Wednesday, June 26, 2013

Obama's Second Term Climate Resurrection

I watched Obama's climate speech last night with my parents, sisters, and grandparents yesterday in Seattle. We all huddled in rapt attention, analyzing everything the president said and hoping to glean some insight about what we can expect.

Overall, I give the president an A on rhetoric, and a B+ on substance. He did just about everything he could feasibly do using executive authority. Of course, he should have done it all 3 years ago immediately after the failure of the Kerry-Boxer / Kerry-Graham-Liberman bills in the senate.  And, to get the A on substance, he would have had to have explicitly pledged to meet the 17% Copenhagen commitment that we made to the world, and put in place regulation in all industries (not just power) to meet that. The Supreme Court says he has the authority. Yes, I keep the bar high.

Heather Zichal of the White House has a great post debunking anti-science myths that I couldn't resist reposting is here:

The President’s Plan to Reduce Carbon Pollution: Myths v. Reality

Yesterday, at Georgetown University, President Obama laid out his Administration’s broad-based plan to cut carbon pollution and meet the climate change challenge.

It’s a plan that starts with responsibility. While no single step can reverse the effects of climate change, President Obama believes we have a moral obligation to future generations to do what we can.  After all, this is no longer a distant threat – we are already feeling the impacts now.
The 12 hottest years on record have all come in the last 15 years. Asthma rates have doubled in the past 30 years and our children will suffer more asthma attacks as air pollution gets worse. And increasing floods, heat waves, and droughts have taken a toll on our nation’s farmers, which is raising food prices. These changes come with far-reaching consequences and real economic costs. Last year alone, there were more than 11 different weather and climate disaster events with estimated losses exceeding $1 billion each across the United States.

During President Obama’s first term, we took a number of important steps to reduce carbon pollution and spark innovation in cleaner forms of energy. For example, we doubled our use of renewable electricity from wind, solar, and geothermal sources and set the toughest fuel efficiency standards in American history. Thanks in part to these actions, in 2012, U.S. carbon pollution from the energy sector fell to the lowest level in nearly 20 years. To build on this progress, the President’s Climate Action Plan has three pillars: cut carbon pollution in America; prepare the United States for climate impacts; and lead international efforts to combat global climate change.

Now, we’re already seeing many Republicans and some of the nation’s biggest polluters attack the President’s plan. And they’re recycling the same tired and empty arguments that we’ve heard time and time again. To separate fact from fiction, let’s dig a little deeper and compare their rhetoric with the reality.

Claim #1:

Reducing carbon pollution will hurt the economy and cost jobs.

FACT:

Over the last three decades, we have reduced carbon pollutants by more than half and have doubled economic growth.
 
Our own history shows us that we can protect our environment, reduce harmful pollution, and promote economic growth all at the same time. And the numbers speak for themselves: between 1970 and 2011, aggregate emissions of common air pollutants dropped 68 percent, while the U.S. gross domestic product grew 212 percent. Private sector jobs increased by 88 percent during the same period.

What’s even worse about this claim is that it suggests a lack of faith in American businesses to innovate. When we banned cancer-causing chemicals in our toys, and leaded fuel in our cars, it didn’t end the plastics industry or the oil industry; American chemists came up with better, cheaper substitutes.  When we phased out chlorofluorocarbons – the gases that depleted the ozone layer – it didn’t kill off refrigerators and air conditioners; American workers built better ones.

The bottom line is that we don’t have to choose between the health of our children and the health of our economy. Those goals go hand in hand. And by taking action to reduce carbon pollution, we can spark new jobs and industries building cleaner and more efficient American-made energy technologies.

Claim #2:

Regulating carbon pollution will increase energy bills for consumers.

FACT:

Utility industry leaders say they can reduce carbon pollution without raising bills.
 
We know how to use the tools of the Clean Air Act in a way that reduces pollution and protects American families and businesses.

For example, when the President announced historic fuel economy standards, the critics said cars would get smaller, more expensive for consumers, and hurt sales. They were wrong. Today, car sales are at multi-year highs, people are already saving money at the pump thanks to greater efficiency, and we’ve preserved consumer choice. In March, EPA released a new report which showed that, compared to just five years ago , Americans have twice as many hybrid and diesel vehicle choices, a growing set of plug-in electric vehicles, and six times as many vehicle choices with fuel economy of 30 mpg or higher.

When it comes to the power sector, the utility industry itself admits that they can reduce carbon pollution without raising bills. Moreover, to protect consumers, the President directed the EPA to develop standards in an open and transparent way, provide flexibility to different states with different needs, and build on the leadership that many states, cities, and companies have already shown.  And that’s exactly what they’ll do. Separately, the Administration will also continue efforts to make household appliances more efficient, savings consumers hundreds of billions on utility bills through 2030.

At the same time, renewable energy has never been more affordable. It’s not only creating good jobs across the country, it’s providing clean, safe, and secure power to millions. And as costs continued to fall, both the wind and solar industries had their best year ever in America in 2012. Today, nine states get more than 10 percent of their electricity from wind and two of those – Iowa and South Dakota – get more than 20 percent. These trends just wouldn’t be happening if clean energy weren’t competitive and cost-effective for consumers.

Claim #3:

The Administration is waging a war on coal.

FACT:

President Obama has invested more in clean coal technology than any other Administration in history.
 
The President believes that America must take a leadership role in developing and manufacturing technologies that allow us to burn coal more cleanly and efficiently. Achieving that goal will also boost our economy, promote public health, and position the United States as the leader in the global clean energy race. That’s why President Obama has invested nearly $6 billion in clean coal technology and research and development – the largest such investment in U.S. history. And as part of the President’s Climate Action plan, he announced yesterday that the Administration will make up to $8 billion in loan guarantee authority available for a wide array of advanced fossil energy and efficiency projects to support investments in innovative technologies.

Cutting carbon pollution will help modernize our coal power plants. It will help spark innovation to create new clean energy technologies and it will put Americans to work with good jobs that can’t be shipped overseas making our power plants more efficient, which will save families money.

Claim #4:

President Obama won’t work with Congress.

False.

Each year President Obama has been in office, he asked Congress to come up with a common-sense, market-based solution to reduce carbon pollution and speed the transition to cleaner sources of energy. And he’s still willing to work with anyone in Congress to make that happen. But as he said in his State of the Union Address, if Congress didn’t act soon, his Administration would because this challenge demands our attention now.
 
The plan the President released yesterday followed through on that commitment. For the sake of future generations we cannot delay efforts to reduce carbon pollution and prepare the country for a changing climate. We cannot afford to lose the clean energy race and the new jobs and industries that come with it. And we cannot miss the opportunity to engage the world and catalyze action to tackle this challenge.

The fact is that there is a lot of money to be made by the companies who best-position themselves for the new energy economy to which we are already transitioning (recall: in the past 4 years we've doubled renewable energy without hardly a single new coal plant... ford and Chevy both have plug in electric hybrids on the market and Nissan has an all-electric). So we are in the middle of this. Kudos for Obama and his speechwriters for telling it like it is.

Wednesday, April 3, 2013

10 Rules for Entrepreneurship Ecosystems from Babson

Someone over at Babson College Entrepreneurship Center (cutely called, BEEP), has the right idea about entrepreneurship ecosystems. Here are their 10 rules (reprinted) for entrepreneurship ecosystems. A lot of wisdom here, I'll have to return to this to comment in more depth.
  1. Stop emulating Silicon Valley! Even Silicon Valley could not create itself today if it were starting from scratch. Give up on thoughts of a “knowledge-based society” or “the information economy.” You don’t need to tell entrepreneurs that they need to use Internet and mobile technologies anymore than you need to tell them to use water or electricity.
  2. Tailor an ecosystem around your own particular characteristics. Sustainable entrepreneurship is the result of numerous forces working together, which we call the entrepreneurship ecosystem. Each region has a unique ecosystem with more than a dozen elements.  Are there large companies that are used to interacting with small, innovative suppliers? Are there markets close by? Is the human capital technical in orientation? Does the culture support risk taking and innovative, contrarian thinking? Is leadership overtly and clearly supportive of entrepreneurship?  You need to understand all of them, and how they can be strengthened and aligned.
  3. Engage the entrepreneurship stakeholders early on. Entrepreneurship is about engagement and empowerment. Stakeholders should be engaged early in the process. This includes the various segments of the private sector, educational leaders, community leaders, government officials, entrepreneurship development organizations, leaders of diaspora networks, university officials, investors and lenders, and so on. In some communities the cooperatives, unions, and even religious organizations are influential. There are many ways to engage, but ongoing, sincere, open dialog is the most important starting point.
  4. Support the high potential entrepreneurs. Although entrepreneurship is inclusive, to jumpstart an entrepreneurship ecosystem, the most impactful sector to influence is the high ambition, growth oriented, market-seeking ventures. These create the jobs, the dynamism and vitality, and the growth.
  5. Get some visible successes, even by “brute force” if necessary. Success breeds success. Endeavor [LINK TO http://www.endeavor.org/ ] has built its entire strategy around this principle, finding and nurturing “high impact entrepreneurs.” This happens because: (a) successful entrepreneurs like to help other entrepreneurs; (b) successful entrepreneurs become angel investors; (c) successful entrepreneurs make excellent board members; (d) success inspires latent-entrepreneurs to take the leap; and, (e) successful entrepreneurs become powerful voices for governmental reform. According to the law of small numbers: it only takes a few successes to change the entire game. But when you see some successes on the horizon, make sure you celebrate them! Give a medal, an award, make them visible.
  6. Change the culture head on. Many leaders believe that this takes generations, and although much societal change is long term, there are certain social norms that can be changed in a few years: it is possible to increase tolerance for risk, the legitimacy (even nobility) of launching your own business, acceptance for honest failure. Media campaigns, annual events, and awards all help. Just think if you ran an entrepreneurship campaign as seriously as your own campaign for re-election?
  7. Stress the roots: don’t provide easy money. Early stage capital is always scarce, everywhere. But moving to the opposite extreme is equally disastrous. Provide funding, but insist that the entrepreneur bring in a matching investor. Keep the funding off the ventures’ balance sheets. Make sure the funds are not equity: government has no business selecting and nurturing winners. Directly incentivize the financial intermediaries, not the ventures themselves: make it easier for banks, private equity, angel investors, family businesses, and leasing companies to invest in the ventures themselves. Don’t be an evergreen financer: figure out a way to start the private financing markets, and get out, or focus on the highest risk areas.
  8. Pave the footpath. Don’t push clusters too hard. Every government now has a cluster strategy and thinks that will get entrepreneurship going, but success is elusive and rare. Clusters don’t create entrepreneurs. Entrepreneurs create clusters. Mike Porter said that in 1999, only no one listened. Watch where the entrepreneurs are walking, and then pave the footpath. Remember, entrepreneurship is inherently a contrarian activity, so wherever you decide they should be, the good entrepreneurs will always be figuring out how to do something else, do it differently, and do it better. Identify, watch, encourage, support.
  9. Remove bureaucratic obstacles for entrepreneurs. Eliminate roadblocks and red tape through consolidation and streamlining. Redeploy the dozens or hundreds of clerks whose seats depend on their ability to slow everything down. Have permitting “bootcamps” to free up log jams. Make regulations transparent and provide tools for entrepreneurs to address them. Get rid of outmoded obstacles to redeploying people–support and retrain the unemployed rather than preventing their firing. Make sure tax collections are rigorous, fair, but entrepreneur-friendly. As a government purchaser, buy from small suppliers, but make sure you pay on time: nothing is as demotivating as doing a good job as a new company, and waiting three months to get paid: this is absolutely unforgivable and has a huge dampening effect on entrepreneurship.
  10. Experiment relentlessly and holistically. You can learn from what others have done around the world, but you have to experiment based on your own reality. Focus initially on short run experiments, small scale funding, short courses, and small numbers of entrepreneurs. Develop a norm of reflecting and learning from mistakes as well as successes. But don’t expect piecemeal action to work: you need to move different elements of the ecosystem simultaneously. To use a simple example, creating private equity will be self-defeating if there is no high potential deal flow for investors to invest in, and ways for them to realize (“exit”) their investment.

Saturday, March 30, 2013

"On faking it till you make it"

An interesting article in BI on faking it till you make it. it seems that social science is pretty clear. Though there is less agreement in literature:

"As Nathaniel Hawthorne wrote in The Scarlet Letter:

'No man, for any considerable period, can wear one face to himself, and another to the multitude, without finally getting bewildered as to which may be the true.'

But, to counter, the main theme of “Don Quixote” was:

'If you want to be a knight, act like a knight.'"

Perhaps both are true, to a degree. In fact, they may actually be getting at the same thing.

Wednesday, March 13, 2013

Corporate America should put value before profit

A great synopsis of what's wrong with our corporate system:

www.businessinsider.com/companies-focus-on-value-not-profit-2013-3

...Now, if we could only start talking about how to fix it.