| Pannell Discussions |
No. 13, 16 August 2004 |
Global warming: myth-busting books
The latest issue of the Australian Journal of Agricultural and Resource Economics contains two reviews I wrote on books about global warming/climate change. Both books are highly critical of aspects of what we are told about global warming by the Intergovernmental Panel on Climate Change (the IPCC).
The less controversial one is Climate Change Policy after Kyoto: Blueprint for a Realistic Approach, by Warwick, J. McKibbin and Peter J. Wilcoxen. McKibbin is a highly credentialed Australian economist. In fact he is a member of the board of the Reserve Bank of Australia, so he has some direct influence over the daily lives of all Australians through their decisions about interest rates. McKibbin and Wilcoxen are highly critical of the Kyoto Protocol, arguing that it "is very strict in theory, but completely ineffective in practice". They believe that the Kyoto Protocol "is economically flawed and politically unrealistic". Their proposed alternative is a "hybrid" policy, combining features of pollution taxes and tradable pollution permits in a way designed to capture the advantages of each.
McKibbin and Wilcoxen very effectively portray the uncertainties inherent in
making projections about global warming and its impacts and they note that there
is no reason to believe that the uncertainties will be reduced very much in the
near future.
The compounding uncertainties are daunting. There is uncertainty about economic
growth and technological change over the coming century. Even if we could
predict them, there would still be considerable uncertainty about carbon
emissions. Even if we could predict carbon emissions, there would still be
uncertainty about average temperatures. Even if we could predict average
temperatures, there would still be uncertainty about adverse climate outcomes
and their spatial distribution. Even if we could predict climate outcomes, there
would still be considerable uncertainty about their economic, social and
environmental significance. Overlying all that is uncertainty about the costs
and consequences of proposed policy interventions. The authors make it clear
that the best available information is actually rather weak.
Christopher Essex and Ross McKitrick, authors of Taken by Storm: The Troubled
Science, Policy and Politics of Global Warming, go much further than that. They
set out a “Doctrine of Certainty”, consisting of familiar assertions that are to
be accepted without question, because, as the Doctrine’s supporters say, “The
time for questioning is over.” The Doctrine is:
1. The earth is warming.
2. Warming has already been observed.
3. Humans are causing it.
4. All but a handful of scientists on the fringe believe it.
5. Warming is bad.
6. Action is required immediately.
7. Any action is better than none.
8. [Expressions of] uncertainty [about the science] only cover the ulterior
motives of individuals aiming to stop needed action.
9. Those who defend uncertainty are bad people.
In summary, the message of the book is, “The Doctrine is not true. Each
assertion is either manifestly false or the claim to know it is false.”
It's a wonderfully entertaining book, as well as making the reader doubt everything they thought they knew or believed about climate change.
Essex and McKitrick are highly critical of the IPCC, on a range of fronts. For
example, they argue that the IPCC's estimates of adverse impacts from global
warming are based on projections and assumptions of the flimsiest basis, and are
biased towards the sensational. Even “low end” scenarios used by the IPCC are
high compared to historical and current trends (a point also made by Castles and
Henderson in a study highlighted in The Economist of 6 November 2003).
The IPCC, they say, has been cavalier and misleading in exploiting adverse
events to promote its agenda (e.g. attributing glacier melt in the Himalayas to
global warming, and using this to promote CO2 cutbacks, when in fact the trend
of air temperatures in the Himalayas has shown no warming).
Most importantly, the IPCC’s own modelling indicates that the Kyoto protocol,
even if fully implemented and effectively enforced, would have a miniscule
impact. As an investment in our future welfare, it does not nearly stack up.
Given the likelihood that scaling up Kyoto would result in increasing marginal
costs and decreasing marginal benefits, a larger response would be even less
attractive – indeed, disproportionately so.
To me, this seems to be the key point. I am not in a position to judge whether
all of the physical science presented by
Essex and McKitrick is sound, but arguments about that seem of
secondary importance when the IPCC's own projections, placed into an economic
framework, do not support the policy response being advocated.
David Pannell, The University of Western Australia, David.Pannell@uwa.edu.au
Further reading
Pannell, D.J. (2004). Review of ‘Climate Change Policy after Kyoto: Blueprint for a Realistic Approach’, by Warwick, J. McKibbin and Peter J. Wilcoxen, Australian Journal of Agricultural and Resource Economics 48(2): 381-384.
Pannell, D.J. (2004). Review of ‘Taken by Storm: The Troubled Science, Policy and Politics of Global Warming’, by Christopher Essex and Ross McKitrick, Australian Journal of Agricultural and Resource Economics 48(2): 377-381.
Pannell Discussions are brief pieces on issues and ideas in economics, science, the environment, natural resource management, politics, agriculture and whatever else takes my fancy.
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URL for this page: http://dpannell.fnas.uwa.edu.au/pd/pd0013.htm