The Third Industrial Revolution:How Lateral Power Is Transforming Energy, the Economy, and the World

The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World
by Jeremy Rifkin
Publication Date: September 27, 2011

Book Description

The Industrial Revolution, powered by oil and other fossil fuels, is spiraling into a dangerous endgame. The price of gas and food are climbing, unemployment remains high, the housing market has tanked, consumer and government debt is soaring, and the recovery is slowing. Facing the prospect of a second collapse of the global economy, humanity is desperate for a sustainable economic game plan to take us into the future.

Here, Jeremy Rifkin explores how Internet technology and renewable energy are merging to create a powerful “Third Industrial Revolution.” He asks us to imagine hundreds of millions of people producing their own green energy in their homes, offices, and factories, and sharing it with each other in an “energy internet,” just like we now create and share information online.

Rifkin describes how the five-pillars of the Third Industrial Revolution will create thousands of businesses, millions of jobs, and usher in a fundamental reordering of human relationships, from hierarchical to lateral power, that will impact the way we conduct commerce, govern society, educate our children, and engage in civic life.

Rifkin’s vision is already gaining traction in the international community. The European Union Parliament has issued a formal declaration calling for its implementation, and other nations in Asia, Africa, and the Americas, are quickly preparing their own initiatives for transitioning into the new economic paradigm.

The Third Industrial Revolution is an insider’s account of the next great economic era, including a look into the personalities and players — heads of state, global CEOs, social entrepreneurs, and NGOs — who are pioneering its implementation around the world.

About the Author

Jeremy Rifkin is president of the Foundation on Economic Trends and the author of eighteen bestselling books, including The Hydrogen Economy and The End of Work. He has been a guest on Face the Nation, The Lehrer News Hour, 20/20, Larry King Live, Today, and Good Morning America. The National Journal named Rifkin as one of 150 people in the U.S. that have the most influence in shaping federal government policy. He has also testified before numerous congressional committees, and since 1994, Mr. Rifkin has been a senior lecturer at the Wharton School’s Executive Education Program at the University of Pennsylvania.

Rifkin is chairman of the Global CEO Business Roundtable, which includes IBM, Cisco, Cushman and Wakefield, and has served as an adviser to various global leaders, including Nicolas Sarkozy of France and Angela Merkel of Germany. His monthly column on global issues appears in many of the world’s leading newspapers and magazines, including The Los Angeles Times, The Guardian in the U.K., Die Süddeutsche Zeitung in Germany, Trud in Bulgaria, Clarín in Argentina, and Al-Ittihad in the U.A.E. He lives in Bethesda, MD.

Editorial Reviews

“Impeccably argued…a compelling and cogent argument to overhaul our society and economy in favor of a distributed and collaborative model.”--Publishers Weekly

“Rifkin connects the two defining technologies of the 21st Century — the Internet and renewable energies — giving us a powerful new economic vision for the future. As we look to regrow the economy, generate millions of jobs, and create a sustainable future for our children, the Third Industrial Revolution offers an indispensable roadmap.”--Arianna Huffington—President and Editor-in-Chief of The Huffington Post Media Group

“Mr. Rifkin clearly outlines the challenges facing our global community, and creates a vision for business leaders, government and citizens.”--John Chambers—Chairman and CEO of Cisco

“The creative thinking of Jeremy Rifkin has been inspiring policy makers and citizens alike. This book shows the key role renewables and modern technologies can play in our transition to a low-carbon economy.”--José Manuel Barroso—President of the European Commission

“This is a remarkable piece of work from one of the foremost thinkers of our time…Rifkin has come up with a visionary and innovative economic development model that ensures the sustainability of our natural resources and ecosystems.”--Rajendra Pachauri—Chairman of the United Nations Intergovernmental Panel on Climate Change

“A brilliant new economic paradigm to guide the human journey in the 21st century. Jeremy Rifkin’s comprehensive Third Industrial Revolution vision, which is the centerpiece of Rome’s long-term economic development plan, provides a blueprint for every city in the world to create a sustainable and prosperous society.”--Gianni Alemanno—Mayor of Rome

“More than thought provoking… a call for action to policy makers and business leaders to embrace the opportunity of a society and economy driven by sustainable innovation and powered by renewable and distributed energy.”--Rudy Provoost—CEO of Philips Lighting

REVIEW:

A Thought-Provoking Look at the Future, September 27, 2011
By Jeff D.

"The Third Industrial Revolution" offers a fascinating look at Jeremy Rifkin's views on the future of energy and the economy. Rifkin believes we are on the verge of a new industrial revolution that will transform the economy and society in a similar way to the major changes that occurred in the 19th and 20th centuries.

Rifkin's "third" industrial revolution is based on "five pillars:" (1) A general shift to renewable energy. (2) Micro-generation of clean energy in homes, offices and other buildings. (3) Hydrogen and other forms of energy storage in homes and throughout the economy (4) an "Internet-like" smart energy grid that would allow individuals to generate power and then distribute it, and (5) Conversion of transportation away from fossil fuels to electric plug-in or hydrogen fuel cells.

While the book contains a lot of insightful analysis, I think it gives short shrift to the problem of jobs. Technology and globalization are increasingly destroying well-paid opportunities for workers in developed countries. The book does discuss this, but only in the very last few pages. This is surprising because, of course, Rifkin wrote a book about this issue in the 1990s ("The End of Work"). Now, however, he seems to buy into the more conventional view that green jobs will solve the problem of unemployment.

I'm doubtful of that. Technologies like artificial intelligence and robotics are accelerating and will soon have a dramatic impact. Advancing technology will also make offshoring of high wage jobs a bigger and bigger problem in the West.

For a deeper treatment of this specific problem, I would suggest reading The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future.

"The Third Industrial Revolution" offers many good ideas, but I think it ultimately falls short of answering the question on many peoples' minds: How will average people in developed countries like the United States make an adequate living (and keep pace with the cost of living) while competing with both technology and globalization? That is a critical question because if households are focused on individual survival, it will be very difficult to amass political support for the energy and climate change policies Rifkin advocates. For a strong analysis of the jobs/income issue and some solutions, also read "The Lights in the Tunnel."

Review By Bay Elliott:

This review is from: The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World (Hardcover)
In addition to reading this book, if you ever have a chance to see Jeremy Rifkin present on the Third Industrial Revolution and the Intergrid, please, take that advantage (it is well worth it!). Mr. Rifkin has wonderfully distilled and delivered a compelling vision of the world ahead in a sustainable, clean, distributed and collaborative energy model. This book brings a perspective on past industrial revolutions and points to technological processes and connects many of the dots of the myriad & disparate energy technologies and how they will coalesce and be deployed in the years ahead. It is no surprise that Mr. Rifkin has been advising many global governments not only on what the vision is but how to take advantage of the economic opportunity since 2007. It remains disappointing that the political climate in the US continues to inhibit a unified energy policy... and thus puts the US at a severe competitive industrial disadvantage vis a vis countries like Germany, China, Singapore and many others that have been listening... and which understand the rich landscape of commercial opportunities ahead... and the significant detriment to those countries which aren't proactively adjusting to those threats (& opportunities) ahead. There are several books which work well as companion pieces to Rifkin's TIR: "That Used To Be Us", "Reigniting Fire" and "The Quest" are some of them. Based on documented job creation in Germany from the solar sector alone, US economists recently projected that, had the US followed a similar solar/ renewable energy vision, we would likely see over 2million related jobs created. Energy Efficiency carries its own highly compelling ROI. We have clean fuels in our labs now that have an unsubsidized cost per BTU less than that of Natural Gas, and without the carbon emissions. Coupled with the smart grid, these new technologies will allow the highly efficient energy storage that unlocks Rifkin's Intergrid: the sustainable, distributed, adaptive, interactive, renewable energy Intergrid. Rifkin's TIR & Intergrid outlines a compelling vision for the future, but one that is already dawning in labs across the world and beginning to be implemented where there are true leaders. The book drives home its points repeatedly... but the points are well worth paying attention to.