Here are some interesting stories on green tech competition that have popped up while we were gone:
From the Daily Telegraph in the UK – China powers ahead as it seizes the green energy crown from Europe:
China is running away with the green technology prize. It has conquered a third of the world market for solar cells and is on a breakneck course to build 100 gigawatts of wind turbines by 2020, doubling again the global capacity for wind power across vast stretches of Inner Mongolia and Xinjiang.
. . .
German pioneers Solarworld and Conergy allege foul play and have called for EU sanctions, accusing Chinese rivals of practices that “border on dumping”. China’s finance ministry says it intends to cover half the investment cost of solar projects. It is a life-and-death moment for the German solar industry, pioneers who provide 75,000 jobs and once led the world. “A large number of German solar cell and solar module producers will not survive,” said UBS’s Patrick Hummel.
From the New York Times – China Outdoes U.S. in Making Solar Products
Backed by lavish government support, the Chinese are preparing to build plants to assemble their products in the United States to bypass protectionist legislation. As Japanese automakers did decades ago, Chinese solar companies are encouraging their United States executives to join industry trade groups to tamp down anti-Chinese sentiment before it takes root.
The Obama administration is determined to help the American industry. The energy and Treasury departments announced this month that they would give $2.3 billion in tax credits to clean energy equipment manufacturers. But even in the solar industry, many worry that Western companies may have fragile prospects when competing with Chinese companies that have cheap loans, electricity and labor, paying recent college graduates in engineering $7,000 a year.
Then there is this story from Gizmag on how a new technology being developed at the University of Texas, Austin that may make all current solar tech obsolete — Plan to turn rooftops, walls and windows into cheap solar cells:
Cheaper solar cells – roughly one-tenth the cost of current day prices – could be available within three to five years thanks to a manufacturing procedure that uses nanoparticle ‘inks’ to print them like newspaper or to spray-paint them onto the sides of buildings or rooftops. Even windows could become solar cells thanks to the semi-transparent inks.
Let’s see, 3 to 5 years puts it at about the same point at which the Chinese solar companies say they will be at “grid parity” with fossil fuels. Could be interesting.
Following the coverage of Senator Kennedy’s funeral over the weekend, I am struck by one overwhelming impression: that of the best and worst of human nature. The stories told at Friday’s remembrance celebration of the Senator’s graciousness, love of life and friendships with even his political opponents were outrageously funny and illustrated the life he lived.
Yet the comment sections of much of the coverage seems full of the haters — small minded, malicious, petty people who seem to only interested in venting their own little prejudices for all the world to see. It is almost as if these angry people are compelled to try to bring the rest of the world down to their level to justify their lives. This, of course, is the much discussed dark side of the information era – where IT amplifies the ability individuals to make vicious comments anonymously of course as they know what they say would reflect negatively on them.
Teddy Kennedy, Jr. said yesterday, “He was not perfect, but my father believed in redemption.” The haters apparently don’t. Too bad for them.
A few months ago, an elderly neighbor of mine passed away. It did not know him all that well, but was touched by his sparkle, humor and graciousness. At his memorial service I learned of the full and rich life he lived. He was not a “great” man in the sense that historians use that word. But he had “a life well lived,” to quote how his children summed it up.
There are those who live their lives in bitterness and anger–whose hate seems to be their guiding passion. Then there are those who strive for “the better side of our nature.” Those we rightfully label as having a big heart. My neighbor was one of those, as was Teddy Kennedy.
So let the haters flame on. As they stand in contrast to those with big hearts, they are just proving my point. And giving us one more reason to treasure the memory of people like Teddy Kennedy.
The Intangible Economy returns to its economic topics tomorrow.
The lion of the Senate passed away last night – it is truly the end of an era.
To quote from Senator Kennedy’s Senate website:
“For all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives and the dream shall never die.”
As the dog days of summer continue their hot and hazy passage across the calendar, the Intangible Economy is off to enjoy that most intangible of pleasures: time at the beach. See you
after Labor Day at the end of the month.
Over the past couple of months we have been bombarded by articles, essays, commentary, books and book reviews on how economists (and others) missed the economic collapse (too numerous for me to even begin to describe). One of the subtexts of this discussion is how what we all thought would cause the collapse didn’t. The standard scenario has always been that the international financial imbalances – as evidenced by our huge current account deficit – would cause a dramatic decline in the dollar as the world decided that deficit were no longer sustainable.
Even though the international imbalanced did not directly trigger the Great Recession, it remains a concern. With the collapse of trade, some are expressing tentative hopes that the current account problem is being lessened. So here is the real question – will the trade deficit remain at its relatively current low levels? Or will any revival of consumer spending and production return us to the deficits of the past decade? The latest trade figures engendered comments on both sides of that issue (see for example the recent commentary on the June trade figures.) Some argue that the stimulus activity in China is simply adding to worldwide excess capacity and will worsen the imbalances as the recovery takes hold. Mike Mandel points out that the non-petroleum goods deficit is declining and holds out some hope.
Here are the numbers. As the Figure 1 below shows, the total goods deficit peaking in July of last year and has since decreased dramatically. (This is a monthly updated chart of a chart of annual data published earlier).
As this figure shows, even with the dramatic change in the goods deficit, it is still about three times larger than the intangibles surplus. The Great Recession has simply returned the goods trade deficit to where it was at the beginning of the decade.
What about the oil story? The good news is true: the non-petroleum goods deficit has been steadily declining. As Figure 2 shows, so is the petroleum deficit.
However, as figure 3 shows, the size of the intangibles surplus is still smaller than either the petroleum or the non-petroleum goods deficits. And as the data shows, the level of the intangibles surplus has been basically flat for some time. Our imports of intangibles grew faster than our exports in 7 of the last 10 years.
Thus, if we are to return to balance, we either have to eliminate our goods deficit, eliminate our oil imports or cut each of those by more than half compared to today’s depressed levels. Reducing the goods deficits will require a revival of domestic manufacturing, which is likely to increase energy imports to power that manufacturing. And, it is unclear whether domestic manufacturing has been gaining market share during the Great Recession.
So in the absence of a strong policy push on both energy and manufacturing (which even may not be enough), look for the trade imbalances to continue. Even the recent withering of trade has not been enough to bring about the dramatic correction everyone still fears.
Here is an item from today’s Wall Street Journal’s Washington Wire section Lobby Groups to Use Town Hall Tactics to Oppose Climate Bill
Taking a cue from angry protests against the Obama Administration’s health care restructuring, the oil industry is helping organize anti-climate bill rallies around the nation.
The American Petroleum Institute, along with other organizations such as the National Association of Manufacturers opposed to the climate legislation Congress will consider again in the fall, is funding rallies across 20 states over the August recess.
In political circles, ginned up opposition is called AstroTurfing–meaning artificial grassroots. Looks like the practice has hit a new high (or low, as some might put it).
Just one more reminder that politics is a contact (some might say blood) sport.
As expected, the US trade deficit grew in June according to this morning’s data from BEA. Exports increased by $2.4 billion while imports were up even more at a $3.5 billion increase. As a result, the monthly trade deficit rose from $26 billion in May to $27 billion in June. The deficit was not as big as some feared, however. As the Wall Street Journal reports, “Economists surveyed by Dow Jones Newswires had estimated a $28.7 billion shortfall.” Rising oil prices were the cause of much of the increase. Interestingly imports of consumer goods continued to decline. Automotive imports increased.
On the positive side, our surplus in intangibles increased ever so slightly in June–by $55 million. Once again, exports and imports of private business services were up while both inflows (exports) and outflows (imports) of royalty payments were down. As I noted last month, the intangibles trade surplus has been essentially flat for the quite some time.
Our deficit in Advanced Technology Products worsened however. The deficit grew by over $1 billion in June to $4.6 billion as imports of information and communications technologies and opto-electronics rose. Again, this increase may be due to (and a sign of) a recovering economy. The last monthly surplus in Advanced Technology Products was in June 2002 and the last sustained series of monthly surpluses were in the first half of 2001.
Note: we define trade in intangibles as the sum of “royalties and license fees” and “other private services”. The BEA/Census Bureau definitions of those categories are as follows:
Royalties and License Fees – Transactions with foreign residents involving intangible assets and proprietary rights, such as the use of patents, techniques, processes, formulas, designs, know-how, trademarks, copyrights, franchises, and manufacturing rights. The term “royalties” generally refers to payments for the utilization of copyrights or trademarks, and the term “license fees” generally refers to payments for the use of patents or industrial processes.
Other Private Services – Transactions with affiliated foreigners, for which no identification by type is available, and of transactions with unaffiliated foreigners. (The term “affiliated” refers to a direct investment relationship, which exists when a U.S. person has ownership or control, directly or indirectly, of 10 percent or more of a foreign business enterprise’s voting securities or the equivalent, or when a foreign person has a similar interest in a U.S. enterprise.) Transactions with unaffiliated foreigners consist of education services; financial services (includes commissions and other transactions fees associated with the purchase and sale of securities and noninterest income of banks, and excludes investment income); insurance services; telecommunications services (includes transmission services and value-added services); and business, professional, and technical services. Included in the last group are advertising services; computer and data processing services; database and other information services; research, development, and testing services; management, consulting, and public relations services; legal services; construction, engineering, architectural, and mining services; industrial engineering services; installation, maintenance, and repair of equipment; and other services, including medical services and film and tape rentals.