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Environmental Decision Making
By Peter Akkies ’12
April 8, 2009
At a glance...

                                                 • Criticism of Lomborg
• Who’s Bjørn Lomborg?

• The Skeptical Environmentalist in a nutshell      • Discount rates

• Lomborg on global warming                         • Risk and uncertainty

   • Effect of CO2 on temperature                   • Optimistic assumptions

   • Forcing comparison                          • Counter-arguments, counter-counter-
                                                   arguments and counter-counter-counter-
   • Unrealistic scenarios                         arguments
   • Consequences not as catastrophic            • Sagoff’s views on the role of economics

   • Copenhagen Consensus                           • Carrying capacity

   • The costs and choosing what to do              • Use of economics to minimize costs
Who’s Bjørn Lomborg?

• Danish author, academic and environmental writer; degree
  in statistics

• Technological optimist

• Wrote The Skeptical Environmentalist and Cool It: The
  Skeptical Environmentalist’s Guide to Global Warming

• Well-known figure in environmental economics

   • Website “Lomborg errors”

   • Danish ministry investigated his book for academic
     honesty

   • Huge scientific debate on his books

• Founder of Copenhagen Consensus (which was co-
  sponsored by the Danish government and The Economist)
Four stages of denial (or, “pick the odd one out”)




                           Freeman Dyson:
Fred Singer: There’s                              Lord Monckton:     Bjørn Lomborg:
                          (Before) It’s not us!
    no warming!                                    We’ll be fine!   It’s too expensive!
                       (Now more sophisticated)
The Skeptical Environmentalist in a nutshell

• Technology will eradicate hunger


• Improvements in safety, education and leisure - not just GDP - are signs of prosperity


• There’s no widespread deforestation; higher economic growth will prevent deforestation


• Oil is not depleting as fast as others claim


• There’s plenty of water; there won’t be wars over water supplies, because they’d be too
  expensive


• Air and water pollution decrease with GDP; we should aim for more GDP


• Global warming...
Lomborg on global warming

• It’s happening


• It’s manmade... kind of


• There’s too many uncertainties (aerosols and clouds!)


• Costs of preventing are much greater than benefits


• Climate change is inevitable; we should deal with it; instead we should focus
  on e.g. AIDS and malaria


• NB: Lomborg’s book was published in 2001 and is based on the Third
  Assessment Report
Lomborg on global warming




                  See video at
 http://www.youtube.com/watch?v=Dtbn9zBfJSs
CO2 effect on temperature

• Effect of CO2 on temperature is unclear

• “Models [are] more noisy than the climate response”

• Less particles are emitted than in the IPCC models, leading to cooling

• Solar irradiance variations might be part of the cause

• We can’t model clouds properly


• Claude Henry (physicist and economist): “Uncertainty should not be inflated
  and invoked as an alibi for inaction.”
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                                                          Different forcings
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                                                                                                                                                                                                                     RADIATIVE FORCING COMPONENTS
                                                               The global mean radiative forcing of the climate system
                                                                          for the year 2000, relative to 1750
                                                          3


                                                                   Halocarbons
   Radiative forcing (Watts per square metre)




                                                                   N2O                         Aerosols
                                                          2
                                                                   CH4
                                                                                           Black
                                                                                        carbon from
                                                Warming




                                                                   CO2                     fossil
                                                          1              Tropospheric                                     Aviation-induced
                                                                                                             Mineral
                                                                                            fuel
                                                                                                                                                    Solar
                                                                            ozone                             Dust
                                                                                          burning
                                                                                                                          Contrails Cirrus
                                                          0

                                                                  Stratospheric           Organic
                                                                      ozone                                                                   Land-
                                                                                           carbon Biomass
                                                Cooling




                                                                                                                                               use
                                                                                  Sulphate from
                                                          −1                                                      Aerosol
                                                                                                   burning                                   (albedo)
                                                                                            fossil                indirect
                                                                                                                                               only
                                                                                             fuel                   effect
                                                                                          burning
                                                          −2


                                                               High Medium Medium Low                         Very Very      Very             Very Very
                                                                                                                                    Very
                                                                                           Very       Very
                                                                                                              Low Low        Low              Low Low
                                                                                                                                    Low
                                                                                           Low        Low

                                                                                         Level of Scientific Understanding
                                                                                                                                                            Figure SPM.2. Global average radiative forcing (RF) estimates and ranges in 2005 for anthropogenic carbon dioxide (CO2 ), methane
Figure 3: Many external factors force climate change.
                                                                                                                                                            (CH4 ), nitrous oxide (N2O) and other important agents and mechanisms, together with the typical geographical extent (spatial scale) of
These radiative forcings arise from changes in the atmospheric composition, alteration of surface reflectance by land use, andvariation in the output       the forcing and the assessed level of scientific understanding (LOSU). The net anthropogenic radiative forcing and its range are also
                                                                                                                                                            shown. These require summing asymmetric uncertainty estimates from the component terms, and cannot be obtained by simple addition.
of the sun. Except for solar variation, some form of human activity is linked to each. The rectangular bars represent estimatesof the contributions of



                                                                                  IPCC 2001                                                                                                                   IPCC 2007
                                                                                                                                                            Additional forcing factors not included here are considered to have a very low LOSU. Volcanic aerosols contribute an additional natural
these forcings − some of which yield warming, and some cooling. Forcing due to episodic volcanic events, which lead to a negative forcing lastin
                                                                                                                                               g
                                                                                                                                                            forcing but are not included in this figure due to their episodic nature. The range for linear contrails does not include other possible effects
only for a few years, is not shown. The indirect effect of aerosols shown is their effect on the size and number of cloud dropl ts. A second indirect
                                                                                                                              e
                                                                                                                                                            of aviation on cloudiness. {2.9, Figure 2.20}
effect of aerosols on clouds, namely their effect on cloud lifetime, which would also lead to a negative forcing, is not shown.Effects of aviation on
greenhouse gases are included in the individual bars. The vertical line about the rectangular bars indicates a range of estimat s, guided by the
                                                                                                                              e
                                                                                                                                                                Halocarbon radiative forcing has been recently assessed in detail in IPCC’s Special Report on Safeguarding the Ozone Layer and the Global Climate System (2005).
                                                                                                                                                            8
spread in the published values of the forcings and physical understanding. Some of the forcings possess a much greater degree o certainty than
                                                                                                                              f
others. A vertical line without a rectangular bar denotes a forcing for which no best estimate can be given owing to large uncerainties. The overall
                                                                                                                                t
                                                                                                                                                 4
level of scientific understanding for each forcing varies considerably, as noted. Some of the radiative forcing agents are wellmixed over the globe,
such as CO2, thereby perturbing the global heat balance. Others represent perturbations with stronger regional signatures because of theirspatial
distribution, such as aerosols. For this and other reasons, a simple sum of the positive and negative bars cannot be expected o yield the net effect
                                                                                                                              t
on the climate system. The simulations of this assessment report (for example, Figure 5) indicate that the estimated net effectof these perturbations
is to have warmed the global climate since 1750. [Based upon Chapter 6, Figure 6.6]
IPCC scenarios are unrealistic

• There are 40 scenarios! How can they all be realistic?

• (Bad) analogy: when icebergs impeded travel between North America and
  Europe, we built jets to fly over the ocean.

• Rather than assume certain scenarios as likely, we should model them

   • Dynamic Integrated Economic and Climate (DICE) model

• Pessimistic about technology improvements (e.g. solar energy efficiency)
Consequences not as catastrophic

• CO2 is a plant fertilizer

• “it is unreasonable to assume that a much richer world will make no
  improvement in sea protection”

• More people die from cold spells than from heat spells

• We don’t know what El Niño will do and therefore don’t know about extreme
  weather

   • “it is not true that global warming has made us experience or will make us
     experience great increases in hurricanes and storms”

   • Same position as IPCC in 1996; now, the IPCC predicts more extreme
     weather
Copenhagen Consensus
       !
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The costs and choosing what to do

• Climate change adaptation and mitigation costs are huge, but far in the future

• Kyoto is insignificant

   • Reply by Stephen Schneider: Lomborg assumes - and this is very unlikely
     - that we will only have Kyoto and then nothing else

• DICE models better at incorporating all the costs
Discount rates
• In economics, benefits (costs) in the future are less (more) preferable to those today. (Would you
  prefer that I give you a dollar today or next year?)

• Mathematically, this is accounted for by discounting the values--dividing by (1+r)^t where r is the
  discount rate at t years into the future.

• Lomborg and the Copenhagen Consensus determine that mitigating climate change is ineffective
  because it’s so far into the future.

   • The benefits of mitigating global warming occur far in the future, so they get “squished” by the
     compounded discount rate.

   • The costs of mitigating global warming occur now.

   • The net effect is that the costs exceed the benefits, according to Lomborg.

• Ramsey (1928), Pigou (1932) and Harrod (1948) have all suggested that ethically, future discount
  rates should equal zero.

• But Cline (1992) and Anand and Sen (2000) point out that discount rates should be positive if we
  expect future generations to be richer.

• Does it make sense to talk about discount rates if we’re facing global catastrophe?
Optimistic assumptions

• Lomborg: with increased GDP
  comes increased technology to
  solve the world’s problems

• SciAm: “Things improve because of
  the efforts of environmentalists to
  flag a particular problem, investigate
  it and suggest policies to remedy it.”

• Improvements in renewable energy
  will crowd fossil fuels off the market

   • Schneider: most economists
     agree that is unlikely
Counter-arguments,
counter-counter-arguments
and counter-counter-counter arguments

• SciAm article vs. Lomborg’s rebuttal vs. SciAm author’s rebuttals


• BBC veteran environmental reporter Alan Kirby: “What really riles me about his book is
  that it is so damnably reasonable. ... The real world is messier, more unpredictable -
  and more impatient.”


• Grist, online popular magazine: “As Lomborg notes, ‘We will never have enough
  money,’ and therefore, ‘Prioritization is absolutely essential.’ Why, then, does he weigh
  the environment only against hospitals and childcare, rather than against, say, industry
  subsidies and defense spending?”


• New York Law School Law Review reviewed commentaries on Lomborg’s book and
  found that both criticism and defense was highly ideological


• Support from: The Economist, (partially) The New York Times and The Washington
  Post
Sagoff on ecological economists

• Mainstream economists: no limits to growth

• Ecological economist: limits to growth

• “[the goal of preservation of nature] is too important
  to leave to economists -- including ecological
  economists”

• Ecological economists’ distinction between growth
  and development is false
Carrying capacity

• Second law of thermodynamics: the entropy of the world is always increasing

• Sagoff: the second law is not applicable, because we can get energy from
  extraterrestrial sources such as the Sun

• He points out that the size of the economy (in GDP terms) is

   • Unrelated to physical size and therefore

   • Economies can grow while reducing demands on the environment

• Net primary production is a flawed measure and does not limit economic
  growth
The use of economics in environmental policy

• Sagoff: economists should not be in the business of valuation, but in the
  business of improving institutional arrangements

   • Reform of public land grazing to allow environmentalists to buy fragile land

   • Cap-and-trade schemes

• Useful concepts

   • “Knee of the curve” method

   • Emissions from power plant near Grand Canyon

   • Intel’s chip plants and the product-to-emission ratio

• Economists should do cost-effectiveness analysis, not cost-benefit analysis
Discussion and/or questions?

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Environmental Decision Making

  • 1. Environmental Decision Making By Peter Akkies ’12 April 8, 2009
  • 2. At a glance... • Criticism of Lomborg • Who’s Bjørn Lomborg? • The Skeptical Environmentalist in a nutshell • Discount rates • Lomborg on global warming • Risk and uncertainty • Effect of CO2 on temperature • Optimistic assumptions • Forcing comparison • Counter-arguments, counter-counter- arguments and counter-counter-counter- • Unrealistic scenarios arguments • Consequences not as catastrophic • Sagoff’s views on the role of economics • Copenhagen Consensus • Carrying capacity • The costs and choosing what to do • Use of economics to minimize costs
  • 3. Who’s Bjørn Lomborg? • Danish author, academic and environmental writer; degree in statistics • Technological optimist • Wrote The Skeptical Environmentalist and Cool It: The Skeptical Environmentalist’s Guide to Global Warming • Well-known figure in environmental economics • Website “Lomborg errors” • Danish ministry investigated his book for academic honesty • Huge scientific debate on his books • Founder of Copenhagen Consensus (which was co- sponsored by the Danish government and The Economist)
  • 4. Four stages of denial (or, “pick the odd one out”) Freeman Dyson: Fred Singer: There’s Lord Monckton: Bjørn Lomborg: (Before) It’s not us! no warming! We’ll be fine! It’s too expensive! (Now more sophisticated)
  • 5. The Skeptical Environmentalist in a nutshell • Technology will eradicate hunger • Improvements in safety, education and leisure - not just GDP - are signs of prosperity • There’s no widespread deforestation; higher economic growth will prevent deforestation • Oil is not depleting as fast as others claim • There’s plenty of water; there won’t be wars over water supplies, because they’d be too expensive • Air and water pollution decrease with GDP; we should aim for more GDP • Global warming...
  • 6. Lomborg on global warming • It’s happening • It’s manmade... kind of • There’s too many uncertainties (aerosols and clouds!) • Costs of preventing are much greater than benefits • Climate change is inevitable; we should deal with it; instead we should focus on e.g. AIDS and malaria • NB: Lomborg’s book was published in 2001 and is based on the Third Assessment Report
  • 7. Lomborg on global warming See video at http://www.youtube.com/watch?v=Dtbn9zBfJSs
  • 8. CO2 effect on temperature • Effect of CO2 on temperature is unclear • “Models [are] more noisy than the climate response” • Less particles are emitted than in the IPCC models, leading to cooling • Solar irradiance variations might be part of the cause • We can’t model clouds properly • Claude Henry (physicist and economist): “Uncertainty should not be inflated and invoked as an alibi for inaction.”
  • 9. !quot;#$%& '()& !quot;#$*+$& ,-.& /'012(& )3243).& 0')3'536.& /2=H0.-.(936.& =2).AA3(8@& 1I5& 0.='3(& 5-.& )2=3('(5& 720/3(8& 3(/0.'9.)& 1:& *;<& 702=& %>>?& 52& *;;?@& 5-.& I(/.05'3(5:&3(&0')3'536.&720/3(8$&G.0292A9&'A92&3(!&I.(/.& A'08.95& /-'(8.& 720& '(:& )./').& 3(& '5& A.'95& 5-.& A'95& *;;& /A2I)&A37.53=.&'()&H0./3H35'532($&&B*$E@&*$>@&Q$?F :.'09$&&B*$C@&D$EF& !quot; !38(3quot; &/'(5& '(5-02H28.(3/& /2(5031I532(9& 52& 0')3'536.& !quot; G(5-02H28.(3/& /2(5031I532(9& 52& '.0292A9& JH03='03A:& 720/3(8&/2=.&702=&9.6.0'A&25-.0&92I0/.9$&,02H29H-.03/& Different forcings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quot;# $!%&@& W-'(8.9&3(&9I07'/.&'A1.)2@&)I.&52&A'()&/26.0&/-'(8.9& 9'5.AA35.& '()& 802I()T1'9.)& =.'9I0.=.(59& '()& =20.& '()&).H293532(&27&1A'/K&/'012(&'.0292A9&2(&9(2L@&.4.05& RADIATIVE FORCING COMPONENTS The global mean radiative forcing of the climate system for the year 2000, relative to 1750 3 Halocarbons Radiative forcing (Watts per square metre) N2O Aerosols 2 CH4 Black carbon from Warming CO2 fossil 1 Tropospheric Aviation-induced Mineral fuel Solar ozone Dust burning Contrails Cirrus 0 Stratospheric Organic ozone Land- carbon Biomass Cooling use Sulphate from −1 Aerosol burning (albedo) fossil indirect only fuel effect burning −2 High Medium Medium Low Very Very Very Very Very Very Very Very Low Low Low Low Low Low Low Low Level of Scientific Understanding Figure SPM.2. Global average radiative forcing (RF) estimates and ranges in 2005 for anthropogenic carbon dioxide (CO2 ), methane Figure 3: Many external factors force climate change. (CH4 ), nitrous oxide (N2O) and other important agents and mechanisms, together with the typical geographical extent (spatial scale) of These radiative forcings arise from changes in the atmospheric composition, alteration of surface reflectance by land use, andvariation in the output the forcing and the assessed level of scientific understanding (LOSU). The net anthropogenic radiative forcing and its range are also shown. These require summing asymmetric uncertainty estimates from the component terms, and cannot be obtained by simple addition. of the sun. Except for solar variation, some form of human activity is linked to each. The rectangular bars represent estimatesof the contributions of IPCC 2001 IPCC 2007 Additional forcing factors not included here are considered to have a very low LOSU. Volcanic aerosols contribute an additional natural these forcings − some of which yield warming, and some cooling. Forcing due to episodic volcanic events, which lead to a negative forcing lastin g forcing but are not included in this figure due to their episodic nature. The range for linear contrails does not include other possible effects only for a few years, is not shown. The indirect effect of aerosols shown is their effect on the size and number of cloud dropl ts. A second indirect e of aviation on cloudiness. {2.9, Figure 2.20} effect of aerosols on clouds, namely their effect on cloud lifetime, which would also lead to a negative forcing, is not shown.Effects of aviation on greenhouse gases are included in the individual bars. The vertical line about the rectangular bars indicates a range of estimat s, guided by the e Halocarbon radiative forcing has been recently assessed in detail in IPCC’s Special Report on Safeguarding the Ozone Layer and the Global Climate System (2005). 8 spread in the published values of the forcings and physical understanding. Some of the forcings possess a much greater degree o certainty than f others. A vertical line without a rectangular bar denotes a forcing for which no best estimate can be given owing to large uncerainties. The overall t 4 level of scientific understanding for each forcing varies considerably, as noted. Some of the radiative forcing agents are wellmixed over the globe, such as CO2, thereby perturbing the global heat balance. Others represent perturbations with stronger regional signatures because of theirspatial distribution, such as aerosols. For this and other reasons, a simple sum of the positive and negative bars cannot be expected o yield the net effect t on the climate system. The simulations of this assessment report (for example, Figure 5) indicate that the estimated net effectof these perturbations is to have warmed the global climate since 1750. [Based upon Chapter 6, Figure 6.6]
  • 10. IPCC scenarios are unrealistic • There are 40 scenarios! How can they all be realistic? • (Bad) analogy: when icebergs impeded travel between North America and Europe, we built jets to fly over the ocean. • Rather than assume certain scenarios as likely, we should model them • Dynamic Integrated Economic and Climate (DICE) model • Pessimistic about technology improvements (e.g. solar energy efficiency)
  • 11. Consequences not as catastrophic • CO2 is a plant fertilizer • “it is unreasonable to assume that a much richer world will make no improvement in sea protection” • More people die from cold spells than from heat spells • We don’t know what El Niño will do and therefore don’t know about extreme weather • “it is not true that global warming has made us experience or will make us experience great increases in hurricanes and storms” • Same position as IPCC in 1996; now, the IPCC predicts more extreme weather
  • 12. Copenhagen Consensus ! ! !quot;#$%&quot;'! ()*##+',+! !! quot;#$%&'()%#*')!+(,,-*.*')+!/&%!$0#-1%*'!23#)4.#'!5!4'1!6#'$7! quot;4-'()%#)#&'! 8! 90*!:&04!1*3*-&,.*')!4;*'14! 9%41*! <! quot;#$%&'()%#*')!/&%)#/#$4)#&'!2#%&'!4'1!+4-)!#&1#64)#&'7! quot;4-'()%#)#&'! =! >?,4'1*1!#..('#64)#&'!$&3*%4;*!/&%!$0#-1%*'! :#+*4+*+! @! A#&/&%)#/#$4)#&'! quot;4-'()%#)#&'! B! :*C&%.#';!4'1!&)0*%!'()%#)#&'!,%&;%4.+!4)!+$0&&-! quot;4-'()%#)#&'!D!>1($4)#&'! E! F&C*%#';!)0*!,%#$*!&/!+$0&&-#';! >1($4)#&'! G! H'$%*4+*!4'1!#.,%&3*!;#%-+I!+$0&&-#';! J&.*'! K! L&..('#)Mquot;N4+*1!'()%#)#&'!,%&.&)#&'! quot;4-'()%#)#&'! !O! P%&3#1*!+(,,&%)!/&%!C&.*'I+!%*,%&1($)#3*!%&-*! J&.*'! !!! Q*4%)!4))4$R!4$()*!.4'4;*.*')! :#+*4+*+! !8! quot;4-4%#4!,%*3*')#&'!4'1!)%*4).*')! :#+*4+*+! !<! 9(N*%$(-&+#+!$4+*!/#'1#';!4'1!)%*4).*')! :#+*4+*+! !=! SD:!#'!-&Cquot;$4%N&'!*'*%;M!)*$0'&-&;#*+! T-&N4-!J4%.#';! !@! A#&quot;+4'1!/#-)*%+!/&%!0&(+*0&-1!C4)*%!)%*4).*')! J4)*%! !B! S(%4-!C4)*%!+(,,-M! J4)*%! !E! L&'1#)#&'4-!$4+0!)%4'+/*%+! >1($4)#&'! !G! P*4$*quot;R**,#';!#'!,&+)quot;$&'/-#$)!+#)(4)#&'+! L&'/-#$)+! !K! QHU!$&.N#'4)#&'!,%*3*')#&'! :#+*4+*+! 8O! 9&)4-!+4'#)4)#&'!$4.,4#;'! J4)*%! 8!! H.,%&3#';!+(%;#$4-!$4,4$#)M!4)!1#+)%#$)!0&+,#)4-!-*3*-! :#+*4+*+! 88! quot;#$%&/#'4'$*! J&.*'! 8<! H.,%&3*1!+)&3*!#')*%3*')#&'! 5#%!P&--()#&'! 8=! F4%;*V!.(-)#,(%,&+*!14.!#'!5/%#$4! J4)*%! 8@! H'+,*$)#&'!4'1!.4#')*'4'$*!&/!1#*+*-!3*0#$-*+! 5#%!P&--()#&'! 8B! F&C!+(-/(%!1#*+*-!/&%!(%N4'!%&41!3*0#$-*+! 5#%!P&--()#&'! 8E! :#*+*-!3*0#$-*!,4%)#$(-4)*!$&')%&-!)*$0'&-&;M! 5#%!P&--()#&'! 8G! 9&N4$$&!)4?! :#+*4+*+! 8K! SD:!4'1!.#)#;4)#&'! T-&N4-!J4%.#';! <O! quot;#)#;4)#&'!&'-M! T-&N4-!J4%.#';!
  • 13. The costs and choosing what to do • Climate change adaptation and mitigation costs are huge, but far in the future • Kyoto is insignificant • Reply by Stephen Schneider: Lomborg assumes - and this is very unlikely - that we will only have Kyoto and then nothing else • DICE models better at incorporating all the costs
  • 14. Discount rates • In economics, benefits (costs) in the future are less (more) preferable to those today. (Would you prefer that I give you a dollar today or next year?) • Mathematically, this is accounted for by discounting the values--dividing by (1+r)^t where r is the discount rate at t years into the future. • Lomborg and the Copenhagen Consensus determine that mitigating climate change is ineffective because it’s so far into the future. • The benefits of mitigating global warming occur far in the future, so they get “squished” by the compounded discount rate. • The costs of mitigating global warming occur now. • The net effect is that the costs exceed the benefits, according to Lomborg. • Ramsey (1928), Pigou (1932) and Harrod (1948) have all suggested that ethically, future discount rates should equal zero. • But Cline (1992) and Anand and Sen (2000) point out that discount rates should be positive if we expect future generations to be richer. • Does it make sense to talk about discount rates if we’re facing global catastrophe?
  • 15. Optimistic assumptions • Lomborg: with increased GDP comes increased technology to solve the world’s problems • SciAm: “Things improve because of the efforts of environmentalists to flag a particular problem, investigate it and suggest policies to remedy it.” • Improvements in renewable energy will crowd fossil fuels off the market • Schneider: most economists agree that is unlikely
  • 16. Counter-arguments, counter-counter-arguments and counter-counter-counter arguments • SciAm article vs. Lomborg’s rebuttal vs. SciAm author’s rebuttals • BBC veteran environmental reporter Alan Kirby: “What really riles me about his book is that it is so damnably reasonable. ... The real world is messier, more unpredictable - and more impatient.” • Grist, online popular magazine: “As Lomborg notes, ‘We will never have enough money,’ and therefore, ‘Prioritization is absolutely essential.’ Why, then, does he weigh the environment only against hospitals and childcare, rather than against, say, industry subsidies and defense spending?” • New York Law School Law Review reviewed commentaries on Lomborg’s book and found that both criticism and defense was highly ideological • Support from: The Economist, (partially) The New York Times and The Washington Post
  • 17. Sagoff on ecological economists • Mainstream economists: no limits to growth • Ecological economist: limits to growth • “[the goal of preservation of nature] is too important to leave to economists -- including ecological economists” • Ecological economists’ distinction between growth and development is false
  • 18. Carrying capacity • Second law of thermodynamics: the entropy of the world is always increasing • Sagoff: the second law is not applicable, because we can get energy from extraterrestrial sources such as the Sun • He points out that the size of the economy (in GDP terms) is • Unrelated to physical size and therefore • Economies can grow while reducing demands on the environment • Net primary production is a flawed measure and does not limit economic growth
  • 19. The use of economics in environmental policy • Sagoff: economists should not be in the business of valuation, but in the business of improving institutional arrangements • Reform of public land grazing to allow environmentalists to buy fragile land • Cap-and-trade schemes • Useful concepts • “Knee of the curve” method • Emissions from power plant near Grand Canyon • Intel’s chip plants and the product-to-emission ratio • Economists should do cost-effectiveness analysis, not cost-benefit analysis

Editor's Notes

  1. Lomborg in the big picture; he&#x2019;s more modern; more reasonable; some of his arguments are justifiable. The other guy is Fred Singer, who still denies that there is global warming... he&#x2019;s just really far behind.
  2. Kind of = he asserts that IPCC did not include e.g. sunspots adequately Uncertainties: smaller in recent reports? Let&#x2019;s hear from him directly...
  3. We obviously know how to counter these now--the latest IPCC reports include these effects quite specifically.
  4. Lomborg points out the large aerosol uncertainty. It still exists in the Fourth Assessment Report.
  5. Model agriculture improvements, deforestation, fossil fuel vs. renewable energy prices Lomborg gets quite specific here and we should appreciate that
  6. Started in 2004; repeated in 2006 2008 Criticized for including mostly right-wing experts by, among others, Jeffrey Sachs
  7. But isn&#x2019;t Kyoto a good first step? (Second step: Denmark)
  8. Philosophers: We should care equally about future generations&#x2019; lives as about ours.
  9. Flaw IMO: our technology is already pretty decent; isn&#x2019;t it time to deploy it now? Lomborg has a different graph, but same point: some scenarios project unlikely population growth (UN estimates). 18 billion people = nonsense
  10. My view: Lomborg wrote a book, not a paper in a scientific journal. He raises good points for further discussion. Just as many of Greenpeace&#x2019;s claims are disputed because they are not always 100% correct, so too are Lomborg&#x2019;s.
  11. Their development is either &#x201C;improvement in quality of life&#x201D;, which Sagoff says economists cannot determine, or &#x201C;higher utility&#x201D;, which really is growth
  12. Sagoff&#x2019;s examples: Sweden (high GDP) preserves environment better than Poland (low GDP) We can produce much more corn and rice on existing fields if we want to
  13. Environmentalists purchased AUMs to preserve fragile areas Criticism: it is not always possible to decrease emissions cheaply enough to accommodate all E.g. 3M