Pollution sources, Sick Building Syndrome (SBS), Secondhand smoke, PM10, and Climate change

 The major air pollution sources can be categorized into two main types: stationary sources and mobile sources.

Stationary sources include power plants, industrial facilities (such as factories and refineries), residential heating and cooking appliances (like wood-burning stoves and coal-fired boilers), and waste incinerators. These sources emit pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), particulate matter (PM), volatile organic compounds (VOCs), and hazardous air pollutants (HAPs).

Mobile sources refer to vehicles that run on fossil fuels, including cars, trucks, buses, airplanes, and ships. These sources release pollutants such as carbon monoxide (CO), nitrogen oxides (NOx), volatile organic compounds (VOCs), and particulate matter (PM).

Sick Building Syndrome (SBS) is a term used to describe a range of symptoms that occur in individuals who spend time in certain buildings. The causes of SBS are not fully understood, but several factors can contribute to its development:

Poor indoor air quality: Contaminants in the indoor air, such as volatile organic compounds (VOCs), mold spores, allergens, and chemical pollutants, can accumulate in poorly ventilated buildings and contribute to SBS.

Inadequate ventilation: Insufficient fresh air exchange in a building can lead to the buildup of indoor pollutants and increase the risk of SBS symptoms.

Chemical contaminants: Chemicals from building materials, cleaning products, furniture, and office equipment can release volatile organic compounds (VOCs) into the air, which may cause or exacerbate SBS symptoms.

Biological contaminants: Biological agents like mold, bacteria, viruses, and pollen can thrive in buildings with dampness, water leaks, or poor maintenance, leading to respiratory symptoms and allergies.

Psychological factors: Stress, low job satisfaction, and other psychological factors can contribute to the perception of discomfort and symptoms associated with SBS.

Secondhand smoke, also known as environmental tobacco smoke (ETS), is dangerous because it contains thousands of chemicals, many of which are toxic or carcinogenic. When a person is exposed to secondhand smoke, they inhale these harmful substances, leading to various health risks. 

Here are some reasons why secondhand smoke is dangerous:

Carcinogenic effects: Secondhand smoke is classified as a Group 1 carcinogen by the International Agency for Research on Cancer (IARC). It contains numerous cancer-causing chemicals, including benzene, formaldehyde, arsenic, and polycyclic aromatic hydrocarbons (PAHs). Prolonged exposure to secondhand smoke increases the risk of lung cancer, as well as other types of cancer such as breast, throat, and bladder cancer.

Respiratory effects: Secondhand smoke can irritate and damage the respiratory system, leading to respiratory symptoms such as coughing, wheezing, and shortness of breath. It can exacerbate asthma symptoms and increase the risk of respiratory infections, bronchitis, and pneumonia, particularly in children.

Cardiovascular effects: Exposure to secondhand smoke increases the risk of heart disease, heart attacks, and stroke. The chemicals in secondhand smoke can damage blood vessels, promote the formation of blood clots, and increase the risk of atherosclerosis.

Adverse effects on children: Children exposed to secondhand smoke are more prone to developing respiratory infections, ear infections, asthma, sudden infant death syndrome (SIDS), and impaired lung function.

The Environmental Protection Agency (EPA) is concerned about particles that are 10 micrometers in diameter or smaller, known as PM10, because they can have significant impacts on human health and the environment. 

Here's why the EPA focuses on these particles:

Respiratory health effects: PM10 particles can penetrate into the respiratory system and reach the lungs, causing or exacerbating respiratory problems such as asthma, bronchitis, and other respiratory infections.

Cardiovascular effects: Fine particles, including PM10, can enter the bloodstream through inhalation and cause cardiovascular problems. They have been linked to increased risks of heart attacks, strokes, and other cardiovascular diseases.

Visibility and air quality: PM10 particles contribute to reduced visibility and hazy conditions, impacting air quality and visual aesthetics.

Environmental impacts: PM10 particles can also have detrimental effects on ecosystems and the environment. They can deposit on soil and water surfaces, affecting plant growth, impairing visibility in scenic areas, and causing harm to aquatic organisms.

Climate change can have numerous effects on various aspects of the Earth's systems. Some possible effects of climate change include:

Rising temperatures: Global warming caused by increased greenhouse gas emissions leads to higher average temperatures. This can result in heatwaves, heat-related illnesses, and heat stress on humans, animals, and ecosystems.

Changes in precipitation patterns: Climate change can alter rainfall patterns, resulting in more intense and frequent extreme weather events like storms, hurricanes, and heavy rainfall. It can also lead to periods of drought in some regions, impacting agriculture, water availability, and ecosystem health.

Rising sea levels: As the Earth's temperature increases, glaciers and polar ice caps melt, causing sea levels to rise. Rising sea levels pose a threat to coastal communities, infrastructure, and ecosystems. They can lead to increased coastal erosion, saltwater intrusion into freshwater sources, and increased vulnerability to storm surges and flooding.

Ecosystem disruptions: Climate change can disrupt ecosystems by altering temperature and precipitation patterns, impacting the distribution and behavior of plant and animal species. It can result in changes to migration patterns, species extinction, and shifts in ecological relationships.

Impacts on agriculture: Changes in temperature and precipitation patterns can affect agricultural productivity. Some regions may experience reduced crop yields, increased pest and disease outbreaks, and changes in suitable farming areas.

The major kinds of ozone-depleting substances (ODS) are chlorofluorocarbons (CFCs), halons, carbon tetrachloride, methyl chloroform, hydrochlorofluorocarbons (HCFCs), and bromine-containing compounds such as methyl bromide and halon gases. These substances contain chlorine and bromine atoms that can destroy the ozone layer in the stratosphere.

CFCs were widely used in aerosol propellants, refrigeration and air conditioning systems, foam-blowing agents, and other industrial applications. Halons were primarily used in fire extinguishers and firefighting systems. Carbon tetrachloride and methyl chloroform were used as solvents, degreasers, and in the production of various chemicals.

HCFCs were developed as alternatives to CFCs because they have lower ozone depletion potential. However, they still contribute to ozone depletion and are being phased out under international agreements like the Montreal Protocol.

It's important to note that efforts have been made to phase out the production and use of ozone-depleting substances due to their harmful effects on the ozone layer. The international community has taken significant steps to reduce the release of these substances into the atmosphere and promote the use of ozone-friendly alternatives.

The critical relationship between sustainability, economic growth, and risk factors that pose threats to long-term welfare

While sustainable conditions can be achieved if economic growth continues at historical rates and catastrophic risks remain moderate, it is the risks that impede growth and are not accurately reflected in market risk premia that pose the greatest threat to sustainability. Sustainability is often associated with environmental protection, but the authors emphasize that it extends beyond the environment to encompass risks such as nuclear war, pandemics, and political disruptions. In essence, sustainability means making decisions that leave future generations at least as well off as the current generation. To understand the sustainability of an economy, it is crucial to consider the fundamental factors that determine it.

Previous studies on sustainability have primarily focused on consumption and savings rates in relation to safe and risky rates of return. While this is relevant, the authors contend that it overlooks the underlying factors that drive all rates in the economy. They assert that the growth rate of the economy, the level of risk related to output and consumption, and the accessibility of borrowing and saving in financial markets are the key determinants of sustainability. Higher economic growth and greater financial depth contribute to sustainable conditions by enabling faster wealth accumulation and providing more resources for future generations. On the other hand, higher risk is detrimental to expected welfare going forward. While higher risk can be reflected in higher risk premia in partial equilibrium, there are no additional gains from a risk premium in general equilibrium. Risk, in this context, leads to pure utility loss. Therefore, financial depth plays a crucial role in mitigating large risks and achieving sustainability objectives.

The significance of long-run risks that result in persistently or permanently lower growth rates. These risks differ from disaster risks, which cause immediate output declines, as they fundamentally impact growth prospects in the long term. Long-run risks affect investors' portfolio decisions differently and have implications for sustainability. If market forces lead to overinvestment in "brown" technologies with higher growth but higher long-run risks, sustainability concerns may not be adequately addressed.

We also underscore the importance of comprehending the nature of risks faced by the world and the essential role of supply-side policies in determining the sustainability of an economy. It is crucial to foster economic growth while mitigating risks of all kinds to ensure a sustainable future for both current and future generations. By understanding and addressing these challenges, we can work towards building a more resilient and sustainable global economy.

Reference

Research, O. of F. (n.d.). Threats to sustainability stem particularly from factors that stymie growth and have high levels of risk. Office of Financial Research. https://www.financialresearch.gov/the-ofr-blog/2023/05/16/threats-to-sustainability-stem/ 

the trends and changes in industrial production, market groups, industry groups, and the revision of industrial production and capacity utilization

 Overview of the trends and changes in industrial production, market groups, industry groups, and the revision of industrial production and capacity utilization

• Industrial Production: In April, industrial production increased by 0.5 percent after remaining unchanged in the previous two months. Manufacturing, which is a component of industrial production, grew by 1.0 percent in April. Mining output rose by 0.6 percent, while utilities experienced a decline of 3.1 percent due to milder temperatures reducing the demand for heating.

• Market Groups: Most major market groups saw growth in April. Consumer durables, particularly automotive products, experienced an 8.4 percent increase in output. Business equipment, defense and space equipment, non-energy materials, and construction supplies also recorded gains. However, nondurable consumer goods, business supplies, and energy materials witnessed slight declines.

• Industry Groups: Manufacturing output increased by 1.0 percent in April. Durable manufacturing and nondurable manufacturing grew by 1.4 percent and 0.6 percent, respectively. Within durable manufacturing, the largest increase was observed in motor vehicles and parts (9.3 percent), while miscellaneous manufacturing saw the largest decrease (1.4 percent). In nondurables, plastics and rubber products had the largest gain (1.2 percent), while apparel and leather experienced the largest loss (0.8 percent).

• Revision of Industrial Production and Capacity Utilization: The Federal Reserve Board conducted its annual revision of the industrial production (IP) indexes and related capacity utilization measures. The revision included incorporating new annual benchmark data for manufacturing in 2021 and other annual data on mining. The revision also involved adjustments to monthly indicators, seasonal factors, and estimation methods for certain series. Capacity and capacity utilization were revised based on data from the U.S. Census Bureau's Quarterly Survey of Plant Capacity Utilization and additional data from organizations like the U.S. Geological Survey and the U.S. Department of Energy.

Reference

Federal Reserve Board. (2023, March 28). Industrial Production and Capacity Utilization - G.17. Federal Reserve. Retrieved from https://www.federalreserve.gov/releases/g17/current/default.htm

Emerging Asian Central Banks' Rate Cut Expectations Surface, Will Sovereign Bonds Rebound?

After experiencing aggressive interest rate hikes, traders are now trying to assess when central banks in the Asia-Pacific region will begin cutting rates, a shift that is expected to support the recently recovering bond markets. To combat stubborn inflation, central banks in emerging Asian markets have raised rates significantly over the past year, causing borrowing costs for economies like South Korea and the Philippines to reach the highest levels in over a decade. However, there are now signs that inflation in the Asia-Pacific region is slowing down, and market themes are shifting from "peak interest rates" to "rate cuts," which could potentially drive a rebound in sovereign bonds. Rate cut expectations are expected to stimulate further gains in fixed-income assets. With indications that the Federal Reserve's rate hike cycle may be nearing its end, the Bloomberg Emerging Asia Bond Index has already risen 3% this year. The index experienced a 7.6% decline last year, marking its worst performance since 2008. For emerging economies, the shift of Asia-Pacific central banks towards rate cuts may be a risky strategy, as they may loosen policies before the Fed does, thereby widening interest rate differentials and triggering capital outflows. However, compared to Europe and the United States, inflation in Asian emerging countries is relatively moderate, and their banking systems are relatively stable, providing some protection.

African currencies are under pressure amid higher-for-longer US interest rates

 The weakening of sub-Saharan African currencies against the US dollar has led to inflationary pressures across the continent, as import prices have surged. This has made it harder to curb inflation given the region's dependence on imports. The extent of currency depreciation varies by country, with Ghana's cedi and Sierra Leone's leone depreciating by over 45%. External factors such as lower risk appetite in global markets and US interest rate hikes have contributed to the depreciation, as have high oil and food prices, partly due to Russia's war in Ukraine. Large budget deficits have compounded the effects of these external shocks by increasing the demand for foreign exchange. 

Weaker currencies also push up public debt, as about 40% of public debt is external in sub-Saharan Africa, and over 60% of that debt is in US dollars for most countries. Central banks in the region have tried to prop up their currencies by supplying foreign exchange to importers from their reserves, but with reserve buffers running low in many countries, there is little room to continue intervening in foreign exchange markets. Administrative measures such as foreign exchange rationing or banning foreign currency transactions can be highly distortive and create opportunities for corruption. 

To address the issue, countries where exchange rates are not pegged to a currency have little choice but to let the exchange rate adjust and tighten monetary policy to fight inflation, while countries with pegged exchange rates will need to adjust monetary policy in line with the country of the peg. In both country groups, fiscal consolidation can help to rein in external imbalances and limit the increase in debt related to currency depreciation, while structural reforms can help to boost growth.

#African, #currencies, #inflation, #economics

Reference

Kemoe, L., Mama, M. M., Mighri, H., & Quayyum, S. (2023, May 15). African currencies are under pressure amid higher-for-longer US interest rates. IMF. https://www.imf.org/en/Blogs/Articles/2023/05/15/african-currencies-are-under-pressure-amid-higher-for-longer-us-interest-rates?utm_medium=email&utm_source=govdelivery 

Two Climate Action Plans: Chicago and the University of Illinois at Chicago

 Two Climate Action Plans: Chicago and the University of Illinois at Chicago

Introduction

The issue of climate change, caused by increased greenhouse gas emissions from human activity, requires an urgent need for plans to move towards a low-carbon economy. Several organizations, including cities, states, government institutions, and universities, have taken action to reduce greenhouse gas emissions, both through regulations and voluntary agreements. This case study provides two examples of climate action plans: one for a city, Chicago, and one for an institution, the University of Illinois at Chicago.

Chicago's Climate Action Plan

Cities produce a significant amount of waste and contribute to approximately 75% of all greenhouse gas emissions. Therefore, it is essential for cities to develop plans to address environmental issues. The Chicago Climate Action Plan (Chicago CAP) is an example of such a plan. The plan has a mid-term goal of a 25% reduction in greenhouse gas emissions by 2020, and a final goal of an 80% reduction below 1990 GHG levels by the year 2050.

The Chicago CAP outlines several benefits of a climate action plan. Firstly, reducing the effects of climate change, which is predicted to have severe consequences for the future, including an increase in the number of 100 degree Fahrenheit days per year. Secondly, it provides economic benefits derived from increased efficiencies that reduce energy and water consumption. Thirdly, local governments and agencies have a significant role to play in climate action through enhancing energy efficiency of buildings through codes and ordinances. Finally, reducing dependence on fossil fuels helps achieve energy independence for the United States.

A good climate action plan should include reporting of greenhouse gas emissions as far back as possible, preferably to 1990. The plan released in September 2008 provides a roadmap of five strategies with 35 actions to reduce greenhouse gas emissions and adapt to climate change. In 2010, the Chicago Climate Action Plan released a progress report measuring progress through small steps being taken to implement the plan, such as retrofitting residential units for energy efficiency and water conservation.

University Climate Action Plan

As part of the American College and University Presidents’ Climate Commitment (ACUPCC), nearly 670 presidents have signed a commitment to inventory their greenhouse gases, publicly report it, and to develop a climate action plan. The University of Illinois at Chicago (UIC) developed a climate action plan with goals similar to Chicago’s, which is a 40% GHG emissions reduction by 2030 and at least 80% by 2050, using a 2004 baseline.

The UIC CAP also has major strategy categories that are similar to Chicago’s, including energy efficiency and conservation, clean and renewable energy sources, and improved transportation options. Within each strategy, there are several recommended actions, and progress will be monitored by reporting emissions every two years to the ACUPCC and tracking individual actions and reporting to the campus community.

Comparison of the Two Plans

Table Alignment of the Chicago and UIC Climate Action Plans compares the major strategy categories of both the plans for a comparative understanding. The UIC’s greenhouse gas reports are also made publicly available on the ACUPCC reporting site. Figure 12.11 illustrates the emissions calculated for Chicago through 2005, and Figure 12.13 displays UIC’s calculated emissions inventory and then the predicted increases for growth if activities continue in a “business as usual (BAU)” approach. The triangular wedges below represent emissions reductions through a variety of strategies, similar to those of the wedge approach proposed by Professors Sokolow and Pacala.

Conclusion

Climate action plans, both at the city and institutional level, play an essential role in reducing greenhouse gas emissions and combating climate change. The Chicago Climate Action Plan and the University of Illinois at Chicago Climate Action Plan are two examples of initiatives aimed at reducing greenhouse gas emissions and mitigating the effects of climate change. Both plans share similar goals and strategies, reflecting a commitment to sustainability and reducing the carbon footprint of urban areas.

Reference

Chicago Climate Action Plan:

City of Chicago. (2010). Chicago Climate Action Plan. https://www.chicago.gov/content/dam/city/progs/env/Chicago%20Climate%20Action%20Plan/CCAP%20Full%20Document%20with%20Acknowledgements.pdf

University of Illinois at Chicago Climate Action:

University of Illinois at Chicago. (2021). Climate action. https://sustainability.uic.edu/climate-action/