Shortages to the left of me, shortages to the right

Demand for green products exceeds supply 6

My relatives in the D.C. area are on a Prius waiting list. People wanting to build their own electric bikes are on waiting lists for parts. If you're planning to put up some solar panels, well, get in line. According to Rich Bunch, at Silicon Solar Inc, their next shipment of solar components is due on Oct. 15 and 90 percent of it is already spoken for. I'm guessing that this shipment, like most shipments, is coming from China.

Shortages not only trip up building schedules, but they also inflate prices. I recently received an estimate of about $9,000 to install a tube hot-water system for a family of four from a local solar installer. This is roughly two or three times what it would cost if supply were meeting demand. When a potential customer approaches a contractor who already has all the business he can handle, or in this case, can't get enough of the parts needed to do a job, the contractor is likely to quote an outrageous price. It's like fishing. Once in a while you'll get a bite.

Shortages also affect quality. The best products are the hardest to find, so installers are using whatever they can get their hands on. There is a silver lining to all of this. Going green is no longer a joke. It's for real and there is money to be made doing it.

In theory these shortages will pass. There is always a lag in supply when demand ramps up rapidly. The arrival of the low-cost Honda Insight this spring will help to alleviate the Prius shortage. On the other hand, shortages of basic commodities like copper have also arrived. In theory, this will be handled by entrepreneurs looking for ways to use less copper. When we ran out of old-growth wood, we invented plywood.

Today the world is facing a wealth explosion, which is in many ways analogous to a population explosion, but pouring gas on this fire is the fact that our population is also still growing by about 75 million a year.

This dance between consumers and entrepreneurs could save the planet if there were also economic forces powerful enough to rope off places like the Amazon from development. The dance would simply continue outside of those boundaries. We would get by with smaller decks made of brick or stone instead of ones made from tropical hardwoods, smaller homes heated mostly by solar, and chicken or pork mixed with our rice or potatoes instead of a half-pound steak surrounded by a garnish. We would be just as happy because our peers would have brick patios too. It would be analogous to living on a smaller planet, but at least one with its life support system still intact.

My real name is Russ Finley. I live in Seattle, married with children. Suffice it to say that although I am trained and educated as an engineer, my passion is nature. I very much want my grandchildren to live on a planet where lions, tigers, and bears have not joined the long and growing list of creatures that used to be. In an attempt to minimize the workload on Grist editors responsible for turning my submissions into intelligible articles, I will also be posting on a seperate blog called Biodiversivist, which will contain articles in addition to those submitted to Grist.

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  1. Pangolin's avatar

    Pangolin Posted 7:59 am
    04 Oct 2008

    Try buying a cargo bike. You take a number and you sit on the list. Or you pay through the nose for a European import that costs you more than your first car.
    As to the deck thing black locust, honey locust and catalpa are reputed to be rot resistant woods and they grow relatively quickly. Second growth redwood or cedar has poor rot resistance and should be painted or treated regularly; never use it for ground contact.
    To understand what we lost when we clear cut the redwood forests of California for quick profits you would have to work with the wood. I once saw a house in Petaluma CA. that had a foundation of four squared redwood logs laid directly in the soil. That foundation lasted a hundred years. It's a tragedy that we destroyed this resource for decks and shingles.

    Put the Carbon Back
  2. Pangolin's avatar

    Pangolin Posted 8:18 am
    04 Oct 2008

    More on wood....I found an interesting article titled Planting the Next Generation of Waterproof Lumber. That's worth reading.

    Put the Carbon Back
  3. Bob Wallace Posted 8:56 am
    04 Oct 2008

    Excessive profits...When profits are greater than what is needed to keep businesses in business and relatively healthy,  new players are motivated to enter the market.  
    Excessive profits also attract new capital which, in turn, finances those new endeavors.
    Those are good things for us in the long run.
    Paying extra right now hurts some.  But just think of the extra cost as helping to offset climate change.  People will get paid back if we don't lose New York Miami, Bangkok, ....
  4. Delay And Deny's avatar

    Delay And Deny Posted 12:43 pm
    04 Oct 2008

    We Need A Carnegie, Not A Marx

    Of course the Green answer to soaring demand is to put a tax on it.
    What we need are real green businessmen to get the innovation to the people.
  5. racc Posted 5:03 am
    05 Oct 2008

    Shortages are Here to StayThe shortages will not pass. With over 6 billion people on the planet, we need solutions that require less use of resources that are getting more and more scarce. The problem with hybrids is that they even use more resources than conventional vehicles making them not a practical solution for the majority of people on the planet.
    Due to resource shortages, mass production will make solar cells, hybrids and all sorts of "techo fixes" even more expensive, not less expensive. The age of the automobile is over. Time to invest in rail, public transit and cycling.
  6. John Fish Kurmann Posted 5:28 am
    07 Oct 2008

    More info on the new InsightHi, folks. For those who are interested, you can see more photos plus a video of the new Honda Insight by going here. Also, Honda recently launched a blog for the new Insight and a hybrid minisite with info about all their past, current, and future hybrid models, including the new Insight, CR-Z and Jazz/Fit Hybrid (which Toyota has no current plans to sell in the U.S., unfortunately).

    "You can never get enough of what you do not really want." - Huston Smith

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