Monday, 10 September 2012

Debating climate change: The need for economic reasoning

The global climate change debate has gone badly wrong. Many mainstream environmentalists are arguing for the wrong actions and for the wrong reasons, and so long as they continue to do so they put all our futures in jeopardy.

My diagnosis is a twofold ethical failure: of pragmatism and perspective (or, more eloquently, of ‘sense and sensibility’). Many environmentalists argue that climate change is fundamentally a values problem. And yet their interpretation of this has taken a narrow moralising form that systematically excludes consideration of such important ethical values as improving the lives of the 1 billion people presently living in unacceptable poverty or even protecting other aspects of the environment (such as wilderness areas). That narrowness also leads to self-defeating policy proposals founded almost entirely in the economy of nature rather than political economy. The result is a fixation on global CO2 levels alone as the problem and solution, at the cost of systematic and broad evaluation of the feasible policy space.

These foundational errors have induced a kind of millenarian meltdown in many otherwise sensible people, to the extent that to be an environmentalist these days is to fear the oncoming storm and know that all hope is lost. To put it mildly, people in this state of mind are not well placed to contribute helpfully to the political debate about what we should do about the fact of climate change. In their reconciliation with despair environmentalists are not only mistaken, but display a disturbing symmetry with those opponents of action who are mistakenly complacent about the status quo. My recommended treatment, to reinvigorate their confidence as well as their ethics, is a dose of economic reasoning.