Austerity Empowering Your Bottomline Shane Williams, M.S. Candidate

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This is a presentation I did for my Master\'s thesis defense, in which I discussed how countries could help reduce the risk or need for austerity measures by focusing on implementing a comprehensive energy plan nationwide.

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Austerity Empowering Your Bottomline Shane Williams, M.S. Candidate

  1. 1. Austerity: Empowering Your Bottomline Shane Randel Williams,International Studies: International Business and Economic Relations, M.S. Candidate
  2. 2. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  3. 3. Austerity : Empowering Your BottomlineAusterity is a measure that invokes extreme economicsituations, as in significant cuts to budgets, benefitsand services. Benefit Cuts Service Budget Cuts Cuts Austerity
  4. 4. Austerity : Empowering Your Bottomline Austerity Examples Entities such as the IMF, UN and other international organizations often haveBailout Money financial assistance for countries in economic distress. Many public sector employees often face Pay Cuts significant pay cuts (5-15%) and furloughs Often times across the board budget cutsBudget Cuts are put in place for governments and other times more precise cuts are made Many governments often trim down toService Cuts essential services and reduce other services to a bare minimum
  5. 5. Austerity : Empowering Your Bottomline Significant Historical Austerity MeasuresArgentina 1952Brazil 1953, 1983, 1998-1999Canada 1997, 1984, 2011Chile 1968-1986China 1989, 1993Cuba 1991Czech Republic 2010Egypt 1949-1958, 1985France 1968-1970, 1983, 1993Germany 2011Greece 2010-2011India 1992, 2008-2009Ireland 2010Israel 1949-1959Italy 2010Japan 2010Latvia 2009Mexico 1985Netherlands 1982-1990, 2003-2006, 2011Nicaragua 1997Nigeria 1993-1998Palestinian Authority 2006Portugal 2010-2011Romania 2010Saudi Arabia 1988, 1991, 1999South Africa 1948, 1983-1985Spain 1979 2010United Kingdom 1939-1954
  6. 6. Austerity : Empowering Your Bottomline
  7. 7. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  8. 8. Austerity : Empowering Your Bottomline Overview of Green/Environmental Movement TimelineMarch 1872 Yellow Stone National ParkMay 1892 Foundation of the Sierra ClubMarch 1954 Lucky Dragon 5September 1962 Silent Spring is publishedMarch 1967 Torrey Canyon runs aground in EnglandJanuary 1969 Union Oil Co. platform blows outSeptember 1969 Sen. Gaylord Announces Earth DayApril 1970 First Earth Day Celebrated 1971 Minamata Mercury Poisoning CaseOctober 1972 Clean Water Act is PassedOctober 1978 US Bans CFCsMarch 1979 Three Mile Island accidentSeptember 1979 Jane Fonda & Ralph Nader speak at demonstration in NYCMay 1980 President Carter announces Love Canal toxic waste exposureNovember 1980 Superfund legislation passed in reaction to Love Canal 1983 Triana, Alabama residents win lawsuit over DDTApril 1986 Chernobyl Nuclear Reactor explodesNovember 1988 Ocean Dumping BanMarch 1989 Exxon Valdez SpillNovember 1990 Pollution Prevention ActJune 1992 Earth Summit in Rio de JaneiroJune 1994 Brownfields ProgramOctober 2006 Clean Diesel 2009 Chernobyl: Consequences of the catastrophe for people and the Environment publishedApril 2010 40th Anniversary of Earth Day
  9. 9. Austerity : Empowering Your BottomlineDeregulation of Energy Markets Decreased EnergyManagement Energy Costs Efficiency
  10. 10. Austerity : Empowering Your Bottomline Changes in Energy Brought about by the Green Movement & Environmentalism Increased awareness of energy being finite Increased awareness that there are negative impacts of unregulated energy use Alternative sources and uses of energy Efficiency became an achievement Deregulation Technology Best Practices Increased competition Cheaper versions Impact Awareness Hold utilties accountable New technology Lean and Green Improvements demanded Applications changed Timing Advanced modeling Environmental Awareness
  11. 11. Austerity : Empowering Your BottomlineEnergy Cost is not fixed
  12. 12. Austerity : Empowering Your BottomlineRGYNGS Energy Cost is not fixed 1. Once one energy measure has taken place, savings from the measure can pay for the next measure, and so on. 2. Initial capital is not needed when the low- hanging fruit are taken care of and those savings are used to fund the next set of energy measures.
  13. 13. Austerity : Empowering Your Bottomline2(2011). Navigating Energy Management: a Roadmap for Business. The Conference Board and U.S. Environmental ProtectionAgency. Washington, D.C. http://www.energystar.gov/index.cfm?c=guidelines.roadmap
  14. 14. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  15. 15. Austerity : Empowering Your Bottomline Size of Current Debt (USD$) Size of Current GDP (USD$) United States $9,131,809,400,000 $14,660,000,000,000 Canada $1,322,202,840,000 $1,538,000,000,000 Brazil $1,270,910,912,000 $2,090,000,000,000 Chile $1,113,200,000 $203,300,000,000 Egypt $2,157,300,000 $218,500,000,000 Saudi Arabia $75,871,161,000 $443,700,000,000 Nigeria $154,700,000 $216,800,000,000 South Africa $115,394,657,000 $357,300,000,000 Greece $436,132,620,000 $305,400,000,000 Germany $2,758,614,976,000 $3,316,000,000,000 France $2,128,002,248,000 $2,583,000,000,000 United Kingdom $1,710,313,255,000 $2,247,000,000,000 Russia $131,857,110,000 $1,465,000,000,000 Japan $10,781,272,200,000 $5,459,000,000,000 China $1,110,990,573,000 $5,878,000,000,000 India $798,204,354,000 $1,574,000,000,0001(2010) Country Comparison: Public debt. The World Factbook. United States Central Intelligence Agency. Washington, D.C.https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html2(2010) Country Comparison: GDP. The World Factbook, United States Central Intelligence Agency. Washington, D.C.https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html
  16. 16. Austerity : Empowering Your Bottomline Size of Processed and Potential GDP Austerity Measures United States $14,660,000,000,000 $1,200,000,000,000* Canada $1,538,000,000,000 $4,000,000,000 Egypt $218,500,000,000 $4,370,000,000 Greece $305,400,000,000 $25,399,500,000 Germany $3,316,000,000,000 $79,827,000,000 France $2,583,000,000,000 $36,285,000,000 United Kingdom $2,247,000,000,000 $82,004,100,000 Japan $5,459,000,000,000 $243,900,000,000 India $1,574,000,000,000 $1,124,100,7191(2010) Country Comparison: GDP. The World Factbook, United States Central Intelligence Agency. Washington, D.C.https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html2(2010) Compare Recovery Measures Across Europe. BBC. United Kingdom. http://www.bbc.co.uk/news/103885763(2010) Japan unveils budget austerity guidelines. AFP.http://www.google.com/hostednews/afp/article/ALeqM5htWaDnzsgJUIJMMFraXwJX33QV8A4(2011) Gov’t unveils austerity measures to meet deficit target. Reuters. http://in.reuters.com/article/2011/07/11/idINIndia-58200720110711*If super-committee fails to come to an agreement by the deadline
  17. 17. Austerity : Empowering Your Bottomline Greece These bailouts are Received contingent on€219billion loan in Greece privatizing conjunction with many of its the EU and the governmental International assets to raise Monetary Fund €50billion by 2015. Some 30,000 civil servants will beRetirees face 40% suspended on cut in pensions partial pay by the end of the year
  18. 18. Austerity : Empowering Your Bottomline Ireland Received lowered interest rates onReceived an EU loans to between and IMF 3.5% and 4% andsupported bailout an extended of €85billion payback period to fifteen years Cut its governmentalHad to bail out its budget by banks that may €6billion, with cost up to spending being €70billion reduced by an additional €4billion
  19. 19. Austerity : Empowering Your Bottomline PortugalReceived an EU 5% pay cut for and IMF some public sectorsupported bailout employees of €75billion Income tax hikesfor the wealthy, in Military budget addition to a and transportationvalue-added tax of projects were cut 1%
  20. 20. Austerity : Empowering Your Bottomline Electric power consumption (kWh per capita)1(2011) Electric Power Consumption (kWh per capita). World Bank, World Development Indicators (WDI).http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=eg_use_pcap_kg_oe&idim=country:USA&dl=en&hl=en&q=energy+use+in+us#ctype=l&strail=false&bcs=d&nselm=h&met_y=eg_use_elec_kh_pc&scale_y=lin&ind_y=false&rdim=country&idim=country:USA:CHN:IND:JPN:RUS&ifdim=country&tstart=655797600000&tend=1286949600000&hl=en&dl=en
  21. 21. Austerity : Empowering Your Bottomline Electric power consumption (kWh per capita)1(2011) Electric Power Consumption (kWh per capita). World Bank, World Development Indicators (WDI).http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=eg_use_pcap_kg_oe&idim=country:USA&dl=en&hl=en&q=energy+use+in+us#ctype=l&strail=false&bcs=d&nselm=h&met_y=eg_use_elec_kh_pc&scale_y=lin&ind_y=false&rdim=country&idim=country:USA:CHN:IND:JPN:RUS&ifdim=country&tstart=655797600000&tend=1286949600000&hl=en&dl=en
  22. 22. Austerity : Empowering Your Bottomline Electric power consumption (kWh per capita)1(2011) Electric Power Consumption (kWh per capita). World Bank, World Development Indicators (WDI).http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=eg_use_pcap_kg_oe&idim=country:USA&dl=en&hl=en&q=energy+use+in+us#ctype=l&strail=false&bcs=d&nselm=h&met_y=eg_use_elec_kh_pc&scale_y=lin&ind_y=false&rdim=country&idim=country:USA:CHN:IND:JPN:RUS&ifdim=country&tstart=655797600000&tend=1286949600000&hl=en&dl=en
  23. 23. Austerity : Empowering Your Bottomline Electric power consumption (kWh per capita)1(2011) Electric Power Consumption (kWh per capita). World Bank, World Development Indicators (WDI).http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=eg_use_pcap_kg_oe&idim=country:USA&dl=en&hl=en&q=energy+use+in+us#ctype=l&strail=false&bcs=d&nselm=h&met_y=eg_use_elec_kh_pc&scale_y=lin&ind_y=false&rdim=country&idim=country:USA:CHN:IND:JPN:RUS&ifdim=country&tstart=655797600000&tend=1286949600000&hl=en&dl=en
  24. 24. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  25. 25. Austerity : Empowering Your BottomlineMajor events can affect global economy
  26. 26. Austerity : Empowering Your Bottomline Major events can affect global economy1(2011) MSCI Index Performance - AC World Index. MSCI Berra.http://www.msci.com/products/indices/country_and_regional/all_country/performance.html
  27. 27. Austerity : Empowering Your Bottomline Major events can affect global economy1(2011)Provost, Claire. The rising cost of food - get the data. The Guardian. United Kingdom. http://www.guardian.co.uk/global-development/datablog/2011/jun/07/rising-cost-of-food
  28. 28. Austerity : Empowering Your Bottomline International Energy Outlook – Usage Going Up1(2011) International Energy Outlook 2011. U.S. Energy Information Administration. Washington, D.C.http://www.eia.gov/forecasts/ieo/more_highlights.cfm#world
  29. 29. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends and Energy Planning Potential5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  30. 30. Austerity : Empowering Your Bottomline Energy Star Energy Star Twelve year building program benchmarked 200,000 buildings. Reports of experienced savings between 10-35%LEED & Green Globes LEED & Green Globes Provide standards for efficiency in new and existing facilities (12.5% to 75% savings) ISO 50001 ISO 50001 New ISO standard that focuses on best practices as international effort to reduce energy usage
  31. 31. Austerity : Empowering Your Bottomline National Renewable Energy LaboratoryTechnical Reports Report 50% in Savings Energy Efficiency Optimization Modeling Methodologies
  32. 32. Austerity : Empowering Your Bottomline1 Introduction: What is Austerity?2 Green Movement Translates into Business Strategy3 Current Environment of Economics, Austerity and Energy4 Trends5 Comprehensive Energy Planning Application6 Is Energy Planning a Solution?
  33. 33. Austerity : Empowering Your Bottomline Potential Energy Potential Energy(Electricity) Potential Savings for Business & Efficiency Business Savings (USD$) Governmental Budgets StimulusUnited States $13,455,612,698,733.30 $403,668,380,962.00 $13,051,944,317,771.30Canada $1,892,651,759,722.78 $56,779,552,791.68 $1,835,872,206,931.10Brazil $1,446,541,660,900.46 $43,396,249,827.01 $1,403,145,411,073.44Chile $194,109,473,875.87 $5,823,284,216.28 $188,286,189,659.59Egypt $375,746,533,993.99 $11,272,396,019.82 $364,474,137,974.17Saudi Arabia $600,976,764,097.78 $18,029,302,922.93 $582,947,461,174.85Nigeria $62,486,069,588.36 $1,874,582,087.65 $60,611,487,500.70South Africa $731,060,491,790.51 $21,931,814,753.72 $709,128,677,036.80Greece $205,042,211,038.84 $6,151,266,331.17 $198,890,944,707.68Germany $1,875,398,426,247.88 $56,261,952,787.44 $1,819,136,473,460.45France $1,587,706,237,822.32 $47,631,187,134.67 $1,540,075,050,687.65United Kingdom $1,187,200,877,512.19 $35,616,026,325.37 $1,151,584,851,186.83Russia $2,954,033,159,261.13 $88,620,994,777.83 $2,865,412,164,483.30Japan $3,319,956,074,355.06 $99,598,682,230.65 $3,220,357,392,124.41China $10,390,405,888,140.20 $311,712,176,644.21 $10,078,693,711,496.00India $2,068,915,451,859.09 $62,067,463,555.77 $2,006,847,988,303.321Based on EPA study of savings of 10-35% with buildings in Energy Star program and using 35% as the maximum realized savings -(2009) Celebrating A Decade of Energy Star Buildings 1999-2009. U.S. Environmental Protection Agency. Washington, D.C.2(2008) International Energy Statistics. US Energy Information Administration. Washington, D.C.http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&pid=2&aid=2&cid=AS,CA,CH,FR,GM,IN,JA,RS,UK,US,ww,&syid=2004&eyid=2008&unit=BKWH3Calculated based of personal experience from common estimated savings from comprehensive energy management in the energyefficiency industry
  34. 34. Austerity : Empowering Your Bottomline Potential Savings for Energy Size of Processed and (Electricity) Efficiency for Difference in Savings and GDP Potential Austerity Business & Governmental Austerity Measures Measures BudgetsUnited States $14,660,000,000,000 $1,200,000,000,000* $13,051,944,317,771 $11,851,944,317,771Canada $1,538,000,000,000 $4,000,000,000 $1,835,872,206,931 $1,831,872,206,931Egypt $218,500,000,000 $4,370,000,000 $364,474,137,974 $360,104,137,974Greece $305,400,000,000 $25,399,500,000 $198,890,944,708 $173,491,444,708Germany $3,316,000,000,000 $79,827,000,000 $1,819,136,473,460 $1,739,309,473,460France $2,583,000,000,000 $36,285,000,000 $1,540,075,050,688 $1,503,790,050,688United Kingdom $2,247,000,000,000 $82,004,100,000 $1,151,584,851,187 $1,069,580,751,187Japan $5,459,000,000,000 $243,900,000,000 $3,220,357,392,124 $2,976,457,392,124India $1,574,000,000,000 $1,124,100,719 $2,006,847,988,303 $2,005,723,887,5841(2010) Country Comparison: GDP. The World Factbook, United States Central Intelligence Agency. Washington, D.C.https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html2(2010) Compare Recovery Measures Across Europe. BBC. United Kingdom. http://www.bbc.co.uk/news/103885763(2010) Japan unveils budget austerity guidelines. AFP.http://www.google.com/hostednews/afp/article/ALeqM5htWaDnzsgJUIJMMFraXwJX33QV8A4(2011) Gov’t unveils austerity measures to meet deficit target. Reuters. http://in.reuters.com/article/2011/07/11/idINIndia-58200720110711*If super-committee fails to come to an agreement by the deadline
  35. 35. Austerity : Empowering Your BottomlineIs Energy Planning a Solution to Austerity?
  36. 36. Austerity : Empowering Your BottomlineThank you for your time!

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