Environment

Microsoft Zune music players stopped working on New Years Day because of a software bug, raising the inevitable comparisons with the Y2K fiasco. The way in which the largely spurious Y2K problem was handled raises some interesting comparisons with the all too real problem of climate change. Although many billions of dollars were spent on making systems Y2K-compliant, there was no serious scientific study of the problem and its implications. The big decisions were made on the basis of anecdotal evidence, and reports from consultants with an obvious axe to grind. Even the simplest objections were never answered (for example, many organisations started their fiscal 2000 year in April or July 1999, well before remediation was completed, and none had any serious problems). There was nothing remotely resembling the Intergovernmental Panel on Climate Change, let alone the vast scientific literature that needs to be summarised and synthesised for an understanding of climate change.

Thus, anyone who took a genuinely sceptical attitude to the evidence could safely predict that 1 January 2000 would pass without any more serious incidents than usual, even for the many countries and businesses that had ignored the problem. The retrospective evaluations of the policy were even more embarrassingly skimpy. I analysed some of the factors involved in this paper in the Australian Journal of Public Administration.

A really interesting point here is the fact that, in the leadup to 1 January 2000, self-described global warming sceptics, for the most part, went along with the crowd. If any of them rallied to the support of those of us who called for a “fix on failure” approach, I didn’t notice it. Of course, I’m open to correction here. I’d be very interested if anyone could point to a piece published before 2000 taking a sceptical line both Y2K and AGW.

From “an otherwise serious article”:http://www.independent.co.uk/news/science/its-official-men-really-are-the-weaker-sex-1055688.html about the effects of pollution on males of all species:

bq. … a study at Rotterdam’s Erasmus University showed that boys whose mothers had been exposed to PCBs grew up wanting to play with dolls and tea sets rather than with traditionally male toys.

While the global financial crisis and the US election have monopolised attention for the last couple of months, the climate change crisis hasn’t got away, and most of the news has been bad. It’s now pretty widely agreed that any global policy that doesn’t stabilise atmospheric greenhouse gas concentrations around 450 parts per million (CO2 equivalent) runs a real risk of environmental disaster. The only plausible policy of that kind This is a contract and converge scenario where all countries accept a common emissions entitlement per person, to be reached over coming decades. That in turn means big reductions in emissions entitlements for people in developed countries.

The Australian Treasury has just released estimates of the cost of an measures to reduce greenhouse gas emissions, most importantly an emissions trading scheme. Of course, there have been quite a few exercises of this kind, but what’s striking about this one is that it looks at a much wider (and more realistic, if we want to save the planet) range of options, going all the way to a 90 per cent reduction in emissions relative to 2000 levels, achieved by 2050.

Treasury estimates that, under this scenario, GNP per person in Australia will average $78 000 in 2050 compared to $50 000 at present. By contrast in the reference scenario which has an 88 per cent increase in emissions, 2050 GNP is estimated at $83 000, or about 6 per cent higher (I don’t think this takes account of environmental and other damage costs avoided through climate mitigation, which will much more than offset the cost of mitigation in the long run).

When I get a bit of time, I’ll report more on the details and assumptions. But the quibbles coming from predictable rentseekers, and their tame consultants, look like just that, quibbles. It’s striking how many supposed advocates of the free market think we’ll all be rooned unless we continue to subsidise industry (and households) by allowing them to dump their garbage into the atmosphere free of charge.

Treasury’s estimates are, not surprisingly, quite consistent with the arguments I’ve made for a long time. That’s because any competent economist doing the analysis must come up with estimates of a comparable order of magnitude. If you want to make the case that saving the planet requires reducing living standards, or even a big reduction in the rate of growth of living standards, you need either to invent a whole new economics or wave your hands vigorously enough to conceal the fact that you don’t have any economic analysis to support you.

David Weisbach and Cass Sunstein (h/t Nicholas Gruen) have written a piece for the AEI Center for Regulatory and Market Studies[1] weighing into the debate about climate change and discounting, promising “A Guide for the Perplexed”. But their treatment of the topic is only like to add to the perplexity of anyone interested in resolving the issues.

Shorter Weisbach-Sunstein: If ethical considerations suggest that the most appropriate discount rate is 1.4 per cent, but the market rate of return is 5.5 per cent, it’s best to use the 5.5 per cent rate in evaluating climate change policies.

As a hypothetical statement this is broadly correct. Weisbach and Sunstein illustrate the point by considering someone choosing between an investment yielding a 10 per cent increase in value over 2 years and the alternative of putting money in the bank at 6 per cent, which is clearly superior.

The problems arise for the reader who tries to plug in real numbers. According to today’s New York Times the rate of interest on 10-year Treasury bonds is 3.84 per cent. Assuming (optimistically) that the Fed manages to hold inflation at 2.5 per cent over the next years, that’s a real rate of 1.34 per cent, almost exactly equal the rate quoted as justified on ethical grounds.

So to restate Weisbach and Sunstein with real numbers:If ethical considerations suggest that the most appropriate discount rate is 1.4 per cent, but the market rate of return is 1.3 per cent, it doesn’t matter which one you choose.

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I had a set-to with Jonathan Adler of Volokh about DDT recently, so I was pleased to note this piece on free-market environmentalism and climate change, which makes a number of points I’d been thinking about following debates over at the Australian Libertarian blog. Rather than recapitulate Adler’s post, I’ll make a number of points of my own regarding the response of (most, though not all) libertarians to climate change, which I think are in the same spirit

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The Prospect article defending Rachel Carson I wrote with Tim Lambert kicked off a lengthy round of blast and counterblast in the blogosphere. Some of the response did little more than illustrate the continuing gullibility of the RWDB segment of the blogosphere, notably including Glenn Reynolds (start here). The more serious discussion began with links from Andrew Leonard at Salon and Brad Plumer at TNR, and a reply from Roger Bate, claiming that we had greatly overstated his links with the tobacco industry (Tim Lambert responded here and Andrew Leonard here and here, with plenty more evidence on this point). A further piece makes the claim (which I have no reason to dispute) that British American Tobacco has now switched sides and is arguing against DDT use in Uganda.

Through all this sound and fury, some progress was made. No one even attempted to defend the claim that the use of DDT against malaria had been banned, or the outrageous lies of Steven Milloy (still employed by Fox News and CEI, despite his exposure as a tobacco industry shill) who blames Rachel Carson for every malaria death since 1972. It even turned out that the much-denounced decision of South Africa to abandon DDT use (reversed when malaria cases increased because of resistance to the pyrethroids used as alternatives) was not primarily due to environmentalist pressure. As Bate noted in his reply, the main factor behind the decision was the unpleasant look and small of DDT sprayed on hut walls, which often led to repainting or replastering. A minor, but still striking point, is that DDT continued to be used for public health purposes in the US (against plague-bearing fleas) even after the 1972 ban on general use of the chemical, and is still available for these purposes if needed.

Update:Absolutely the last word Via Ed Darrell a quiet victory for friends of Rachel Carson with the abandonment by Senator Tom Coburn of a block on the naming, in her honor, of the post office in her birthplace. It appears that the campaign of denigration against Carson (and, by implication, the environmental movement as a whole) has become untenable.

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Via Tim Lambert and Matt Nisbet a study in the journal Environmental Politics (here, but unfortunately paywalled) shows that, since 1972, at least 90 per cent of the books that have been published disputing mainstream environmental science have been produced by rightwing thinktanks or authors affiliated with such thinktanks. Symmetrically, at least 90 per cent of the rightwing thinktanks in the study contributed to this literature.

This study is an important contribution to our understanding of the emerging parallel universe which has almost completely absorbed the formerly Earth-based Republican party[1] and its networking of supporting thinktanks, media outlets and blogs. It helps to explain the otherwise surprising fact that higher levels of education make Republicans more, not less, ignorant and deluded. With their beliefs on scientific, economic and political issues derived from the Great Library of Tlön, every book they read, talk show they listen to and blog they browse actively reduces their knowledge of the real world. [2].

fn1. Represented most notably on Earth by Abraham Lincoln, but on Tlön by Jefferson Davis.
fn2. If any Tlön based readers have access to this blog, please apply your polarity reverser. Educated Tlön Democrats are more likely to hold the deluded notions that their planet is roughly spherical, billions of years old and subject to significant climatic effects from human action. Tlön social democrats are even likely to believe that income inequality is increasing and that the market-based health system of Uqbar is less then perfect.

The first house that my wife and I bought was in a suburb immediately to the north of Albany, NY. It was a great 80-year-old house with a nice yard, and an easy drive to my work and to hers. But it was on a busy street, and with no sidewalks it was impossible to walk anywhere. When our daughter was almost 3, we moved into our current house in Albany. I sometimes joke that we moved for the sidewalks, but there’s a lot of truth to that. On the first morning we woke up in the new house, I clearly remember our daughter running out the door and down the block – something that she had never been able to do before. Being in a neighborhood with sidewalks and things to walk to – restaurants and bars, a library, post-office, bank, and supermarket within a few blocks – has made a big difference in our lives.

The contrast between these two locations is confirmed to some extent by Walk Score. Our old house was a lowly 23 while our current house gets a 68.

You can see how desperate I am for help by the use of the second word in the title of this post, which I’ve resisted until now.

I have offered to present a talk to a large conference audience in Adelaide, and intended to do it by videoconference, following several successful (and cheap!) presentations to seminar-size groups. But the conference of organizers have been quoted a cost of thousands of dollars to present the videoconference session. There are some obvious cheap alternatives like a pre-record, but I’d like to avoid these if possible. Does anyone have any suggestions as to how I could deliver a videoconference presentation, at reasonable cost to a large audience in a venue that isn’t specifically set up for this?

I was pretty much stunned into silence by the proposal for a gasoline tax holiday put forward by John McCain and Hillary Clinton (not that it matters but I’m not clear which of them came up with it first – can anyone set me straight on this). I won’t bother repeating all the reasons why this is a terrible idea ( when Tom Friedman has your number, I’d say your number is up).

Just a couple of observations. First, I find it hard to see how anyone serious can support either McCain or Clinton after this.

Second, the fact that the proposal has lasted this long suggests to me that the chance of any serious US action on global warming after the election is not that great. Without the US, we won’t get anything from China and India either, so that means we’re setting course for disaster. Perhaps if Obama wins, he’ll be able to turn this around, but this episode has me very depressed.

The big increase in food prices over the last six months or so raises lots of issues, of which I’ll try to cover a few.
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I mentioned this piece in comments a while ago and some interest was expressed. It should come out in the Australian Financial Review fairly soon, but there’s still time for me to benefit from comments and constructive criticism.

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Jeremy Waldron has a great piece in the latest LRB reviewing a recent book by Cass Sunstein. He has a nice discussion of the Cheney doctrine that even a one-percent probability of a catastrophic event should be treated as a certainty for policy purposes, where the class of catastrophic events is limited to those with a military, security or terrorist dimension. Reasoning like this interacts neatly with “ticking-bomb” scenarios: now a 1 per cent chance that the there’s a ticking bomb the terrorist knows about is sufficient in to justify waterboarding or worse. Of course other potentially catastrophic developments — such as climate change — haven’t generated a “treat as if certain” policy response from the US government, even thought even the most determined denialists must evaluate the probability that anthropogenic global warming is happening at greater than one in a hundred.

Waldron is also pretty acid about Sunstein’s treatment of global warming and distributive justice, noting some of the shortcomings of the idea that poor people’s lives should be valued according to what they’re prepared to pay to avoid the risk of death. But read the whole thing, as they say.

Following up on Chris’s post a little while ago, it seems obvious that the best way to offset emissions from travel is not to travel at all. I’ve been trying hard to reduce air travel, and making some progress, though it isn’t easy.

I’m doing my first videoconference presentation for the year on Friday, appropriately enough at a University of Sydney one-day seminar on the economics of sustainability. My talk will be on “Uncertainty, awareness and the precautionary principle”. I’ve lined up two more videoconferences for the first half of this year, and I hope to do some more in the second half.

The other part of my plan to reduce my carbon footprint and the amount of time I spend travelling is to make one trip cover multiple events. I’m in Melbourne right now, for a visit that includes three presentations and several meetings.

With all this, I’m still travelling a fair bit more than I would like. But I think there is a network effect here. The more people get used to videoconferencing as an alternative, the better it will work, and the more demand there will be for technical improvements.