Bjørn Lomborg
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Global warming is seen everywhere as one of the most important issues. From the EU to the G8, leaders trip over one another to affirm their commitment to cutting CO2 to heal the world. What they do not often acknowledge - in part because it would lose them support - is that the solutions proffered are incredibly costly and will end up doing amazingly little good, even in a century's time. This is the truly inconvenient truth of the politics of global warming.
Let's be clear. I'm not contesting the existence of global warming. Doing so is silly, given the clear and strong results from the UN climate panel. Global warming will most probably warm the planet by between 1.6 and 3.8C above current temperatures by the end of the century. The total cost of the consequences of this warming is estimated by William Nordhaus, of Yale University, to be $15 trillion.
However, we need to keep our cool: global warming's total cost will be only about one half of 1 per cent of the net worth of the 21st century; that is the current worth of all the wealth projected to be generated in this century. Panicking is unlikely to lead to sensible policies. It could lead to exorbitantly expensive policies, which will do great harm.
Many of the proffered global warming policies are designed to help politicians bathe in the warm glow of good intentions, with little or no regard to the mounting costs and infinitesimal benefits.
It is a well-rehearsed point that the Kyoto Protocol was a terribly inefficient, hugely costly way to do virtually no good. Even if every industrialised country, including the United States, had accepted the protocol, and everyone had lived up to its requirements for the entire century, it would have had virtually no impact, even a hundred years from now. It would reduce the global temperature increase by an immeasurable 0.15C by the year 2100. The cost of implementing Kyoto, taking the average figure from the various top macroeconomic models, would have been almost £100 billion annually for the rest of the century.
The US declined to sign up to Kyoto and many countries, including Spain, Japan, Canada, and Greece, have had a hard time living up to their pledges. It is likely that the total reduction in carbon emissions will be less than 5 per cent of what Kyoto promised.
Yet the EU and others advocate that Kyoto-style policies are still right, only that much more than Kyoto is needed. The EU has promised to cut its emissions by 20 per cent by 2020, through a 20 per cent increase in renewables. There seems to be no better reason for this decision than that 20 and 20 in 2020 sounds good. Gordon Brown has wholeheartedly backed the plan, which includes making a dramatic increase in renewables - mainly 3,500 wind turbines in the North Sea.
The British Government estimates the cumulative carbon saving from all its plans at somewhere between 950 and 1,100 million tonnes of CO2 by 2030. The Department for Business will not give a figure beyond that timeframe but, given that wind turbines have a lifetime of about two decades, this seems the relevant cumulative reduction given the investment. The department confirms that the total investment from public and private sources into renewables will be about £100 billion.
Computer modelling - using DICE (dynamic integrated model of climate and the economy) - shows that the net effect of the UK renewables effort is impossibly tiny. The temperature increase by 2100 without Mr Brown's plan would have been 2.4536181C. With the best-case scenario the huge UK effort means that the temperature at the end of the century would be 2.4532342C. The effect is a difference of about 0.00038C - or about one three-thousandth of a degree in a hundred years. This is the equivalent of delaying the temperature increase by the end of the century by a little less than a week.
Of course, these numbers are way too precise: different models and assumptions would give somewhat different results. Yet because we are talking about relative change, the absolute climate sensitivity of the particular model matters very little. Thus the order of magnitude is robust and indicates an astonishingly small effect for a very large cost.
If one imagines that the reductions could be sustained across the century (which presumably would also call for five repeated investments of hundreds of billions of pounds), the effect is still very small - a temperature reduction of about one six-hundredth of a degree.
Using the latest academic meta-study by Professor Richard Tol we can calculate that cutting 1,100 million tonnes of CO2 would create benefits worth £4 billion in terms of the impact on agriculture, forestry, preventing deaths from heat and cold, disease and unmanaged eco-systems. At a cost of £100 billion, the investment involves paying £1 to do less than 4p worth of good.
The UK emits about 2 per cent of global CO2. Thus we could imagine the world as composed of 50 UKs, each emitting one fiftieth of the carbon. If all 50 of our “UKs” paid a £100 billion to reduce temperatures by one three-thousandth of a degree in 100 years, the result would be still be trivial: one sixtieth of a degree by the end of the century. Costs would most probably increase similarly, fiftyfold to £5,000 billion. This amazing sum would simply postpone global warming and its problems by a mere 11 months by the end of the century.
The cost of £5,000 billion is equivalent to a hundredfold increase in global donations to developing countries. To make a simple comparison, the UN estimates that for about £40 billion annually, we could solve all major basic problems in the world - we could give clean drinking water, sanitation, basic education and healthcare to every person in the world. But instead we are spending a fortune achieving almost nothing.
Of course, we shouldn't ignore global warming. But instead of trying to cut CO2 emissions, we should focus on dramatically increasing the funding into energy research and development. What matters is getting low-cost low-carbon technology available faster. If the price of renewable energy dropped below the cost of fossil fuels by mid-century, everyone - including China and India - would switch to the greener alternatives. Work done by the Copenhagen Consensus suggests that such a policy could be 300 times better for the world than the UK approach. We could end up doing more than £11 worth of good for each £1 invested. While we would do much more good in total terms, the cost would also be much lower, and hence much more likely to be implemented.
When it comes to climate, we have to come to our senses. Yes, global warming is real and caused by human beings, but it doesn't mean we should panic in our policy decisions. We need to do the right thing - and invest in discovering and developing new low-carbon technology.
Bjørn Lomborg is adjunct professor at the Copenhagen Business School and the author of Cool It: The Sceptical Environmentalist's Guide to Global Warming
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In 1 breath, author accuses leaders of being panicky...In next breath, of basking in warm glow. Which is it, Lomborg? Yet another one of those unscientific statements from scientists, an article that misses the point of the tragedy of the commons. Dealing with finite amounts, everything counts.
Shawn Reeves, Ithaca, NY, USA
The earth has warmed and cooled for millions of years and when nothing happens what then? This is still speculation by the scientific community and as long as they get into the media we all believe. The whole global warming industry is a mammoth waste of taxpayer money by selfserving scientists.
steven w , calgary , canada
"What matters is getting low-cost low-carbon technology available faster. If the price of renewable energy dropped below the cost of fossil fuels by mid-century, everyone - including China and India - would switch to the greener alternatives."
How? If not by "supply and demand"?
Go Gordon!
Jasper Slingsby, Cape Town, South Africa
Adam,you're correct , you'd be much better off living next door to a nuclear power plant,as you get more dadiactive fallout ,not to mention visible pollutants, from a coal power plant. Bjorn Lomborg's logical argument is a nice change from the "chicken little sky is falling "brigade . thanks.
dr ian hilliar, sanctuary point, Australia
Not that it makes any difference for the argument, but let's be precise: "0.00038C - or about one three-thousandth of a degree" , shouldn't that be "about one three (or four, actually)-ten-thousandth of a degree"?
ok
Onno Krijn, Amsterdam, nl
This isn't a 100 billion indulgence, we are getting electricity for it - ok at a somewhat higher cost than other technologies, but still, the argument presented is highly disingenuous for someone so concerned with economics (though who is not, in fact, a trained economist).
Dominic, London,
1. There is no AGW only natural cycles
2. We are now cooling thanks to cold PDO (30 yr. cycle)
3. Ice caps will not melt sea levels will not rise.
4. CO2 only makes earth greener and harvests richer (fertilizer).
5. UN IPCC provides crooked data
6. Governments + main stream media can't be trusted
Ron de Haan , Chiriqui, Panama
Technology grows exponentially, not linearly.
In 1946, a computer cost $10000000, weighed 50000kg, & did 5000 sums/sec.
Today: a pc costs $500, is 2kg, & does 20,000,000,000 sums/s.
Thats 1/2000th cost & 1/25000th weight for 4,000,000 times the computing power. Imagine what we can do by 2068.
Joe Thomas-Kerr, Sydney, Australia
Mr. Nordhaus's estimate of the cost of global warming has been discredited as far too conservative, i.e., it will be much more costly because he discounts low probability, high impact effects. Moreover, it is already out of date because we have already seen many knock on effects not predicted.
steve, Nevada City, California , USA
Bjorn is right that if AGW costs $15 trillion this century, ignore it. This EV figure is childish. In part, GDP itself is to blame. If the world loses a grain harvest of $2 trillion, the cost isn't $2 trillion, it is 2 billion starved or about $2 quadrillion. Use $15 quadrillion and recalculate.
Phillip Huggan, Winnipeg, Canada
Do some independent reading and you learn that carbon dioxide has a negligible effect on climate. The main greenhouse gas is <water>. It is responsible for up to 95% of the "greenhouse" effect. There is simply ZERO justification for any restrictions on CO2 emissions.
Ian M, Glenwood, NB, Canada
I was having difficulties dealing with all the stats in the article but the basic crux seems to be that we're whistling in the wind. Why not save all the expenditure on weaponary and spend on building a giant sun-shield in space instead - to cool things down if they get too hot?
Cirep G Nol, London,
Nothing to do with Global warming at all. It's all about energy security, taxation and control. It's a nice excuse to convince people to take more nuclear power, pay more taxes and give the state more power. Face it.
chris, brighton, uk
Of course the whole policy is a nonsense . Firstly the globe has not warmed since 1998 and has cooled over the past few years. Second China, by building two coal fired stations a week will emit as much extra CO2 as Britains total every two weeks. And third, 3,600 wind turbines will produce less than two conventional power stations, and only then when the wind blows. As one sensible commentator said just last week, this is the economics of the madhouse.
Ted Saunders, Richmond, England
By developing a cheap realistic alternative to oil that can power transport like the car the gains are stupendous. Hundreds of billions of £/$ annually would stay in the West instead of flowing into the pockets of OPEC and Russia. See how much posturing Chavez and Putin do when they are broke...
Anthony Lester, Brum,
Bjorn is correct. Wasting money for negligible benefit. However, there is no evidence of any significant global warming; far from it. We should be fearing the effects of global cooling due to the sun having gone quiet (where are the sunspots?) and the oceans having gone into their cooling phase.
Phillip Bratby, Tiverton, England
I have read Mr.Lomburg's books and I know he is extremely thorough with figures, not necessarily having them EXACT but having them in an approximative ball park with some acceptable probability. I have a great respect for the likes of him who maintain common sense in this world.
Adrian, Crawley, West Sussex
Yes, but we shouldn't forget that many "green" steps are worth taking for other reasons also. For instance, house insulation cuts fuel bills in the long term, while cutting down on car use improves road safety, helps asthmatics, speeds up bus journeys and makes them more reliable.
Barry, Wallington, UK
basically agree but you're misrepresenting the cost figures, if we spend £100bn on wind farms then we'd spend the money employing people to manufacture, build and sustain them. these people then spend the money on other goods (multiplier effect) so if spent wisely the money doesn't leave the economy
Hamish, London,
Peter: The important figure is not decimal places but significant figures (i.e. digits which aren't zero). On the main statistic under review, the effect of Brown's policy, Lomburg goes to two significant figures, which is perfectly reasonable. The alternative is to round down to zero.
Sam B, Bristol,
Carol
You are absolutely right that paying money to Brazil and other Amazon countries is an effective measure against global warming.
This is exactly what carbon offsetting is about - part of the Kyoto protocol which Mr Lomburg so derides.
Peter , London,
Mr Lomburg is a professor of statistics - as such he should know quoting probabilistic modelling results to 7 decimal places is ludicrous. This basic mistake in his statistical analysis puts a major question mark over the rest of his assumptions.
Peter, London,
There are two reasons to cut emissions- Firstly we need energy security, so enhancing energy efficiency, and building low carbon energy infrastructure such as nuclear powerstations is important. Secondly we can't ask others to cut emissions if we don't put our own house in order.
Simon Mills, London, UK
Decreasing birth rates come with development and also well proven (recently) that costs will makes people switch preferences in an eyeblink. So cheap renewable energy and huge funding for the developing world is a simplistic but hugely more beliveable solution to the impending climate problems
AD Crawford, Glasgow,
Perhaps it would be cheaper to just pay the money straight to Brazil and other Amazon countries to keep the rainforest in tact.
Carol, Leicester, UK
Mr. Lomburg is right on the enormous cost of a little cooling if the UN climate panel is correct.
Technology is the solution. New York City has warmed about 4°C in the last hundred years from the urban heat island effect. But New Yorkers aren't roasting; they have air conditioning.
Ross, Chicago, IL, USA
There have been climate changes for millions of years CO2 or no CO2 and our planet and people survived. Anyway even the socalled experts state that they are 90% sure that climate change is caused by CO2. How on earth they worked out this figure? The conclusion is don't do anything leave it to nature
Michael Kennedy, Sydney, Australia
It was NEVER about global warming...more about TAXING...politicians hijacked it as a"nice little earner" and the saps fell for it,,..look at the revenue from GATSO speeding fines and then do comparisons to accident rates? The Canadians did ..and dumped the GATSO it was a "TAX" scam..Typical NULAB
Tony, Derby, UK
Mr Lomborg should try living near a coal mine or coal-fed power station to understand that simple "economics" is not the only factor to be considered.
The negative health effects from these industries on local populations is appalling and everything should be done to mover away from them asap.
Adam , Newcastle, Australia
Global warming has existed since the last ice age. Despite the rapid increase in carbon dioxide and the methane from the ocean the earth is cooling.
I have not seen a single argument for a change in the ice age-warming -ice age cycle. We should fear global cooling.
Mike, LA, USA
Well how about reducing the global population instead of worring quite so much about "our cumulative climate saving" plan. Surel more people = more pollution, or have I missed something?
Anna, Birmngham,
Unassailable arguments. Brilliant article.
Let's forget about the carbon con and bailouts for banking boobs and start pumping our liquid from the apparently bottomless well of our central banks' cash into the developing world instead.
All we need is the will and the pipeline.
Jono, Carmarthen,