Jorgen Randers published a book in 2012 called 2052: A Global Forecast for the Next 40 Years. A note on the front says, “A report to the Club of Rome, Commemorating the 40th Anniversary of The Limits to Growth.”
If we compare the new book to the book from 40 years ago, we see some surprising differences. In 1972, the analysis suggested that serious resource depletion issues would occur about now–the first part of the 21st century. In comparison, current indications look much better. According to Randers’ current analysis, world GDP growth will continue to rise through 2050, and energy consumption will continue to grow until 2040. While a decline in oil supply will take place, it will not occur until 2025. When it does happen, it will occur sufficiently slowly and incrementally that other fuels can replace its loss, apparently without disruption. Renewables will ramp up far more rapidly in the future than to date.
A person reading the front cover of 2052 might think that the model is quite close to the model used in the original The Limits to Growth analysis. My review indicates that the current model is fairly different. The book talks very little about the workings of the model, so doesn’t let us know what changes have been made.
It is possible to do some detective work regarding how the current model is constructed. Dolores “Doly” Garcia, who worked on the model, wrote three posts published on TheOilDrum.com explaining the model. There is also a website (www.2052.info) provided by Randers giving the numerical output of the model in spreadsheet form. Together, these point to a methodology which assumes that if world oil supply declines, the decline will be slow and will be quickly offset by a rise in the use of renewables, coal, and natural gas. Changes in the model, which I will describe further in another section, are the first reason I don’t believe Randers’ Limits to Growth forecast.
A second reason why I don’t believe Randers’ forecast has to do with limitations of the original forecast. These limitations did not make much difference back in 1972, when researchers were trying to estimate approximate impacts 40 or 50 years later, but they do now, when resources are becoming more depleted. One issue omitted from the model is a price mechanism. A related issue is that there is no true calculation of demand, based on what consumers can afford. The model also omits debt, and the role debt plays, both for investment purposes and in order for consumers to afford products made with oil and other energy products. Research regarding past collapses indicates they were financial in nature–the model should not overlook this important issue. Continue reading