3 November 2015, Bloomberg View, What Economists Don’t Get About Climate Change. Economists tend to see climate change as a big optimization problem: Weigh the potential costs of future disasters against the benefits of fossil-fueled economic growth, and find a price of carbon that will balance the two. Unfortunately, it’s an illusory goal. The Cost of Carbon Consider, for example, a recent study by Yale University’s Kenneth Gillingham and colleagues. Using a collection of so-called “integrated” models of climate and the economy, they seek to get a better handle on how various uncertainties — in weather, population growth and technological development — might affect the price that policy makers should put on carbon. Their conclusion: No matter what happens, the optimal price in 2020 would probably be no more than about $50 per ton. The paper’s appearance may be timed to influence policy makers at the United Nations Climate Change Conference in Paris, which begins at the end of this month. It really shouldn’t, because it feigns certainty in areas where none is to be had. Granted, such integrated models include some realistic climate physics and economics. Yet their builders inevitably face crucial questions about which we know very little. For example, just how sensitive are global temperatures to the addition of further carbon dioxide? And how much economic damage can we expect from a temperature rise of, say, 2 degrees or 5 degrees? Read More here
Monthly Archives: November 2015
3 November 2015, The Conversation, As drought looms, the Murray-Darling is in much healthier shape – just don’t get complacent. Melbourne Cup Day is a significant day in the history of water policy in Australia. The first Tuesday in November 2006 saw the then Prime Minister John Howard intervene decisively in the growing drought crisis in the southern Murray-Darling Basin (MDB). Nine years on, the spectre of drought is back. The Murray Darling Basin Authority’s weekly reports show inflows into the River Murray (which can be seen as a proxy for the southern MDB) during the year to end September 2015 were the among the lowest on record. And the Bureau of Meteorology’s National Climate and Water Briefing last week suggests a warm and dry summer in prospect in the southern MDB, amid a still strengthening El Niño. Yet there are reasons to believe that these past nine years of stronger Commonwealth involvement have left the MDB much better placed to withstand an escalating drought. That said, there is no room for complacency, and continuing Commonwealth commitment is still needed if those hard-won gains are to be retained. Read More here
2 November 2015, Climate News Network, Cash is key to Paris climate talks success. Former key figure in UN climate change policy-making says economists now see that development without destroying the environment is the only way forward. In a world entirely divorced from the politics and rhetoric surrounding the continuing climate change negotiations, countries are quietly getting on with rapid development combined with environmental protection. Yvo de Boer, former executive secretary of the United Nations Framework Convention on Climate Change, has found renewed hope and a different perspective as the Director-General of the Global Green Growth Institute, which he is running from Seoul in South Korea. “People in Asia have moved away from the idea that development comes first and then we can then worry about the environment,” he says. “Here, there is terrible poverty, but they have realised that the development, social inclusion and protecting the environment must go hand in hand.” He said it was clear from talking to economists at the International Monetary Fund and the Organisation for Economic Co-operation and Development in Paris that they too realise that clean development is not just the best way forward but the only way. Read More here
1 November 2015, Common Dreams, ‘Absolute Crap’ But Brilliant: Corporate America’s Plan to ‘Misbehave Without Reproach. ‘Only in the senile, decrepit, and unbelievably corrupt modern version of the United States would this sickening decadence even be considered possible, let alone doable.’ An independent investigation by journalists featured in the New York Times on Sunday offers an in-depth look at the way American corporations have used the inclusion of “arbitration clauses” within consumer contracts to strategically circumvent judicial review of their behavior and immunize themselves from class action lawsuits –”realistically the only tool citizens have to fight illegal or deceitful business practices.” “You can’t shoot someone or rob a bank and say ‘It’s OK, I have a contract.'” —Paul Wallis, Digital Journal. What the Times found was a pattern of legal dead ends for consumers seeking to find redress for perceived injustices due to various forms of corporate fraud and malpractice. Often buried deep within lengthy and difficult-to-read contracts that purchasers of products or services are forced to sign, legal experts say the injection of these arbitration clauses “have essentially disabled consumer challenges to practices like predatory lending, wage theft and discrimination.” As the newspaper reports: Read More here