Elizabeth Kubler-Ross classically defined the stages of grief 50 years ago – Denial, anger, bargaining, depression and acceptance.
We’ve known for decades that the fossil fuel industry as we know it has to go away for the planet to live. The industry’s response has been stuck in the “Denial” stage for too long. Some indications lately that we are oscillating between “anger” and “bargaining”.
University of Michigan Business prof Andrew Hoffman uses the metaphor of hospice care to investigate the process of putting the fossil industry down as humanely as possible. Obviously, extricating society from an enterprise that has been woven so tightly into our cultural, industrial, and economic system over a century is going to be traumatic. It’s time we thought more deeply about it.
Dr. Hoffman is the Holcim Professor of Sustainable Enterprise at the University of Michigan.
Andrew Hoffman PhD in Stanford Social Innovation Review:
History has marked the repeated demise of once thriving sectors because of the competitive forces of what Joseph Schumpeter termed “creative destruction,” 20 where the market “incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” The typewriter industry disappeared with the rise of personal computers, and the incandescent-lightbulb industry has dimmed as more energy-efficient lighting alternatives, such as compact fluorescent lamps (CFLs) and light-emitting diodes (LEDs), have become more cost competitive.
Creative destruction has also forced individual companies to remake themselves. Finnish multinational Nokia was founded in 1865 as a paper mill and has since expanded into cable, rubber boots, tires, and ultimately telecommunications hardware and software. 3M began in 1902 as the Minnesota Mining and Manufacturing Company, making sandpaper and grinding wheels; today the firm makes a wide variety of products, such as personal protective equipment, window films, dental and orthodontic products, medical products, car-care products, health-care software, and Post-it Notes. But these examples represent adaptation to shifting market conditions, not entire sectors disappearing for non-market-related reasons.
We have also witnessed the end of specific sectors because of government regulation—such as legislation in the United States that banned DDT application in 1972, that gutted the asbestos industry in 1989, and that is poised to end the industry for per- and polyfluoroalkyl substances (PFAS) today. But these sectors were not nearly as intertwined with the global economy and society as fossil fuels.21
Today, a vast physical, economic, and political network undergirds the oil, coal, gas, and related chemicals sector. It cannot simply be replaced without massive political, social, and technological disruption. So, instead of “creative destruction,” we face the challenge of managing “compassionate destruction,” in which we guide all the complex and expansive elements of the fossil-fuel sector through a just and orderly transition to a carbon-free economy.
Ever since coal-powered steam engines gave rise to the industrial revolution, fossil fuels have provided the energy that powers most of the world’s economic activity. While nuclear and renewable sources of energy are available, almost 80 percent of primary energy use still comes from carbon-based fuels, and ending it will not be easy. BlackRock CEO Larry Fink warns, “Divesting from entire sectors—or simply passing carbon-intensive assets from public markets to private markets—will not get the world to net zero.” Focusing solely on cutting supply and not reducing demand, he argues, will simply drive up energy prices and encourage more of a backlash against green-energy efforts.22But the complexity, centrality, and interconnectedness of fossil fuels in the economy creates a paradox. The demise of the sector must be carefully orchestrated, and that will take time. But the urgency compelled by changes already underway in the natural environment means that the endgame needs to be undertaken quickly.
The patient needs urgent care. To consider such care, we acknowledge that corporations have been endowed with certain rights and responsibilities historically enjoyed by human beings and ask the obvious follow-on question: If a corporation is a person, can a corporation be assisted in death just as a person can be? And, if so, how do we provide compassionate assistance and comfort to the dying patient, as well as to those affected by the passing? To negotiate these questions, we offer three different models for consideration.
Continue reading “The Future for Fossil Fuels: Euthanasia or Hospice?”