By Dave Pollard

How Our Energy, Economic and Ecological Systems are Connected: Feedback loops, the Jevons Paradox, and the three End Games

This is the first of three articles on understanding complexity, and how our energy, economic and ecological systems, like unruly children, tend to defy our attempts to change them.

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It’s called the Jevons Paradox. It explains why increases in the efficiency of resource-consuming technologies tend to lead to an increase, rather than a decrease, in resource use. So, for example, it would explain that drivers of hybrid cars, rather than banking the savings on gasoline their vehicles provide, because of reductions in both cost and guilt, instead drive them further, sometimes even to the point they use more gasoline than they would have if they owned a non-hybrid.

In a broader sense, the Jevons Paradox is a way of explaining a puzzling behaviour of many complex systems. In essence, because we humans don’t really like to change, we will tend to ‘work around’ interventions in a system that were designed to bring about some desired change, so that the status quo of the system is maintained.

So, for example, Malcolm Gladwell’s research has discovered that you are actually safer driving in a convertible than in an SUV, because drivers of convertibles know the dangers of an accident and compensate by more careful and attentive driving, while SUV drivers, in the (mostly false) belief that their risk of being in an accident is much lower, tend to drive more aggressively and less attentively, so they have significantly more accidents per mile and in total face more injuries and deaths per mile. (Don’t try to sell this logic to your insurance company, however.)

In addition, there are Jevons Paradoxes inherent in complex systems that lead to undesired results that have nothing to do with deliberate human behaviour at all. For example, if we put a ‘carbon tax’ on fuels in the hope of reducing consumption and encouraging conservation, we may find that the reduced consumption will temporarily lower prices (as a result of lowered demand). But those lower prices will enable drivers to buy more gasoline for the same outlay, so they will fill their tanks more often — until that increased demand enables the gasoline vendors to raise their prices, completing the cycle.

And when the vendors can increase their prices, they can also economically justify exploring for and developing more costly, marginal hydrocarbon resources (fracking, deepwater oil, shale oil, tar sands). That increased supply starts another cycle, since more supply relative to demand tends to lower prices until the new supply can be fully sold. It’s all a delicate balance.

That is, until affordable oil – and other resources – run out entirely. The energy industry is fond of telling us there is centuries’ worth of potentially extractable hydrocarbons in the ground. But with the cost of extraction getting ever higher, and the life of each new find getting ever shorter, the amount that can be extracted at a price consumers can afford is finite; and when it is used up we reach what Derrick Jensen calls End Game.

This is where complex systems, because they’re interrelated, get especially tricky to explain. What exactly is ‘a price consumers can afford’? This depends on our economic system, not our energy and resource systems. That system, as I will explain in Part Two of this series, is hurtling towards its own End Game. But the bottom line is that, as we come to realize that our unsustainable industrial growth economy is already hugely overextended (the debts we have incurred could only ever be repaid if we lived on a planet of infinite wealth and resources), the entire Ponzi scheme of our markets will collapse, and what ‘consumers can afford’ will plummet. End Game.

And all of this economic activity and resource development has pushed atmospheric CO₂ and other global warming gases past what many climate scientists believe is the tipping point, so that ‘runaway’ climate change, and with it, massive droughts, desertification, fires, storms, water scarcity, species extinction, pandemics, infrastructure destruction and sea level rise are now, they say, inevitable in this century – a third End Game. (more about this system in Part Three of this series).

The very busy diagram, A Complex Predicament, attempts to capture the most essential variables in these three systems – energy and resources, economy, and climate/ecology – the three End Games that provide us with no further possibility for intervention could well precipitate the end of our current globalized human civilization. It’s an expanded version of a chart in Transition Movement founder Rob Hopkins’ and Post Carbon Institute Executive Director Asher Miller’s excellent paper Climate After Growth.

It shows some of the major self-reinforcing and self-sustaining ‘feedback loops’ (e.g. how a destabilized climate characterized by rapid polar and glacial melting leads to increased methane release which in turn leads to more destabilized climate and more melting, with ‘runaway’ climate change as the result). It also shows the balancing ‘feedback loops’ that currently keep our energy/resource, economic and climate/ecological systems in ‘net stasis’ – not appreciably changing – for now.

But because of the three End Games, this stasis is not sustainable. We will, sooner or later, run out of economically affordable resources. Or we will run out of faith in the possibility of perpetual economic growth. Or we will face the realities of runaway climate change. All systems collapse when they fall out of stasis, and all civilizations end. The question is no longer how or whether we can prevent one or any of these End Games. It is, now, how do we prepare for the consequences of any or all three as we enter the decades James Kunstler has called The Long Emergency, and how can we gauge whichever of the three is going to hit us first, and hardest?

And, once collapse comes, how can we learn from this astonishing life experience – from being at this pivotal point in human evolution – so that those living after the fall will be able to create sustainable, joyful societies (probably very localised, small scale societies that will, because they will be adapted to place, seem amazingly diverse to those of us living in our current homogeneous global human culture)? And how can we help our descendants draw upon the best of pre-civilization (‘prehistoric’, since in our arrogance we presume that history only began with our civilization) ways of living, and also on the lessons of (civilization’s) history and the scientific and technological learning of today’s world, to create future human societies better than we could dream of?

But back to our complex energy/resource system chart: what this diagram explains is the futility of us trying to intervene politically or economically to bring about significant, sustained changes in the systems pushing us inexorably to the End Games. Carbon taxes, energy conservation and innovation, protests and blockades of dirty energy and resource exploitation are admirable and necessary, but they cannot hope to fundamentally change the status quo which will ultimately take us to resource exhaustion. Our entire civilization depends upon the ready availability of cheap resources that enable us to feed 7.5 billion humans today, and by mid-century 9.5 billion or more, most of whom will want to live, and hence consume resources, as we do today. If we run out – when we run out – we will find that such a horde cannot live on what we can produce with the energy of our hands and that of domesticated animals. (The average human can produce about 0.1 horsepower of energy in sustained manual labour; a car requires 150 hp or so, a train 4,000 hp per engine, an airplane 60,000 hp, a cargo ship 100,000 hp, a power plant 3,000,000 hp.)

I would like to believe, as Donella Meadows so eloquently explained in her Places to Intervene in a System paper, that a transformational human evolution, a way of fundamentally changing our whole global way of thinking and acting, our whole paradigm, is possible. As a student of history I don’t believe such changes happen, however, at least not on a large scale, persistently or quickly. But even if I did believe, I would want to understand what we are facing if we are not successful in such a transformation, and how we might prepare for it.

I believe the key to doing that – to understanding what we are facing and what is possible – is through the use of story. That is how we have always learned and come to understand these things. I believe it is never too early to start to study and learn from the stories of previous civilizational and economic collapses – Ronald Wright’s A Short History of Progress, Jared Diamond’s Collapse, and Pierre Berton’s The Great Depression are excellent starting points for this. And I believe it is the right time to start to write the story of the unfolding collapse of our current energy/resource, economic and climate/ecological systems, and hence the collapse, over the next few decades, of our own fragile civilization. Not as a story of apocalypse – the Mad Max scenario may make good cinema but a study of human history suggests it’s highly unlikely, and that collapse will occur more gradually and unevenly than we might expect, and our collective response to it will be gentler and more generous than we might imagine. We could probably learn much, too, from the homeless in our own communities, and from the people in the massive, sprawling slums of the third world, who are already living in cultures of collapse.

Through an understanding of how the complex systems of our world really work and how change happens, and through an appreciation of history and the telling of stories, I think we can move past denial and blame and start to move towards preparation for the future. A future that will be unstable and unpredictable and much different from how many of us in affluent nations live today, but also exciting and satisfying and engaging and meaningful in a way our current culture does not provide. And that work can make us collectively resilient – not in the sense of ‘bouncing back’ to an unsustainable style of life, but in the sense of moving forward, courageously and joyfully, to a re-localized, communitarian style of life that is sustainable.

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In Part Two I will explore the complexities of our economic systems and explain why, although it won’t ‘save’ civilization, the dismantling or crumbling of our current industrial growth economy, sooner rather than later, could well lessen the hardship and suffering of the collapse we and our descendants are likely to face. And I’ll look at several different scenarios of how, and in what order, some or all of the three End Games might come to pass.

In Part Three I will explore the complexity of climate change, ecological collapse and the unfolding Sixth Great Extinction of most life on Earth, and how we might prepare for that by co-creating stories of a near-future world as much warmer than our planet is today as it was colder at the coldest point in the Ice Ages of Earth’s recent past. And by co-creating stories of the life that’s possible for our species a few millennia (not a long time, really) into the future, we may rediscover what our species was meant to be before we lost our way.