Social Science Fundamentals
There is lots of emphasis on the physical aspects of energy use but human decisions dictate the usage of energy. Therefore, it is important to understand social science concepts.
What patterns in human behavior can be predicted that influence our energy use and consequences?
There are several goals humans have for our energy system
- environmental sustainability
- reliability and security
- affordability
- social equity
Environmental Sustainability
We know our energy system pollutes carbon dioxide, PM2.5, sulfur, and other pollutants.
These pollutants affect human health and societies.
Reliability and Security
Our energy system is prone to disruptions
- Disasters
- Conflicts
- Accidents
Affordability
Energy prices can be volatile and consumers often do not have alternatives.
Social Equity
Some people have more access to energy and energy services.
Some people are more affected by pollution, disruptions, and expenses.
Participation and Democracy
Does everyone have a say in energy decisions?
Sovereignty
The right to have control over energy systems.
Coase Theorem
The Coase Theorem states that externalities can be most efficiently controlled by agreements between parties.
The main problem facing our climate–energy system has too many parties for the Coase Theorem to be true.
Commons
Many pieces of the energy system and the environment can be thought of as commons
Difficult to enclose
Available to all
Prone to defection or free-riders
A resource accessible to all members of a society and not owned privately
Free riders
- Individuals who gain a benefit from a system without contributing
- These are the folks that choose individual benefit over group cost
Prisoner’s Dilemma
The classic prisoners dilemma is two criminals.
By choosing the best individual outcome, you end up with a worse collective outcome.
| Walter Silent | Walter Rats | |
|---|---|---|
| Jesse Silent | Walter and Jesse | Walter free, |
| do 6 months | Jesse 10 years | |
| Jesse Rats | Jesse free, | Walter and Jesse |
| Walter 10 years | 10 years |
We can use the Prisoner’s Dilemma to think about emissions and other externalities by companies.
| VW reduces emissions | VW cheats | |
|---|---|---|
| BMW reduces | Emissions reduced, | BMW at competitive |
| emissions | no disadvantage | disadvantage |
| BMW cheats | VW at a competitive | Emissions increased |
| disadvantage | for everyone |
- Now imagine the decisions of all companies in the world or all citizens
- Each of us can decide to do the best collective action or the best individual action
- Unfortunately, the best individual option can be a very bad collective outcome
Tragedy of the Commons
This is an influential theory but there are several counter-examples to its main claims.
- Garrett Hardin article 1968
- Population Growth was a commons in the original article
- Proposed regulation or privatization as only solutions
- Elinor Ostrom recognized several functioning commons that didn’t fit this model
CC-PP Game
- Commonize Costs - Privatize Profits Game
- An extension of the prisoner’s dilemma