow a team of scientists announces that they have solved cold fusion, and have a working reactor with a 10 year perfect safety history. Their solution is so elegant, that fusion plants spring up everywhere, and within a few years are providing virtually free limitless energy for everyone. Pretty much the same impact as 100% conservation.

With no natural restraint, economies explode into a flurry of growth and consumption fueled by free energy. I see a painful future for these hypothetical people.

I have heard the same argument applied to recycling actually. That it's a zero sum game financially, and that it actually creates more pollution than it eliminates.

As far as the graph, the way I read it is that the US increased fuel efficiency by 25% from 1975 thru 2002 but during the same time period gasoline use increased 20% despite the advances in efficiency and conservation efforts. Our economy simply grew.

There has been no period of time, since WWII when the global economy has failed to grow. And our oil use grew right along with it.

I really appreciate you spending time on this issue Fran. It's been a thorn in my side for some time now, and despite my best efforts seems to be considered by most economists as valid. (noting the exceptions you cited)

8)
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Existence proof

Unread postby Doctor Doom » Sat 12 Jun 2004, 19:50:56

There's nothing better than an existence proof. And for that, I give you...Europe. Germany has about the same GNP per capita as the US, but uses 1/2 the energy per capita. Or how about Japan, higher per capita GNP with 1/2 the energy per capita? So, it is definitely possible for government policy to make a difference, and definitely possible to have economic growth without higher energy consumption.
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Unread postby Aaron » Sat 12 Jun 2004, 20:22:09

Income is counted as part of GNP according to who owns the factors of production rather than where the production takes place. For example in the case of a German-owned car factory operating in the US, the profits from the factory would be counted as part of German GNP rather than US GNP because the capital used in production (the factory, machinery, etc.) is German owned. The wages of the American workers would be part of US GNP, while the wages of any German workers on the site would be part of German GNP.


Comparisons become a slippery slope.

http://www.brainyencyclopedia.com/encyclopedia/m/me/measures_of_national_income.html

Then there is the matter of scale. Japan & Germany can hardly be compared to the US economy in sheer size.

http://www.nationmaster.com/pie-T/eco_eco_ove&int=10

Japan only has around 130 million people, and Germany has under 100 million. In Germany, a more socialist government is able to dictate energy policy and force efficiency, as does similar coercion in Japan. But what about the disposable income Germans & Japanese have as a result of their prosperous energy strategy? This buying power isn't magically stored in the energy bank, it gets spent, on other, energy intensive stuff. Even if I invest it, my banker does not hold onto my money, but spends it trying to create more money. The point being if the enlightened energy policies of Germany & Japan help stimulate their respective economies, then as these economies grow, they require more energy to do so.

What is more meaningful perhaps, is to look at gross energy consumption of these countries. This data would indicate that growth in both these economies meant increasing energy consumption, regardless of the per capita distributions.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Unread postby Guest » Sat 12 Jun 2004, 20:24:37

Aaron wrote:The idea that conservation actually increases consumption certainly isn't my own theory. More than anything, I was hoping to find reasoned arguments to dispute Jevon and his paradox.


In the era of always rising oil production, that paradox may be valid.

But in the era of declining oil production, the real amount of available oil actually is less. Then consumption CANNOT increase. Conservation just saves oil that will not be available next year with the next 3% decline in oil output.
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Unread postby frankFranchesca » Sat 12 Jun 2004, 23:42:19

“On the other hand, it does seem reasonable to me that in freeing capital through efficiency and/or conservation, we should expect some level of stimulation to the economy.”

--Yes, I would probably expect some short-term economic stimulation too in some cases even though I think that doesn’t necessarily mean it will happen. Also, where that stimulation might happen (or has happened) would be open to debate and how much would happen (or has ultimately happened) would also be open to debate. Just because an economy has been “stimulated” (am I the only one thinking this conversation’s starting to sound a little sexy? lol) doesn’t necessarily mean overconsumption will happen--maybe some increased consumption would be likely. But increased consumption doesn’t necessarily equal overconsumption--I make a distinction there.

I can’t point to a specific one as an example (maybe someone else here can?) but I would venture a guess that out of all the economies/societies that have ever existed, there must have been at least some economic times when growth occurred but not at an energy-overconsumptive rate. Growth happened at a more “sustainable” rate then. And I wonder if growth tends to happen in a more bumpy fashion than many people observe—they may be ignoring or automatically combining little jagged bumps into bigger smoother humps. I suppose it’s possible that economic growth has never really happened in a sustainable way in the history of human societies, but, again, that doesn’t necessarily mean it won’t ever happen that way in future or that it couldn’t happen if we deliberately tried to make it happen using a new economic design....

W.r.t. your statement about perpetual growth post WWII and oil use, assuming that is true, which “caused” which first, did either really cause the other, and if so, did it cause the other acting alone or were there other causes, or did they both cause and create each other and do they continue to do this now? Maybe the term "causal relationship” should be changed to “co-dependent relationship.” Even though our economy is largely based in oil, we are and have been consuming other stuff too. I'm not sure that everything we consume can necessarily be traced back to oil directly and in large part: we lived before oil. We used some other energy sources then. Some cultures do use other energy sources now, though I realize many of those sources may have diminished capacities now through overuse and overpopulation too. But it seems to me as if you're trying in a roundabout way to state an "infinite growth" premise. That Devil's Advocate thingie again maybe :)? I think you can guess correctly whether I believe in infinite growth's existence and feasibility....

“I have heard the same argument applied to recycling actually. That it's a zero sum game financially, and that it actually creates more pollution than it eliminates.”

--I’ve heard the same too; I’m not sure what to think about it really... How much energy is consumed/saved and pollution created/saved seems to depend in large part on the specific material being recycled and on the method of recycling too (think one of my old textbooks addresses that in specific--I should pull it out and look up this stuff, but the book may be out of date). I think recycling is very important and I recycle whatever I can, but I emphasize reducing and reusing more, partly because of the Plastic Bauble Lovers-madness I mentioned and partly because, again, the less hoops to jump through the better (generally—probably not counting when you directly gain a lot more energy by jumping through an extra hoop than you lose by jumping through that hoop).

Zero sum!!! That is one of the favorite expressions used in my house. I think that when you strive to take a broad (and likely unattainable but still worth striving for) “objective” approach to your observations, everything seems to look like a zero-sum situation in the end. After my last post to you I stepped away from the computer and thought to myself: here we are hashing out this whole thing theoretically and it’s probably a zero-sum situation in actuality—probably all our ideas hold equal weight in the actual way the stuff in question works out. Don’t the Universe’s most basic elements/components seem inclined toward zero-sums? Positive and negative charges and directions and components abound. And of course neutrals too. And then the many tendencies towards "steady states"—not overly one way, not overly the other way.... Well, one could probably add in lots of stuff there that could fit. But then it is also possible that maybe we humans are only perceiving zero-sums often because of our likely limited sensory perception and viewpoint--our observations are likely biased and subjective (and I think Judeo-Christian absolutist “good” and “evil” brainwashing may be an influence here too)....

Anyway, I could go on and on here apparently! I’ll stop before I pass out and give other people here headaches. Thanks for the interesting discussion and take care,

Fran
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Unread postby Licho » Sun 13 Jun 2004, 06:21:24

Aaron, size of economy is not important at all.. Look at whole EU, it has higher total GDP than USA and still uses less than 1/2 of USA oil.
(Btw, nationmaster contains very serious errors)

Growth does not need to stimulate oil demand, somec ountries managed to reduce oil consumption while still growing GDP. Overall fuel efficiency is rising and with new technologies oil consumption can be actually reduced. Extra wealth does not need to be spend with car driving or buying oil-intensive products. If you use your extra wealth to pay mostly services and oil-free goods, then you are not rising any oil consumption.
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Unread postby Aaron » Sun 13 Jun 2004, 08:23:34

I should probably clarify my own perceptions here.

I do not think that unlimited economic growth is possible, or desirable.

My observation about conservation is really this:

The growth economy of the last 50 years is the culprit in depletion. The larger the economy grows, the more of everything it requires, including oil. Anything that contributes to economic growth, therefore accelerates consumption, including conservation.

My fear is that by promoting conservation we artificially extend the time line for peak oil. So we gain a few more years of hyper-consumerism with a much steeper decline afterward, absent a replacement for oil and other hydrocarbons.

Let's say we reduce world oil consumption from 80 million barrels per day to 70 million per day. We extend the peak time line by 1/8. So instead of a terrible peak in 2008, we get a horrific peak in 2010 instead.

Perhaps if we had seriously implemented global conservation 20 years ago, we would have extended the deadline enough for alternative energy development to step in. My fear is that this is simply too little, too late, and by conserving we are really just leveraging the prosperity of future generations for a little more unrealistic consumption today.



Licho wrote:Aaron, size of economy is not important at all.. Look at whole EU, it has higher total GDP than USA and still uses less than 1/2 of USA oil.
(Btw, nationmaster contains very serious errors)

Growth does not need to stimulate oil demand, some countries managed to reduce oil consumption while still growing GDP. Overall fuel efficiency is rising and with new technologies oil consumption can be actually reduced. Extra wealth does not need to be spend with car driving or buying oil-intensive products. If you use your extra wealth to pay mostly services and oil-free goods, then you are not rising any oil consumption.


For example in the case of a German-owned car factory operating in the US...


As I pointed out earlier, it is difficult to make these comparisons. Is energy consumed in a German owned US based car factory counted as US or German energy consumption? The globalization of the world economy makes these comparisons anecdotal at best I think.

It's also apples and oranges.

To get real data (& I'm not defending nationmaster data - it's just for illustration), we need to compare economies sector by sector. While some business are very energy intensive, others use much less while contributing to the GNP/GDP for each.

It's the heavy lifting industries which are the most energy intensive.

The size of the economy has much to do with it's profile of energy use. Compromises are possible in smaller economies which are less possible in economies of scale. As successful as Germany and Japan have been economically in recent times, it's a mistake to compare these smaller economies with the US and it's massive economy. A 1% loss of efficiency in a 1 trillion dollar economy is nothing compared to a 1% loss in a 10 trillion dollar economy.

There is a news item on the site which speaks to this I think.

Indian government subsidies made out-sourcing tech jobs very attractive to western companies over the last several years. I have hired many Indian contractors myself. But this does not reflect the actual market because in effect, the Indian government was paying a portion of my employees salary. This practice of subsidizing industries makes comparisons very difficult if not impossible between countries.

So does the EU GDP really exceed the GDP of the US? Difficult to say... If the German car plant in Brazil (just an example), consumes energy not added to German per capita use, but the profits for selling these cars contributes to German GDP...
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Unread postby Licho » Sun 13 Jun 2004, 12:58:19

Aaron, GDP is just Domestic, it's not GNP, so in GDP you don't take into account any outsorced products/factories oversea. GDP is just production made in territory of given country! And total GDP of newly enlarged EU is bigger than of USA while consuming less than 50% of US oil, this is simple fact.
EU has also better trade balance than USA, USA has currently very negative trade balance importing too many goods from other countries and exporting little - so this further adds to energy oil consumption/capita of US citizens.

Our economy can grow even without oil, it can grow even without extra energy. Imagine what you can buy now - high-tech tools and machines that take usually little energy to manufacture and operate. Or just information, often you are spending just to buy information, like film, music, program. These things take even less energy/value. In future we might develop genetic engineering, nano-technology, whatever, such technologies will further reduce our energy dependence while at same time we will be developing more energy sources.
Oil demand grew simply because our current economy is based on it, because it's very cheap and therefore used in many ways. But future economies might be completely oil independent.
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Unread postby frankFranchesca » Sun 13 Jun 2004, 14:58:58

“Let's say we reduce world oil consumption from 80 million barrels per day to 70 million per day. We extend the peak time line by 1/8. So instead of a terrible peak in 2008, we get a horrific peak in 2010 instead.”

--I think this is possible, but it’s not a definite given. See what I mean? For example, in the time between just these two points “a terrible peak in 2008” and a “horrific peak in 2010,” there isn’t only one world scenario possible. Many scenarios could occur between those two times, many paths could be taken. The hyperconsumerism you mentioned may not happen, but even if did happen, what if it’s hyperconsumerism toward everyone going out and buying seeds of both wild and domesticated plants and replacing their monospecies grass yard with vegetable/fruit gardens and starting compost piles, so that they could grow more of their own food and use less gasoline in not having to run to the store as often everytime they need new food/ingredients, less gasoline in not having to depend so much on gasoline powered farm-grown food, and less gasoline by consuming less petro-packaging on their food? Over the shorter-term, that might cause a small rise in the amount of oil consumed between 2008-2010 while everyone rushes out to buy that organic stuff (but not necessarily since they would have been going out in the other scenario too for the purpose of buying all their food); however, that would be a preparation for the longer-term post-2010, so if it were done properly, it might mean that the peak at 2010 might not feel as damaging afterward because many people will have set up a small system in place that might at least allow them to have some food for a few weeks/months if food production is interrupted. That doesn’t mean there won’t be a sharp collapse in fuel supply and quality of life after 2010, but it might not be as bad as you predicted. This is just one example; I can think of many more. I think there are likely degrees of hyperconsumerism (as there are likely degrees with anything) with varying amounts of damage attached—and the length of time over which that consumerism takes place is important too. Even while there might be some negative effects attached, if everyone went and planted food gardens right now where even half of their yard-grass sat, I think that would likely have an overall positive effect in many ways, over the short and long term.

“Anything that contributes to economic growth, therefore accelerates consumption, including conservation.”

--This is the argument that you keep using. Last night before I went to sleep I thought on all this some more and figured out another way to illustrate a big problem with that type of argument.

Let’s look at the following statement from this page again:

http://www.ncseonline.org/nle/crsreport ... EN=7028302

“The rebound effect (also referred to as the "take-back" or "snap-back") was first described in 1865 when Stanley Jevons observed that the introduction of the new efficient steam engine initially decreased coal consumption which led to a drop in the price of coal. This meant not only that more people could afford coal, but also that coal was now economically viable for new uses, which ultimately greatly increased coal consumption 2.”

--I’m going to pull out this part and label events:

the new efficient steam engine initially [decreased coal consumption (A)] which led to a drop in the price of coal. This meant not only that more people could afford coal, but also that coal was now economically viable for new uses, which ultimately greatly [increased coal consumption (B)]

That is presented as a chain of events. Let’s take them as being linear and points A and B represent “data points” along that line. For illustrative purposes, let me add more possible points, C and D, along that line, sort of projecting a later possible point and an even more “ultimate point”:

the new efficient steam engine initially [decreased coal consumption (A)] which led to a drop in the price of coal. This meant not only that more people could afford coal, but also that coal was now economically viable for new uses, which ultimately greatly [increased coal consumption (B)], which has led/will ultimately lead to a decreased supply of coal as the resource was/is being exhausted, and then finally [decreased consumption (C)] or even no consumption as the resource will have ["disappeared" (D)].

In yours and Jevon’s arguments, you stop at point B and say, “See, I told you increased efficiency increases consumption!” But why not stop at points A, C, or D—the points at which consumption decreased or will likely ultimately decrease? IMO, you likely have a bias at stopping at B because you already seem to believe that your unproven premise efficiency-increases-consumption is always or at least often “true” just as a person with the opposite bias might stop at A or C and say, "See, I told you efficiency decreases consumption!" But all those points might be valid stopping points, and yet invalid depending.

Let me postulate "Idea 1": Along a chain or cycle or pathway of events, one could probably stop at various points without going further in either direction and one could probably make a decent argument for stopping at those points, if they are indeed actual points to be stopped at. That would, however, likely not illustrate the whole picture, so stopping like that is probably not a very accurate thing to do, especially if one wants to make a firm predictive statement involving the whole pathway and yet only focuses on part of that pathway.

The engine/coal pathway I expanded above could also not reach D (at least not so early), but could keep going back and forth based on repeated changes in supply and demand, till an ultimate point X or whatever. There could be more points of increased and decreased consumption added along that path. But Idea 1 would probably still apply.

Note that I haven’t "proved" Idea 1 is universally "true," I just stated it because I think it’s prudent to recognize the potential willy-nillyness of choosing convenient data points that suit a particular argument and ignoring the data points that might not suit that particular argument. I think this is an illustration of the fallacy in using “positive confirmation.”

As I’ve tried to show in previous posts, I think it's likely that increased efficiency can decrease and increase consumption at varying times and to varying degrees and in varying ways, depending on how one looks at the whole consumption process, and depending on the specific nature of the process and goods in question. Again, note that those two quoted sentences above about increased engine efficiency driving coal prices lower include both INCREASED and DECREASED coal consumptions as effects along that linear pathway. Are all data points equally important to stop at, are some more important than others, do some have no importance or relatively little importance? Again, that likely depends on what you’re specifically trying to figure out and show, but they are all still a part of the full picture.

One probably shouldn’t “absolutely” say and/or assume “increased efficiency will increase consumption” because while that might have been and might be true in some situations at some specific points in time (like the engine/coal example above possibly), it’s only one part of the “truth.” It’s likely not the whole truth.

Fran (who woke up with a headache today, ugghh....)
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Unread postby Pops » Sun 13 Jun 2004, 15:58:22

I don’t think I’ve been in on the Jevon conversation in a while, but I think Fran made the point; over time demand and supply remain balanced until the resource is gone. The gains by the increased efficiency in the engine were offset by the following increased usage, netting (insert wild guess here) zero savings in the resource.

I think ultimately any species will expand to the limits of its available resources regardless of adaptation, or in our case, innovation.
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Unread postby Aaron » Sun 13 Jun 2004, 17:06:04

I think you're right about where on a time line you stop determining what any perceived result is.

But at the end of the day, (lol figuratively & literally), where you are at that moment defines what's most important to you individually as an observer.

Perhaps we should say that because of, or in spite of, conservation and efficiency efforts, the global economy has grown for 60 years plus.

I had hinged my (Jevon's) argument on conservation causing economic growth, but even it it causes the economy to radically shrink, that is not what has occurred in reality. Perhaps it makes no difference at all in economic patterns, and in the end it's simply a wash? The world economy will grow without being affected by the way we use our energy... but I don't think so.

Tracking individual changes does become tail chasing at some point, since as you said, it depends on when you measure the effect. Many variables will influence economic growth or shrinkage over time.

But if I accept that lower energy cost at least promotes conditions which are conducive to the growth of economies, like the development of some new sustainable energy source appearing on the market, then I must also accept that if conservation makes fuel cheaper through supply & demand, the same argument holds true, and growth conditions are accelerated.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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