Archive for September, 2009

Tough Choices

Wednesday, September 30th, 2009

This article in the Washington Post points to a central dilemma for Democrats in coming election cycles. Democrats are having trouble raising money.

“The vast majority of those declines were accounted for by the absence of large donors who, strategists say, have shut their checkbooks in part because Democrats have heightened their attacks on the conduct of major financial firms and set their sights on rewriting the laws that regulate their behavior.”

Without question as Democrats seek tighter regulations on insurance companies and Wall St., some of that money they contributed to Democrats in 2008 will dry up.

Democrats are faced with a choice. They can stop complaining about corrupt business practices and allow the big business protection racket to continue unabated, while angering voters who have had enough of the these abuses; or they can try to promote real change in the U.S. by doing what is right—reigning in the insurance companies and Wall St.

The first option leads to bad policies and pissed off voters; the second option means they will have to be creative about raising money.

Let’s be creative. It is time to start talking about “patriot dollars” again.

Climate Change Uncertainty is No Argument for Doing Nothing

Tuesday, September 29th, 2009

The general strategy of conservatives and some business interests has been to try to increase uncertainty about global warming in order to defeat climate change legislation. And if recent polls are accurate, the public has been listening to their arguments.

But they should not.  The argument from uncertainty in fact strengthens rather than weakens the case for strong action on climate change.

Let’s assume, for the sake of the argument, that global warming predictions are as uncertain as conservatives claim.

The IPCC predicted an increase in global mean temperature of roughly 3.5 degrees Celsius as the most likely scenario. At this level of warming, if left unchecked, the National Resource Defense Council estimates that this would cause a loss of 3.6% of GDP by 2100 in the U.S. with more significant losses elsewhere in the world. And of course this does not include non-economic effects which may be considerable.

Given the uncertainties of climate modeling, and the inherent difficulty of predicting the behavior of complex chaotic systems, there is some possibility that conservatives are correct. Perhaps there will be no warming. But uncertainty does not apply in only one direction. A margin of error sufficiently large such that a prediction of 3.5 degrees C could yield a possibility of no warming entails an equal possibility that global warming could be as bad as a 7 degree increase in global mean temperature. In other words, in the absence of auxiliary hypothesis that would skew the distribution, the margin of error is equal on both sides of the prediction.  Assuming a confidence level equivalent to no warming on the left side of the distribution, the possibility of catastrophic warming is as likely as no warming. [h/t to John Quiggin at Crooked Timber for making this point.]

And in fact there are a variety of auxiliary hypothesis that lead to the conclusion that the IPCC prediction is too low.

The belief that uncertainty must mean that things can only be less bad than predicted is purely wishful thinking, not science.

This has profound implications for policy proposals.  When considering the expected consequences of proposals to mitigate global warming, we must also consider the expected consequences of doing nothing which must include the costs of doing nothing if the worst case scenario develops. An increase in global mean temperature of 7 degrees C would according to some estimates produce massive ecosystem collapse and the deaths of billions of people.

Thus, taking account of uncertainty, the expected costs of doing nothing overwhelm any reasonable account of the expected costs of mitigating climate change, which as Paul Krugman argues will be minor.

There is utterly no case to be made for inaction and a strong case to be made for developing mechanisms to quickly ratchet up reductions in emissions if, as we reduce the uncertainty of the science, we find catastrophic warming becoming more likely.

There is lots of uncertainty in the science and economics of global warming but that uncertainty is an argument in favor of action now.

Big Business Protection Racket

Monday, September 28th, 2009

Free market types love to argue that competitive markets reward the ambitious and self-reliant while punishing the lazy and incompetent all without the dead hand of government helping them out.

On energy policy, they like to argue that renewable energy is just too expensive and we should stick to fossil fuels, despite the threat of global warming.

Of course, it’s all baloney. Via Grist’s David Roberts, a study by the Environmental Law Institute and the Woodrow Wilson International Center for Scholars asserts that fossil fuels received $79 billion in federal subsidies, while renewable fuels received $29 billion. And among the renewables, over half the subsidies went to corn ethanol, which is essentially a subsidy for big agribusiness that makes extensive use of fossil fuels.

Recently, Obama told the United Nations that fossil fuel subsidies had to end.

But he is up against a powerful lobby with a very entrenched interest in fossil fuels supported by taxpayers.