409

Energy Externality and the Economy of Switzerland

by Gonzague Pillet and Howard T.Odum, Gainesville Fla.

1. Presentation

In the economic literature an externality is any effect caused by market decision­ making, but all benefits and costs regarding the community and the environment are not taken into account in the setting up of market equilibrium and in the definition of its optimality. However, these external economies or diseconomies can be inter­ nalized either through bargaining, tax, or subsidy. In general, such externalities are priced and a new market equilibrium is set up. Now if we go further and look at externalities that are not merely market and micro external effects, but joint productions of goods and "bads" parallel to econ­ omic production in general, their internalization has to be formulated in another way. Any attempt at internalizing these effects gives rise to "new" goods such as clean water and air, free space, or healthy environment, all entities we cannot easily price. Unlike micro market externalities those externalities now look like public goods or bads whose typical features have to be therefore taken into account. Fi­ nally, this criterion prevents use of the old way of internalizing micro-externalities (Pillet, 1980). Moreover, in order to tell one thing from another, we call these large-scale exter­ nalities, externalities of second generation because they set out effects, which not only deal with market decision-makers, but strictly speaking have their origin out­ side of the economic sphere. They really are energy flows that come in from outside and go out into a used form after having done useful work. Classic externalities had their causes and effects in the market-place. Now externalities of second generation have their sources outside the market circle but have effects on the general course of the economy of a country. So we may stress that they are literally external effects. As a result, if we want to deal with externalities of second generation, we have to pro­ ceed both on an economic and on an eco-energetic scale. It is with the intention of acquiring a better understanding of this ecoenergetic- type externality that a concept of energy externality has been considered regarding energy analysis (Odum, 1971,1976,1983; Pillet, 1983). The part this concept has to play at the interface between ecoenergetics and economics is to evaluate external environmental effects upon the economic sphere. By extension it is concerned with economic impacts upon environment. In general, this is a key principle regarding economics of the environment. On a macro-level, such an energy externality analysis takes place in an energy an­ alysis "overview" of a nation, the task in this paper. Therefore, according to energy

Schweiz. Zeitschrift für Volkswirtschaft und Statistik, Heft 3/1984 410 systems procedure (Odum, Odum et al., 1983) we try here to draw a somewhat novel energetic overview of the Swiss economy, featuring its typical energy externality. This study is in three parts. The first one deals with the concept of Energy Externality by means of different "cas défigure." In addition, it presents the energy language concerned with the study of Energetics, Environment, and Economics. The second part gives practice in understanding energy analysis procedure as a contribution to the economic internalization of energy externalities. According to the above analysis, part three delivers an overview of the Swiss economy regarding its external energy basis. This part concentrates on some of the important means of achieving an evaluation of the energy externality at the inter­ face between environment, energetics, and economics.

2. Energy Externality

Unlike market externalities, which are potentially internal to revised market deci­ sions, externalities of second generation are real edge effects. Their main character­ istic is to be a flow that comes in through a source from outside the main economy and goes out into a used degraded form through the heat sink. In addition, external­ ities cannot be appropriated through a price-oriented system. Therefore, we cannot place cash value on air, water, open space and even human life from an economic point of view in order to "internalize" either external contribution from the environ­ ment or negative economic impact upon it. Energy externalities, as far as they are externalities of second generation are to be neither internalized nor priced. Market prices deal with human service only, not with environmental service. They need to be evaluated on a macro level both from an indépendant point of view (i. e. from out­ side the price-circle) and from an economic one. In this sense, energy externality is the proportion of economic work ultimately caused from outside without any pric­ ing process, in other words through pathways of action that are indirect and even unrecognized. For example, the price paid for the raw material does not take into ac­ count the contribution of renewable or nonrenewable sources, and of the environ­ mental system. However, from the point of view of the interface between energetics and economics, such a contribution is an effective one. Finally, evaluating energy externalities may give us a better understanding regarding evaluations of environ­ mental contributions or effects on dollar economy as well as a better understanding of environmental economics on a macroeconomic level.

(1) Energy Externality as a Concept The real basis of the economic systems is outside the price circle. On one hand, such an externality is concerned with sources of energy. On the other hand, energy 411

as a property of all other flows is the common denominator for evaluating the re­ source basis for economies. At this interface the keyword is therefore "work." In order to keep our attention fixed on energy externality sources let us first con­ sider energy analysis and consequently the interface word "work." Earlier efforts to use energy and work as a value measure were not very successful because energy of various types were regarded as equivalent, whereas energies of different types do not accomplish similar work. However, by converting all types of energy into equivalent units of one type of energy, that of sunlight, various environ­ mental goods and economic commodities may be compared on an equivalent abil­ ity-to-do-work at the interface between systems of humanity and nature1. There­ fore, speaking about energy externalities does not mean speaking about one typical kind of energy as economists often do regarding only high quality energy products like fuel, but it means considering many kinds of energy flows, from the low quality to the high quality ones. It means considering environmental contributions to the main economy on an equivalent ability-to-do-work. Hence, we can emphasize two points about energy externalities as follows: as a general construction, energy externalities are concerned with all kinds of external contributions to the main economy from the environment; as a concept, energy ex­ ternality deals with the evaluation by means of indices and ratios, of such contribu­ tions or of economic miscontributions regarding the environment.

(2) Energy Systems Analysis

The study of energy externalities deals with Energy Systems Analysis, which is the process of representing a system, such as a nation, with a network diagram in which the pathways are flows of energy and the pathway connections represent pro­ cesses and entities of the system. With a special set of symbols that have mathemati­ cal and energy meanings, the energy network diagram shows in overview the way energy sources generate work processes and the workings of the economies of the nation at the interface with its environmental partner. Evaluating the energy flows of principal pathways provides quantitative measures of the energy-economic sys­ tem2. (3) Energy Language Symbols

An overview of a nation is facilitated by diagrams that show energy basis, causal relationships, parts, sources, and hierarchical relationships. Energy language sym­ bols used by Odum (1971,1972,1983) are given here in Table 2.1. Drawn on the left of a diagram are abundant forms of low quality whereas high quality forms of en-

1 For more elaborate discussions of the historical roots of these energy theories of value that were continued by M.Boltzmann and A. P. Lotka, see recent review by Odum (1983). 2 For more elaboration, see Odum (1983) and Odum, Odum et al. (1983). 412

Table 2.1: Symbols of the energy language used to represent national systems in overview (Odum, 1983)

. Energy circuit. A pathway whose flow is proportional to the quantity in the storage or source upstream.

/^N Source. Outside source of energy delivering forces according to a program controlled V^/ from outside; a forcing function.

Tank. A compartment of energy storage within the system storing a quantity as the balance of inflows and outflows; a state variable.

Heat sink. Dispersion of potential energy into heat that accompanies all real trans­ formation processes and storages; loss of potential energy from further use by the T system. Interaction. Interactive intersection of two pathways coupled to produce an outflow in proportion to a function of both; control action of one flow on another; limiting factor action; work gate.

Consumer. Unit that transforms energy quality, stores it, and feeds it back autocatal- ytically to improve inflow.

-> Switching action. A symbol that indicates one or more switching actions.

Producer. Unit that collects and transforms low-quality energy under control interac­ tions of high-quality flows.

X Self-limiting energy receiver. A unit that has a self-limiting output when input drives are high because there is a limiting constant quantity of material reacting on a circu­ •p- lar pathway within.

Box. Miscellaneous symbol to use for whatever unit or function is labeled. 1 S Constant-gain amplifier. A unit that delivers an output in proportion to the input / but changed by a constant factor as long as the energy source S is sufficient.

Pried - Transaction. A unit that indicates a sale of goods or services (solid line) in exchange T > for payment of money (dashed). Price is shown as an external source. 413

Figure 2.1: Generic diagram of typical features of a nation (Odum, Odum et al., 1983)

ergy are on the right. Systems boundaries are defined with a rectangle and defining the boundary of consideration also defines outside flows as energy sources. Used energy passes out through the heat sink symbol at the bottom of the diagram. Flows and storages can be evaluated in units of solar equivalent energy (solar equivalent joules). When they are, their numbers are written on the diagram to show the place and relative importance of the item vis-a-vis the nation's economy. A generic diagram for a nation is given in Figure 2.1. It is constituted by the main types of sources and components. Land-use systems are on the left, economic pro­ cesses are in the middle, the consumers and urban users are on the right, and the im­ ports (minerals, fuels, goods...) and exports outside of the right of the diagram (they represent foreign trade). Feedbacks are drawn counterclockwise. For example, wastes are partially recycled from agriculture to environmental systems.

(4) Environmental Work

The vitality of a national economy does not deal only with the productive work of people (labor) and machines. It depends, too, on the productive work and the carry­ ing capacity of natural processes of the environment. So useful production work in­ cludes that of natural systems from outside the main economy and that of people from inside the economy. But in general the productive contributions of the land- 414 scape to the economy are indirect and not adequately recognized. Those contribu­ tions are external ones regarding the marketplace. For example, stock of good soil, forests, minerals, water resources, coastal resources that utilize tide and waves, and favorable climates may be contributing to reduction of the human costs of living and economic operations that would be required if environmental services were less. However, the opposite case, i. e., bad environmental conditions, is true, too. Because money only regards human labor, money does not measure the produc­ tive inputs of the environmental work that ultimately participate in the vitality of the economy and contribute to the gross national product at the interface between natu­ ral work and human labor. And at first sight "work" and "labor" are each other irre- ductibles grandeurs. On the macro level monetary payments are not made for wood, agricultural pro­ ducts, fisheries products, water, or minerals, but for the human labor involved. En­ vironment is taken into account only if some labor is required in order to repair it. For example, for economic costs of depollution, of fertilization, or of extraction. Hence, the work of nature involved in developing the production is an external contribution not measured by the money, which is only a measure of the national in­ come. However, through the remuneration of the human labor money has the power of purchasing all goods so produced. It is its only power3. So we cannot carelessly put cash value on such environmental capital goods. However, because nature and human are interfaced with each other we can try to match at this point two different evaluation procedures. In order to gain an overview of a country's economic basis one must examine both kinds of productive inputs, those from nature's work and those from the labor of humans (see Figure 2.2). As yet we are dealing with a macro level. So we can put

Figure 2.2: Diagram that shows money going for human labor only, not to environmental contributions (energy externality lato sensu) (adapted from Odum, Odum et al., 1983, and Odum, 1983)

3 For more elaboration, see Schmitt (1975). 415

Figure 2.3 : (a) Aggregated model of the economy of the United States in 1974 (from Odum, 1978); as a measure of the national income, money only accompanying part of the inputs at the interface with the environment; (b) overview diagram of a national economy; energy flows and the monetary circuit; (c) summary of procedure for summing embodied energy inflows

EXTERNALITIES (strictosensul

NON-RENEWABLE STORAGES 416 all inputs and storages in energy units, so that they may be compared in the same units, both unpaid renewable resources from environment or nonrenewable re­ serves, and the purchased inputs. In this sense, money as a measure of the national income only accompanies part of the inputs to an economic process (see Figure 2.3). Going further, after all inputs and storages are evaluated in energy units, they may all be put on a "dollar" basis by their proportionate effect on the total money that measures the national income.

3. Energy Analysis Procedure

Let us consider here energy analysis procedure as a contribution toward an inter­ nalization of energy externalities, i. e., as a measure of achieving their evaluation through an overview of a country's ecoenergetic basis. In order to evaluate energy flows and storages taking into account energy quality, actual energy contents must first be calculated. Next, they must be converted into equivalents of one type of en­ ergy, such as solar equivalent joules (or coal equivalents). Finally, after evaluating the nation's main storages, inputs, and products in units of embodied energy of one type, any pathway may be expressed in "dollar" equivalents. Then one can calculate indices and inferences, and analyze subsystems.

(1) Calculating Actual Energy Flows and Storages

In order to achieve a national energy analysis one must first calculate actual en­ ergy flows and storages. Just before calculating them one must assemble data on the country, its economic statistics, its physical statistics, its water budget, its land use maps and percentages, summaries of its history, accounts of its culture, and major sectors of production by humans and by nature. Such data needed for energy anal­ ysis overview are listed in Table 3.1 and enable us to draw a moderately complex in­ ventory diagram showing the main ways through which things are being processed and are interacting. Using the energy circuit language symbols, an energy diagram is given for Switzerland in Figure 3.1. Now main flows from sources including external inputs as environmental inputs of sun, rain, river,geologica l inputs, etc., and cultural inputs such as population, in­ formation, "dollar" investments, foreign trade, etc., are listed as well as flows from the storages (reserves) from within the country if they are being used up faster than replaced. In diagrams, outside sources are circles placed outside the boundary frame, and these are evaluated in embodied energy terms in a Table of flows. Main storages within the country often include natural products such as soils, minerals, mountains, forests, lakes and ground water and also storages of economic products such as housing assets, transportation assets, and power plants. Only items 417

Table 3.1: Data needed for energy analysis overview

Annual insolation Rainfall and land elevations of main watersheds Discharges of major rivers entering and leaving country Estimated évapotranspiration Mean winds, winter and summer Rate of land uplift or rate of soil erosion Organic content in soils and standing forests Coarse land-use map or table of areas (forest, pasture, wilderness, urban area, etc.) Population, immigration GNP or total income Tonnages and money paid for main imports and exports (i.e., grain, coal, fish, etc.) Total money in foreign exchange Percentage of economy in main sectors Fuel consumption Electric generation, use, import, export Length of coastline (if coastal) Tidal height (if coastal) Mean wave height (if coastal)

Figure 3.1: Moderately complex inventory energy diagram of Switzerland 418 with turnover times longer than one year are included and evaluated in embodied energy terms in a Table of Storages. In diagrams they are tank symbols. Generated flows may drive the nation's economy or be exported. A nation's economy also has major subsystems that need energy analysis, i. e., dams, forestry activities, commerce, etc. Separate diagrams are hence prepared and evaluations made. A standard Table of Flows and Storages looks as follows:

Footnote Item Actual Energy Embodied Energy Transformation Energy Ratio

At this point the table is completed by calculating for each item its actual energy flow or storage with ad hoc formulae (cf. Odum, Odum et al., 1983).

(2) Energy Transformation Ratios and Calculation of Embodied Energy

The next step consists in expressing energy flows and storages of different types in units of the same type. In order to do that one expresses the energy of one type (the numeraire) required to generate a unit of energy of another type. The resulting num­ ber is defined as the Energy Transformation Ratio (ETR). In this case the ETR mea­ sures the joules of solar energy that must be transformed to generate a joule of an­ other type. ETR of sun is 1. ETR of chemical potential energy in the rain over land is 15,423 (see Figure 3.2). Tables of energy transformation ratios have been developed from many studies making it easy to convert the data on actual energy flows of a country into energy values of one type of energy (i.e., solar equivalents)4. Hence, one can complete the table in writing down the ETR and in multiplying actual en­ ergy by the energy transformation ratio to obtain the value for final column, the em­ bodied energy in the flow or storage. This is expressed in calories or joules. In gen­ eral, the higher the quality of energy, the less is the actual energy and the higher the solar energy embodied. It is so possible to see which flows or storages are major ones and which ones are minor for a country, what the inventory diagrams could not do alone. If now all kinds of energy are expressed in terms of solar energy reaching earth, the ratio becomes a numerical scale of the amount of work involved in generating various types of energy and then constitute a scale for measuring energy, too.

4 Cf. Odum, Odum ti al. (1983). 419

(3) Indices and Inferences

A number of indices, ratios, and inferences can now be calculated. The proportion of embodied energy is a measure of real standard of living includ­ ing environmental contributions, i.e., the unpaid support of individuals. The em­ bodied energy per unit area is a measure of the intensity of the economy. The ratio of the total amount of embodied energy to the monetary measure of the national income in any given period (e. g. a year) provides a measure of the total buy­ ing power of the money including externalities. On another side the ability of a na­ tion to support population to grow or to exert influence is in proportion to the na­ tion's embodied energy storages and flows. For example, underdeveloped countries have large ratios of embodied energy supporting a small monied economy. Then their embodied energy to "dollar" ratios are larger than in developed countries. This means that money buys more of hidden nature's work, i.e., of environmental externalities than in developed countries through clean air, clean water, cheap wood, cheap waste disposal, etc. But in foreign trade nature's work does not appear and so more work-stimulating real buying power may go from underdeveloped countries to developed ones than is returned from these. Importing raw products, developed countries import energy externali­ ties, too. Hence, a country receiving raw products in trade for finished goods gets more stimulus to its economy because it is receiving the result of more useful work. Money only reflects part of this fact. Money paid is for the human service, not for the total work embodied.

Figure 3.2: Definition of energy transformation ratio. If the control arm input is a feedback from B and not an energy source, it can be ignored.

CONTROL ARM

OUTPUT OF INPUT OF 100 ENERGY - ENERGY OF TYPE A OF TYPE B

96-£ _ USED • ENERGY

ETR =A/B = 100/5 = 20 420

Energy analysis procedure also allows various alternatives within a country to be analyzed simply in advance to determine if the proposed activity will be economic or a drain to the economy. For example, primary energy sources do yield more em­ bodied energy than is required from the economy. Or where a proposed investment involves an environmental resource, an environmental impact, or a change in use of environment, the new system can be judged to be economic if it processes more em­ bodied energy than alternative ones. The energy analysis procedures are also being used for site selection for roads, technological installations, waste disposal pro­ cesses, housing, etc. Maps of embodied energy help identify localities that should not be disturbed because of the high value of their inputs, including energy external­ ities, to the economy. Places of convergence and concentration of embodied energy are correlative with centers of economic development. In general, energy analysis does not supplant economic analysis, but supports and complements it, for example in producing goods and services with maximum efficiency. It even offers assistance with typical economic problems, such as allocat­ ing resources, selecting an appropriate combination of goods, and distributing these goods sensibly among people.

(4) Analysis of Subsystems

As far as we are concerned with aggregates it doesn't matter the scale. Hence, in the same way as described already for a whole nation, energy analysis overview can be prepared for subsystems, such as agroecosystems, manufacturing systems, tour­ ist systems, and so on. Diagrams are drawn, pathways evaluated in actual energy un­ its, and then converted in embodied solar joules, including the externalities. Finally, one can calculate the energy transformation ratios for the product of that subsys­ tem, hydropower or cheese making regarding Switzerland. For example, keeping our attention fixed on energy externality, let us start with inputs from the environment and sectors of environmental works (see Figure 3.3). Connecting with these on the rightar e human economic activities that collect, trans­ form, process, and transport the products. Once more time, money only deals with human labor as a constitutive part of the national income at any given period. When the diagram has been completed with embodied energy flows evaluated for the main flows, different ratios may be calculated5. The net energy yield ratio is the embodied energy of the output divided by the em­ bodied energy of the inputs to the process fed back from the economy. It indicates whether the process can compete in supplying a primary energy source for the en­ ergy (see Figure 3.4).

5 For more details, see Odum ( 1983). Where flows have a common source and are byproducts, such as winds and rain generated by the global weather system, only the largest is used. 421

Figure 3.3: Generic diagram for a production subsystem

ENER6Y EXTERNALITY

/RENEWABLE p-N I RESOURCES I \--*- ENVIRONMENT

Figure 3.4: Diagram defining the net energy yield ratio (Y/F) and the energy investment ratio (F/I) where I, F and Y are expressed in embodied energy units of the same quality

• FUELS / -GOODS \ F -LABOR I

"PRODUCT

The energy investment ratio is the ratio of the embodied energy fed back from the economy to the embodied energy input from the free environment (see Figure 3.4). This ratio takes into account energy externalities, expressing them regarding econ­ omic investments through fuels, goods, and services bought in the market place. In order to be competitive, the process should have a smaller ratio than similar ones so that it should compete on a micro level with lower prices than competitors. In this 422 sense, low prices would mean that this system receives a higher percentage of its use­ ful work free from the environment than its competitors. The aggregate world ratio in 1980 was 1.4, but the energy voracious United States was about 86. Hence, the energy analysis of subsystems may be useful for evaluating contribu­ tions of the environment and environmental associated loading throughout energy externality analysis.

4. Energy Analysis Overview of Switzerland

(!) Background and Objectives

This is an energy analysis of the main energy flows of Switzerland, with its sys­ tems of nature and humanity and its interplay of environmental renewable re­ sources, indigenous non-renewable resources, and imported resources that gen­ erate the economy. This analysis gives practice to the general explanations reported above (parts 1-3) and takes place within the current effort undertaken by H. T. and E. C. Odum, both at the University of Florida (Gainesville, USA) and at the Interna­ tional Institute for Applied Systems Analysis (Laxenburg, Austria). It is part, too, of a research program carried on at the University of Florida by G. Pillet under the au­ spices of the Swiss National Science Foundation. Comparisons with other countries will be made. In addition, we shall pay attention to the fraction of embodied energy that is free, in other words to energy externality. Switzerland, a mountainous country in central western Europe has a rugged to­ pography, not very suitable for either cities or agriculture. However, Switzerland is well endowed with water - it is the water tower of Europe, with rich scenic beauty and with high-quality human labor and resources. At such an interface between na­ ture and humanity, it is the achievements of its people that have made Switzerland outstanding. From north to south, the land is divided into three areas, the Jura mountains ( 10 %), a Plateau (30%), and the Alps (60%). The Jura is made of limestone, the Plateau both of marl and recent fluvioglacial sediments, and the Alps of granite, gneiss, crys­ talline shists, clayey rocks and shists, and limestone (in the Alpine Foreland). There are alternative airstreams from west to east with damp maritime air (cool weather in summer and mild weather in winter). Air streams from the north carry continental polar air (dry in summer, cold in winter). Air from the south (foehn winds) is heated by comparison as it blows down the northern slopes of the Alps. Annual precipitations are 100-120 cm in the Jura, 80-120 cm on the Plateau, 120-160 cm to 160-400 cm on the northern slopes of the Alps, 160-240 cm to

6 See Odum, Odum et al. (1983), Appendix A-4. 423

240-350 cm on the southern slopes of the Alps, and 50-80 in Valais. Mean winter temperature goes from 0.1 ° C (Basle) to — 4.4° (La Brévine) in the Jura, from 1.1 ° C (Geneva) to -4.6° (Rigi-Kulm) on the Plateau, and from 2.4° C (Locarno) to -0.8° (Interlaken), -7.7° C (St. Moritz) and -14.5° C (Jungfraujoch) in the Alps. Mean summer temperature ranges from 13.5° C (La Brévine) to 18.7° (Basle), from 10.5° C (Rigi-Kulm) to 19.9° (Geneva), and from -1.0° (Jungfraujoch) to 10.9° (St. Moritz), 17.5° (Interlaken), and 21.1° C (Locarno), There is very little natural vegetation. One can identify five altitudinal vegetation boundaries, each with different characteristics on the northern slope from those on the southern slopes of the Alps. Vineyards, (550 m N-850 m S), the broad-Leave trees (1150 m N-1600 m S), the conifer forest (1650 m N-1850 m S), the high moun­ tain pasture (2000 m N-2500 m S), and lower limit of permanent snow fields (2550 N-3050 m S). The best soils are found in the Plateau and the Alpine Foreland. Parts of the forests are now endangered because of acid rains. Agriculture lost 130,000 ha of good soil during the last 40 years - more than 3000 ha/year (USP, 1984) for pur­ poses of urban use and transportation. Land-use is as follows: total area: 41.3 E 5 ha; cropland, vineyards, intensive agriculture: 11.7 E 5 ha (28.3%); pastureland: 8.5 E 5 ha (20.6%); forests: 10.5 E 5 ha (25.4%); uncultivated land: 7.3 E 5 ha (17.7%); lakes and rivers: 1.5 E 5 ha (3.6%); urban and industrial use, transportation: 1.8 E 5 ha (4.4%) (1982: ASS, 1983). 6.37 million people live in Switzerland ; 950,000 are foreign people ( 14.8 %) ( 1980 : ASS, 1983). The workforce is made of 3.03 million people. Among them 570,649 for­ eign people (1980: ASS, 1983). The primary economic sector is concerned with 7% of the workforce (decreasing), the secondary one with 38.7% (decreasing) and the tertiary economic sector with 54.3 % of the workforce (increasing). Unlike other western countries, the unemployment is very small. In April, 1983, 693,505 foreign workers were working in the three economic sectors, among them 111,509 as sea­ sonal workers. Most of them are from Italy, Spain, France and West Germany. Most important trading partners of Switzerland are West Germany (number one both for imports and exports), France (second for exports from Switzerland, third for im­ ports), the United States of America (third for Swiss exports, second for imports), Italy, Great Britain and Japan. In the following analysis energies of the environment, reserves and trade are in­ cluded, representing all flows and reserves in embodied solar equivalents (Figure 4.1). After an energy diagram was drawn (Figure 3.1) the actual energy storages and flows were estimated and multiplied by energy transformation ratios (Table 4.1). This calculation converted all storages and flows into embodied solar-equivalent Joules (SEJ) for comparison and evaluation of contributions to the economy of dif­ ferent storages and flows. 424

Most data ( 1980-1983) were derived from the following references : ASS - Annu­ aire statistique de la Suisse, Berne 1983, Yearbook of International Trade Statistics, New York 1981, Institut Suisse de Météorologie, Zurich, and others through the Carte physique de la Suisse, Berne 1981, and H. T. Odum, E. C. Odum et al., Energy Analysis Overview of Nations, Working Paper, 1983. See references for other sources. (2) Results and Discussion

The energy flows of importance are summarized in Table 4.1 and the storages are listed in Table 4.2. Then in Table 4.3 flows are aggregated. Double counting was avoided with the help of the diagrams in Figure 4.1 and 4.2. The main categories are outside energy sources, storages and energy uses, industries and predominantly hu­ man systems. Finally, various indices of the energy and economic relationships are calculated in Table 4.4. Since the embodied solar energy in the chemical potential in rain (and rivers) is larger than any other solar based sources, it includes all other environmental flows that are byproduces of the same global processes of ocean and atmosphere. For fur­ ther calculations it was used as the country's outside renewable energy flow. The net loss of weathered rock and other matter (earth) was calculated as well as the net loss of topsoil. Compared with the storage of earth this loss is not large.

Figure 4.1: Aggregated view of Switzerland (See Table 4.3.) 425

Energy Externality and Carrying Capacity

The sum of resource flows R and N in Table 4.4 is the fraction of internal use that is free. It corresponds to 16 % of the total embodied energy use. It is the energy exter­ nality lato sensu regulating the present energy analysis overview of Switzerland. The complementary fraction of internal use of energy flows comes from the purchase of imported minerals, fuels, and goods and services. In comparison, local energy is 1 % of total internal use in Western Germany, 27 % in the United States of America, and 83% in Dominica. This is an index of self reliance on an energy basis. The lower is the percentage, the higher the economy depends on imported expensive energy flows, and the less energetical content such a country gives out in international trade. The differential in embodied energy given in trade is reflected in the energy/$ ratio. In Switzerland, the energy externality lato sensu contributes 17% of the gen­ eral energy/$ ratio, 12% in Western Germany, 27% in the USA, and 82% in Domi­ nica. Another way of expressing part of this result is by estimates of population carry­ ing capacity. If the economy were running only on its own renewable sources (R), Switzerland could only support 11.8 % or 0,75 E 6 people of the present population at today's standard of living (1.1 % for West Germany, 12% for the USA, 39% for Dominica). On another side, the more of a country's resources that remain unused, by comparison with the total embodied energy used, the more it can attract outside energy to match and interact with its own renewable energy. The ratio of imported to resident resources helps define a "highly developed" country. At this point, a strict energy analysis confirms what we already know on a more usual economic scale. Such a country maximizes its power on both scales. But any cutting down in the im­ ports of embodied energy would be dramatic.

Figure 4.2: Aggregated view of Switzerland, three arm diagram; E 20 SEJ/yr

IMPORTS

498

INDIGENIOUS OR -EXPORTS ENVIRONMENTAL B,P,E3 RESOURCE FLOWS 141.24 R,N0 119.5 Table 4.1 : Annual energy flows in Switzerland

Footnote Type of Energy Actual Energy Solar Energy Transformation Embodied J/yr Ratio Energy SEJ/JorSEJ/t E20SEJ

1 Direct sun 1.9 E20 1 1.9 2 Wind kinetic energy 2.3 E 17 663 1.5 3 a) Rain, chemical potential 2.26 E 17 15423 34.85 3 b) Rain and snow, geopotential 9.76 E 17 8888 86.75 4 a) Rivers, chemical potential 1.9 E 17 41068 78.01 4 b) Rivers, flowing potential 3.7 E 17 23564 87.2 5 Earth cycle 4.13 E 16 2.9 E4 11.97 6 a) Net loss of soil; earth 19.16 Eli g/yr 1.71 E9SEJ/g 32.76 6 b) Net loss of soil ; top soil used 3.56 E 15 6.25 E4 3.4 7 Goods used in reaction with 02 F 13126.3 E 12 6.8 E4 8.98 net imports (F: food ; W : wood) W28271.1 E12 1.57 E5 44.39 8 Goods used where value is in its concentration, net imports 4^ Semi refined and refined Fe and steel 14.83 E 13 1.84 E7 27.29 OS Cu 0.12E12 — — Cu-products 20.66 E 12 — — Al and Al-products -0.09 E6t 1.63E10A -0.15 E16 9 Machines, export -33.49 E 12 6.94 E 7 23.24 10 Chemical products, net import 23.07 E 16 3.45 E 4 79.59 11 Coal, net import 18.34 E 15 3.98 E 4 7.30 12 Oil, net import 476.10 E 15 5.30 E4 252.33 13 Natural gas, net import 45.93 E 15 4.80 E4 22.05 14 Electricity Hydroelectric 133.3 E 15 15.9 E4 • 211.9 Fuels and Nuclear 54.9 E 15 15.9 E4 87.3 Export-import 38.9 E 15 15.9 E4 61.9 Net inside use 149.3 E 15 15.9 E4 237.4 Local hydroelectricity used 61.8 E 15 15.9 E4 98.3 15 Local wood used 48.85 E 15 3.5 E4 17.1 16 Other important net imports 1892.6 E6$ — 31.04 17 Tourists, net import 2.4 E9$ — 19.68 427

Footnotes to Table 4.1 :

1 Direct Sun Total area: 4.13 E 10 m2 (ASS-Annuaire statistique de la Suisse, 1983); Annual solar energy (insola­ tion): 110 kcal/cmVyr {Odum et al., 1983); then: (4.13 E 10 m2) (1 E4cm2/m2)(110kcal/cm2/yr)(4186J/kcal)= 1.9E20J/yr 2 Wind, kinetic energy Height: 1000 m; vertical gradient: 2.4 E-3 m/s; densité 1.23 kg/m3; eddy diffusion coeff.: 25 mV m/sec; time factor: 3.154 E 7 sec/yr; area: 4.13 E 10 m2; then: (1000 m) (2.4 E-3 m/sec/m)2 (1.23 kg/m3) (25 m3/m/sec) (3.154 E 7 sec/yr) (4.13 E 10 m2) = 2.31 E 17 J/yr 3 Rain a) Rain, chemical potential(ASS, 1983) Average : 1108.3 mm/yr from mean of 11 values each a median for one ofthell meteorological sta­ tions in the country ; area: 4.13 E 10 m2; Gibbs free energy of rainwater relative to salt water within evapotranspiring plants = 4.94 J/g; there are 1 E 6 g/m3 (density); then: (4.13 E 10 m2) (1.1083 m/yr) (4.94 J/g) (1 E 6 g/m3) = 2.26 E 17 J/yr b) Rain and snow, geopotential Mean elevation: 2175 m; runoff: 1.1083 m/yr; density: 1 E 3 kg/m3; gravity: 9.8 m/sec2 (from Odum et al., 1983); then: (4.13 E 10 m2) (1.1083 m/yr) (2175 m) (1 E 3 kg/m3) (9.8 m/sec2) = 9.76 E 17 J/yr This is a preliminary calculation. This number can be revised, probably upward, when more data are used so that precipitation is multiplied by the elevation where it falls, emphasizing high altitudes. 4 Rivers a) Rivers, chemical potential (ASS, 1983) Mean volume flow of 5 major rivers over more than 10years:3.93 E 10 m3/s/yr; Gibbs free energy: 4.854 J/g; density: 1 E6g/m3;then: (3.93 E 10m3/s/yr)(l E 6 g/m3) (4.254 J/g) = 1.9 E 17 J/yr b) Rivers, flowing potential(ASS, 1983) Each main river of each four watersheds of Switzerland: (flow volume) (height of source-egress) (density) (gravity); then: Rhein: (2.8 E 10 mVyr) (1000 m) (1 E 3 kg/m3) (9.8 m/sec2) = 2.7 E 17 J/yr North Sea Rhone: (0.75 E 10 mVyr) (800 m) (1 E 3 kg/m3) (9.8 m/sec2) = 0.6 E 17 J/yr Medit.Sea Ticino: (0.23 E 10 mVyr) (700 m) (1 E 3 kg/m3) (9.8 m/sec2) =0.2 E 17 J/yr Adriatic Sea Inn: (0.15 E 10 mVyr) (1300 m) (1 E 3 kg/m3) (9.8 m/sec2) = 0.2 E 17 J/yr Black Sea 3.7 E 17 J/yr 5 Earth cycle Heat flow per area (stable): 1 E 6 J/m2/yr {Odum et al., 1983); then: (4.13 E 10m2)(l E6J/m2/yr) = 4.13 E 16 J/yr 6 Net loss of soil a) Earth Erosion outflow : 93.6 g/m2/yr, typical formation rate : 31.2 g/m2/yr ( Odum et al., 1983) ; prod, area : 3.07 E 10 m2 (ASS, 1983); then: [(93.6g/m2/yr)-(31.2g/m2/yr)](3.07E 10m2)= 19.16 E 11 g/yr b) Topsoil used Farmed area: 2.02 E 10 m2,48.9% of land area (ASS, 1983); erosion rate: 260 g/m2/yr (USA, Moun- 428

tain States; Odum et al., 1983); no successional area; erosion: (2.02 E 10 m2) (260 g/m 5.25 E 12 g/yr; organic fraction: 0.03 (guess); then: (5.25 E 12 g/yr) (0.03 organic) (5.4 kcal/g) (4186 J/kcal) = 3.56 E 15 J/yr

7 Goods used in reaction with oxygen (data 1982 : ASS, 1983 ; 1980 : UN, 1981 ) Imports-Exports, 1982 Imports Exports I-E Meat and meat products 60 E 6 kg * 60 E 6 kg Fish (also fish starch) 123 E 6 kg * 123 E 6 kg Dairy - Milk — — 13.1 E 6 kg Cheese 20.9 E 6 kg 64.2 E 6 kg** -43.3 E 6 kg Grains 877.6 E 6 kg * 877.6 E 6 kg Wood — 25.39 E 5 m3 * No significative data ** extrapolated from 1980 Exports and Imports

Actual energy {Odum et al., 1983) Beef 15.8E6J/kg Fish 4.3 E 6 J/kg Milk 2.7 E 6 J/kg Cheese 13.5 E 6 J/kg Grain 13.9 E 6 J/kg Actual joules (net imports) Meat (60 E 6 kg) ( 15.8 E 6 J/kg) = 948 E 12 J/yr Fish ( 123 E 6 kg) (4.3 E 6 J/kg) = 528.9 E 12 J/yr Milk (13.1 E 6 kg) (2.7 E 6 J/kg) = 35.4 E 12 J/yr Cheese -(43.3 E 6 kg) (13.5 E 6 J/kg) = -584.6 E 12 J/yr Grain (877.6 E 6 kg) (13.9 E 6 J/kg) = 12,198.6 E 12 J/yr Wood (25.39 E 5 m3) (0.7 E 6 g/m3) (3.8 kcal/g) (4,186 J/kcal) = 28,271.1 E 12 J/yr ETR: food: 6.84 E 4 SEJ/J; wood: 1.57 E 5 SEJ/J (hard wood: 3.08 E 5 SEJ/J; soft wood: 6.72 E 3 SEJ/J Solar embodied energy Food : ( 13,126.3 E 12 J/yr) (6.84 E 4 SEJ/J) = 897.8 E 18 SEJ/yr Wood: (28,271.1 E 12 J/yr) (1.57 E 5 SEJ/J) = 4,438.6 E 18 SEJ/yr 5,336.4 E 18 SEJ/yr Goods used where value is in its concentration (net imports) a) Semi-refined and refined Fe and steel (1980: UN, 1981) Import 2.75E6t/yr Export 1.11 E6t/yr Net import 1.64 E 6 t/yr Actual energy: 90.4 E 6 J/t (extrapolated from Gilliland et al., 1978; Odum, 1978) (1.64 E 6 t/yr) (90.4 E 6 J/t) = 14.83 E 13 J/yr b) Cu (1980: UN, 1981) Import 98.6 E 3 t/yr Export 27.9 E 3 t/yr Net import 70.7 E 3 t/yr Actual energy: 1.65 E 6 J/t {Lavine and Butler, 1982; Odum et al., 1983) (70.7 E 3 t/yr) ( 1.65 E 6 J/t) = 0.12 E 12 J/yr c) Cu-products (1980: UN, 1981) Import 142.9 E 3 t/yr Export 21.4 E 3 t/yr Net import 121.5 E 3 t/yr Actual energy: 1.7 E 8 J/t {Lavineand Butler, 1982; Odum et al., 1983) (121.5 E 3 t/yr) (1.7 E 8 J/t) = 20.66 E 12 J/yr 429

d) Al and Al-products (1980: UN, 1981) Import 0.16 E 6 t/yr Export 0.25 E 6 t/yr Net import -0.09 E 6 t/yr 9 Machines (1980: UN, 1981), also Iron and Steel end-products Import 60.11 E 4 t/yr Export 97.16 E 4 t/yr Net import -37.05 E 4 t/yr Actual energy: 90.4 E 6 J/t (Otfwm et al., 1983) -(37.05 E 4 t/yr) (90.4 E 6 J/t) = -33.49 E 12 J/yr 10 Chemical products (1980: UN, 1981) Import 9.47 E 6 t/yr Export 1.2 E 6 t/yr Net import 8.27 E 6 t/yr Actual energy: 27.9 E 9 J/t {Odum et al., 1983) (8.27 E 6 t/yr) (27.9 E 9 J/t) = 23.07 E 16 J/yr 11 Cofl/, net import (1982: ASS, 1983) 5.96 E 5 t/yr Actual energy: 30.65 E 9 J/t (Stat.Jahresbuch der BRD, 1981; Odum et al., 1983) (5.96 E 5 t/yr) (30.65 E 9 J/t) = 18.34 E 15 J/yr 12 0/7(1982: ASS, 1983) Import 106.41 E 5 t/yr Export 0.61 E 5 t/yr Net import 105.80 E 5 t/yr Actual energy: 4.5 E 10 J/t {Odum et al., 1983) (105.80 E 5 t/yr) (4.5 E 10 J/t) = 476.1 E 15 J/yr Inside use, (1982: ASS, 1983) (107.76 E 5 t/yr) (4.5 E 10 J/t) = 484.92 E 15 J/yr 13 Naturai Gas {\9S2: ASS, 1983) Import 47,100 TJ/yr Export 1,170 TJ/yr Net import 45,930 TJ/yr = 45.93 E 15 J/yr (actual energy) 14 Electricity (1982: ASS, 1983) Inside use/y r: Hydro: 37,035 GWH; inside use: (17,167 GWH) (3.6 E 12 J/GWH) = 61.8 E 15 J/yr

Nuclear: 14,276 GWH Thermo: 974 GWH 52,285 GWH -pumping: 1,532 GWH 50,753 GWH -exports 19,868 GWH 30,885 GWH -l-imports 9,041 GWH 39,926 GWH (3.6 E 12 J/GWH) = 143.733 E 15 J/yr 15 Local Wood Used {\9S2: ASS, 1983) (43.87 E 5 m3) (0.7 E 6 g/m3) (3.8 kcal/g) (4,186 J/kcal) = 48.85 E 15 J/yr 430

16 Other important net imports (1982: ASS, 1983) Paper and clothes, imports: 7,505.0 E 6 SFR exports: 4,511.9 E 6 SFR net imports: 2,993.1 E 6 SFR = 1,496.5 E 6 $ Other end-products, imports: 12,988.1 E 6 SFR exports: 12,195.9 E 6 SFR net imports: 792.2 E 6 SFR = 396.1 E 6$ 1,892.6 E 6$(yr) Solar energy joules: (1,892.6 E 6 $/yr) (US E/$ ratio 1980: 1.64 E 12 SEJ/$) = 31.04 E 20 SEJ/yr 17 Tourists (1982: ASS, 1983) Balance (net import): 2.4 E 9 SFR (yr) (1.2 E 9 $/yr) (1.64 E 12 SEJ/S) = 19.68 SEJ/yr

Energy/Dollar Ratio

The energy/dollar ratio for Switzerland in 1982 was calculated from the chemical potential energy of rain, non-renewable indigenous resources, hydroelectricity, used within the country, imported fuels, minerals, goods and services, and the gross National Product (GNP). The Swiss energy/$ ratio in 1982 was 0.72 E 12 SEJ/$, more than 70 % lesser than the FRG (2.45 E 12 SEJ/$ in 1979) about 72 % lesser than the US (2.6 E 12 SEJ/$ in 1980) and 95% lesser than the Dominica one (14.9 E 12 SEJ/$). This suggests that for every dollar that an importer paid Switzerland for its products, he received 70%, 72% or 95% less embodied energy than that dollar would buy, respectively, in West Germany, in the USA or in Dominica. That sup­ ports an old Swiss characteristic: very valuable outputs with little embodied energy. In this sense, the energy/dollar ratio is an index of the tertiarization of a country in the matching of its energetic and economic dimensions at the interface between na­ ture and humanity.

Energy Evaluation of the Trade Balance

The embodied energy in international trade is given in Figure 4.2. The embodied energy of the imports and exports were calculated from the energy flow of the min­ erals, from fuels and goods, added to the service energy (labor, paid in dollars) mul­ tiplied by the energy/$ ratio of the USA (Table 4.3). The Swiss economy is highly ex­ port oriented although the money balance of payments only shows a 0.4 billion dol­ lar benefit in 1982 (Table 4.3). On an embodied energy basis, however, the trade ratio shows a considerable net gain; imports were 3.5 times the exports. 431

Table 4.2: Energy storages of Switzerland

Foot- Ty pe o f E n e rgy Actual Energy Embodied note Energy Transformation Solar Energy J Ratio (ETR) E 20 SEJ/yr SEJ/J

1 Plant biomass 23.33 E 14 1.76 E4 0.4 2 Water, geopotential 10.33 E 17 41 E3 42.4 3 Groundwater, chem. potential 8.26 E 17 41 E3 33.9 4 Glaciers, geopotential 79.63 E 17 41 E3 26.5 5 Topsoil 68.32 E 17 62.5 E 3 27.0

1 Plant biomass (chemical potential)

Land use (ASS, 1983) Net Primary Combustion[ Land Use Actual Energy Production E 10 J/t km2 J/yr t/km2/yr

Crop land (28.3%) 0.65 1.72 1.17E4 1.31 E14 Forest (25.4%) 0.5 1.97 1.05 E4 1.03 E 14 Pasture land (20.6%) 1.0 1.67 0.85 E4 1.42 E 14 Urban, transp. (4.4%) — — 0.18E4 — Lakes, rivers (3.6%) — — 0.15 E4 — Rocks, glaciers (17.7%) — — 0.73 E4 — 4.13 E4 Total organic matter: Crop land (turnover time : 1 year) 1.31 E14 Forest (turnover time : 20 years) : ( 1.03 E 14 J/yr) (20) 20.6 E 14 Pasture land (turnover time : 1 year) 1.42 E 14 23.33 E 14

Water, geopotential (volume) (density) (gravity) (height of center of gravity mass) a) Volume of main natural lakes: 225 km3; average height: 450 m {Unesco, 1974 and estimated from ASS, 1983) b) Volume of man-made lakes: 2.9 km3; avg. height: 1500 m (ASS, 1983) 227.9 km3 a) (225 E 9 m3) (1 E 3 kg/m3) (9.8 m/sec2) (450 m) = 9.9 E 17 J b) (2.9 E 9 m3) (1 E 3 kg/m3) (9.8 m/sec2) (1500 m)= 0.43 E 17 J 10.33 E 17 J Groundwater, chemical potential (4.13 E 10 m2) (0.05 porosity - granite) (100 m) (1 E 6 g/m3) (4 J/g) = 8.26 E 17 J Glaciers, geopotential Glaciers: 2979 km2 (ASS, 1983) Alps: 3200 km2 ice = 350 km3 water {Unesco, 1974) Then Swiss glaciers 21325 km3 water (325 E 9 m3) (1 E 3 kg/m3) (9.8 m/sec2) (2500 m) = 79.63 E 17 J Topsoil (organic content, cf. Brady, 1974; Odum et al., 1983) Farm area: (2.02 E 6 ha) (114 E 6 g org./ha) (5.4 kcal/g) (4186 J/kcal) = 52.05 E 17 J Forest : ( 1.05 E 6 ha) ( 176 E 6 g org./ha) (5.4 kcal/g) (4186 J/kcal) = 11.77 E 17J 63.82 E 17 J 432

Table 4.3: Summary flows for Switzerland in Figure 4.1

Letter in Item Embodied Dollars Figure 4.1 Solar Energy E9$/yr E 20 SEJ/yr

R Renewable sources used (geopotential) 86.75 N Nonrenewable sources flow within the country N0dispersed rural source 32.76 N, local wood used 17.1 F Imported minerals and fuels 308.97 H Local hydroelectricity used 98.3 G Imported goods 110.63 P2I3 Imported services 78.16 I Dollars paid for imports 34.3 E Dollars paid for exports 34.7

P.E3 Exported services 56.0 B Exported products, transformed within the country (electr., machines) 85.24 X Gross National Product 102.4 P: Ratio embodied energy to $ of imports (SEJ/$)(US) 1.84 E 12SEJ/S P, Ratio embodied energy to $ of country 0.72 E 12SEJ/S and for its exports (SEJ/$)

Chemical potential energy in rivers (Table 4.1): 86.75 E 20 SEJ/yr N0 = net loss of earth and soil is the dispersed rural source (Table 4.1): 32.76 E 20 SEJ/yr N, Local wood used (Table 4.1): 17.1 E 20 SEJ/yr Imported minerals and fuels semi-refined and refined Fe and Steel: 27.29 SEJ/yr Gas 22.05 SEJ/yr Oil 252.33 SEJ/yr Coal 7.30 SEJ/yr 308.97 SEJ/yr Imported goods Chemical products 79.59 SEJ/yr Other goods 31.04 SEJ/yr 110.63 SEJ/yr H Local hydroelectricity used (Table 4.1): 98.3 E 20 SEJ/yr P2I, 13 = $ paid for imported services (1982: ASS, 1983): 8450 E 6 SFR = 4225 E 6 $ P2U = (1.85 E 12 SEJ/$) (4225 E 6 $/yr) = 78.16 E 20 SEJ/yr I $ paid for imports (1982: ASS, 1983): 68.6 E 9 SFR/yr = 34.3 E 9 $/yr E $ paid for exports (1982: ASS, 1983): 69.4 E 9 SFR/yr = 34.7 E 9 $/yr P,E3 E3 = $ received for exported services (1982: ASS, 1983): 15.56 E 9 SFR/yr = 7.78 E 9 $/yr P,E, = (0.72 E 12 SEJ/$) (7.78 E 9 $/yr) = 56 E 20 SEJ/yr 433

B Exported products transformed within the country (Table 4.1) Aluminium products 0.15 E 16 SEJ/yr Machines 23.24 E 20 SEJ/yr Electricity 62 E 20 SEJ/yr 85.24 E 20 SEJ/yr X Gross National Product (1982: ASS, 1983): 204.81 E 9 SFR = 102.41 E9$/yr P2 US energy/$ ratio: 1.85 E 12 SEJ/$ {Odum et al., 1983) P, Energy/$ ratio P, = (R+N0+N,+H+F+G+P2I3)/X

(86.75+32.76+17.1 +98.3+308.97+110.63+78.16) E 20 SEJ/yr 102.41 E 9 $/yr = 0.72 E 12 SEJ/$

Table 4.4: Indices using embodied energy for overview of Switzerland

Item Name of Index Expression (cf. Table 4.3)

1 Renewable embodied energy flow R 86.75 E 20 SEJ/yr 2 Flow from indigenous non rene­ N 49.86 E 20 SEJ/yr wable resources 3 Flow of imported embodied F+G+P2I3 497.76 E 20 SEJ/yr energy 4 Total embodied energy inflows R+N+F+G+P2I3 643.37 E20 SEJ/yr 5 Total embodied energy used U = R+N+H+F+G+P2I 732.67 E 20 SEJ/yr 6 Total exported embodied energy B+P.E 335.08 E 20 SEJ/yr 7 Fraction of embodied energy (N0+N,+R)/U 0.19 used derived from home sources 8 Exports minus imports (B+P,E)-(F+G+P2I) -207 E 20 SEJ/yr 9 Ratio of exports to imports (B+P,E)/(F+G+P2I) 0.31 10 Fraction used, locally renewable R/U 0.12 11 Fraction of use purchased (F+G+P2I)/U 1.43 12 Fraction used that is import P2I/U 0.86 service 13 Fraction of use that is free (R+N0)/U 0.16 (energy externality ratio)

14 Ratio of concentrated to rural (F+G+P2I3+N,+H)/(R+N0) 5.13 15 Use per unit area (2.13 E 10 m2) U/(area) 3.44E12SEJ/yr/m2 16 Use per capita (6.37 E 6) U/(population) 1.15 E16SEJ/cap/yr 17 Renewable carrying capacity at (R/U) (population) 0.75 E6 people present living standard 18 Developed carrying capacity at 8 (R/U) (population) 6 E 6 people same living standard 19 Ratio of use to GNP P, = U/(GNP) 0.72E12SEJ/S (energy/$ ratio) 20 Energy externality energy/$ ratio (R+N0)/(GNP) 0.12E12SEJ/S of fraction of use that is free 21 Ratio of energy externality/$ [(R+Nn)/(GNP)]/(U/GNP) 0.17 434

Table 4.4 (continued)

Item Name of Index Expression (cf. Table 4.3)

22 Energy externality per capita (N0+R)/(population) 0.19 E16 SEJ/cap/yr 23 Fraction electric (electricity used)/U 0.32 24 Electricity per capita (produced) (electricity used)/(population) 0.37 E 16 SEJ/cap/yr 25 Fuel per capita (imported) (Fuel used)/(population) 0.40 E 16 SEJ/cap/yr

Whereas goods export B and service export P, E carry embodied energy thatare in this case derived from imports, they represent transformations and are products of use.

Energy Use

At the moment, every Swiss inhabitant uses 1.15 E 16 SEJ/yr. In comparison, one person uses in West Germany 2.84 E 16 SEJ/yr ( 1979), 2.9 in the USA, 1.3 in Domin­ ica, or 0.6 E 16 SEJ/yr in Spain. These comparisons suggests that the Swiss econ­ omy is a relatively energy-saving one as the ratio of electricity consumption per ca­ pita confirms. It was 0.19 E 16 SEJ in 1982,0.29 in West Germany (like in the Soviet Union), 0.58 in the USA and 0.1 E -5 in Dominica). Finally, the dependence of the Swiss economy on non-renewable, imported en­ ergy is shown in the ratio of the concentrated (fuels, goods and services) to rural (chemical potential energy in rain and soil loss) energy (Table 4.4). It is 2 times of the USA, but 13 times lesser than of West Germany. In general, Switzerland sends 3.5 times less embodied energy out of the country than it actually imports, one of the reasons why Switzerland is so prosperous.

REFERENCES

ASS: Annuaire statistique de la Suisse, Berne, 1983. Gilliland, M. W., Fenner, L.B., and Eastman, M.: Energy Measures of Rocks as Environmental Re­ sources. Energy Policies Studies, Inc., El Paso, Texas, 1978 (unpublished memorandum). Lavine, M. J., and Butler, T,J.:USQ of Embodied Energy Values to Price Environmental factors. Report on National Science Foundation Project PRA-8003845. Cornell University, Center for Environmen­ tal Research, Ithaca, New York, 1982. Odum, Howard T.: Environment, Power and Society. J.Wiley, New York, 1971, 331 p. Odum, Howard T .An Energy Circuit Language for Ecological and Social Systems, its Physical Basis. In : Systems Analysis and Simulation in Ecology, Vol. 2, edited by B. Patten. Academic Press, New York, 1972, pp. 139-211. Odum, Howard T:Energy Analysis, Energy Quality, and Environment. In: Energy Analysis: a New Pu­ blic Policy Tool. AAAS Selected Symposium Vol. 9, edited by M. Gilliland. Westview Press, Boulder, Colorado, 1978, pp. 55-87. Odum, Howard T. .Systems Ecology: An Introduction. J.Wiley, New York, 1983, 644 p. Odum, H. T, Kylstra, C, Alexander, J., Sipe, N., Lem, P. et al. : Net Energy Analysis of Alternatives for the United States. In : Middle and Longterm Energy Policies and Alternatives, Hearings of Subcom­ mittee on Energy and Power, 94th Congress, serial Number 94-33. U.S. Government Printing Of­ fice, Washington, D.C., 1976, pp. 258-302. 435

Odum, Howard T., Odum, Elisabeth C. et al.: Energy Analysis Overview of Nations. WP-83-82. Interna­ tional Institute for Applied Systems Analysis, Laxenburg (Austria), 1983, 469 p. Pillet, Gonzague:Joint Production of External Diseconomies. In: Economie Appliquée, Tome XXXIII, 1980, No. 304, pp. 651-662. Pillet, Gonzague: L'externalité énergétique. Documents FNRS, Berne, 1983, 8 p. Schmitt, Bernard: Monnaie, salaires et profits. Castella, Albeuve (Suisse), 1975 (2nd edition). UN: Yearbook of International Trade Statistics. United Nations, New York, 1981. UNESCO: World Water Balance and Water Resources of the Earth. English Translation. UNESCO Press, Paris, 1978.

Résumé

Externali té énergétique: le cas de l'économie suisse

Les externalités marchandes (effets externes de première génération) se présentent comme des effets potentiellement internes dès le moment où l'on peut envisager une correction du marché. A l'inverse, les externalités énergétiques (effets externes de seconde génération) apparaissent comme autant d'effets réels de frontière. Elles ne peuvent pas être internalisées en jouant avec le mécanisme des prix de marché. Elles trouvent leur origine dans un flux dont la source est extérieure au monde des activités économiques et s'épuisent, sous forme dégradée, dans le puits de chaleur du système. En d'autres termes, dans la mesure où le prix économique ne concerne que la part de travail humain et non celle de l'envi­ ronnement dans quelque production économique que ce soit, l'externalité énergétique représente la part de cette production qui n'apparaît pas dans les comptes de la nation ; celle qui, donc, est créée de manière indirecte, le long de voies que l'analyse économique délaisse en principe. Cette étude traite de l'interface entre économie et énergie. Elle comprend trois parties principales. La première traite du concept d'«externalité énergétique» et présente le langage énergétique qui accom­ pagne cette étude énergétique, économique et environnementale. La seconde présente l'analyse énergé­ tique comme contribution possible à l'internalisation des externalités énergétiques. En fonction de cette analyse, la troisième partie livre une vue d'ensemble de l'économie suisse compte tenu de sa base énergé­ tique externe. D'une façon générale, cette étude met l'accent sur la possibilité d'évaluer des externalités énergé­ tiques à l'interface de l'environment, de l'énergie et de l'économie.

Summary

Energy Externality and the Economy of Switzerland

Unlike market externalities (external effects of first generation) which are potentially internal to re­ vised market decisions, energy externalities (external effects of second generation) are edge effects. En­ ergy externalities cannot be internalized through a price-oriented system. They originate in a flow that comes in through a source from outside the main economy and goes into a used, degraded form through the heat sink. In other words, because market prices deal with human service only, and not with envir­ onmental service, energy externality is the proportion of economic work ultimately caused from outside without any pricing process, i. e. throughout pathways of action that are indirect and even unrecognized. This study deals with the interface between economics and energetics. It is in three main parts. The first one deals with the concept of Energy Externality and presents the energy language concerned with the study of Energetics, Environment, and Economics. The second part gives practice in understanding Energy Analysis Procedure as a contribution to the economic internalization of energy externalities. Ac­ cording to the above analysis, part three delivers an overview of the Swiss Economy regarding its Exter­ nal Energy Basis. I n general, this study concentrates on some of the important means of achieving an evaluation of the energy externality at the interface between Environment, Energetics, and Economics.