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[Update] A left-wing economist discusses "Libertarians and global warming"

June 18th, 2008 No comments

Australian economist John Quiggin (whom I’ve cited previously on climate change costs) has a post up with this title, both at his own blog and at Crooked Timber.  Does anybody care to comment?

My own response to John was as follows:

John, thanks for this piece. As a libertarian who believes that
climate change IS a problem, I share some of your puzzlement and have
done considerable commenting
on this issue. Allow me to offer a few thoughts on various factors at
work in the general libertarian resistance to taking government action
on climate change:

– As Chris Horner noted in your linked
piece, many libertarians see “global warming [as] the bottomless well
of excuses for the relentless growth of Big Government.”  Even those who
agree that is AGW
is a serious problem are worried, for good reason, that government
approaches to climate change will be a train wreck – in other words,
that the government “cure” will be worse than the problem.


Libertarians have in general drifted quite far from environmentalists.
Even though they still share a mistrust of big government,
environmentalists generally believe that MORE
government is the answer, while ignoring all of the problems associated
with inefficient bureaucratic management (witness the crashing of many
managed fisheries in the US), the manipulation of such managment to
benefit bureaucratic interests, special interests and insiders
(wildfire fighting budgets, fossil fuel and hard rock mining, etc.) and
the resultant and inescapable politicization of all disputes due to the
absence of private markets. Libertarians see that socialized property
rights regimes can be just as “tragedy of the commons” ruinous as cases
where community or private solutions have not yet developed, and have
concluded that, without privatization, government involvement
inevitably expands. Thus, libertarians often see environmentalists as
simply another group fighting to expand government, and are hostile as
a result.

– Libertarians are as subject to reflexive, partisan
position-taking as any one else. Because they are reflexively opposed
to government action, they find it easier to operate from a position of
skepticism in trying to bat down AGW scientific and economic arguments (and to slam the motives of those arguing that AGW
must be addressed by government) than to open-mindedly review the
evidence. This is a shame( but human), because it blunts the libertarian
message in explaining what libertarians understand very well – that
environmental problems arise when property rights over resources are
not clearly defined or enforceable, and also when governments
(mis)manage resources.

Regards,

Tom

[Update: Comments added] Iain Murray: Another libertarian makes climate policy proposals!

June 17th, 2008 No comments

Thank goodness!  Another libertarian/conservative (see my previous posts on Bruce Yandle and Gene Callahan, and see Jon Adler`s 2000 piece) wants to seize the day and promote useful policies in the face of popular/legislative concerns over climate change.

This time, it’s Iain Murray, the CEI policy analyst, polemicist and sharp-tongued scourge of enviros (his book, The Really Inconvenient Truths, and ongoing “Planet Gore” posts at NRO blame enviros for many problems).

While Iain helpfully spells out on his blog a number of areas where deregulation is needed, he also surprising provides quite an extensive (and expensive) list of statist, big-government initiatives.  The statist agenda Murray suggests is certainly worth considering, but where have all the true libertarians – the ones who think that government is best ignored, and not redirected – gone?

Iain’s proposals come from a longer blog post, as part of a dialog with Roger Pielke, Jr.  who has recently made some policy proposals of his own.  Here are Iain`s proposal`s, with a thought or two from me in brackets (and some formatting tweaks to enhance readability):

 

Here’s what I think a global warming policy acceptable to most conservatives would comprise of.

Title I: Technology & Mitigation

a) Remove regulatory barriers to innovation and deployment

– remove barriers to new or upgraded facilities that would reduce emissions eg New Source Review

– remove regulatory performance standards that act as a barrier to developing better performance

– remove barriers to developing & introducing biotechnology that could significantly increase food supplies in the developing world and create greater yield per acre in the US, allowing cropland to return to nature

– remove barriers to developing & introducing nanotechnology

[Um, Iain, could you be a little more clear about what barriers you specifically have in mind, so we can examine them more closely and help push on them?  Are these different from allowing accelerated or immediate depreciation, or lowering capital gains taxes?]

b) Reform and expand federal energy R&D program (this would form and should be sold as a major part of the “mitigation effort” of the program)

– replace current federal grant system with a program based on prizes, thereby removing political patronage, obviating the “picking winners” problem and removing what amount to subsidies to established energy firms

[I`m with Iain on this, and it deserves to be said more loudly and with as much support as possible.  We need a spotlight on our Congresscritters and regulators if we want to have any hope of controlling the wasteful, great pork machine.]

– expand energy R&D to $6-7 billion, paid for by budget cuts elsewhere (eg by privatizing Amtrak) and use “matching funds” program to begin to attract private money

[How is this consistent with Iain`s previous point?  Sure, his proposal is careful to offset new programs with cuts from others, but how likely is that?  In any event, why should the government be choosing what energy technologies to favor?]

c) Institute geo-engineering research program separate from energy R&D and climate science research program. Concentrate climate research in areas of improving predictive capacity of models.

[Is Iain implying that the problem is so urgent that geo-engineering is going to be required, and that government should do it?  And why should government, rather than the private sector, be working on improving the predictive capability of models?]

d) Abolish all subsidies to energy companies, reducing emissions quickly without introducing carbon tax

[It would be nice if Iain could clarify what subsidies he has have in mind.  And if the government should do ANYTHING other than deregulate, I have have a hard time understanging why CEI does not simply come out in favor of fully-rebated carbon taxes, like AEI and others]

e) Repeal corn ethanol program in its entirety as likely to increase GHG emissions and contributing to increased hunger; redirect subsidies to new energy R&D program

f) Abolish barriers to sugar ethanol imports

[I agree on the above two]

 

Title II: Adaptation

a) Institute Adaptation Fund/Program to be based on successful AIDS/communicable disease aid program to fund worthwhile “no regrets” adaptation efforts in developing world; increase contribution to malaria control in the disease project.

[Um, how much money are we talking here, Iain?  Are you conceding that the West somehowhas an obligation to help developing countries – which are expected to bear the brunt of climate change costs, even as they are least prepared to adapt?  Or is providing such help in our self-interest?  And what gives you any confidence that such development assistance will actually make any difference, and not be wasted or siphoned off by elites?]

b) Institute domestic adaptation research program to assess feasibility of projects to stem effects of sea level rise etc

[Why is this a task for government?  Do we think government will handle these programs better than the Army Corps of Engineers handles levees and other moral-hazard generating boodoggles?]

c) Abolish “moral hazard” federal programs like coastal flood insurance etc that create incentives to live in/develop vulnerable areas

[Fine, but see b)]

d) Free up transportation market

– reform Air Traffic Control system to allow ‘free flight’ and ‘green landings,’ saving up to 25% of airline emissions

– remove regulatory barriers to highway construction to reduce congestion and associated “wasted” emissions

[Not sure what barriers you`re referring to, Iain.  How about getting the government out of the road-building and owning businesses completely, and letting private firms build, own and operate them, including levying market-clearing fees that will speed traffic and manage capacity?]

– reform zoning regulations to reduce barriers to telecommuting

[Huh?]

– reduce barriers to construction of heavy rail infrastructure to allow more shipping by rail and reduce highway congestion

[What barriers?  If we simply stopped public subsidies to highway construction we`d likely see great rail demand, but what “barriers” are there that we need government to do anything about?  There are lots of underused rights-of-way already, aren`t there?]

e) Free up electricity market

– remove regulatory barriers to new construction of nuclear plants; allow reprocessing or open Yucca Mountain

[Perhaps we should start by removing the insurance subsidy for nuclear power?  Eliminating the NRC isn`t going to happen, so you need to be more specific.  And why should citizens be paying for permanent waste storage, instead of the utlities?]

– eliminate local and national monopoly franchises

– remove barriers to distributed generation such as microturbines

[I agree on the above two]

f) Free up domestic energy exploration

– End restrictions in ANWR and OCS as an energy security measure

[The key is to end politicized control, not to run roughshod over conservationists.  If we are serious about ANWR, we ought to simply cede it to the Sierra Club or The Nature Conservancy.  They would certainly pump from it AND protect it, and use the revenues to support more important conservation projects.   As for the OCS, exploration is limited only because states don`t want to bear the burden of pollution risks with a slim share of revenues.  With more generous revenue sharing, more OCS development will occur.]

– Allow exploitation of Rocky Mountains gas reserves etc as viable competitor to coal

[This is already happening, at the expense of ranchers and other rights owners, with inadequate compensation for damages. Developers should bear all risks of environmental claims.]

Title III: Resiliency

a) Set up Global Resiliency body to incorporate/replace Millennium Challenge Corporation and concentrate on spreading property rights, rule of law etc around world. Utilize Hernando de Soto’s expertise in setting this up. Particular responsibilities should include encouraging institutional reforms on disease, food supplies, water supplies, coastal defense and biodiversity.

[Kinda thin on justification, detail and burden-sharing Iain.  What grounds do you have for thinking that ANY state-directed “development” programs will not be hijacked by elites or mismanaged by bureacrats?  Are you becoming a soft-hearted enviro/liberal?]

b) Create a Global Free Trade Area by a provision allowing GFTA members free access to US markets on the condition that they reciprocate to the US and other GFTA members. USTR would certify. GFTA membership would be granted on the basis of an objective analysis of the country’s commitment to free trade (eg Heritage Index). Tspotlighthis will enprogramscousomehow hasboondogglesrage trade liberalization and tutilitieshereby resiliency.

c) Expand Asia-Pacific Partnership to encourage and facilitate technology transfer to developing world.

[Kinda thin on justification, detail and burden-sharing Iain.  What grounds do you have for thinking that ANY state-directed “development” programs will not be hijacked by elites or mismanaged by bureaucrats?  Are you becoming bureaucratsa soft-hearted enviro/liberal?]

Destroying the salmon; the socialized commons and climate change

June 16th, 2008 No comments

 More later.  We need to go back to the past.

Categories: climate change, commons, fisheries, Salmon Tags:

Climate change damage and property rights: do Lockean principles require Western nations to compensate poorer ones?

June 13th, 2008 No comments

Dedicated libertarian law professor Jonathan Adler and longtime libertarian policy analyst Indur Goklany discuss the above issue at in a Roundtable entitled “Climate Change and Property Rights” hosted by Shikha Dalmia of the Reason Foundation and made available online last week.

[Update:  Ron Bailey discusses the Adler/Goklany debate here.]

As both Jon Adler and Indur Goklany are serious and even-handed, fortunately the discussion includes none of the cheap, sneering dismissals of the moral issues (as “climate welfare” such as I addressed earlier on these pages and more recently on the main blog, where an author dismisses as “absurd” and another poster labels “beautiful propaganda” my suggestion that Lockean views must be seriously considered when addressing claims that the use of the atmosphere should be shared) that tends to be the hallmark of shallow, reflexive and emotional engagement so frequently encountered here at Mises and elsewhere from purported libertarians with respect to climate change and other environmental issues.

Unfortunately, the exchange between Adler and Goklany is far too academic, and neither commentator makes any effort to seize common ground (and climate change concerns) to push for liberalization of agricultural trade or other institutional changes that would (i) materially improve wealth (and ability to adapt to climate change) in poorer nations and (ii) enhance needed mitigation and adaptation efforts at home.

Both Adler and Goklany appear to agree on the fundamental, Lockean-based principles underlying their discussion and would probably agree that, even though the nations that benefit most from climate change (and from the long period of GDP growth when GHG emissions have not been priced) have at least a moral obligation to be concerned about an uncompensated shifting of costs to other (largely poorer) nations, it is nigh impossible to build a legal case mandating compensation. 

I suppose both Adler and Goklany probably also agree that (1) climate change is likely to further bedevil the development problems in poorer nations, which are least capable of adapting to such changes, (2) development problems in such countries is largely related to the failure of governing elites to protect property rights and capital, and (3) traditional development aid has in large measure failed and instead served to benefit well-connected elites from both sides.

I am curious (4) what both Adler and Goklany think about proposals that do not amount to compensation, but recognize the interest that the West has in aiding growth and climate adaptation in the developing world, such as the proposal reported last Friday in Osaka by Treasury secretary Hank Paulson for the Group of 8 industrialized nations to back a special $10 billion fund to help developing countries fight global warming and (5) why they (and other libertarians) do not seem to see that climate change concerns in many way present golden opportunities to urge positive governmental changes, such as greater free trade (and roll back of domestic agricultural subsidies and import restrictions), greater freedom in domestic energy markets, the desirability of allowing accelerated depreciation and lowering capital gains taxes, etc.

Why are libertarians so reluctant to focus on a positive agenda that would actually do some good?

In note that, back in July 2000, Adler proposed a “no regrets” domestic deregulatory agenda when he was associated with CEI: “Greenhouse Policy Without Regrets: A Free Market Approach to the Uncertain Risks of Climate Change“; Jon has subsequently been rather quiet with respect to any specific climate change policy agenda.  Cato has just published an essay by Goklany, “What to Do about Climate Change“, in which Goklany essentially argues that a focus on mitigation (GHG reductions) is a relatively expensive and in effective way to combat climate change or advance well-being (particularly of the world’s most vulnerable populations), as compared with adaption efforts that would reduce vulnerabilities to climate-sensitive problems that could be exacerbated by climate change.

As I have previously noted, there are several libertarians who have recently been urging constructive libertarian approaches to climate change:

  • Edwin Dolan, in his Fall 2006 Cato Journal essay, Global Warming: Rethinking the Market Liberal Position, analyzes relevant Lockean considerations and cautions that market liberals appear to be hamstringing their own analytic strengths by falling into a reflexive and conservative mind-frames that benefit established economic interests.
  • Sheldon Richman of the Foundation for Economic Education also recommends Dolan’s essay and calls for less wishful thinking and greater engagement by libertarians in the December 8, 2006 edition of The Freeman:  The Goal Is Freedom: Global Warming and the Layman.
  • Gene Callahan makes a similar warning in his essay How a Free Society Could Solve Global Warming“, in the October 2007 issue of The Freeman.
  • Bruce Yandle, Professor Emeritus at Clemson University, Senior Fellow at PERC (the “free market” environmentalism think tank) and a respected thinker on common-law and free-market approaches to environmental problems, has in PERC’s Spring 2008 report specifically proposed a A No-Regrets Carbon Reduction Policy.

I further note that Shikha Dalmia of the Reason Foundation hosted a similar roundtable on climate change policy in October 2006.

[Updated] Bob Murphy heroically nitpicks the CBA model of reluctant carbon tax advocate, William Nordhaus

June 5th, 2008 2 comments

Bob Murphy, an economist at Rob Bradley‘s Institute for Energy Research, has posted on the main Mises Blog a link to a paper that he has submitted to an economic journal, “Rolling the DICE: Nordhaus’ Dubious Case for a Carbon Tax“.

[Update:  Bob thoughtfully copied environmental economist David Zetland on his draft paper, and while he has not returned to comment at his own Mises thread, Bob has made further comments at David’s blog and at his own shared blog.]

IER promotes Murphy’s paper as ambitiously “tackl[ing] the basic premise of pricing carbon … using William Nordhaus’ DICE model as the representative of economic orthodoxy”, but it seems to me that both his objectives and his achievements are far more modest.  Murphy:

(1) fails to attack either the fundamental premises of orthodox cost-benefit analysis as applied to climate change or the basic premises of the DICE model,

(2) focusses chiefly on various uncertainties involved in the parameters in Nordhaus’ model, while ignoring not only that such uncertainties cut in more than one direction, but that other economists have strongly argued that Nordhaus has underestimated or mishandled important damages and uncertainties (e.g., John Quiggin and Sterner & Persson) and has simply misunderstood the usefulness of CBA in the face of important uncertainties that CBA cannot easily handle (e.g., Martin Weitzman, Richard Tol, others),

(3) fails to note the point (made by McKitrick and others) that even if imperfect, carbon taxes, if substituted for income, capital gains and other taxes, will significantly lessen important economic distortions; and

(3) fails to offer much in the way of Austrian approaches to CBA, much less to the property rights and preference issues involved in economic decisions involving significant externalities or open-access common resources, fails to point to possible ways in which government policy may be inefficient, costly, and subject to the skewing effects of rent-seeking, and fails to recommend important policy changes that are needed to facilitate a transition to a lower carbon economy, by promoting economic freedom, competition in energy and power markets, easing corporate tax depreciation rules that slow innovation, and strengthening property rights and common law enforcement mechanisms (Bruce Yandle and Jon Adler have both made concrete suggestions on desirable policy changes; what is holding back people at LvMI?)

In short, what Murphy delivers is flawed and far less than billed.

[Update:  As Ludwig von Mises himself noted (see my blog post Mises on fixing externalities“), private property institutions arose in response to the economic inefficiency of older systems that did not force economic actors to bear the external effects of their actions.  We are intelligent and occasionally rational creatures – why should we not be pro-actively considering what institutions might be desirable and feasible for dealing with the effects of our activities on the atmosphere and  climate (and oceans, ecosystems and unowned species, or how to improve governance in countries that don’t recognize or protect property rights)?]

I copy below (with some typo corrections) the comments that I posted on Bob’s Mises thread; I will try to revisit later to add links and further resources:

Bob, thanks for posting this

Here are a few quick notes:

– although you note that every step in Nordhaus’ analysis involves uncertainty, you have failed to note Marty Weitzman’s recent work that tells us how strongly uncertainly serves as a factor SUPPORTING early action – an important factor that neither Nordhaus nor you take into account at all. Weitzman states, “the influence on cost-benefit analysis of fat-tailed structural uncertainty about climate change, coupled with great unsureness about high-temperature damages, can outweigh the influence of discounting or anything else.”

– while you indicate that one key area of uncertainty is that future GHG concentrations may be overstated, your observations actually suggest the opposite – that because the oceanic sink is finite, as it becomes saturated atmospheric GHG concentrations are apt to rise even more sharply.

– while you indicate that the temperature increase form a given GHG concentration may be overstated, you ignore the possibility of the opposite – that the long-term temperature impact of a given GHG level may be higher than the number Nordhaus has used. Further, given paleo evidence that Hansen has noted, it appears unlikely that climate sensitivity will be less than 3 degrees C.

– Similarly, while you note that economic damages from a given temperature increase may be overstated, you fail to address the possibility that such damages may be understated – and also fail to note that the Earth is apparently more sensitive to climate changes than has been expected, witness the rapid Arctic/Greenland melting that we are seeing at only a 0.7 C increase, and the rapid expansion of tropical zones.

– it is a distinct possibility that Nordhaus has underestimated nonmarket damages, as John Quiggin and others argue. In any case, Nordhaus does not account for the changing relative prices for various goods and services that the changing composition of the economy and climate change will induce,as Sterner and Persson have noted in a recent paper at RFF:

“future scarcities that will be induced by the changing composition of the economy and climate change should lead to rising relative prices for certain goods and services, raising the estimated damage of climate change and counteracting the effect of discounting. … [C]hanging relative prices … has major implications for a correct valuation of future climate damages. We introduce these results into a slightly modified version of the DICE model (Nordhaus 1994) and find that taking relative prices into account can have as large an effect on economically warranted abatement levels as can a low discount rate.”

– in looking at damages, you tend to focus on the US picture alone, without regard to other nations – largely poorer ones – in which greater net losses are expected to be felt. You also completely fail to address, even in the case of the US, that benefits and impacts will not be uniformly shared, and that those with net benefits presently have no obligation to compensate those shouldering losses.

– while you fairly note that Nordhaus’ analysis can be helpful in comparing the relative net costs and benefits of different proposals, you fail to note that with changed assumptions, even using Nordhaus’ model as is, much higher estimates of “optimal” levels of carbon taxes can be derived.

– You point to Nordhaus’ remarks on how free-riding be various countries will drastically affect the benefits to be derived from any carbon taxes, but argue that this itself is a justification for the US to free ride, rather than for us to work to coordinate compliance by others.

– You also seem to be very worried that a coordinated approach would actually result in heavily distorted worldwide production, when widespread noncompliance by the various Kyoto parties indicates how ready nations are not to unilaterally assume burdens that other nations will not share.

– You also express concern that any coordinated approaches to climate change may be difficult to unwind as information changes, when it is clearly that various nations (and their industries) are acutely aware of comparative advantage and quite ready to react to what others are or are not doing (in the fact of the easy movement of capital).

– Further, you have confused measures like possible geoengineering and carbon sequestration approaches – which would be incentivized by carbon taxes and are a form of “mitigation”, with what is properly considered as “adaptation” to unavoided temperature increases and climate changes.

There are of course many other points that one would like to see Austrians making – such as the benefits of freeing up the economy from burdensome regulations (while strengthening property rights and private litigation remedies), adding greater degrees of freedom and competition to energy markets to drive greater energy efficiency, allowing immediate depreciation of capital investments, and the desirability of avoiding government-directed investments and subsidies – but perhaps these are things you intend to address in another paper spelling out a truly Austrian approach, rather than nitpicking at a single conventional CBA argument?

Sincerely,

TT

(I apologize that this is link-poor, but it seems like the best way to actually have this comment posted.)

Published: June 12, 2008 7:49 AM

Bob, allow me to suggest that you (and others) may also wish to consider taking a look at addressing also the recent short pieces by Joe Stiglitz, Tom Schelling and Ken Arrow others in last year`s The Economists’ Voice; they are as relevant as Nordhaus, and much more accessible to the average reader:

Joseph Stiglitz, A New Agenda for Global Warming

Kenneth J. Arrow, Global Climate Change: A Challenge to Policy

Thomas C. Schelling, Climate Change: The Uncertainties, the Certainties and What They Imply About Action

Published: June 12, 2008 9:41 AM

Comment to Bob Murphy on whether "Cap and Trade" is a "market solution"

June 5th, 2008 1 comment

I copy below comments I made on June 11 (Tokyo time) on Bob Murphy‘s June 4 blog post, Cap and Trade Is Not a “Market Solution”, that have apparently been held up for moderator approval (perhaps because my three links triggered the blog’s spam defenses?):

Bob, I thank you for posting your piece from IER, which has stimulated a relatively even-tempered and productive discussion.

But allow me to express a little disappointment.  Even as I agree fully with the gist of your post (the largely self-evident and unsurprising point that politicians prefer, as an alternative the more honest, open and politically less-palatable approach of direct Pigouvian taxes of the type supported by a wide range of mainstream economists, to address the concerns of scientists, economists, business leaders and others about man’s contribution to ongoing climate change by dressing up such taxes as a “market approach” involving a cap and trade program), I think that:

(1) you unfairly conclude that, since it will be government that will be implicitly pricing carbon emissions, such pricing “won’t reflect genuine economic scarcity” at all, when Austrian approaches do not deny that lack of property rights will result in economic actors ignoring external costs, but simply indicate the government pricing of resources can only imperfectly reflect economic factors;

(2) you’ve gone to a bit of unjustified rhetorical excess with your statements that:

“[t]his is no more a “market price” than if the government decided to sell people permits giving them permission to sneeze”:  rather, it’s more like the government trying to price grazing rights, resources extraction rights or other user fees on “public lands”– yes, such prices are not market prices (and are perhaps more likely to be underpriced rather than overpriced), but that does not mean that they do not represent or at all reflect valuable resources.

“Cap and trade is not a market-based solution” – while not a true market solution, a cap and trade approach is clearly one that makes use of markets.

– “Cap and trade … can therefore be justly viewed as a tax, stealthy or otherwise, on energy – the lifeblood of our economy” – this not only overbroad, as it would only tax certain types of energy, and overdramatic, it completely ignores the point that certain activities (a wide array not limited to combustion of fossil fuels, including release of other GHGs) are perceived as adversely affecting (now and in the continuing future) many within the country as a result of externalities involving an open-access and unowned and unmanaged commons, which is precisely what expressly motivates (actually or allegedly) so many – including many in your profession – to support Pigouvian approaches;

(3)  surprisingly, you failed to take the opportunity to add to the discussion by informing your readers of Austrian concerns, including the following:

– the calculation problem;

– whether, as you note it posting here, there is any reasonable basis to “trust governments around the world to implement the scheme ‘properly'” (by exploring problems with rent-seeking and bureaucratic incentives);

– whether it is desirable for the government to presume that it should act as the owner of the atmosphere in creating emissions rights (as opposed to citizens generally or long-standing/homesteading users of fossil fuels), and the related ethical issue of creating rights to emit that cut off those who may be harmed from any direct remedy (such as a share of the proceeds of the sale of rights); and

– the underlying institutional problem of lack of clear or enforceable property rights (for which past interferences by government have some responsibility); and

– whether growing concerns (and private responses) regarding the shared global issue (affecting nations with different circumstances and legal systems than ours) of increasing GHG emissions might be addressed less expensively and more rapidly by voluntary actions and national and international litigation rather than by coordinated action by various governments and implemented by individual nations.

None of these points is easily addressed, but they would help to provide a Austrian framework that may be useful to your readers. 

(4)  Finally, it is disappointing that you completely failed to take on any of your mainstream colleagues (such as those in Gregg Mankiw’sPigou Club”  http://en.wikipedia.org/wiki/Pigou_Club) who support either carbon taxes or cap and trade approaches. 

I understand that you’ve got a paper in the works addressing Nordhaus, but he’s hardly the only one writing specifically on climate change; I hope you will also be looking at Marty Weitzman at Harvard, Richard Tol and a few others noted here and here:

http://mises.org/Community/blogs/tokyotom/archive/2007/12/16/the-social-cost-of-ignoring-carbon.aspx
http://mises.org/Community/blogs/tokyotom/archive/2007/10/17/reason-congratulations-to-al-gore.aspx

Sincerely,

TT

Haters of science? The Bush administration sounds the alarm, "climate change is coming … and is here!"

May 29th, 2008 No comments

Climate change, largely due to human activities, is currently underway, with more very serious – and largely unstoppable changes – expected in the next 25 years, and landowners, communities, farmers, businesses, communities and state and local government should pay attention, anticipate and start adapting!  So says our federal government, sotto voce, after devoting seven years and considerable effort to make sure that the public did NOT get this news and that climate change did not appear on the federal regulatory or legislative agenda.

Under pressure from ongoing climate change and boxed in by laws and a court decision, the ice dam that has blocked the flow of scientific information from the federal government over the past seven years melted this past week, yielding two long-delayed (and partially over-lapping) reports that were released rather quietly – without any prominent mention by the White House or other agency.  How interesting – has climate science finally trumped political expediency (and hidden rent-seeking)?

1.  Most notably, the Bush administration caved to an August 2007 federal court order and published on Thursday, May 29, the “Scientific Assessment of the Effects of Global Change on the United States,” its first (and long overdue) comprehensive national assessment of the impacts of climate change in the U.S.  Despite this report being expressly required by law (the 1990 Global Change Research Act) to be prepared every four years (the last one had been issued in 2000 by the Clinton administration), the Bush administration not only refused to prepare the report (which is intended to give the President, Congresscritters and government agencies a single document to refer to when evaluating climate policy) but has until now done its best to suppress and prevent action on the 2000 assessment.

According to reporting by Bill Blakemore of ABC News, the new assessment:

“Integrat[es] federal research efforts of many agencies and literally thousands of scientists, [and] reports that the global climate disruption now under way is already damaging U.S. water resources, agriculture and wildlife and is expected to keep doing so—often worsening—for “the next few decades and beyond.”

There is no part of the country that escapes some sort of consequence,” said Anthony Janetos, director of the Joint Global Change Institute

Temperatures are expected to continue rising by about 4 to 7 degrees Fahrenheit before the century is out. The report says that in the West grain harvests and vegetable and fruit crops are more likely to fail because of rising temperatures. It also points out that weeds—of concern both to farmers and those who suffer from pollen allergies—are growing more rapidly due to elevated levels of the greenhouse gas carbon dioxide in the air.

“These are consequences for forests in our backyard, for agriculture on which we depend, for the water resources that we depend on, both for agricultural production and household use and manufacturing, that this is the basis of a good quality of life for everybody,” Janetos said.

The report projects a likely increase in frequency and severity of heat waves and other extreme weather events, including storms and floods …. 

It also projects that because of worsening weather and heat the nation’s transportation systems face “significant challenges.” Coastal and river flooding and landslides are hitting roads, rails and ports, and heat spells buckle or soften roads.

Forests in the West, Southwest and Alaska will be assaulted by more frequent forest fires and decimated by insects that no longer die off in winter because winters are generally warmer. In the middle of the country are reports increasing drought.

Janetos warns that these dire effects are already under way, not lurking the future.

“These are things that are happening today. They’re not just things that will happen 30, 40, 50, 100 years from now,” he said. “We wanted to be within the planning horizon that land managers and conservation planners and farmers actually have to deal with.”

 According to Seth Borenstein of the AP:

Andrew Weaver, a Canadian climate scientist who was not involved in the effort called it “a litany of bad news in store for the U.S.”

And Thomas Lovejoy, a biologist who chaired the group of scientists who reviewed the report for the federal government said: “It basically says the America we’ve known we can no longer count on. It’s a pretty dramatic picture of all kinds of change rippling through natural systems across the country. And all of that has implications for people.”

White House associate science director Sharon Hays, in a teleconference with reporters, declined to characterize the findings as bad, but said it is an issue the administration takes seriously. She said the report was comprehensive and “communicates what the scientists are telling us.”

That includes:

– Increased heat deaths and deaths from climate-worsened smog. In Los Angeles alone yearly heat fatalities could increase by more than 1,000 by 2080, and the Midwest and Northeast are most vulnerable to increased heat deaths.

– Worsening water shortages for agriculture and urban users. From California to New York, lack of water will be an issue.

– A need for billions of dollars in more power plants (one major cause of global warming gases) to cool a hotter country.

– More death and damage from wildfires, hurricanes and other natural disasters and extreme weather. In the last three decades, wildfire season in the West has increased by 78 days. [TT:  As I noted on several Mises blog threads last year; e.g., http://blog.mises.org/archives/007345.asp#comment-130290]

– Increased insect infestations and food- and waterborne microbes and diseases. Insect and pathogen outbreaks to the forests are causing $1.5 billion in annual losses.

– “Finally, climate change is very likely to accentuate the disparities already evident in the American health care system,” the report said. “Many of the expected health effects are likely to fall disproportionately on the poor, the elderly, the disabled and the uninsured.”

Rick Piltz, who worked in the administration until 2005 (when he quit to protest the administration’s politicized manipulation of the climate science) and is now Climate Science Watch Director at the non-profit, non-partisan Government Accountability Project (the leading whistle-blower protection organization), commented:

“This report discusses evidence of climate disruption that has been well-understood in the science community and in the government for some time,” said Rick Piltz, Director of the Government Accountability Project’s Climate Science Watch program. “After seven years of denial, disinformation, cover-up, and delay, in its waning months, the Bush administration is finally beginning to allow the publication of reports that acknowledge this scientific reality.”

Piltz further said:

“rather than focusing exclusively on the report and the legalities of its due dates, it would be more illuminating to focus on the seven-plus years of time lost under this administration, starting from early-on when they suppressed official references to and use of the first National Assessment report, shut down all follow-on work, and pulled federal support from the emerging scientist-stakeholder communication networks around the country that were a hallmark of the National Assessment effort. The damage done by the administration’s political decision to disconnect the Climate Change Science Program from effective communication with stakeholders (with the exception of a few niche projects) is not undone by the report issued on May 29, which was drafted internally and without public review or documented stakeholder communication.”

2.  The national assessment was preceded on Tuesday, May 27 by a sector report on the impacts of climate change on agricultureThe effects of climate change on agriculture, land resources, water resources, and biodiversity in the United States, Final Report, Synthesis and Assessment Product 4.3.  This is one of many sector-specific reports by which the administration had intended to dodge the requirement for an overall national assessment.

Juliet Eilperin of the Washington Post reported as follows:

Anthony C. Janetos, director of the Joint Global Change Research Institute of the University of Maryland and the Pacific Northwest National Laboratory, said the document aims to inform federal resource managers and dispel the public’s perception that global warming will not be felt until years from now.

“They imagine all these ecological impacts are in some distant future,” said Janetos, one of the lead authors, who noted that many animals and plants have shifted their migratory and blooming patterns to reflect recent changes in temperature. “They’re not in some distant future. We’re experiencing them now.”

The document concludes that Americans must face the fact that many of these changes are locked in even if the country takes significant steps to cut emissions in the coming decades.

“Climate change is currently impacting the nation’s ecosystems and services in significant ways, and those alterations are very likely to accelerate in the future, in some cases dramatically,” the report says. “Even under the most optimistic CO2 emission scenarios, important changes in sea level, regional and super-regional temperatures and precipitation patterns will have profound effects.” …

In addition, the number and frequency of forest fires and insect outbreaks are “increasing in the interior West, the Southwest, and Alaska,” while “precipitation, stream flow, and stream temperatures are increasing in most of the continental United States” and snowpack is declining in the West.

The Agriculture Department, the study’s lead sponsor, issued a statement yesterday highlighting some of the report’s findings for farmers, noting that the higher temperatures mean that grain and oilseed crops will mature more rapidly but face an increased risk of failure and “will negatively affect livestock.”

The report predicts that some of the nation’s most valued landscapes may change radically in the near future as precipitation and weather patterns continue to shift.

“Management of Western reservoir systems is very likely to become more challenging as runoff patterns continue to change,” it states. “Arid areas are very likely to experience increased erosion and fire risk. In arid ecosystems that have not co-evolved with a fire cycle, the probability of loss of iconic, charismatic megaflora such as Saguaro cacti and Joshua trees will greatly increase.”

According to reporting by Judith Kohler of the AP:

“I think what’s really eye-opening is the depth and breadth of the impacts and consequences going on right now,” said Tony Janetos, a study author and director of the Joint Global Change Research Institute at the University of Maryland.

Scientists produced the report by analyzing research from more than 1,000 publications, rather than conducting new research. It’s part of a federal assessment of global warming for the U.S. Climate Change Science Program, sponsored by 13 federal agencies, led by the Department of Agriculture.

“Just to see it all there like that and to realize the impacts are pervasive right now is a little bit scary,” said Peter Backlund, director of research relations at the National Center for Atmospheric Research in Boulder.

Drought-strained forests in the West and Southeast are easy prey for tree-killing insects like bark beetles. Snow in the Western mountains is melting earlier, making it more difficult for managers overseeing a long-established system of reservoirs and irrigation ditches that serves Western states.

The Southeast doesn’t have the same kind of storage system because rain historically has been more consistent. Current weather disruptions have the region struggling with drought, Janetos said.

Rising carbon dioxide levels are changing the metabolism of grasses and shrubs on range land, decreasing the protein levels in plants eaten by cattle.

Warmer, drier weather is altering the biodiversity of deserts in the Southwest and the high, colder deserts of Nevada, Utah and eastern Washington, said Steve Archer of the University of Arizona. Plants and animals already living in extreme conditions face threats from wildfires and nonnative species, he said.

“These areas historically support a large ranching industry, wildlife habitat,” Archer said. “They are major watersheds and airsheds.”

The scientists said longer growing seasons provided by higher temperatures don’t necessarily translate into bigger crop yields because plants have certain growth patterns.

Their report focuses on the next 25 to 50 years, rather than the next 100 years as other studies have done.

“Sometimes it’s so far out that people just don’t grasp that it’s a problem. This really brings it home,” said Jerry Hatfield, lab director of the National Soil Tilth laboratory in Ames, Iowa.

The World Wildlife Fund has a press release that identifies the following findings of the report of particular concern(from which I have omitted WWF’s legislative proposals):

Climate change is fueling forest fires, creating water scarcity, harming animal habitats, and causing other significant changes throughout the United States that will only worsen as global temperatures increase, concludes a new federal government assessment of current and future climate change impacts.

“The number and frequency of forest fires and insect outbreaks are increasing in the interior West, the Southwest, and Alaska.  Precipitation, streamflow, and stream temperatures are increasing in most of the continental United States.  The western United States is experiencing reduced snowpack and earlier peaks in spring runoff.  The growth of many crops and weeds is being stimulated.  Migration of plant and animal species is changing the composition and structure of arid, polar, aquatic, coastal and other ecosystems.” 

“Climate change is currently impacting the nation’s ecosystems and services in significant ways, and those alterations are very likely to accelerate in the future, in some cases dramatically…..  Even under the most optimistic CO2 emission scenarios, important changes in sea level, regional and super-regional temperatures, and precipitation patterns will have profound effects.”

“Management of water resources will become more challenging.  Increased incidence of disturbances such as forest fires, insect outbreaks, severe storms, and drought will command public attention and place increasing demands on management resources. Ecosystems are likely to be pushed increasingly into alternate states with the possible breakdown of traditional species relationships, such as pollinator/plant and predator/prey interactions, adding additional stresses and potential for system failures. Some agricultural and forest systems may experience near-term productivity increases, but over the long term, many such systems are likely to experience overall decreases in productivity that could result in economic losses, diminished ecosystem services, and the need for new, and in many cases significant, changes to management regimes.”

 

As insects increasingly bite into rice crops, who should pay for crop research?

May 19th, 2008 2 comments

Keeping ahead of crop diseases and pests is a continual challenge, particularly as climate and weather patterns change.  This challenge is in part compounded by the involvement of governments around the world in in subsidizing the consumption of certain crop staples like rice and in subsidizing crop research.  

The New York Times has published an article that blames cutbacks in research on new rice varieties to a growing threat to rice crops posed by new diseases and pests.

World’s Poor Pay Price as Crop Research Is Cut

Should the West respond with more subsidies to research for crops grown in poor countries, or with less subsidies and greater reliance on private incentives that already exist in Western markets?  Are there private researchers that are stepping into the gap?

Bad news and needed institutional change: Climate change, water and water rights

May 14th, 2008 No comments

Climate change is having a significant impact on water supplies in the US Southwest and elsewhere.  Scientists increasingly that these impacts can be attributed to human influences on climate – but that is to some degree besides the point.  Presently, water is very poorly used and allocated in many places, due to poorly working markets and politicized government ownership of catchment and regional and municipal distribution networks and other interference.  Consumers do not face marginal costs of water acquisition. 

Not merely to ease the impact of future climate change but also to deal with existing problems, a concerted move to clearer water rights and competition in water supply is needed.  This will necessarily be a sticky process, but one that needs addressing.

Some relevant links and summaries are below.

“climate change has dramatically altered the water flow over the past 50 years in several Western states.

“These changes, which include more winter precipitation falling as rain instead of snow, an earlier snow melt, and new river patterns, combined with a general warming of the region, could cause a “crisis in water supply” for the Western United States, said the authors.

“‘Our results are not good news for those living in the western United States,’ wrote the researchers, led by Tim P. Barnett, a research marine geophysicist at the University of California, San Diego, adding that his findings make “modifications to the water infrastructure of the western U.S. a virtual necessity.”

More on the same story here:  Decline in Snowpack Is Blamed On Warming:

“The persistent and dramatic decline in the snowpack of many mountains in the West is caused primarily by human-induced global warming and is not the result of natural variability in weather patterns, researchers reported yesterday.

“Using data collected over the past 50 years, the scientists confirmed that the mountains are getting more rain and less snow, that the snowpack is breaking up faster and that more rivers are running dry by summer.

“The study, published online yesterday by the journal Science, looked at possible causes of the changes — including natural variability in temperatures and precipitation, volcanic activity around the globe and climate change driven by the release of greenhouse gases. The researchers’ computer models showed that climate change is clearly the explanation that best fits the data.

“We’ve known for decades that the hydrology of the West is changing, but for much of that time people said it was because of Mother Nature and that she would return to the old patterns in the future,” said lead author Tim Barnett of the Scripps Institution of Oceanography at the University of California at San Diego. “But we have found very clearly that global warming has done it, that it is the mechanism that explains the change and that things will be getting worse.”

“There is a 50 percent chance Lake Mead, a key source of water for millions of people in the southwestern United States, will be dry by 2021 if climate changes as expected and future water usage is not curtailed, according to a pair of researchers at Scripps Institution of Oceanography, UC San Diego.

“Without Lake Mead and neighboring Lake Powell, the Colorado River system has no buffer to sustain the population of the Southwest through an unusually dry year, or worse, a sustained drought.  In such an event, water deliveries would become highly unstable and variable, said research marine physicist Tim Barnett and climate scientist David Pierce.

“Barnett and Pierce concluded that human demand, natural forces like evaporation, and human-induced climate change are creating a net deficit of nearly 1 million acre-feet of water per year from the Colorado River system that includes Lake Mead and Lake Powell. This amount of water can supply roughly 8 million people. Their analysis of Federal Bureau of Reclamation records of past water demand and calculations of scheduled water allocations and climate conditions indicate that the system could run dry even if mitigation measures now being proposed are implemented.

“We were stunned at the magnitude of the problem and how fast it was coming at us,” said Barnett. “Make no mistake, this water problem is not a scientific abstraction, but rather one that will impact each and every one of us that live in the Southwest.”

The underlying paper has been published by the American Geophysical UnionLake Mead could be dry by 2021

A research team, led by a group at Columbia University’s Lamont-Doherty Earth Observatory (LDEO) in Palisades, N.Y., reveal in this week’s Science that southwestern North America will likely be saddled with increasingly arid conditions during the next century. This drying effect, the researchers say, is directly related to man-made climate change and will demand new methods for managing water resources in the region. …

In fact, the researchers believe the current six-to-seven-year drought in the region is the beginning of this drying trend. “The current drought is related to the warming due to the greenhouse gases,” says Ting. “In the past, El niño [would] disappate the drought, but now it’s not able to stop the drought.”

Normally, the El Niño and La Niña weather systems are largely responsible for cyclical precipitation and drought in the Southwest. El Niño brings in moisture from the tropics (by the warming of the ocean, which condenses water into the lower atmosphere that is then shuttled into the subtropical regions), whereas La Niña essentially does the opposite, causing cold ocean temperatures in the equatorial eastern Pacific. The latter phenomenon is believed to be the culprit behind both the 1930s dust bowl and a widespread drought in the Southwest during the 1950s.  

“The drought that we’re taking about is not La Niña,” Ting explains, referring to the current dry system. “That is associated with the greenhouse gas warming.” While the consequences are similar, the actual effect on the oceans is very different, she says. Instead of a cooling in the tropics, there will be a uniform warming of the ocean, which will push the Pacific jet stream farther north. As a result, “Canada does get quite a lot more rain,” Ting notes, whereas “the whole state of California, for example, will be much drier.”

 More on the same study here: http://ipsnews.net/news.asp?idnews=37239

  • Forbes, May 14, 2008:  The Water-Industrial Complex

     In 2001, a water shortage in America’s Pacific Northwest wiped out nearly a third of the U.S. aluminum industry. Low precipitation levels in the Cascade Mountains during the preceding winter robbed local reservoirs of the water needed to turn the massive turbines inside the region’s main hydroelectric power plant, the Bonneville Power Administration. Electricity prices skyrocketed. Over the course of a few months, roughly a dozen aluminum plants closed. Nearly a decade later, only one has reopened.

  • Jonathan Adler, The Volokh Conspiracy, March 12, 2008:  Climate Change and Water

Abstract of law review article:  “Demographic changes and existing water use patterns have placed tremendous pressures upon water supplies, particularly in the West. Global climate change will exacerbate pressures on water resources. The gradual warming of the atmosphere is certain to change the distribution and availability of water supplies, with potentially severe consequences for freshwater supplies. While climate change will have a significant impact on water resources through changes in the timing and volume of precipitation, altered evaporation rates, and the like, the precise nature, magnitude, timing, and distribution of such climate-induced changes are unknown. This uncertainty complicates the task of water managers who are already faced with escalating demands. This article argues that climate change, and its projected effects on water use and supply, calls for a fundamental reexamination of water institutions. In particular, this article suggests that market-based institutions are well suited to address the additional pressures on water supplies due to climate change. Many aspects of water markets, including their flexibility, decentralized nature, and ability to create and harness economic incentives, make them particularly well suited to address the uncertain water forecast. A gradual shift toward water marketing and market pricing will improve the management of water supplies, ensure more efficient allocation of available water supplies and encourage cost-effective conservation measures.

“The basic point of the article is that insofar as climate change will disrupt existing water supplies in somewhat uncertain and unpredictable ways, we need water institutions that are flexible and adaptive, and that encourage greater efficiency in water use and allocation. In this way, climate change strengthens the already-strong case for water markets. Market-driven transfer and pricing of water resources will not eliminate the consequences of warming-induced changes in water supplies, but they will make these changes more manageable.”

Like oil, water is an essential part of doing business in almost every industry, and unexpected shortages can trigger potentially catastrophic consequences. The trouble for investors: Companies disclose very little if any information about their exposure to water-related risks.

“This is not an area that companies like to discuss quite frankly,” says Carl Levinson, an economist at J.P. Morgan and the principal author of the recent report Watching Water: A Guide to Corporate Risk in a Thirsty World. “They don’t want to call attention to a vulnerability and that applies very much to the water scarcity issue. Investors in general know very little about what is going on in companies’ supply chains.” …

“Sooner or later, the way in which the world adapts to shortages is with price,” says Levinson. “So my expectation is that water is going to become increasingly costly as an input for all kinds of purposes, and when that happens you’ll see a lot more interest in conserving water.”

Categories: adler, climate change, water rights Tags:

Nick Kristof on politics: why we conclude that I’m right, and you’re evil

April 17th, 2008 No comments

Here’s a very interesting piece by Kristof at the New York Times about the reactions of Obama and Clinton supporters, and introducing cognitive science studies of why more information often polarizes, rather than bringing people together

Divided They Fall

Simply, we are cognitively wired as tribal animals.  That means we are inclined to see “our side” as right, and the other side as lying and scheming.  And very clever rent-seekers know this and try to use it to jerk us around.

Ron Bailey of Reason has two similar posts up:

More Information Confirms What You Already Know

The Culture War on Facts

 

Anybody see any similarities for what passes for discussion of climate science generally, and at here at Mises?  I’ve got loads of examples for those who can’t seem to see it, or are interested in looking more.  Here are several, most recent first:

 

Climate spin: Who are the sneaky ones who changed “global warming” to “climate change”?http://mises.org/Community/blogs/tokyotom/archive/2008/04/09/why-those-sneaky-enviros-changed-from-quot-global-warming-quot-to-quot-climate-change-quot.aspx

 

Thank you, Prof. Block, for feeding our confirmation biases

http://mises.org/Community/blogs/tokyotom/archive/2008/02/26/thank-you-prof-block-for-feeding-our-confirmation-biases.aspx

 

Thanks, Dr. Reisman; or, How I Learned to Hate Enviros and Love Tantrums

http://mises.org/Community/blogs/tokyotom/archive/2008/02/24/george-reisman-or-how-i-learned-to-hate-enviros-and-love-tantrums.aspx

 

Escape from Reason: are Austrians conservatives, or neocons, on the environment?

http://mises.org/Community/blogs/tokyotom/archive/2008/02/19/cool-rationalists-or-conservatives-and-neocons-on-the-environment.aspx

 

Edwin Dolan: applying the Lockean framework to climate change

http://mises.org/Community/blogs/tokyotom/archive/2008/02/14/edwin-dolan-applying-the-lockean-framework-to-climate-change.aspx

 

“Climate Change, Evidence and Ideology”

http://mises.org/Community/blogs/tokyotom/archive/2008/02/06/quot-climate-change-cumulative-evidence-and-ideology-quot.aspx

 

John Baden: a Mt. Pelerin misanthrope/watermelon?

http://mises.org/Community/blogs/tokyotom/archive/2007/12/17/john-baden-is-this-mt-pellerin-society-member-a-misanthrope-watermelon.aspx

 

Holiday joy: roasting “watermelons” on an open pyre!

http://mises.org/Community/blogs/tokyotom/archive/2007/12/17/holiday-joy-quot-watermelons-quot-roasting-on-an-open-pyre.aspx

 

“Heroic” contrarians, proven wrong on AGW, make another slick cry for relevance at Bali

http://mises.org/Community/blogs/tokyotom/archive/2007/12/15/quot-heroic-quot-expert-voices-proven-wrong-on-agw-make-another-slick-cry-for-relevance-at-bali.aspx

 

Who knows climate science? The Mises Blog!

http://mises.org/Community/blogs/tokyotom/archive/2007/12/14/who-knows-climate-science-the-mises-blog.aspx

 

Goering and Madison on War

http://mises.org/Community/blogs/tokyotom/archive/2007/12/11/madison-and-goering-on-war.aspx

 

Bali:  Murdoch & 149 Other Top Vile Collectivists/Capitalists Call for Global Poverty …

http://mises.org/Community/blogs/tokyotom/archive/2007/12/04/murdoch-amp-149-other-top-vile-collectivists-capitalists-call-for-global-poverty.aspx

 

Tribal pigheadedness: RedState bans Ron Paul supporters

http://mises.org/Community/blogs/tokyotom/archive/2007/10/27/tribal-pigheadedness-quot-the-simplest-way-to-explain-the-behavior-of-redstate.aspx

 

Libertarian denial; clever but not wise

http://mises.org/Community/blogs/tokyotom/archive/2007/10/12/libertarian-reticience-other-than-to-bash-enviros.aspx