<?xml version="1.0" encoding="UTF-8" ?><rss xmlns:media="http://search.yahoo.com/mrss/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" version="2.0"><channel><title>Disruptively Green</title><link>http://www.good.is/</link><description>Michael Keating of the Open Planning Project looks at disruptive innovations—the game-changing technologies and strategies that put entrenched and dated business models out to pasture—and how they can make the world more sustainable. </description><lastBuildDate>Mon, 13 Feb 2012 15:22:29 -0800</lastBuildDate><generator>CakePHP</generator><sy:updatePeriod>hourly</sy:updatePeriod><sy:updateFrequency>1</sy:updateFrequency><language>en-us</language>
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	<title><![CDATA[Four-star Living at Burning Man: The Dome]]></title>
	<link>http://www.good.is/post/four-star-living-at-burning-man-the-dome/</link>
	<guid isPermaLink="true">http://www.good.is/post/four-star-living-at-burning-man-the-dome/</guid>
	<description><![CDATA[<h3>	<img alt="burning man dome" id="asset_264410" src="http://pre.cloudfront.goodinc.com/posts/full_1290804671IMG_02821.jpg" /><br />	Why didn&#39;t Buckminster Fuller&#39;s dome&mdash;a brilliant innovation of design&mdash;ever take off?</h3><p>	<strong>A few months</strong> ago, I spent a wonderful week living in a dome. For a total investment of about $250, I acquired over a 100 sturdy, shaded, weather-proof square feet of residential real estate. At Burning Man, this was four-star living.</p><p>	My circular pad was not the only one in the Nevada desert that week. The dome is as characteristic of Burning Man&rsquo;s Black Rock City as the Brownstown is in Brooklyn. Parts of the festival can take on the look of a moon base. This wouldn&rsquo;t surprise <a href="http://www.good.is/post/good-guide-r-buckminster-fuller/">Buckminster Fuller</a> or any of the many boosters and designers of domes who had their heyday in the middle of the last century. What would surprise them is the sheer number of domes in one place at one time.</p><p>	Domes were supposed to be the houses of tomorrow. Judging by their virtues&mdash;they are structurally strong, with the efficient ratio of surface to volume making them cheap to build and easy to heat and cool&mdash;a dome should still be on our list of building options. Shouldn&rsquo;t domes have become a disruptive innovation in housing, displacing old-fashioned gables over the last 50 years? Perhaps, but they haven&#39;t.</p><p>	Housing&rsquo;s environmental impact is huge. The land claimed, the construction materials, the energy and water and chemicals used over the life of a home, and the activities humans undertake (such as driving) in order to access their housing add up to one of the most important drivers of environmental damage in the world, and in any one person&rsquo;s lifestyle.</p><p>	If conventional housing, especially single-family suburban housing, is negatively impacting climate change and biodiversity, what innovations will disrupt this and bring to market a new dominant, sustainable housing form? Understanding why domes failed in that regard might point us to the right solution.</p><p>	Domes represent a whole new way of building, with an outcome that looks completely different from a conventional home. Their low cost should&mdash;despite the trade-offs of an awkward shape for furnishing, and weird acoustics&mdash;make them classic low-end alternatives to the norm. Would you be as likely to find a buyer for your dome as you would a conventional home? When making a purchase that will become your biggest expense over the coming years, taking a risk on the resale value seems imprudent. Further, in many places, neighbors or home owners associations might fight the development of a dome-next-door in order to protect the character of their neighborhood, which has something to do with their daily aesthetic experience but much more to do with their property values. Though domes have great disruptive potential, it appears that they are not disrupting the right thing, or, to use the language of disruptive-innovation theory: They are competing on the wrong terms.</p><p>	According to Harvard Business School Professor Clayton Christensen&rsquo;s theory of &ldquo;disruptive innovation,&rdquo; we should ask what &ldquo;job&rdquo; does a house do for you? The answer is that housing does much more than put a roof over your head, give you nice neighbors, and locate you in a good school district or near your job. Since the creation of the Federal Housing Administration, Fannie Mae, and other means of boosting ownership, it has also been, in some cases primarily, making you money. So while Fuller thought he was shaping the future with his geodesic architecture, the government and the financial services industry were implementing a more compelling design.</p><p>	<strong>Fast forward to</strong> the recent housing crisis, which shows us that the guarantee of getting rich from borrowing all you can to buy a home may have reached its limit. House prices will still rise in many places, eventually, but some of the brightest minds in the country created the financial engineering techniques to keep those home &ldquo;values&rdquo; rising fast, and the slope got too steep for us to keep climbing. That these techniques were predicated on the construction of fairly standard homes that could be easily valued, mortgaged, securitized, tranched, and sold as something very different from a place to live shows us that the present unsustainable construction techniques that dominate in America today were as much a product of an investment strategy as they were of mainstream tastes and of trade union influence on building codes.</p><p>	Now that the housing bubble has popped, will we allow ourselves to build homes that break the mold, both in terms of aesthetics and sustainability? That are more habitat than they are investment? This is not an armchair question. With the US housing market in crisis and receiving billions in subsidies, and China and India being reshaped by urbanization and rising middle classes who are building millions of new homes, this is the moment to change course. We could:</p><ul>	<li>		Reform the national building code to allow for passivhaus and pre-fab&rsquo;s efficiencies in factory-built components, rapid on-site construction and energy efficiency in any state in the country.&nbsp;</li>	<li>		Allow people to deduct the mortgage interest on an RV that is their primary residence, allowing them to live where they drive, eliminating one commute and vehicle per household and reducing land use.</li>	<li>		Legalize AirBnB to make it possible for people to move from apartment to apartment without ever needing a rental agreement</li>	<li>		Improve urban schools to attract more people back to cities with their efficient and multifamily residences.</li>	<li>		Prohibit neighbors from blocking innovative construction in their midst, in order to spur new ideas and experimentation in how we build and live.</li></ul><p>	The money pay for these ideas could be found by eliminating billions of mortgage interest tax deductions on luxury housing and second homes that promote waste and only benefit the rich. And all of these ideas have the potential to disrupt conventional housing forms and reduce housing&rsquo;s environmental impact significantly, but only if housing is seen first as a home, not as a stock pick.<br />	<br />	<em>Note: This is the fourth and final post in a series I have contributed to irregularly over the past year. The goal of the series was to get people to think critically, using one of the most important theories of technological change, about how important it is to know the difference between what is &ldquo;greener&rdquo; and what is really &ldquo;green&rdquo;. I will continue to blog on this and related topics at http://michaelburnskeating.net.</em></p>]]></description>
	<content:encoded><![CDATA[<h3>	<img alt="burning man dome" id="asset_264410" src="http://pre.cloudfront.goodinc.com/posts/full_1290804671IMG_02821.jpg" /><br />	Why didn&#39;t Buckminster Fuller&#39;s dome&mdash;a brilliant innovation of design&mdash;ever take off?</h3><p>	<strong>A few months</strong> ago, I spent a wonderful week living in a dome. For a total investment of about $250, I acquired over a 100 sturdy, shaded, weather-proof square feet of residential real estate. At Burning Man, this was four-star living.</p><p>	My circular pad was not the only one in the Nevada desert that week. The dome is as characteristic of Burning Man&rsquo;s Black Rock City as the Brownstown is in Brooklyn. Parts of the festival can take on the look of a moon base. This wouldn&rsquo;t surprise <a href="http://www.good.is/post/good-guide-r-buckminster-fuller/">Buckminster Fuller</a> or any of the many boosters and designers of domes who had their heyday in the middle of the last century. What would surprise them is the sheer number of domes in one place at one time.</p><p>	Domes were supposed to be the houses of tomorrow. Judging by their virtues&mdash;they are structurally strong, with the efficient ratio of surface to volume making them cheap to build and easy to heat and cool&mdash;a dome should still be on our list of building options. Shouldn&rsquo;t domes have become a disruptive innovation in housing, displacing old-fashioned gables over the last 50 years? Perhaps, but they haven&#39;t.</p><p>	Housing&rsquo;s environmental impact is huge. The land claimed, the construction materials, the energy and water and chemicals used over the life of a home, and the activities humans undertake (such as driving) in order to access their housing add up to one of the most important drivers of environmental damage in the world, and in any one person&rsquo;s lifestyle.</p><p>	If conventional housing, especially single-family suburban housing, is negatively impacting climate change and biodiversity, what innovations will disrupt this and bring to market a new dominant, sustainable housing form? Understanding why domes failed in that regard might point us to the right solution.</p><p>	Domes represent a whole new way of building, with an outcome that looks completely different from a conventional home. Their low cost should&mdash;despite the trade-offs of an awkward shape for furnishing, and weird acoustics&mdash;make them classic low-end alternatives to the norm. Would you be as likely to find a buyer for your dome as you would a conventional home? When making a purchase that will become your biggest expense over the coming years, taking a risk on the resale value seems imprudent. Further, in many places, neighbors or home owners associations might fight the development of a dome-next-door in order to protect the character of their neighborhood, which has something to do with their daily aesthetic experience but much more to do with their property values. Though domes have great disruptive potential, it appears that they are not disrupting the right thing, or, to use the language of disruptive-innovation theory: They are competing on the wrong terms.</p><p>	According to Harvard Business School Professor Clayton Christensen&rsquo;s theory of &ldquo;disruptive innovation,&rdquo; we should ask what &ldquo;job&rdquo; does a house do for you? The answer is that housing does much more than put a roof over your head, give you nice neighbors, and locate you in a good school district or near your job. Since the creation of the Federal Housing Administration, Fannie Mae, and other means of boosting ownership, it has also been, in some cases primarily, making you money. So while Fuller thought he was shaping the future with his geodesic architecture, the government and the financial services industry were implementing a more compelling design.</p><p>	<strong>Fast forward to</strong> the recent housing crisis, which shows us that the guarantee of getting rich from borrowing all you can to buy a home may have reached its limit. House prices will still rise in many places, eventually, but some of the brightest minds in the country created the financial engineering techniques to keep those home &ldquo;values&rdquo; rising fast, and the slope got too steep for us to keep climbing. That these techniques were predicated on the construction of fairly standard homes that could be easily valued, mortgaged, securitized, tranched, and sold as something very different from a place to live shows us that the present unsustainable construction techniques that dominate in America today were as much a product of an investment strategy as they were of mainstream tastes and of trade union influence on building codes.</p><p>	Now that the housing bubble has popped, will we allow ourselves to build homes that break the mold, both in terms of aesthetics and sustainability? That are more habitat than they are investment? This is not an armchair question. With the US housing market in crisis and receiving billions in subsidies, and China and India being reshaped by urbanization and rising middle classes who are building millions of new homes, this is the moment to change course. We could:</p><ul>	<li>		Reform the national building code to allow for passivhaus and pre-fab&rsquo;s efficiencies in factory-built components, rapid on-site construction and energy efficiency in any state in the country.&nbsp;</li>	<li>		Allow people to deduct the mortgage interest on an RV that is their primary residence, allowing them to live where they drive, eliminating one commute and vehicle per household and reducing land use.</li>	<li>		Legalize AirBnB to make it possible for people to move from apartment to apartment without ever needing a rental agreement</li>	<li>		Improve urban schools to attract more people back to cities with their efficient and multifamily residences.</li>	<li>		Prohibit neighbors from blocking innovative construction in their midst, in order to spur new ideas and experimentation in how we build and live.</li></ul><p>	The money pay for these ideas could be found by eliminating billions of mortgage interest tax deductions on luxury housing and second homes that promote waste and only benefit the rich. And all of these ideas have the potential to disrupt conventional housing forms and reduce housing&rsquo;s environmental impact significantly, but only if housing is seen first as a home, not as a stock pick.<br />	<br />	<em>Note: This is the fourth and final post in a series I have contributed to irregularly over the past year. The goal of the series was to get people to think critically, using one of the most important theories of technological change, about how important it is to know the difference between what is &ldquo;greener&rdquo; and what is really &ldquo;green&rdquo;. I will continue to blog on this and related topics at http://michaelburnskeating.net.</em></p>]]></content:encoded>
	<dc:creator>Michael Keating</dc:creator>
	<pubDate>Fri, 26 Nov 2010 13:00:00 PST</pubDate>
</item>
<item>
	<title><![CDATA[Seitan: The Other Green Meat]]></title>
	<link>http://www.good.is/post/seitan-the-other-green-meat/</link>
	<guid isPermaLink="true">http://www.good.is/post/seitan-the-other-green-meat/</guid>
	<description><![CDATA[<p>	<img alt="beeftree2-green" class="alignnone size-full wp-image-31527" height="465" src="http://user.cloudfront.goodinc.com/community/etling/beeftree2-green.jpg" title="beeftree2-green" width="578" /></p><h3>	Is there such a thing as a sustainable alternative to beef and other meats?</h3><p>	&nbsp;</p><p>	<strong>Beef</strong> is not what&rsquo;s for dinner if you are serving 6 billion people, much less so if you are serving 9 billion (where population is expected to level off, around 2050). Current meat production puts meat on the dinner table for far fewer than 6 billion people every night, as most people can&rsquo;t afford it. Meat alone is responsible for about 18 percent of global greenhouse gas emissions. The land required to grow the feed and graze those animals that are allowed to graze, the water used at every stage of the process, and the complications of hormones and antibiotics make the kind of industrial meat production required to feed billions of omnivores&nbsp; one of the biggest threats to the global environment. Scale that up to meet current or future demand and you have a crisis.<br />	<br />	We really should have started eating less meat years ago, but in the 20 years until 2002 (the most recent year the data is available from the World Resources Institute) meat consumption has grown in every region of the world except in Europe and Sub-Saharan Africa, where it has essentially remained stable (and in Africa very low). The Americas, with the United States, Canada, and Argentina in the lead, are the biggest meat eaters. The Europeans aren&rsquo;t far behind. As countries get richer, they eat more meat, because it tastes good, and because they can. And some very big countries are getting richer right now, so the trend is clearly upwards.<br />	<br />	As in <a href="http://www.good.is/series/disruptively-green" target="_blank">past pieces in this series</a>, the question is how to find, among the many forms of meat touted as greener or more environmentally friendly, that kind of meat that really has a chance of pushing environmentally damaging, industrial meat off the table. We are looking for a &ldquo;disruptive innovation,&rdquo; to use the concept coined by Harvard Business School Professor Clayton Christensen to explain how innovations in technological and business systems can gain a foothold in a market of established, profitable corporations and eventually come to dominate those markets themselves. The theory of disruptive innovation successfully explains the rise of the cell phone against the landline and Japanese automakers against Detroit. Environmentalists should hope to replicate such successes in environmentally damaging industries like transportation and electricity (discussed previously) and in the meat industry.<br />	<br />	A trip to even a mainstream grocer or butcher will likely bring the shopper in contact with one or more of the following green &ldquo;innovations&rdquo; in meat production:</p><ul>	<br />	<li>		<strong>Organic</strong>: animals fed entirely with organic feed, excluding GMOs, herbicides, pesticides, fungicides, and synthetic fertilizers. They are not fed antibiotics or growth hormones and are not genetically modified themselves. Since a third of all grains goes to feed livestock, and almost half of all cropland is used to grow grains, organic livestock feed could better the ecology of an area about the size of Alaska and California combined. Not bad.</li>	<br />	<li>		<strong>Grass-fed</strong>: Grass-fed meat is fed largely or exclusively on the natural food for ruminants like cows and sheep, instead of on corn and soy and other non-grass additives that make up industrial feed. The most obvious benefits are in the health of the animals and the people who eat them, but it also amplifies some of the environmental benefits of the organic meat. All those acres of feed that stay chemical-free under organic agriculture don&rsquo;t need to be planted for grass-fed, though they may be needed for pasture. And, ruminants that eat grass have better digestion and lower methane emissions.</li>	<br />	<li>		<strong>Local</strong>: Local meat is grown near the place it is consumed, and the designation implies traditional, non-industrial farming, though this isn&rsquo;t always the case. The benefits of local are as often described in terms of supporting local economies or freshness as they are described in terms of reducing the energy and pollution from transporting meat long distances.</li>	<br /></ul><br /><p>	The question is which, if any, of the above might be that disruptive innovation that will make eating meat sustainable, moving from its current niche to a paradigm shift. Asked differently, do any of these have the qualities that gave Toyota a foothold in the U.S. car market in the 1960s? Compact, unsexy Toyotas were cheap, fuel efficient for the time, and could get you from here to there, so they were good enough for some people who couldn&rsquo;t afford an overpowered, gas guzzling Ford. Detroit was caught unprepared for the oil shocks of the 1970s, and that gave the little Japanese cars their chance to go from niche to mainstream as buyers&rsquo; priorities shifted. Today, Toyota is the biggest car company in the world.<br />	<br />	Looking at the organic, grass-fed, local meats above, we won&rsquo;t find any Toyotas, unless you are looking for a Prius. None of them are cheaper or just good enough, relative to their non-green equivalents. They are all premium products. Organic feed is more expensive and pasture land even more so. Not feeding the animals antibiotics, hormones, or protein-rich industrial feed results in them taking longer to fatten, further increasing the cost. The meat is likely healthier too, and some people can tell the difference. Local meat is generally more expensive, especially if it comes from a small farm. The reduced cost of transporting meat long distances is not enough to make local meat cheaper. These cost differences would be less obvious if the United States and other governments didn&rsquo;t subsidize so many stages of the meat production process. These subsidies stifle innovation in a fundamental industry and ultimately hurt the meat eating public, the environment, and industry competitiveness.<br />	<br />	So if none of these meats are Toyotas, could they be cell phones? Do they allow people who have not had access to meat in the past include it in their diets the way a cell phone lets you make calls even when you are away from home or work? A product doesn&rsquo;t have to be cheaper to get a foothold if it isn&rsquo;t competing against anything else.&nbsp; Unfortunately, none of these kinds of meat are available where industrial meat is not, and very few people would not eat meat but for the existence of these preferred varieties.<br />	<br />	Neither cell phones nor Toyotas, these green meats are certainly better than industrial, but they aren&rsquo;t cheap or distinctive enough make a difference in the big picture or the long term, and that&#39;s disappointing.<br />	<br />	But we left something out. If we ask ourselves what meat does in our diets, we find it is an important source of combined protein, fat, cholesterol, vitamins (especially B-vitamins), and minerals. These nutrients don&rsquo;t have to come from animals. That same mainstream supermarket in which you may have found the high-priced organic meat probably also carries some of the following:</p><ul>	<br />	<li>		<strong>Soy</strong>: in the form of tofu, tempeh, pups, tofurkey, and every other form imaginable.</li>	<br />	<li>		<strong>Seitan</strong> (high protein wheat gluten): in traditional forms as well as those that can resemble duck.</li>	<br />	<li>		<strong>Veggie burgers</strong>: a mix of all kinds of things in as many varieties but all standing in for the American beef staple.</li>	<br /></ul><br /><p>	Some of these &ldquo;meat alternatives&rdquo; (like the traditional tofu, tempeh, and seitan) are Toyotas because meat is a luxury in many parts of the world: For centuries they have been an important part of traditional diets and a cheaper, good-enough nutritional stand-in for meat, or just a regular part of the traditional cuisine. Some (the pups, veggie burgers, and soy nuggets) are like cell phones in countries where meat is very cheap and people are relatively well off, like the United States. They are not a cheaper alternative to hamburgers as they are mainly for people who don&#39;t eat meat, but they are gaining popularity as people seek healthier, safer, more humane, and greener alternatives to meat. As they get tastier, more meat-like, cheaper, and more socially acceptable, they can ride these trends to a greater share of United States &ldquo;meat&rdquo; consumption like cell phones took over land lines as they got better, lighter, cheaper, and less ostentatious.<br />	<br />	However, as shown by the short happy life of Zen Burger (a tasty vegetarian fast food concept that closed a year ago in New York City), it will take more than good intentions to marginalize meat eating among those who can afford to eat it at every meal. Meat substitutes will probably only become a mainstream alternative if the price of meat rises sharply, perhaps as a result of subsidies being scaled back or in the face of an oil-shock-type crisis in water, climate, or food&mdash;like recent scares over e. coli or the food price rises attributed to the biofuels boom, but bigger. When something like that happens, the Boca Burgers and Nasoyas of the world will be ready to become the Toyotas of tomorrow.<br />	<br />	<em>Michael Keating is an environmentalist and entrepreneur living in Brooklyn, New York.</em><br />	<br />	<em>Illustration by Will Etling.</em><br />	<a href="http://www.good.is/series/disruptively-green"><br />	</a></p>]]></description>
	<content:encoded><![CDATA[<p>	<img alt="beeftree2-green" class="alignnone size-full wp-image-31527" height="465" src="http://user.cloudfront.goodinc.com/community/etling/beeftree2-green.jpg" title="beeftree2-green" width="578" /></p><h3>	Is there such a thing as a sustainable alternative to beef and other meats?</h3><p>	&nbsp;</p><p>	<strong>Beef</strong> is not what&rsquo;s for dinner if you are serving 6 billion people, much less so if you are serving 9 billion (where population is expected to level off, around 2050). Current meat production puts meat on the dinner table for far fewer than 6 billion people every night, as most people can&rsquo;t afford it. Meat alone is responsible for about 18 percent of global greenhouse gas emissions. The land required to grow the feed and graze those animals that are allowed to graze, the water used at every stage of the process, and the complications of hormones and antibiotics make the kind of industrial meat production required to feed billions of omnivores&nbsp; one of the biggest threats to the global environment. Scale that up to meet current or future demand and you have a crisis.<br />	<br />	We really should have started eating less meat years ago, but in the 20 years until 2002 (the most recent year the data is available from the World Resources Institute) meat consumption has grown in every region of the world except in Europe and Sub-Saharan Africa, where it has essentially remained stable (and in Africa very low). The Americas, with the United States, Canada, and Argentina in the lead, are the biggest meat eaters. The Europeans aren&rsquo;t far behind. As countries get richer, they eat more meat, because it tastes good, and because they can. And some very big countries are getting richer right now, so the trend is clearly upwards.<br />	<br />	As in <a href="http://www.good.is/series/disruptively-green" target="_blank">past pieces in this series</a>, the question is how to find, among the many forms of meat touted as greener or more environmentally friendly, that kind of meat that really has a chance of pushing environmentally damaging, industrial meat off the table. We are looking for a &ldquo;disruptive innovation,&rdquo; to use the concept coined by Harvard Business School Professor Clayton Christensen to explain how innovations in technological and business systems can gain a foothold in a market of established, profitable corporations and eventually come to dominate those markets themselves. The theory of disruptive innovation successfully explains the rise of the cell phone against the landline and Japanese automakers against Detroit. Environmentalists should hope to replicate such successes in environmentally damaging industries like transportation and electricity (discussed previously) and in the meat industry.<br />	<br />	A trip to even a mainstream grocer or butcher will likely bring the shopper in contact with one or more of the following green &ldquo;innovations&rdquo; in meat production:</p><ul>	<br />	<li>		<strong>Organic</strong>: animals fed entirely with organic feed, excluding GMOs, herbicides, pesticides, fungicides, and synthetic fertilizers. They are not fed antibiotics or growth hormones and are not genetically modified themselves. Since a third of all grains goes to feed livestock, and almost half of all cropland is used to grow grains, organic livestock feed could better the ecology of an area about the size of Alaska and California combined. Not bad.</li>	<br />	<li>		<strong>Grass-fed</strong>: Grass-fed meat is fed largely or exclusively on the natural food for ruminants like cows and sheep, instead of on corn and soy and other non-grass additives that make up industrial feed. The most obvious benefits are in the health of the animals and the people who eat them, but it also amplifies some of the environmental benefits of the organic meat. All those acres of feed that stay chemical-free under organic agriculture don&rsquo;t need to be planted for grass-fed, though they may be needed for pasture. And, ruminants that eat grass have better digestion and lower methane emissions.</li>	<br />	<li>		<strong>Local</strong>: Local meat is grown near the place it is consumed, and the designation implies traditional, non-industrial farming, though this isn&rsquo;t always the case. The benefits of local are as often described in terms of supporting local economies or freshness as they are described in terms of reducing the energy and pollution from transporting meat long distances.</li>	<br /></ul><br /><p>	The question is which, if any, of the above might be that disruptive innovation that will make eating meat sustainable, moving from its current niche to a paradigm shift. Asked differently, do any of these have the qualities that gave Toyota a foothold in the U.S. car market in the 1960s? Compact, unsexy Toyotas were cheap, fuel efficient for the time, and could get you from here to there, so they were good enough for some people who couldn&rsquo;t afford an overpowered, gas guzzling Ford. Detroit was caught unprepared for the oil shocks of the 1970s, and that gave the little Japanese cars their chance to go from niche to mainstream as buyers&rsquo; priorities shifted. Today, Toyota is the biggest car company in the world.<br />	<br />	Looking at the organic, grass-fed, local meats above, we won&rsquo;t find any Toyotas, unless you are looking for a Prius. None of them are cheaper or just good enough, relative to their non-green equivalents. They are all premium products. Organic feed is more expensive and pasture land even more so. Not feeding the animals antibiotics, hormones, or protein-rich industrial feed results in them taking longer to fatten, further increasing the cost. The meat is likely healthier too, and some people can tell the difference. Local meat is generally more expensive, especially if it comes from a small farm. The reduced cost of transporting meat long distances is not enough to make local meat cheaper. These cost differences would be less obvious if the United States and other governments didn&rsquo;t subsidize so many stages of the meat production process. These subsidies stifle innovation in a fundamental industry and ultimately hurt the meat eating public, the environment, and industry competitiveness.<br />	<br />	So if none of these meats are Toyotas, could they be cell phones? Do they allow people who have not had access to meat in the past include it in their diets the way a cell phone lets you make calls even when you are away from home or work? A product doesn&rsquo;t have to be cheaper to get a foothold if it isn&rsquo;t competing against anything else.&nbsp; Unfortunately, none of these kinds of meat are available where industrial meat is not, and very few people would not eat meat but for the existence of these preferred varieties.<br />	<br />	Neither cell phones nor Toyotas, these green meats are certainly better than industrial, but they aren&rsquo;t cheap or distinctive enough make a difference in the big picture or the long term, and that&#39;s disappointing.<br />	<br />	But we left something out. If we ask ourselves what meat does in our diets, we find it is an important source of combined protein, fat, cholesterol, vitamins (especially B-vitamins), and minerals. These nutrients don&rsquo;t have to come from animals. That same mainstream supermarket in which you may have found the high-priced organic meat probably also carries some of the following:</p><ul>	<br />	<li>		<strong>Soy</strong>: in the form of tofu, tempeh, pups, tofurkey, and every other form imaginable.</li>	<br />	<li>		<strong>Seitan</strong> (high protein wheat gluten): in traditional forms as well as those that can resemble duck.</li>	<br />	<li>		<strong>Veggie burgers</strong>: a mix of all kinds of things in as many varieties but all standing in for the American beef staple.</li>	<br /></ul><br /><p>	Some of these &ldquo;meat alternatives&rdquo; (like the traditional tofu, tempeh, and seitan) are Toyotas because meat is a luxury in many parts of the world: For centuries they have been an important part of traditional diets and a cheaper, good-enough nutritional stand-in for meat, or just a regular part of the traditional cuisine. Some (the pups, veggie burgers, and soy nuggets) are like cell phones in countries where meat is very cheap and people are relatively well off, like the United States. They are not a cheaper alternative to hamburgers as they are mainly for people who don&#39;t eat meat, but they are gaining popularity as people seek healthier, safer, more humane, and greener alternatives to meat. As they get tastier, more meat-like, cheaper, and more socially acceptable, they can ride these trends to a greater share of United States &ldquo;meat&rdquo; consumption like cell phones took over land lines as they got better, lighter, cheaper, and less ostentatious.<br />	<br />	However, as shown by the short happy life of Zen Burger (a tasty vegetarian fast food concept that closed a year ago in New York City), it will take more than good intentions to marginalize meat eating among those who can afford to eat it at every meal. Meat substitutes will probably only become a mainstream alternative if the price of meat rises sharply, perhaps as a result of subsidies being scaled back or in the face of an oil-shock-type crisis in water, climate, or food&mdash;like recent scares over e. coli or the food price rises attributed to the biofuels boom, but bigger. When something like that happens, the Boca Burgers and Nasoyas of the world will be ready to become the Toyotas of tomorrow.<br />	<br />	<em>Michael Keating is an environmentalist and entrepreneur living in Brooklyn, New York.</em><br />	<br />	<em>Illustration by Will Etling.</em><br />	<a href="http://www.good.is/series/disruptively-green"><br />	</a></p>]]></content:encoded>
	<dc:creator>Michael Keating</dc:creator>
	<pubDate>Thu, 28 Jan 2010 05:30:00 PST</pubDate>
</item>
<item>
	<title><![CDATA[Leap-frogging to Sustainability]]></title>
	<link>http://www.good.is/post/leap-frogging-to-sustainability/</link>
	<guid isPermaLink="true">http://www.good.is/post/leap-frogging-to-sustainability/</guid>
	<description><![CDATA[<img class="alignnone size-full wp-image-24098" title="can-pv-save-the-world-2" src="http://user.cloudfront.goodinc.com/community/etling/can-pv-save-the-world-2.jpg" alt="can-pv-save-the-world-2" width="578" height="369" /><br /><br />
<h3>Why the shrinking cost of solar power may be enough to change our planet's outlook-especially if it's introduced first in the developing world.</h3><br /><br />
<em>"Just because something doesn't do what you planned it to do, doesn't mean it's useless." -Thomas Edison</em><br /><br />
<br /><br />
<strong>In this second piece</strong> on identifying those green technologies that will make our civilization more sustainable, and separating them from those that won't, the focus is on electric power generation, and the importance not only of reducing the impact of what is being generated today, but also on reducing the impact of what will need to be generated tomorrow.<br /><br />
<br /><br />
Whether or not you read <a href="http://www.good.is/post/disruptive-innovation-for-environmentalists/">the last piece</a>, it is likely apparent to you that stores, websites, advertisements, and perhaps your own home, are becoming crowded with so-called green products, and, moreover, few of those green products are doing much to save our beleaguered planet. Products and services that are a bit greener, a little more efficient, or have a cool, new, Earth-friendly feature, may do a little less harm than their un-green antecedents, and they may sell a few more units for the company that made them, but they are not truly sustainable. We must replace our most environmentally damaging industries and products, not only because our own use of them is doing irreversible, epic damage to our only planet, but because several billion other people who don't have these things today are striving for their chance to use them too. When they are in a position to get them-the cars, refrigerators, televisions, computers, lawnmowers, hair driers, air conditioners, and alarm clock espresso makers-if those of us who use them today haven't found environmentally benign replacements for them, we will be in a world of trouble.<br /><br />
<br /><br />
We need disruptive technologies to replace these tools of our modern consumer society. Disruptive technologies, a term coined by Clay Christensen,a Harvard professor and best-selling author on business innovation, are those technologies that succeed at supplanting established, profitable businesses by competing with the established offering on new terms. For example, a laptop computer competes with a desktop not on processor speed, but on portability. Laptops have eroded the market share of the more established and powerful desktops to the point that laptops have become the standard and desktops are mainly purchased for niche applications like gaming and 3D design.<br /><br />
<br /><br />
One way of making many of the products mentioned above more benign is by getting the copious amounts of electricity they consume from a more benign source, like the sun. The most common form of solar electricity generation is photovoltaic (PV) panels and films. PV has been around for decades, mostly in the United States and other developed countries, but recent advances in its various technologies, demand created by government subsidies, and the threat of global warming have driven the price of PV down to a fraction of what it was even five years ago. This is good news for PV's initial customers-Americans and affluent individuals looking for cleaner ways to power their appliances and gadgets-but it is great news for people in parts of the world with few appliances or gadgets to power because there has never been power there before. These are two very different applications of the same green technology. The question is if either will disrupt established forms of power generation and thereby move us towards a more sustainable future.<br /><br />
<br /><br />
Much fossil-fuel power generation is used for powering American homes, so this seems like the right place to apply a disruptive alternative technology. However, though PV is powerful enough to do many of the things you need to do in a typical American home, it is not yet powerful enough to run a full size refrigerator, the AC, and a hairdryer, and therefore not a real alternative to grid power in any but the most efficient residences. Residential applications of PV in the United States are mainly luxury additions to big, grid-powered homes, marginally improving the sustainability of an unsustainable type of dwelling and lifestyle, and unlikely to result in the decommissioning of many coal-fired power plants.<br /><br />
<br /><br />
Outside of the United States and other well-electrified countries, many people are not served by traditional power grids and are willing to pay for PV's low power because that is all that is available. In these poor, largely rural areas, PV can mean simply having light at night or the ability to charge a mobile phone. As households and communities expand their PV generating capacity, they can acquire more of the efficient alternatives to standard grid-connected products: LED lights and TVs instead of florescents, mobile phones instead of land lines, netbooks instead of PCs, new kinds of refrigeration, and, if desired, even efficient, battery-powered lawn care tools. Many of these technologies are not yet cheap enough for the rural poor or are not yet the equivalent in performance of their grid-powered relatives, but the market for them (known recently as the "base of the pyramid") is bigger than all of North America, Europe, and Japan combined, and entrepreneurs and multinationals are rising to the opportunity.<br /><br />
<br /><br />
Unlike power-hungry Americans, the rural poor don't already own legacy appliances that require grid power, and so, counter-intuitively, they are actually a better market, in the long term, for PV. Their hunger is often not metaphorical, but when it is, it might be a hunger for a life with a bit more of the convenience, security, and comfort enjoyed by someone reading this article. Whether they achieve that with PV or with the kind of coal-heavy electricity mix used in the United States remains an open and very important question. Developing countries continue to take on crippling international debt to build out their power grids. Once there is reliable grid power, PV may become a luxury, as it is for most Americans, and thereby not a threat to unsustainable power sources like coal.<br /><br />
<br /><br />
Bringing PV to the rural poor, like other leap-frog technologies that allow people and countries to skip rungs on the economic development ladder, is a classic disruptive innovation, where a new technology is playing what looks like the same game (providing power to homes) but on a completely different field, because the incumbent technology can't play there.<br /><br />
<br /><br />
Knowing this, what should we do differently? As noted previously, this is not an academic question. The biggest market in the world for PV is Germany, a highly environmentally conscious, but cloudy, northern, grid-powered country. Though Germany's aggressive subsidies for solar power have spurred growth in the industry, the installation of PV generating capacity in Germany is an inefficient use of what is today a scarce and valuable technology. Germany could achieve the same environmental benefits (if not all of the attendant electricity price hedging and job creation perks) by subsidizing installations in countries that both have high potential for solar power and an acute need for electricity of any kind. The sunny, equatorial parts of our planet are among its poorest, least electrified parts. Further, they will suffer more from climate change, a global crisis largely not of their making, than will rich parts of the world like Germany. Technology transfers that can head-off a climate-transforming multiplication of the use of coal power in the developing world, can help alleviate poverty, and can begin to make up for the damage rich countries are doing to poor ones through greenhouse gas emissions is the ultimate win-win-win. Pressing your political representatives to bring this approach to the talks in Copenhagen is one of the most important things you can do for your planet. (To find out how to actually do that, read <a href="http://www.good.is/departments/good-guide-to-cop15">The GOOD Guide to COP15</a>.)<br /><br />
<br /><br />
<em>Michael Keating is an environmentalist and entrepreneur living in Brooklyn, NY.</em><br /><br />
<br /><br />
<em><br /><br />
</em>]]></description>
	<content:encoded><![CDATA[<img class="alignnone size-full wp-image-24098" title="can-pv-save-the-world-2" src="http://user.cloudfront.goodinc.com/community/etling/can-pv-save-the-world-2.jpg" alt="can-pv-save-the-world-2" width="578" height="369" /><br /><br />
<h3>Why the shrinking cost of solar power may be enough to change our planet's outlook-especially if it's introduced first in the developing world.</h3><br /><br />
<em>"Just because something doesn't do what you planned it to do, doesn't mean it's useless." -Thomas Edison</em><br /><br />
<br /><br />
<strong>In this second piece</strong> on identifying those green technologies that will make our civilization more sustainable, and separating them from those that won't, the focus is on electric power generation, and the importance not only of reducing the impact of what is being generated today, but also on reducing the impact of what will need to be generated tomorrow.<br /><br />
<br /><br />
Whether or not you read <a href="http://www.good.is/post/disruptive-innovation-for-environmentalists/">the last piece</a>, it is likely apparent to you that stores, websites, advertisements, and perhaps your own home, are becoming crowded with so-called green products, and, moreover, few of those green products are doing much to save our beleaguered planet. Products and services that are a bit greener, a little more efficient, or have a cool, new, Earth-friendly feature, may do a little less harm than their un-green antecedents, and they may sell a few more units for the company that made them, but they are not truly sustainable. We must replace our most environmentally damaging industries and products, not only because our own use of them is doing irreversible, epic damage to our only planet, but because several billion other people who don't have these things today are striving for their chance to use them too. When they are in a position to get them-the cars, refrigerators, televisions, computers, lawnmowers, hair driers, air conditioners, and alarm clock espresso makers-if those of us who use them today haven't found environmentally benign replacements for them, we will be in a world of trouble.<br /><br />
<br /><br />
We need disruptive technologies to replace these tools of our modern consumer society. Disruptive technologies, a term coined by Clay Christensen,a Harvard professor and best-selling author on business innovation, are those technologies that succeed at supplanting established, profitable businesses by competing with the established offering on new terms. For example, a laptop computer competes with a desktop not on processor speed, but on portability. Laptops have eroded the market share of the more established and powerful desktops to the point that laptops have become the standard and desktops are mainly purchased for niche applications like gaming and 3D design.<br /><br />
<br /><br />
One way of making many of the products mentioned above more benign is by getting the copious amounts of electricity they consume from a more benign source, like the sun. The most common form of solar electricity generation is photovoltaic (PV) panels and films. PV has been around for decades, mostly in the United States and other developed countries, but recent advances in its various technologies, demand created by government subsidies, and the threat of global warming have driven the price of PV down to a fraction of what it was even five years ago. This is good news for PV's initial customers-Americans and affluent individuals looking for cleaner ways to power their appliances and gadgets-but it is great news for people in parts of the world with few appliances or gadgets to power because there has never been power there before. These are two very different applications of the same green technology. The question is if either will disrupt established forms of power generation and thereby move us towards a more sustainable future.<br /><br />
<br /><br />
Much fossil-fuel power generation is used for powering American homes, so this seems like the right place to apply a disruptive alternative technology. However, though PV is powerful enough to do many of the things you need to do in a typical American home, it is not yet powerful enough to run a full size refrigerator, the AC, and a hairdryer, and therefore not a real alternative to grid power in any but the most efficient residences. Residential applications of PV in the United States are mainly luxury additions to big, grid-powered homes, marginally improving the sustainability of an unsustainable type of dwelling and lifestyle, and unlikely to result in the decommissioning of many coal-fired power plants.<br /><br />
<br /><br />
Outside of the United States and other well-electrified countries, many people are not served by traditional power grids and are willing to pay for PV's low power because that is all that is available. In these poor, largely rural areas, PV can mean simply having light at night or the ability to charge a mobile phone. As households and communities expand their PV generating capacity, they can acquire more of the efficient alternatives to standard grid-connected products: LED lights and TVs instead of florescents, mobile phones instead of land lines, netbooks instead of PCs, new kinds of refrigeration, and, if desired, even efficient, battery-powered lawn care tools. Many of these technologies are not yet cheap enough for the rural poor or are not yet the equivalent in performance of their grid-powered relatives, but the market for them (known recently as the "base of the pyramid") is bigger than all of North America, Europe, and Japan combined, and entrepreneurs and multinationals are rising to the opportunity.<br /><br />
<br /><br />
Unlike power-hungry Americans, the rural poor don't already own legacy appliances that require grid power, and so, counter-intuitively, they are actually a better market, in the long term, for PV. Their hunger is often not metaphorical, but when it is, it might be a hunger for a life with a bit more of the convenience, security, and comfort enjoyed by someone reading this article. Whether they achieve that with PV or with the kind of coal-heavy electricity mix used in the United States remains an open and very important question. Developing countries continue to take on crippling international debt to build out their power grids. Once there is reliable grid power, PV may become a luxury, as it is for most Americans, and thereby not a threat to unsustainable power sources like coal.<br /><br />
<br /><br />
Bringing PV to the rural poor, like other leap-frog technologies that allow people and countries to skip rungs on the economic development ladder, is a classic disruptive innovation, where a new technology is playing what looks like the same game (providing power to homes) but on a completely different field, because the incumbent technology can't play there.<br /><br />
<br /><br />
Knowing this, what should we do differently? As noted previously, this is not an academic question. The biggest market in the world for PV is Germany, a highly environmentally conscious, but cloudy, northern, grid-powered country. Though Germany's aggressive subsidies for solar power have spurred growth in the industry, the installation of PV generating capacity in Germany is an inefficient use of what is today a scarce and valuable technology. Germany could achieve the same environmental benefits (if not all of the attendant electricity price hedging and job creation perks) by subsidizing installations in countries that both have high potential for solar power and an acute need for electricity of any kind. The sunny, equatorial parts of our planet are among its poorest, least electrified parts. Further, they will suffer more from climate change, a global crisis largely not of their making, than will rich parts of the world like Germany. Technology transfers that can head-off a climate-transforming multiplication of the use of coal power in the developing world, can help alleviate poverty, and can begin to make up for the damage rich countries are doing to poor ones through greenhouse gas emissions is the ultimate win-win-win. Pressing your political representatives to bring this approach to the talks in Copenhagen is one of the most important things you can do for your planet. (To find out how to actually do that, read <a href="http://www.good.is/departments/good-guide-to-cop15">The GOOD Guide to COP15</a>.)<br /><br />
<br /><br />
<em>Michael Keating is an environmentalist and entrepreneur living in Brooklyn, NY.</em><br /><br />
<br /><br />
<em><br /><br />
</em>]]></content:encoded>
	<dc:creator>Michael Keating</dc:creator>
	<pubDate>Tue, 17 Nov 2009 10:00:04 PST</pubDate>
</item>
<item>
	<title><![CDATA[Disruptive Innovation for Environmentalists]]></title>
	<link>http://www.good.is/post/disruptive-innovation-for-environmentalists/</link>
	<guid isPermaLink="true">http://www.good.is/post/disruptive-innovation-for-environmentalists/</guid>
	<description><![CDATA[<h3 style="margin-left: 0pt; margin-right: 0pt;"><img class="alignnone size-full wp-image-23587" style="padding-bottom:7px;" title="disruptiveInnovationHead" src="http://user.cloudfront.goodinc.com/community/atleykins/disruptiveInnovationHead.jpg" alt="disruptiveInnovationHead" width="578" height="430" />How to identify the game-changing ideas and technologies that will replace outdated businesses with better, smarter, and more sustainable alternatives</h3><br />
<p style="margin-left: 0pt; margin-right: 0pt;"><em>"If I had asked my customers what they wanted, they would have said a faster horse." -Henry Ford</em></p><br />
<br />
<strong>One hundred years later</strong>, Ford's customers are asking for greener SUVs, and that is what Ford is giving them. Whoever gives Ford's customers a whole new greener way of getting from A to B will become one of the great business legends of this century and will remove a huge barrier between us and a environmentally sustainable future.<br />
<br />
But who among the many entrepreneurs, executives, advocates, and inventors working on "greener" transportation will it be? Can we predict which technology will do for automobiles and their emissions what the automobile did for horses and their manure? One place to look for clues is the work of scholars who analyze the progression of technology and the businesses built around them. Harvard Business School Professor Clay Christensen studies what he has termed disruptive innovations-game-changing technologies and strategies that put entrenched and dated business models out to pasture. His research shows that not all innovations are disruptive, just as our experience tells us that not all "green" technologies are really sustainable. We can use his theory to tell the difference between those innovations that merely help a company maintain its current business model and profit margins  (e.g. speedy horseshoes), and those that do the same job as the incumbent technology, but better, cheaper, or in a way that is available to more people.<br />
<br />
This exercise in forecasting isn't just for bragging rights fifty-some years from now. Especially on issues like climate change and species loss, the indicators are consistently pointing in the direction of us heading for a global catastrophe. Moreover, in Washington, D.C., and in countries and companies around the world, hundreds of billions of dollars are being allocated to addressing these problems. Some of this money is going to greener SUVs and their environmental milquetoast cousins in electricity generation like "clean coal," and some of it is being bet on more ambitious technologies. Even a slightly less cloudy view of the future could make a huge difference to our planet and our pocketbooks.<br />
<br />
<strong>Disruptive Innovation for Environmentalists</strong><br />
Over the past several decades, and in a large part due to the innovation boom driven by computing, we have seen disruptive technologies and business models enter the marketplace and displace large, highly profitable incumbents. The classic cases are well-known: Mobile phones, at first expensive, unreliable, and conspicuously pretentious devices, eventually disrupted land lines as their price, quality, and size improved because the could be used almost anywhere; desktop printers disrupted copy centers due to their convenience; small Japanese cars disrupted big American gas-guzzlers due to their low cost and efficiency. Disruption does not necessarily mean extinction as anyone who still has a land line at home or at work knows, but it does mean decline and marginalization of the disrupted technology. Executives of traditional telephone companies and American automakers are acutely aware of this.<br />
<br />
The environment enters the picture because environmental issues are changing the marketplace. With change (such as concern about air pollution and global warming) comes demand for innovation (like energy from non-fossil sources) and opportunities for disruption (distributed solar power, for example). These shifts in demand can shift the criteria on which a customer chooses a product, and not just in big polluting industries that are most closely associated with environmental concerns. Some of the most environmentally innovative companies are in apparel, retail, financial services, and construction. But not all of these companies are responding to environmentally driven marketplace shifts in a disruptive way, so not all of these green innovations will help us make meaningful progress toward a sustainable future. For a sense of what scale of progress should be considered meaningful, see earlier paragraph on looming global catastrophe.<br />
<br />
The theory of disruptive innovation asserts, in part, that as businesses establish themselves in a profitable market, they tend to focus mainly on innovations (such as engine horse power) that help them maintain and increase profits from their best customers, without focusing other customers' needs on avenues of improvement (like miles per gallon). When there is a change in the marketplace (like an oil crisis or global warming), this creates an opening for other firms to introduce products and services that are cheaper (if less profitable), and/or compete on a different basis (MPG instead of HP), capturing customers who may never have had access to a product before (think mobile phones in parts of the world that have never had land lines) or simply don't need all the features of an expensive product and are happier with something good enough (like a little Kia instead of a Cadillac).<br />
<br />
Disruptive innovations have the effect, in the long term (and sustainability is specifically concerned with the long term), of displacing established businesses and technologies. In that a given innovation can be either disruptive to a business or can help to maintain it, depending on how it is used, it isn't always obvious, when looking at a given innovation, whether it is disruptive, and whether it will make a long-term difference to the environment. We have to look at the business model of how it is being applied, by whom, and to what end.<br />
<br />
Let's begin by examining a popular technology for improving the sustainability of transportation: The hybrid gas-electric powertrain. The best-known implementation of hybrid technology is in the Toyota Prius. The Prius uses its batteries, regenerative breaking, and electric motor to improve the range the car can achieve on a single tank of gasoline and thereby the environmental impact of operating it relative to a similar, conventional automobile. However, the Prius is still 100 percent gasoline-powered, unless it is modified by a third party so it can be plugged in. In this way, the Prius is a just a greener version of a regular car, helping Toyota and its partners in the fuel industry maintain their current models of doing business, not disrupt them.<br />
<br />
Next year promises quite a different take on the hybrid in the form of the Chevy Volt. General Motors actually rejects the term hybrid for the Volt's powertrain, because the Volt will be an electric car first, with an on-board gasoline engine for charging the batteries that run the electric motor, the only motor in the car that will directly drive the wheels (the Prius can be driven by both its electric motor and gasoline engine). Most importantly, the Volt can be plugged in, so it never has to use gas. The gas tank and generator are included in the car to extend the range afforded by the batteries, not the other way around.<br />
<br />
If GM successfully introduces this vehicle it will in fact be a disruption of the incumbent fossil fuel-powered transportation industry of which they are such a big part. However, it is unlikely it will be disruptive enough to change the nature of transportation as much as the introduction of the automobile did. And of course cars are the source of many problems beyond emissions, so we need to keep looking for a champion among the many other contenders, from bikes to buses to aircraft to video conferencing.<br />
<br />
By examining other common green technologies using the lens of disruptive innovation, we can learn whether they are truly sustainable technologies, or if they are just green luxury, or even greenwash. Subsequent pieces in this series will consider different types of solar power, different forms of agriculture such as organic and local, the age-old paper versus plastic question, and the value of green building. Some green technologies may literally save the world, but the faster horses of the green technology world will have little meaningful environmental benefit-and so will have the double negative effect of diverting resources from genuinely sustainable, disruptive innovations, and of making the people who purchase them feel as if they are doing their part for the planet, when in fact they are not.<br />
<p style="margin-left: 0pt; margin-right: 0pt;"><em>Michael Keating is Business Development Manager at The Open Planning Project.</em></p>]]></description>
	<content:encoded><![CDATA[<h3 style="margin-left: 0pt; margin-right: 0pt;"><img class="alignnone size-full wp-image-23587" style="padding-bottom:7px;" title="disruptiveInnovationHead" src="http://user.cloudfront.goodinc.com/community/atleykins/disruptiveInnovationHead.jpg" alt="disruptiveInnovationHead" width="578" height="430" />How to identify the game-changing ideas and technologies that will replace outdated businesses with better, smarter, and more sustainable alternatives</h3><br />
<p style="margin-left: 0pt; margin-right: 0pt;"><em>"If I had asked my customers what they wanted, they would have said a faster horse." -Henry Ford</em></p><br />
<br />
<strong>One hundred years later</strong>, Ford's customers are asking for greener SUVs, and that is what Ford is giving them. Whoever gives Ford's customers a whole new greener way of getting from A to B will become one of the great business legends of this century and will remove a huge barrier between us and a environmentally sustainable future.<br />
<br />
But who among the many entrepreneurs, executives, advocates, and inventors working on "greener" transportation will it be? Can we predict which technology will do for automobiles and their emissions what the automobile did for horses and their manure? One place to look for clues is the work of scholars who analyze the progression of technology and the businesses built around them. Harvard Business School Professor Clay Christensen studies what he has termed disruptive innovations-game-changing technologies and strategies that put entrenched and dated business models out to pasture. His research shows that not all innovations are disruptive, just as our experience tells us that not all "green" technologies are really sustainable. We can use his theory to tell the difference between those innovations that merely help a company maintain its current business model and profit margins  (e.g. speedy horseshoes), and those that do the same job as the incumbent technology, but better, cheaper, or in a way that is available to more people.<br />
<br />
This exercise in forecasting isn't just for bragging rights fifty-some years from now. Especially on issues like climate change and species loss, the indicators are consistently pointing in the direction of us heading for a global catastrophe. Moreover, in Washington, D.C., and in countries and companies around the world, hundreds of billions of dollars are being allocated to addressing these problems. Some of this money is going to greener SUVs and their environmental milquetoast cousins in electricity generation like "clean coal," and some of it is being bet on more ambitious technologies. Even a slightly less cloudy view of the future could make a huge difference to our planet and our pocketbooks.<br />
<br />
<strong>Disruptive Innovation for Environmentalists</strong><br />
Over the past several decades, and in a large part due to the innovation boom driven by computing, we have seen disruptive technologies and business models enter the marketplace and displace large, highly profitable incumbents. The classic cases are well-known: Mobile phones, at first expensive, unreliable, and conspicuously pretentious devices, eventually disrupted land lines as their price, quality, and size improved because the could be used almost anywhere; desktop printers disrupted copy centers due to their convenience; small Japanese cars disrupted big American gas-guzzlers due to their low cost and efficiency. Disruption does not necessarily mean extinction as anyone who still has a land line at home or at work knows, but it does mean decline and marginalization of the disrupted technology. Executives of traditional telephone companies and American automakers are acutely aware of this.<br />
<br />
The environment enters the picture because environmental issues are changing the marketplace. With change (such as concern about air pollution and global warming) comes demand for innovation (like energy from non-fossil sources) and opportunities for disruption (distributed solar power, for example). These shifts in demand can shift the criteria on which a customer chooses a product, and not just in big polluting industries that are most closely associated with environmental concerns. Some of the most environmentally innovative companies are in apparel, retail, financial services, and construction. But not all of these companies are responding to environmentally driven marketplace shifts in a disruptive way, so not all of these green innovations will help us make meaningful progress toward a sustainable future. For a sense of what scale of progress should be considered meaningful, see earlier paragraph on looming global catastrophe.<br />
<br />
The theory of disruptive innovation asserts, in part, that as businesses establish themselves in a profitable market, they tend to focus mainly on innovations (such as engine horse power) that help them maintain and increase profits from their best customers, without focusing other customers' needs on avenues of improvement (like miles per gallon). When there is a change in the marketplace (like an oil crisis or global warming), this creates an opening for other firms to introduce products and services that are cheaper (if less profitable), and/or compete on a different basis (MPG instead of HP), capturing customers who may never have had access to a product before (think mobile phones in parts of the world that have never had land lines) or simply don't need all the features of an expensive product and are happier with something good enough (like a little Kia instead of a Cadillac).<br />
<br />
Disruptive innovations have the effect, in the long term (and sustainability is specifically concerned with the long term), of displacing established businesses and technologies. In that a given innovation can be either disruptive to a business or can help to maintain it, depending on how it is used, it isn't always obvious, when looking at a given innovation, whether it is disruptive, and whether it will make a long-term difference to the environment. We have to look at the business model of how it is being applied, by whom, and to what end.<br />
<br />
Let's begin by examining a popular technology for improving the sustainability of transportation: The hybrid gas-electric powertrain. The best-known implementation of hybrid technology is in the Toyota Prius. The Prius uses its batteries, regenerative breaking, and electric motor to improve the range the car can achieve on a single tank of gasoline and thereby the environmental impact of operating it relative to a similar, conventional automobile. However, the Prius is still 100 percent gasoline-powered, unless it is modified by a third party so it can be plugged in. In this way, the Prius is a just a greener version of a regular car, helping Toyota and its partners in the fuel industry maintain their current models of doing business, not disrupt them.<br />
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Next year promises quite a different take on the hybrid in the form of the Chevy Volt. General Motors actually rejects the term hybrid for the Volt's powertrain, because the Volt will be an electric car first, with an on-board gasoline engine for charging the batteries that run the electric motor, the only motor in the car that will directly drive the wheels (the Prius can be driven by both its electric motor and gasoline engine). Most importantly, the Volt can be plugged in, so it never has to use gas. The gas tank and generator are included in the car to extend the range afforded by the batteries, not the other way around.<br />
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If GM successfully introduces this vehicle it will in fact be a disruption of the incumbent fossil fuel-powered transportation industry of which they are such a big part. However, it is unlikely it will be disruptive enough to change the nature of transportation as much as the introduction of the automobile did. And of course cars are the source of many problems beyond emissions, so we need to keep looking for a champion among the many other contenders, from bikes to buses to aircraft to video conferencing.<br />
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By examining other common green technologies using the lens of disruptive innovation, we can learn whether they are truly sustainable technologies, or if they are just green luxury, or even greenwash. Subsequent pieces in this series will consider different types of solar power, different forms of agriculture such as organic and local, the age-old paper versus plastic question, and the value of green building. Some green technologies may literally save the world, but the faster horses of the green technology world will have little meaningful environmental benefit-and so will have the double negative effect of diverting resources from genuinely sustainable, disruptive innovations, and of making the people who purchase them feel as if they are doing their part for the planet, when in fact they are not.<br />
<p style="margin-left: 0pt; margin-right: 0pt;"><em>Michael Keating is Business Development Manager at The Open Planning Project.</em></p>]]></content:encoded>
	<dc:creator>Michael Keating</dc:creator>
	<pubDate>Tue, 10 Nov 2009 15:06:44 PST</pubDate>
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