The New Climate Economy

A new report from the Global Commission on the Economy and Climate claims that the appropriate action to reduce the risks of global climate change will have many positive effects on nation’s economies.

Without (undefined) urgent action:

  • Global warming could exceed 4 degrees Celsius.
  • Delay in action could cut global consumption growth by 0.3 percent per year in the decade 2030 to 2040.
  • If we act on climate change now, consumption growth may only go down 0.1 percent.

This whole report is centered on the fact that a warming planet is inevitable and that acting now would save more money in the long run. The study supposes the global warming will cause natural resources to dwindle, arable land to be less available, and food and water to become scarce. Furthermore, they believe that regulations now to curb global warming would be beneficial, even if it means short-term economic losses, because it staves off larger economic losses in the future.

Sure, if that were the case anyone with half a mind would say that we should act now rather than later. Unfortunately, that is not the case. We don’t have to accept that global warming will cause unprecedented human disaster. According to the NCPA’s global warming primer, there are several things wrong with the new report:

  • First, we find that 96.6 percent of carbon emissions come from nature, and not humans. The regulations would do nothing but hurt the economy and not solve the problem.
  • Second, there is no consensus on the magnitude of the impact, it is likely that the apocalyptic scenarios won’t pan out even if the Earth is to increase by 2 degrees Celsius.
  • Finally, stabilizing carbon emissions at even 550 ppm would cost trillions of dollars.

These are some things that the report has not considered.

Comments (2)

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  1. Alexander Smith says:

    I feel like this ignores the potential geopolitical crisis if climate change is real. Millions of people could lose their homes, their way of life, and become climate refugees. I’m sure the potential cost of that is also “trillions of dollars”.