Archive for the ‘Economics’ Category
Australian Prime Minister Tony Abbott has announced that Australian taxpayers are now going to finance attempts to disprove the need to decarbonise our global power generation systems as fast as possible (see yesterday’s article on the Guardian website). However, Lomborg’s position is very confused (and confusing):
Lomborg: “Natural science has undeniably shown us that global warming is manmade and real. But just as undeniable is the economic science which makes it clear that a narrow focus on reducing carbon emissions could leave future generations with major costs, without major cuts to temperatures.”
Reality: Natural science has undeniably shown us that global warming is real and predominantly manmade. Just as undeniable is the economic assessment that any further delay in reducing carbon emissions will make it harder and more expensive to mitigate and/or adapt to increases in global temperatures.
My suggestion to both Lomborg and Abbott is that they should take time out to read the assessment of the formerly-skeptical Yale Professor of Economics, William D. Nordhaus:
‘Why the Global Warming Skeptics Are Wrong’ by William D. Nordhaus (2012).
Writing in response to an article in the Wall Street Journal signed by sixteen fossil fuel-funded ‘Merchants of doubt’ (including Richard Lindzen), Nordhaus began thus:
I have identified six key issues that are raised in the article, and I provide commentary about their substance and accuracy. They are:
— Is the planet in fact warming?
— Are human influences an important contributor to warming?
— Is carbon dioxide a pollutant?
— Are we seeing a regime of fear for skeptical climate scientists?
— Are the views of mainstream climate scientists driven primarily by the desire for financial gain?
— Is it true that more carbon dioxide and additional warming will be beneficial?
As I will indicate below, on each of these questions, the sixteen scientists provide incorrect or misleading answers. At a time when we need to clarify public confusions about the science and economics of climate change, they have muddied the waters. I will describe their mistakes and explain the findings of current climate science and economics…
Therefore, if anyone is inclined to think Bjorn Lomborg’s position on climate science has any credibility, I would suggest that they need to read (or if necessary re-read) what Nordhaus wrote over three years ago.
I know I have been a bit slow but, I have now signed the Guardian’s new climate change petition.
Indeed, I was – and am – very pleased to see editor-in-chief Alan Rusbridger leading their campaign to phase-out institutional investment in the fossil fuel industry over the next five years, which includes an online petition, at:
Alan begins by pointing out that:
The world has much more coal, oil and gas in the ground than it can safely burn. That much is physics… Anyone studying the question with an open mind will almost certainly come to a similar conclusion: if we and our children are to have a reasonable chance of living stable and secure lives 30 or so years from now, according to one recent study 80% of the known coal reserves will have to stay underground, along with half the gas and a third of the oil reserves…
He then goes on to explain why divestment campaigns are working based on two arguments; one moral and the other financial.
The basis of the moral argument for divestment is summarised as follows:
The moral crusaders… see divestment from fossil fuels in much the same light as earlier campaigners saw the push to pull money out of tobacco, arms, apartheid South Africa – or even slavery. Most fossil fuel companies, they argue, have little concern for future generations. Of course, the companies are run by sentient men and women with children and grandchildren of their own. But the market pressures and [their duty to their shareholders] compel… [directors to pursue…] business as usual, no matter how incredible it may seem that they will be allowed to dig up all the climate-warming assets they own…
As such, there is a moral imperative to demand an end to the enormous subsidies that enable fossil fuel companies to pursue such an insanely short-sighted and ultimately self-destructive business strategy.
The pragmatic basis of the financial argument for divestment is summarised as follows:
If… the companies cannot, for the sake of the human race, be allowed to extract a great many of the assets they own, then many of those assets will in time become valueless. [Therefore, people…] managing endowments, pension funds and investment portfolios… will want to get their money out of these companies before the bubble bursts…
However, Alan makes it clear that:
The intention is not to bankrupt the companies, nor to promote overnight withdrawal from fossil fuels – that would not be possible or desirable… Divestment serves to delegitimise the business models of companies that are using investors’ money to search for yet more coal, oil and gas that can’t safely be burned. It is a small but crucial step in the economic transition away from a global economy run on fossil fuels.
Finally Alan explains why the Guardian‘s campaign is focussed on two organisations:
The Wellcome Trust handles a portfolio of more than £18bn and invests around £700m a year in science, the humanities, social science education and medical research. The Bill and Melinda Gates Foundation has an endowment of $43.5bn. Last year it gave away $3.9bn in grants towards health and sustainable development… Because both foundations are a) so progressive in their aims and actions and b) have human health and science at the heart of everything they do, we hope they, of all institutions, will see the force of the call for them to move their money out of a sector whose actions, if unchecked, could cause the most devastating harm to the health of billions [see footnote]… We understand that fund managers do not like to make sudden changes to their portfolios. So we ask that the Gates Foundation and Wellcome Trust commit now to divesting from the top 200 fossil fuel companies within five years… [and] immediately freeze any new investment in the same companies.
If you have not done so already, I would encourage all to read the full article and sign the petition at:
Footnote: See a landmark report by the Lancet and University College London, which concluded in 2009: “Climate change is the biggest global health threat of the 21st century.”
In my original email to LEGO (via the Greenpeace website), I tried to be as brief as I could. Sadly, all I got was a generic reply that did not address the issues I was raising. Here is the correspondence to-date (any further responses from Lego will be appended as comments by me):
From: Martin Lack
Sent: 04 July 2014 19:48
Subject: Invest in the future not the past – stop sponsoring Shell
Fossil fuels are a 19th century technology and a finite resource. A post-carbon era is inevitable, the only question that remains is whether 10 billion humans will be able to share in it.
I’m really disappointed to learn that you have agreed to help Shell clean up its image, while it helps to endanger the environmental biodiversity of the Arctic.
You claim that it is your ambition to protect children’s right to live in a healthy environment, both now and in the future. If that is true, please cut your ties with Shell now.
On 17 July 2014 10:08, CustomerResponseTeam@LEGO.com <CustomerResponseTeam@lego.com> wrote:
Dear Martin Lack,
Thanks for getting in touch with us.
I’m sorry to hear you feel so strongly about our co-promotion with Shell. We really appreciate you taking the time to write and share your concern with us, and I’ve passed your thoughts and opinions to our promotions team.
We’re determined to help make the world that children will inherit a better place. Our unique contribution is to inspire and develop children through creative play. By entering a co-promotion like the one with Shell, we can put LEGO® bricks into the hands of even more children around the world. This allows more children to develop their imagination and creative skills through building and creating models with LEGO bricks.
The Greenpeace campaign focuses on how Shell operates in one specific part of the world. We expect that Shell lives up to their responsibilities wherever they operate and that they take appropriate action to any potential claims should this not be the case. We’re sad to see the LEGO brand used as a tool in any dispute. We believe this is a matter where Greenpeace and Shell must work out their differences between themselves.
For more information, you’re welcome to read our CEO Jørgen Vig Knudstorp’s comment on this Greenpeace campaign. There’s also more information about our responsibility agenda in this area of LEGO.com. More information on the environmental targets that we have set for ourselves can be found here.
Please let us know if you need anything else.
Thank you for taking the time to personalise your response to me; and for explaining LEGO’s thinking in working with Shell. I understand and accept that, since Lego is itself a product of the petrochemical industry, such a “co-promotion” makes good business sense. However, the Arctic is not just a “specific part of the world” in which Shell is operating. In order to preserve a habitable planet for future generations, the Arctic is somewhere that Shell should not be operating! Even if it were good, therefore, this makes Shell’s operational safety record (etc) irrelevant.
The only reason it is now possible to operate in the Arctic is because the ice is melting; and most of the ice is melting because of the exponential growth of fossil fuel use since the Industrial Revolution. Humans may well use fossil fuels to make all sorts of things (including Lego) but this does not make it right for us all to disregard the long-term consequences of continuing to pump geospheric carbon (i.e. that derived from fossil fuels) – in the form of CO2 – into the biosphere (i.e. the atmosphere and the oceans). In combination with deforestation and the exponential growth of livestock farming, global warming and ocean acidification were therefore an inevitable result of the exponential growth of the human population on this planet since the Industrial Revolution. However, now we know we are in a hole, is it not time we stopped digging? See my blog post regarding the Rio+20 Summit: ‘When in hole keep digging?’ (21 June 2012).
If LEGO truly wants to preserve a habitable environment and planet, it should place conditions upon its support for Shell. Given that the vast majority of relevant scientists agree that there are now 5 times more fossil fuels left on this planet than it would ever be safe for us to burn – something the IEA, IMF, OECD and Pentagon all acknowledge – LEGO needs to encourage Shell to find alternative means to meet (or reduce) global demand for fossil fuels. As such, although “turkeys will never vote for Christmas”, the petrochemical industry needs to invest in finding non-fossil alternatives for its current products. Such things definitely exist (e.g. biosythetic fuels and energy from waste products). What is lacking is the corporate will or political incentive to pursue them. Things that are worth doing are rarely the easy option. Shell’s exploration in the Arctic is both the wrong option and the lazy option; one that is collectively endangering the future habitability of this planet.
Therefore, I hope I may look forward to LEGO placing conditions upon its future support for Shell, which needs to adopt a long-term business strategy that does not contradict the science and economics underlying the call for humans to leave the vast majority of fossil fuels in the ground. For more information, please see this recent blog post: ‘Geoscientists get all ethical about climate change’ (2 May 2014).
Yours very sincerely,
But Greenpeace UK will just keep re-posting it… Here is the latest email from their Head of Arctic Campaigns, Ben Ayliffe:
I think we might have offended someone. This morning we were shocked to learn that our viral video calling on LEGO to break its lucrative partnership with oil giant Shell has been REMOVED from YouTube!
More than 3 million people have viewed this video in less than three days. People everywhere are sharing it with friends and loved ones, shocked to learn that this dearly-loved children’s toy brand is helping Shell clean up its image. Now our important message is being attacked, and it’s time to ramp our efforts and fight back.Our ad might have offended the likes of LEGO, Shell, and its corporate pals. But this is nothing compared to what Shell wants to do to our beautiful Arctic. Despite the real risk of a terrible and unstoppable oil spill, it continues to forge ahead to plunder every last drop of oil it can from this pristine environment.
The only reason Shell can get away with it is by forming public partnerships with the brands we all love. And we’re sorry to say this includes LEGO. Their deal involves everything from incentivising fuel purchases with free Lego kits, to plastering the Shell logo on the side of millions of children’s toys.
If Shell had its way, it would drill for oil in every corner of the planet. So it’s up to people like you and me to make sure that doesn’t happen. Not now, not ever. Ask Lego to stop its partnership with Shell today.
In the past we’ve helped delay Shell’s plans in the Arctic and opened up the public’s eyes to their dangerous plans. Now Shell is desperately trying to rebuild its reputation by partnering with beloved brands like LEGO. But LEGO doesn’t have to play along.
Please watch this video and send your message to LEGO right away. Let’s move one step closer to kicking Shell out of the Arctic.
Thanks for getting involved.
The Adaptation Sub-Committee of the Committee on Climate Change has today published its 2014 progress report. The report considers preparedness to climate change in England related to major infrastructure, business, public health and emergency planning. It also provides an update to the ASC’s previous analysis of flood risk management.
This report is the last in a series that will feed in to the ASC’s first statutory report to Parliament on the National Adaptation Programme in 2015.
A copy of the report can be found on our website at: www.theccc.org.uk/wp-content/uploads/2014/07/Final_ASC-2014_web-version.pdf
The associated news story is available at: www.theccc.org.uk
This was supposed to be my latest attempt to explain my research idea to a lay audience. However, it has been pointed out to me that, in what follows, I spend more time highlighting the seriousness of the problem the motivated rejection of science has caused than actually describing how I will research the ways in which it has (or has not) evolved over time. This is unfortunate because the former is clearly not the purpose of my research. However, it is the raison d’etre of this blog. Therefore, I have decided to post this here anyway…
If you deny a clear preponderance of evidence, you have crossed the line from legitimate skeptic to ideological denier. – Stephen H Schneider
Where did this idea come from?
In 2011, I completed an MA in Environmental Politics at Keele University. As part of this, I chose to research and write my dissertation on climate change scepticism in the UK. My inspiration for choosing this topic was reading two books:
— Merchants of Doubt: How a Handful of Scientists Obscured the Truth of Issues from Tobacco Smoke to Global Warming, by Naomi Oreskes and Erik Conway; and
— Requiem for a Species: Why we Resist the Truth About Climate Change, by Clive Hamilton.
My research involved analysing and categorising the arguments put forward by prominent think-tanks, scientists, economists, politicians, journalists and others that dispute the reality, reliability and/or reasonableness of the scientific consensus that humans are now the primary cause of ongoing climate change. I decided then that I would like to pursue this further as a PhD. Sadly, this proved harder to achieve than I had imagined but – having attracted a great deal of academic attention by starting my Lack of Environment blog on the subject and publishing my research as a book (see its Facebook page for details) – I am now doing just that. Well, sort of…
The key was finding the right PhD supervisor but, finding the right supervisor has meant focussing my research on newspapers; specifically the output of journalists and other commentators who seek to influence public opinion.
What’s this all about?
I intend to research the historical development of the disputation of climate science in British newspapers since 1990. This will be done by keyword searches of online databases of newspaper content at specific times over the last 25 years. These will include the time of significant publications (e.g. IPCC reports) and events (e.g. extreme weather). The intention is to document the arguments of – and the counter-factual claims made by – those who dispute the reality, reliability and/or reasonableness of the scientific consensus (that ongoing change is primarily a consequence of the post-industrial burning of fossil fuels); and whether or not these have changed in response to increasing scientific confidence in that consensus.
Why does this interest me?
I believe this research will be of great societal benefit because the fossil fuel industry has spent much of the last three decades disputing the science indicating that our burning of its product is damaging the environment.
In so doing, it has copied a strategy invented by the tobacco industry to delay the effective regulation of its business; and a large proportion of humanity appears to have failed to learn from this recent history. Consequently, disputing the reality, reliability or reasonableness of the modern consensus regarding climate science can only be justified by the invocation of scientific or political conspiracy theories.
Where is the conspiracy?
Conspiracy theory has been defined as the invocation of a more-complicated explanation for something (based on little or no evidence) in preference to the simplest-possible explanation (taking all evidence at face value).
However, there is simply no evidence for a left-wing conspiracy to over-tax and over-regulate people (so as to make everyone poorer). Whereas, there is a great deal of evidence for a right-wing conspiracy to under-tax and under-regulate industry (so as to make a few people richer).
Therefore, whereas there is no precedent for the global scientific community conspiring to manufacture alarm simply to perpetuate scientific research (i.e. conspiracy theory), there is a precedent for global industries conspiring to manufacture doubt regarding very inconvenient science (i.e. conspiracy fact).
“Democracy is utterly dependent upon an electorate that is accurately informed. In promoting climate change denial (and often denying their responsibility for doing so) industry has done more than endanger the environment. It has undermined democracy. There is a vast difference between putting forth a point of view, honestly held, and intentionally sowing the seeds of confusion. Free speech does not include the right to deceive. Deception is not a point of view. And the right to disagree does not include a right to intentionally subvert the public awareness.” – James Hoggan.
I am hereby delighted to invite all my readers to indicate (by voting on a question [on the Survey Monkey website] that I have created) why they think our politicians continue to fail to respond effectively to the increasingly stark warnings (such as IPCC AR5 reports) from the scientific community?
With reference to my response to a recent comment on my blog, the choice seems to me to be either:
(a) they understand the risk of continuing inaction but believe taking action would be electorally suicidal;
(b) they discount the warnings because they choose to believe that technology alone will solve the problem.
What do people think? Is there another explanation?
Please vote at https://www.surveymonkey.com/s/TKNBN5P
If you feel you must insert an alternative explanation (the survey question allows this but I would prefer that people choose from the above options), please feel free to comment below as well (or instead).
N.B. This survey will close on the 13th of May and is not part of my PhD research.