You know, Will Hinton has a point. With gasoline prices skyrocketing, demand for oil will shrink. Remember economics 101? Higher prices equals lower demand.
The rapidly rising price of gasoline should put a ginormous dent in our consumption and therefore dependence on foreign oil.
Isn't this what the environmentalists want? Why am I not hearing a victory cry? Where is the cheering? Why do I only hear whining about prices at the pump?
I suspect you hear whining because most people aren't environmentalists. Why don't hear cheering? Well I'm not really an environmentalist, but why should I let that get in the way of a sweeping generalization based on a sample size of 1? :)
There's a perception that environmentalists want us all to wear hair shirts while we cook our tofu soup over a dung fire. I imagine that there are some individuals who would like that, and I happily stand up and call them weirdos. The great majority of people concerned with the environment want us to take action because, simply, we're screwing up the planet, quite possibly irretrievably. The concern isn't that all life will die (hugely unlikely), or even that the exact set of animals we currently have will be altered (though that is a sad thing). No, the problem for a great many environmentalists is that we will wreck the foundations of civilization, which is bad because it adversely affects *people*.
So, no cheering because things are happening already to affect those same people, in this case making fuel that many people are forced to depend on for lack of alternatives less affordable. I support higher fuel costs (and I live in England, where it's already not what you'd call cheap at around $7 per gallon), BUT ONLY if alternatives to its use such as more efficient cars, more public transport, widespread cycle routes, etc. are provided. Just making people suffer so that oil producing companies and nations can get richer doesn't help people.
Similarly I want natural gas and electric to be more expensive, with the extra revenue used to subsidize solar heating systems, energy efficiency programs etc. Better we do it when we can control and exploit it (in a good way) rather than have it forced upon us.
My apologies for the lack of fluency in the above (which is 10% down to a too-small edit box, and 90% down to me!) The sentiment you're expressing is exactly the sort of misperception that harms progress on green issues, and I find it desparately distressing. That doesn't make for coherency in my case. So please question what I wrote and I'll try to be clearer.
Posted by: Paul | March 12, 2008 at 07:18
Demand for gasoline is highly inelastic, meaning the demand curve is much closer to vertical than it is to horizontal. So even as the supply shrinks, increasing the price, the quantity demanded stays about the same. Simply put, there are not a lot of substitutes for gasoline-powered travel out there, and most people are willing to pay higher prices.
Posted by: Steve Clarke | March 12, 2008 at 08:40
I don't know if this counts, but when my wife and I see someone filling up a Ford Excursion or other behemoth SUV while we fill up the Honda Civic, we are frequently inclined to mutter "Ha Ha" in our best Nelson Muntz imitation.
Posted by: Nick | March 12, 2008 at 09:31
Environmentalists want to see less dependence on oil, but not at such a great economic cost. Most environmentalists are environmentalists because they care for people. I am an environmentalist in part because I love my children and mankind in general.
You would hear plenty of cheering if demand for oil fell due to the development of a clean, reasonably inexpensive replacement technology.
Death cures cancer, but that is not the cure one cheers for.
Posted by: Rob Ryan | March 12, 2008 at 11:47
Rob,
If oil is cheap then there are very few people willing spend gobs of money to develop clean reasonable inexpensive replacement technology. That's how the market works. The more people whining about the price of oil the bigger the market for alternatives becomes and the more money people are willing to spend to bring that technology into existence and make money selling to that market.
Re: Oil prices
Personally I think it is a good thing that oil is so expensive, and I hope the price rises. However that doesn't mean the increasing price of oil isn't hurting me and my finances, it is. So I'm not going to cheer about it until after the cheaper cleaner technology is in my grasp.
You're not happy at the 25th mile of the marathon, you're happy when you've completed it. Your experience at the 25th mile is probably not one of enjoyment.
Posted by: Matt | March 12, 2008 at 14:17
Steve Clark and Rob Ryan beat me to it. Environmentalists aren't cheering because, for reasons given by Steve and Rob, there simply isn't much to cheer.
There might be a silver lining to this economic black cloud if we were to take advantage of this moment in history to actually get serious about reducing our oil dependency, but I simply don't see that happening.
Posted by: tgirsch | March 12, 2008 at 15:05
Unfortunately, the price of oil is not going up so much as the value of the dollar is going down. Europeans are not seeing the cost of fuel going up anywhere near as much as Americans because they have not been engaging in the Americans' absurd fiscal and monetary policies.
Posted by: Vinny | March 12, 2008 at 21:04
Frankly, I think one of the reasons we don't hear cheering is because, for the most part, strident environmentalists want change only at someone else's expense. Members of the green lobby, apparently thinking it won't trickle down to them, have not been shy about calling for increased taxes on oil companies, carbon caps, or other schemes that will necessarily increase energy costs for all Americans. (And it won't only be engergy costs that rise.)
Another reason you don't hear cheering is that there are politicians in Washington who see another opportunity to strike a blow for the little guy against Big Business. I'm sure that some honestly hold their belief that the scales are uneven and it's their moral responsibility to right them, but I'm also sure we can all agree that there are a significant number (on both sides and all issues) who see an opportunity to gain the favor of their constituents by appearing to care about the money they are spending at the gas pump. They are more than willing to pretend to do something to help.
It really should come as no surprise that gas prices are going up. We know (or at least reasonably believe) that we have a finite amount of oil, and that the oil we do still have is becoming increasingly difficult to retrieve. On top of that, we have rapid development in countries such as China and India where oil is an essential resource.
What should surprise us are the number of people who insist that the free market is incapable of responding to environmental concerns. Toyota, Honda, Ford, GMC, and BMW (I'm sure there are others) have all been developing alternative fuel or hybrid vehicles to appeal to a certain sector of the market - not as the result of government dictates. Of course, the still relatively limited sales of such vehicles - even in the midst of rising gas prices - says something about the strength of many environmentalists' convictions.
Where government has tried to implement non-market solutions, it has failed. By many accounts, the carbon market is failing because there are too many sellers and too few buyers. Corn-based ethanol has been demonstrated to, at best, barely decrease the amount of oil consumed, and, as an unintended consequence, is driving up the cost of corn. Solar and wind power, have thus far, proven to be unreliable and inefficient sources of power.
I have no doubt that we will find or develop alternative sources of energy that will be more cost-efficient than oil. In the meantime, however, we have to be extremely careful in calling for government mandates (I don't think we should call for them at all) because the perceived cure might be worse than the disease. Energy derived from oil and coal has lead to higher standards of living, progress in a whole host of seemingly unrelated ares, and ultimately a better quality of life. As they say, the road to ruin is paved with good intentions. We better be careful we don't pave a beautiful, four-lane interstate to the edge of a precipice.
--matt
Posted by: matt curtis | March 13, 2008 at 10:37
I do not see much for an environmentalist to cheer about. One of the reasons gas is so high is soaring global demand. Even if we are reducing our dependence on oil in the west lets look at global reality.
China-economy is exploding with new money. I was blown away watching a show on the economic boom in China and wathing a Chinese salesman selling a Hummer to a family... WOW! They also have smog clouds in Hong Kong so thick it makes Los Angeles look like paradise.
India-I have spent a fair amount of time there. There is nothing like trying to cram a newer built van into a street that was made for rikshaws, not vehicles. It is a problem everywhere.
Globally nothing is getting better for the environment, just the major players are changing, and unfortunately they are years behind us in cleaner fuel technology. We are not all that far along ourselves though, that is the scarry part.
Posted by: Carl Holmes | March 14, 2008 at 15:34
Matt - as things stand, the free market *is* incapable of dealing with the problem precisely because the government hasn't intervened enough. As just one example, a scan of wikipedia shows that diesel engine manufacturers could make changes that would save 12,000 premature deaths per year. And why should they? It doesn't cost them anything, even though at $20 million dollars per life (I have no idea how you put a cost to a life, but that's something that BP did apparently) that's quarter of a trillion dollars.
The same is true of just about any polluting technology. The benefits that come from things like oil and coal are already factored into the economy, but the harm that they do is too often missed. Imagine if a coal plant had to pay $10 extra for every ton of coal they burned (I have no idea what that number should be, but I'm guessing it's more than that). Imagine, even better, what would happen if that $10 then went to ameliorate the problems that burning the coal caused!
So there's little point claiming that the free market can deal with a problem that, using the worldview (you're welcome, Mr D!) it brings to such things, it's incapable of even seeing a problem.
Posted by: Paul | March 17, 2008 at 03:49
matt curtis:
I'm afraid you contradict yourself. On one hand, you say that the free market is capable of responding to environmental issues, but on the other hand claim that relatively limited sales of hybrids and other high-efficiency are evidence that it's failing to do so.
The problem is that from a market perspective, "environmentally friendly" vehicles (and other such products) are a niche market, and always will be, until such time as the problems are so blindingly obvious, that it will probably too late to do anything about them.
It's a well-known fact that consumer behavior is short-sighted. So how is "the market" ever going to compensate for that and encourage people, en masse, to look past the short term and into the long-term? In free market capitalism, that sort of thing is vanishingly rare. Maybe you have examples of where people in massive numbers have taken a short-term hit in order to enable long-term progress, and have done so in the complete absence of government intervention, but I sure can't think of any.
The market cares about profit, and profit only. Absent controls like government regulation, "the market" would happily sell your grandmother into slavery if it thought it could make a quick buck. You free-market types accuse "big government" types of thinking government is some magical solution, that solves all problems, and of being blind to the problems with government and regulation. But if you were to look in the mirror, you'd see that you're guilty of precisely the same thing: an unquestioning belief in the Gospel of the Free Market, where society would become Utopia and everyone would get a pony, if only the eeeevil government would get out of the way.
Real life doesn't work that way. Unrestrained "free market" capitalism is every bit as bad as complete socialism. Which is why I argue that the market and regulation must exist in tension, with neither gaining too much influence over the other.
Posted by: tgirsch | March 18, 2008 at 11:26
P.S. I don't deny that we've made some great strides in terms of quality of living. The question becomes whether or not that quality of living can be sustained. If it can't, then we're living in a bubble. If that's the case, then just like the dot com bubble or the housing bubble, it will be extremely painful when it bursts. The more we pretend there's no problem, the more it will hurt when that burst finally occurs.
Posted by: tgirsch | March 18, 2008 at 11:28
Paul:
The benefits that come from things like oil and coal are already factored into the economy, but the harm that they do is too often missed.
There's an economic term for this: that's called an "externality," and the market sucks, sucks, SUCKS at accounting for them.
Posted by: tgirsch | March 18, 2008 at 11:29
matt curtis:
Let me issue unto you the same challenge I've issued unto many conservative/libertarian types, and to which none so far has given a straight answer.
Assume, just for the sake of argument, that anthropogenic global warming is a real problem, that it is overwhelmingly caused by human consumption of carbon-based fuels, that its consequences will be very bad, and that the only way to stop it is to drastically reduce human consumption of fossil fuels within the next five to ten years.
Given that scenario, how do you propose we solve the problem? Based on your stated positions and arguments, government regulation and government funding cannot be major parts of the solution. It has to be a market-based approach to solving the problem.
I'm eager to hear what your solution would be, and why you think it would be both viable and effective.
Posted by: tgirsch | March 18, 2008 at 11:38
I forgot another interesting piece of matt curtis's libertarian logic. Were you aware that a problem isn't really a problem worth addressing until consumers recognize it as such, and start spending money accordingly? I didn't know that either. :)
Posted by: tgirsch | March 18, 2008 at 23:28
tgirsch - I think you could argue that markets handle externalities perfectly; they look at them, see they are indeedexternal, and decide they can carry on with business as usual :)
The trick, of course, is to make these things internal. Humans are almost as bad as markets at doing that, unfortunately. If only there was a mechanism for individuals to band together not for reasons of profit, but to aspire to do better things than we can encompass individually. ;)
Posted by: Paul | March 19, 2008 at 06:27
Much to respond to...
Paul, you flatly state that the market is incapable of responding and assert that diesel engines can be modified to prevent 12,000 premature deaths per year. At what expense to the manufactures of those engines? Will those engines be more or less efficient? If less efficient, then presumably more fuel is necessary leading to increases in the expense of operating the engine and higher fuel prices because of increased demand. And how will that impact the rates of premature death? Fewer diesel operated trucks bringing food and medical supplies to regions in need? Higher food costs because of increased shipping costs?
And what about adding a tax on coal burners? The coal-fired power plants will see their profits cut and, in response, raise the price of the power they provide to consumers. How many premature deaths will be caused by power outages or lack of heat or air conditioning?
After I penned the post above, I happened to hear a story on NPR about efforts by environmental scientists in Antarctica to study the impact an increase in water temperature might have on sea life under the ice shelves. Can you guess how the environmental scientists got from their base to the ice shelf? They each hopped onto their snowmobile! And from the account of the reporter along for the ride, they had a blast doing it, "catching air" when they could.
--matt
Posted by: matt curtis | March 19, 2008 at 16:34
Tom,
You say I contradict myself regarding alternative fuel vehicles. I disagree. The fact that manufacturers have researched, designed, and mass-produced alternative fuel vehicles is clear evidence of a market response to environmental and fuel cost concerns of consumers. The point is that the profit motive has produced cleaner, more efficient cars.
Let me also correct a couple of misperceptions about those who advocate for free market solutions.
First, most free market proponents do not oppose all government regulation of the economy. For example, when two parties enter into a contract, it is appropriate for government to enforce that contract when one party seeks to avoid their obligations under the contract. Frequently, however, proponents of more governmental interference in the market demand that the government either excuse the obligations of one party to the contract when the risk they took turns out to be a poor one, or impose obligations onto both parties that neither one wanted or agreed to.
Second, few, if any, free market advocates believe that a free market will produce some Utopian society. Instead, we simply believe, upon logic and substantial evidence, that free market principles produce,as a general rule, the best results possible. In short, it's an imperfect system, or, to steal a phrase describing representative government, the free market system is the worst system there is except for all others.
Finally, and this cuts both the Left and the Right equally, why is it that one side demands the broadest liberty in one sphere (economic or social) yet is perfectly happy to restrict liberty in the other sphere?
--matt
Posted by: matt curtis | March 19, 2008 at 16:54
Tom,
There are simply too many things left unstated in your hypotheticals - a lot of pretty indefinite "what ifs". However, let me suggest a couple of examples of market reactions.
First, I'm sure that you're aware of the present plight of the honeybees which thus far is unexplained. In short, honeybees are dying and no one knows why. Honeybees are, of course, a pretty essential part of our ecosystem and the increasing shortage of honeybees has apparently already threatened the growing of nuts in California. Harvesters and bee owners are facing some potentially very severe consequences. Consumers are as well. Hagen Dasz, which relies on the pollination function of honeybees for many of its ice cream ingredients has launched an effort to discover the cause. Granted, this is a smaller scale problem, accepting the assumptions you propose, than global warming, but the response to is has been significant and quick.
On the global warming issue, the science and conclusions are simply too weak at this point to justify the action called for by environmentalists. Moreover, assuming a global increase in temperature, do we really understand the implications?
Let me ask you two questions. What are the costs of implementing the most stringent restrictions on green house gases? What will those restrictions produce as benefits?
--matt
Posted by: matt curtis | March 19, 2008 at 17:15
Matt - The 12,000 fewer deaths figure was taken, iirc, from a wikipedia article, so I only have what it says to go on. In general, however, surveys such as this try to calculate the net saving in lives, so the 12,000 figure should be pretty strong. However, I acknowledge that my assertions here have little more basis than your own that fuel efficiency would suffer as a result, so let me try a more straightforward example.
Increased fuel efficiency is a good thing. It saves consumers money in the long run (even if it makes cars a little more expensive to buy in the first place), does not have to affect safety, and can actually improve handling. In fact the only thing it need adversely effect is performance, and the only reason a car needs to do 150 miles per hour instead of 100 is ego.
So we have something that is beneficial to the economy, the environment, national defense, health, and tourism. And against it we stack ego, vanity, and testosterone. And the free market has decided that ego wins.
Which brings me on to your next point, that the market's production of hybrids shows that it's responding. Ignore for a second that the Prius, perhaps the best of the bunch, is no better than dozens of cars here in the UK that all serve to move 4 people and their bags around in comfort. It is patently obvious that the market isn't responding because average fuel consumption has gone up, not down, over the last 20 years. And understandably so, when so many of the costs of providing fuel are hidden in defense and health budgets, or just ignored in environmental impacts.
I've no doubt that when Minnesota looks like Texas and Texas looks like Mars the market will spring into action. The market is (or at least can be) very good at dealing with immediate challenges; the problem is it generally needs to be pumelled repeatedly about the face and neck with that problem by consumers, who in turn need to have been shaken awake repeatedly, before anything will happen. That's fine when the 'challenge' is a shortage of copper to make pipe with, but not when it's a vast, slow moving and even slower to reverse system like the climate.
Finally, as I'd tried to make clear in my first post to this thread, just putting up energy prices isn't a good idea, and probably will lead to extra deaths. That's what we've got now. What I want is a shift in taxation onto pollution and away from activities we want to encourage, like earning and saving. To give you an extreme example, imagine if the tax system was changed such that a car cost just $1,000 to buy, but $10 per mile to run. it's pretty easy to tweak the numbers so that a year's motoring doesn't cost your average motorist any more, but makes them think before every trip whether they should walk or bike instead. The same is true of energy costs so that people think twice about buying 100W bulbs, and so on. Just ramping up the tax without providing an alternative is not generally a good thing.
Posted by: Paul | March 20, 2008 at 06:24
Paul,
I may have phrased my response poorly, but I did not mean to suggest that the fuel efficiency of the diesel engines modified to burn cleaner would necessarily suffer. Rather, my intent was only to raise questions about what had been considered in coming to the conclusion that 12,000 premature deaths could be prevented.
You discuss fuel efficiency versus performance. I will be the first one to admit that the desire for higher performance is often at least partially driven by ego and simply a desire to drive fast. I will also agree that these reasons stack up pretty poorly against saving money at the pump and potentially lessening our impact on the climate. But, I again go back to my previous assertion: the free market, though imperfect, works better than other economic systems.
I start with the assumption that individuals are imperfect and essentially self-interested. That does not mean that people cannot sometimes overcome self-interest and act for the sole benefit of others. It simply means that as a general rule individuals act primarily for their own benefit and that any economic system must take that into account. Even the desire to act collectively is often based upon self-interest: establishing a police force, creating a military, or instituting a social welfare system is still largely driven by the desire to promote one's own security.
Frankly, from the information you cited about increasing average fuel consumption, it appears that the market is functioning well. Over that 20 year span, there was a period where gas was relatively cheap and many consumers purchsed light trucks, SUVs, and minivans. I expect that data would show that as fuel prices rose over the last two years, the purchase of more fuel efficient vehicles also rose. Thus, I would expect that the data for the next couple of years will show that average household consumption leveled out or decreased as more alternative fuel vehicles come onto the roads.
Finally, I am confident that if there is a cleaner, more efficient alternative to fossil fuels, it will be discovered and marketed. The profit motive guarantees it.
A closing question: Please show me in what country and for what market the greatest number of innovations are occurring in fuel/energy technology. Is it the most heavily regulated, or one of the least?
--matt
Posted by: matt curtis | March 20, 2008 at 09:45
matt:
How many premature deaths will be caused by power outages or lack of heat or air conditioning?
Which is why libertarians will always argue that we should be paralyzed by our fear of the law of unintended consequences, and why we should never actually do anything...
The fact that manufacturers have researched, designed, and mass-produced alternative fuel vehicles is clear evidence of a market response to environmental and fuel cost concerns of consumers. The point is that the profit motive has produced cleaner, more efficient cars.
In far too small of numbers to actually accomplish anything, and years later than it would have had they been required by law to do so...
Instead, we simply believe, upon logic and substantial evidence, that free market principles produce,as a general rule, the best results possible.
I don't think the evidence is as substantial as you claim. What did the profit motive ever do for air and water quality, as compared to what regulation has done for those things?
Finally, and this cuts both the Left and the Right equally, why is it that one side demands the broadest liberty in one sphere (economic or social) yet is perfectly happy to restrict liberty in the other sphere?
I'm not sure how this applies to me. Whether or not something should be regulated (or, you'd probably prefer to describe it as "liberty being restricted") depends solely on the impact to others. The right to swing your fist, and all that. (As a side note, the "freedom" to rip people off, or the "freedom" to encourage people to engage in self-destructive behavior so that you can profit from that behavior, are not "freedoms" that I feel are worthy of recognition or protection.)
There are simply too many things left unstated in your hypotheticals - a lot of pretty indefinite "what ifs".
As predicted, you dodged the question. This doesn't surprise me, because conservative and libertarian types always -- without fail, it seems -- dodge that hypothetical. And the reasons for this are simple: first, their objections to global warming are not scientific in nature; they're political objections. Second, and far more importantly, I think they recognize deep down that if the problem is real and is serious, then the only way to meaningfully address it is through extensive government action -- a conclusion which undermines their entire political philosophy.
Hagen Dasz, which relies on the pollination function of honeybees for many of its ice cream ingredients has launched an effort to discover the cause.
Again, it's a question of whether it's enough. If the problem is truly as serious as you claim (and from what I've read about it, it's at least that serious), it doesn't seem wise to me for us to wait around for someone to figure out a way to make money diagnosing and solving the problem.
Don't get me wrong, the profit motivation can be and often is a good thing. I just don't think it's the best solution (or even a viable solution) to every serious problem we face, as you seem to.
On the global warming issue, the science and conclusions are simply too weak at this point to justify the action called for by environmentalists.
Then you're simply ignorant of the science. There's just no other way to put it. If current evidence isn't enough to justify some sort of action, then I can't imagine what evidentiary threshold would be good enough to satisfy you. Besides which, most of the actions being called for by environmentalists to combat global warming happen to also be beneficial for reasons having absolutely nothing to do with global warming (air pollution and national security spring to mind).
Moreover, assuming a global increase in temperature, do we really understand the implications?
I find myself wishing that people in this country had exercised even a fraction of this level of skepticism when it came to things like, say, invading foreign countries, but I digress. To answer the question, the only serious debate in the scientific community about the consequences of continued warming concerns not if those consequences will be bad, but how bad they will be. The most likely outcome seems to involve extensive periods of drought in many regions, and increasingly strong seasonal storms.
What are the costs of implementing the most stringent restrictions on green house gases?
Substantially less than the cost of the Iraq War. In fact, the cost of the first two years of the Iraq War would have paid for full implementation of the Kyoto Protocol -- a protocol which, as you're sure to point out -- doesn't go far enough.
What will those restrictions produce as benefits?
- Increased energy independence
- A potentially vibrant renewable energy industry
- Spinoff technological advancements as a result of a commitment to the above
Renewable energy could easily become our generation's Manhattan Project, if we had the foresight and the political will to get it done.
And an honest look at the history of technological advancements in our nation's history would show that it involves extensive activity by both government and the private sector. Virtually every modern convenience that we take for granted would not exist in its current form were it not for extensive government-funded R&D -- whether you're talking about computers, the Internet, the cellular phone network, communications satellites, health care, or just about anything else you can think of.
Posted by: tgirsch | March 20, 2008 at 14:44
Please show me in what country and for what market the greatest number of innovations are occurring in fuel/energy technology.
Believe it or not, it's China. :)
Posted by: tgirsch | March 20, 2008 at 14:53
Frankly, from the information you cited about increasing average fuel consumption, it appears that the market is functioning well. Over that 20 year span, there was a period where gas was relatively cheap and many consumers purchsed light trucks, SUVs, and minivans.
Well, that depends on what you mean by "functioning well." The entire purpose of the market is to make money. Nothing more, nothing less. And yes, it's very good at that job. The problem is that the market sucks at scenarios where the best/fastest/easiest way to make money is at direct odds with our collective long-term best interests. Environmental concerns are just one example of an area where this is the case.
The market simply cannot address long-term problems, particularly problems where prevention and early action are important.
Posted by: tgirsch | March 20, 2008 at 14:56
tgirsch, I know the hypothetical regarding the imminent destruction of the Earth as a result of pollution or whatever wasn't directed at me, but I'd like to weigh in. If somehow we could KNOW that what you postulated was true, then it would be in everyone's long-term best interest to immediately make the necessary changes. I see no reason at all why this would have to be mandated by the government, again, assuming that everyone KNEW what you said was true.
If you assume, as I think you do, that individuals would not act out of their own self-interest in such a scenario, you do so on the basis of your belief that they are ignorant of the long-term consequences of their actions. Yet this contradicts the very basis of your hypothetical. So the response that I expect from you--that government regulation is the solution--is based on an assumption that is not feasible given the constraints of your hypothetical.
Posted by: Steve Clarke | March 21, 2008 at 08:59
Steve Clark:
Why do we have to wait for everyone to "know" before we act, though? The problem with your philosophy on this is that it assumes that everyone, at the individual level, has enough expert knowledge to make an informed decision on the science; further, it assumes that there are no "bad actors," who intentionally obfuscate the science to protect their profits.
One need look no further than the history of cigarette smoking in this country to see that neither assumption is true. Indeed, smoking is a great example, because smokers still smoke, even though the majority of them KNOW that it's bad for them. Kind of blows a giant hole in the "people always (or even usually) act in their own best interest" theory, doesn't it? And smoking mostly concerns the individual (objections about second-hand smoke aside). Climate change, on the other hand, concerns everyone. Individual behaviors can harm not just individual good, but collective good.
The free market has absolutely no way to address this. Zero, zip, zilch, nada, nuttin.
Posted by: tgirsch | March 21, 2008 at 12:09
tgirsch,
Well, then, the problem is with your hypothetical. Because how can you on one hand propose that it is a fact that the end of the world is near but on the other hand limit the number of people who have knowledge of that fact? I think your hypothetical falls apart unless everyone believes the same thing. Otherwise, it's just a prediction.
And if everyone believes--really knows--that the world is going to end, what evidence is there that people would not act rationally? Self-interest would drive people to do what was necessary to prevent the end of the world.
As to your smoking comparison, once you introduce psychotropic chemicals to the equation, I think you're comparing apples to oranges. Sure, you can say that Americans are "addicted to oil," but that's like saying we're addicted to toothpaste. If we found out tomorrow that using toothpaste was going to kill us, people would stop using toothpaste. And even if the comparison to smoking is apposite, I'd quibble over whether "knowing" that smoking is bad for you is the same thing as "knowing" that the world is going to be destroyed.
Posted by: Steve Clarke | March 21, 2008 at 15:38
Tom,
You said, "As predicted, you dodged the question. This doesn't surprise me, because conservative and libertarian types always -- without fail, it seems -- dodge that hypothetical. And the reasons for this are simple: first, their objections to global warming are not scientific in nature; they're political objections. Second, and far more importantly, I think they recognize deep down that if the problem is real and is serious, then the only way to meaningfully address it is through extensive government action -- a conclusion which undermines their entire political philosophy."
You can pretend it was a dodge, but saying it was doesn't make it so. In your hypothetical, you stated simply that the consequences would be "very bad." Frankly, that's not very precise and doesn't lay the groundwork for an intelligent, considered response. Consequently, I chose as an example a real, present problem, and demonstrated how the market was responding. You countered by baldly stating the problem of dying honeybees would be better addressed by the government.
Does it make sense to assume that someone who has no personal stake in the fate of honeybees will better direct resources to solve the problem than those who do? Does it make sense that making taxpayer money available for those interested in researching the cause of dying honeybees will result in the most efficient distribution of that money? Who decides who gets how much for what research?
Additionally, I have to acknowledge the excellent response by Steve Clarke to your hypothetical.
You also said, "Which is why libertarians will always argue that we should be paralyzed by our fear of the law of unintended consequences, and why we should never actually do anything..."
This is simply not responsive to any of the posts. It simply makes no sense to decide to drive faster down a dark road before you decide you're going in the right direction. Sometimes, inaction is better than action. What is patently obvious is that many who have proposed more environmental regulation have not stopped to consider the consequences. They seem content to cry that the sky is falling and therefore something must be done!
You asked, "What did the profit motive ever do for air and water quality, as compared to what regulation has done for those things?"
Little because a system was never implemented to cause pollution producers to internalize these externalities. Richard Posner has theorized on how this could be accomplished through the market. For example, a factory pumping waste materials into a river directly injures the property of those downstream. If the law recognizes such an injury to the downstream property owner, then the factory owner is forced to internalize what would otherwise be an externality. At the same time, if the property owner receives some benefit from the factory, then he is likewise made to internalize the increased costs the factory incurs preventing the pollution by paying more for that benefit.
"Substantially less than the cost of the Iraq War."
This related to my question to you as to how much it would cost to implement the most stringent proposed global warming restrictions. Your answer screams for some citation. On its face, the assertion appears patently ridiculous.
You offered the following as benefits of the proposed restrictions: "Increased energy independence; A potentially vibrant renewable energy industry; Spinoff technological advancements as a result of a commitment to the above."
With respect to No. 1, it assumes that there is a better, more efficient, viable source of energy to replace fossil fuels. What is that source of energy? Do you intend to sell your gasoline powered car before you have an available alternative? Nos. 2 and 3 rely on the same assumption. It is not enough to say that we need an alternative in order to create a viable one. That only works in the story of Aladdin and the Lost Lamp.
Finally, you said, "Believe it or not, it's China." Please offer some support for this assertion. My understanding is that China is a major builder and user of coal fired power plants. A recent story on NPR suggested that China's efforts to clean up the air in Bejing ahead of the olympics were directed at simply forcible moving the polluters farther from the capital. Additionally, I'm aware of no hybrid or alternative fuel vehicles being produced in China - certainly not to the extent that they are in Japan and the U.S.
--matt
Posted by: matt curtis | March 21, 2008 at 17:51
Well, then, the problem is with your hypothetical. Because how can you on one hand propose that it is a fact that the end of the world is near but on the other hand limit the number of people who have knowledge of that fact?
Huh? I don't see any apparent contradiction here. The smoking example, despite your attempts to dismissively wave it away, is a perfect counterexample to what you're talking about that. But if you don't buy that, then fine: fried food.
If we found out tomorrow that using toothpaste was going to kill us, people would stop using toothpaste.
Sorry, but the only way that happens that way is if toothpaste kills us very quickly, and there's a readily accessible replacement. People in the aggregate react to easily-identifiable imminent threats (real or imagined), but when it comes to slow-moving, long-term processes, not so much. This seems to me to be self-evidently true, and I'm shocked that anyone would dispute it. The examples of both types are numerous.
Posted by: tgirsch | March 21, 2008 at 19:23
The problem is, I guess, with what it means to know something. I'm saying that I don't think you can propose that something like the end of the world is known and then limit the number of people who know it--because ignorance and knowledge are mutually exclusive.
The fact is you can't find a perfect real-world analogue to your hypothetical because there are too many variables that go into it. I might know that eating fried food is bad for me, but I don't know that it means I will die within 5-10 years unless I make drastic changes. You propose a scenario in which humans know that the world will end within 5-10 years, but you won't acknowledge that for humans to know that information, they actually have to know it - not just be told it by some government agency. I think you are dealing too casually with the concept of knowledge, especially what it means to truly know something, and what it means for the whole world to know something. If we define knowledge as referring to knowledge of everything by everyone, then the only answer we can reach is that humans will act rationally and do what is necessary to preserve their lives.
If we don't attribute perfect knowledge to everyone, then your hypothetical can't be tested because there are too many variables.
Posted by: Steve Clarke | March 24, 2008 at 08:24
I'm a little confused by your comments on knowledge, Steve. Most of the people who visit this site would say that there is no greater truth than God's love for us through Christ, yet a majority of the world doesn't *know* that. For us to really know something universally (or as near as makes no difference) it has to be almost blindingly obvious, on the order of the world being round obvious. I'd suggest that if the world ever reached the point where we really knew that it was doomed, it would already have made 'The Day After Tomorrow' look like 'A Year In Provence'.
It seems to me that we have 3 choices when faced with possible climate change. We could assume it's just not true, until we're proven wrong. That's tempting, but the price we'd pay *could* be devastating. We could embrace it wholeheartedly, immediately shut down anything that produced any carbon, and live like Buddhist hermits. That might be exactly the right thing to do, but the costs attached with it are so high that it's not clearly better than doing nothing.
That leaves us with a middle path. We can see the logic behind the idea of global warming, we can see that there's at least some evidence for it, but we can also reasonably believe that the case isn't yet proven. Inaction in such a framework becomes untenable; waiting until we really knew would put us so far in the hole that we'd never dig our way out. But going all-out is also out of the question. So then we start to make changes in those things that are essentially free (fuel-efficient cars, low-energy lightbulbs, solar water heating etc.)
The problem with waiting for the free market to do this, as previously stated, is that free markets are almost entirely useless at taking precautions over the long term. Lots of companies use forms of hedging to protect themselves in the cost of fuel, financing and other staples. But the longer out they make that 'bet' the more likely they are to be undercut and put out of business by a company that doesn't bother with the cost of the hedge. And that's just an attempt to protect themselves against things everyone agrees on; a company that tries to hedge against climate change better have some serious reserves, because in the short term it might as well burn the money.
To reply to another post - I've often seen the idea of a factory upstream from another paying for the damage it causes to the downstream factory's water supply. It's a fine idea, and I'm sure it wouldn't take more than a decade or two for the parties to agree on a suitable figure in that one case. The bigger problem is that most externalities are really external. For example, that same factory is emitting pollution that is limiting the growth of trees in a 10 mile radius. How much should the factory pay the landowner per inch of growth lost, when the trees are there for the landowner to enjoy, not for timber? And how much should the 2 million people who live downwind of the factory, who are having their lives shortened by up to 3 hours by the pollution caused? Working something like that out across the globe makes climate modeling look as challenging as tic-tac-toe!
Posted by: Paul | March 24, 2008 at 15:21
Matt:
Your comment took a while to be approved, so I missed it. Sorry for the delay in responding directly.
You can pretend it was a dodge, but saying it was doesn't make it so. In your hypothetical, you stated simply that the consequences would be "very bad." Frankly, that's not very precise and doesn't lay the groundwork for an intelligent, considered response.
That's all well and good, but you did not object as such. You simply said:
There are simply too many things left unstated in your hypotheticals - a lot of pretty indefinite "what ifs".
If you wanted clarification on particular points of detail, you could have asked. But instead you used that as an excuse to duck the question entirely. I stand by my assertion that it was a dodge.
Consequently, I chose as an example a real, present problem, and demonstrated how the market was responding. You countered by baldly stating the problem of dying honeybees would be better addressed by the government.
No, I did not "baldly" any such thing. What I said, and what you haven't addressed, was:
If the problem is truly as serious as you claim ... it doesn't seem wise to me for us to wait around for someone to figure out a way to make money diagnosing and solving the problem.
To be honest, I think solutions to serious problems have to involve both the government and private enterprise. I don't subscribe to your "government almost always bad" philosophy.
Does it make sense to assume that someone who has no personal stake in the fate of honeybees will better direct resources to solve the problem than those who do?
First, I think you underestimate how many people have a personal stake in that particular problem. Second, if your free market example involved most of the industries potentially affected engaging in such practices, it would have been a lot more compelling.
Does it make sense that making taxpayer money available for those interested in researching the cause of dying honeybees will result in the most efficient distribution of that money?
Most efficient, probably not. More efficient, there's a good chance. When there's no worry about having to turn a near-turn profit on the research investment, it frees the researchers to pursue avenues they might not otherwise be able to. Further, they don't have to worry about pissing off a corporate sponsor with an unpopular suggestion.
Sometimes, inaction is better than action.
Sometimes that is indeed the case. However, there's almost no evidence that this is one of them.
What is patently obvious is that many who have proposed more environmental regulation have not stopped to consider the consequences.
You're joking, right? You must be. Because you can't possibly be that ignorant. Entire books have been written on the consequences of action vs. inaction. Apart from which, the anti-environmentalist argument doesn't seem to be that we shouldn't address the problem as aggressively as environmentalists want to, but that we shouldn't do any of it until we "know more."
As I've already pointed out, there are ancillary benefits to renewable energy research that have absolutely nothing to do with global warming.
Richard Posner has theorized on how this could be accomplished through the market. For example, a factory pumping waste materials into a river directly injures the property of those downstream. If the law recognizes such an injury to the downstream property owner, then the factory owner is forced to internalize what would otherwise be an externality.
It sounds nice in theory, doesn't it? Until you consider the fact that the factory can almost certainly afford a better lawyer than the little guy downstream, and can almost certainly afford to outspend him in a war of attrition in the courts. Not to mention the fact that it's not strictly "market-based" if you're having to legislate around it. Why is it OK to force a factory to internalized costs based on the threat of a potential lawsuit, but not to force them to internalize costs based on the threat of fines? The latter simply seems to cut out the long and drawn out legal process -- an improvement in efficiency.
Your answer [about the relative cost of implementing environmental reforms] screams for some citation.
Citation granted.
With respect to No. 1, it assumes that there is a better, more efficient, viable source of energy to replace fossil fuels. ... It is not enough to say that we need an alternative in order to create a viable one.
It makes no such assumption, although yours is a line of argument that itself contains an assumption that I find particularly annoying, and that anti-environmentalists often resort to: if a single alternative cannot completely replace fossil fuels, then that alternative must not be worth considering at all.
If a combination of wind, wave, and solar technology, all of which exist today, could be leveraged to provide 25% or 30% of our total energy use -- not an unrealistic figure, even based on current technology, then we would in fact have increased energy independence, as compared to today. Couple this with efficiency improvements (both to the products which use energy, and to traditional coal-fired power plants), and this becomes even more true. It would require government regulation to get there, of course, which you would oppose at any level, but that doesn't mean it's not feasible.
Because fossil fuels are cheap, and because there's no good way to internalize their externalities, doing what's needed on the alternative energy front can't be profitable in the near term, which is why private enterprise isn't doing a whole lot in that direction. The market has a very hard time being proactive -- it can only react, except in those unusual cases where someone figures out how to make a lot of money off of being "proactive."
Again, the alternatives I've proposed are all available today, with current technology. There's simply no reason to believe that those technologies will not improve, or that economies of scale will not make them cheaper.
Finally, you said, "Believe it or not, it's China." Please offer some support for this assertion.
You seem to think I'm making this stuff up, but I'm not:Statistics show that in 2005, a total of US$38 billion was invested in renewable energy development worldwide. China topped the list with a commitment of US$6 billion, excluding spending on large hydropower projects.
It's true that China is the second-worst offender in terms of hydrocarbon emission, and will soon overtake the US as the worst offender, but they're also a lot more serious about alternatives. And while they may not make hybrid cars per se, they are a much less automobile-centric economy as compared to ours. They take public transit a lot more seriously than we do, but then again, that's true of most developed countries.
Finally, I can't help but notice that you completely glossed over the list of modern conveniences that would not be anywhere near as advanced as they are today if not for extensive government funding. I'll take your silence on that point as a concession. :)
Posted by: tgirsch | March 24, 2008 at 18:19
Steve:
The problem is, I guess, with what it means to know something. I'm saying that I don't think you can propose that something like the end of the world is known and then limit the number of people who know it--because ignorance and knowledge are mutually exclusive.
Huh? First of all, let's do away with talking about the "end of the world." Second, there are lots of things that are true that are largely unknown or misunderstood among the general public. Why would you expect this not to be the case here?
The fact is you can't find a perfect real-world analogue to your hypothetical because there are too many variables that go into it.
That it's not perfect doesn't mean it shouldn't be answered. For the sake of argument, it's intentionally simplified. That's the whole point, actually. If you want to reduce the number of variables that go in, fine, then let's get specific (pulling numbers out of the air): Suppose we need to reduce the total worldwide production of CO2 by 20% within the next ten years, or else there will be a 30% reduction in rainfall. How does "the market" address this? The market wants to get money now while the getting is good. And the longer term investors will simply start buying and hoarding water and water rights like a commodity.
And by the way, "government agencies" are way behind the curve on "knowing" about global warming and the bad consequences thereof. Scientists have been warning us about this for more than two decades!
But ultimately, the problem here is that truth is not a democracy. What's true is true, irrespective of how many people know the truth. If you're a Christian, you probably "know" that Christ died for your sins, and that Christianity is the One True Religion(tm). Yet more than two thirds of the world still doesn't "know" that. Does that make it less true, in your estimation?
And now I see, with embarrassment, that Paul has already taken that exact same line of argument. Which should tell you that the flaw in your reasoning was plainly obvious. :)
If we don't attribute perfect knowledge to everyone, then your hypothetical can't be tested because there are too many variables.
You've just made all hypotheticals disappear in a puff of logic. Nobody (except God, if you believe in him) has "perfect knowledge." That doesn't mean we can't act based on the best knowledge we do have. By the way, if "the market" relies on "perfect knowledge" to work properly, that might explain why it messes up so badly from time to time!
Posted by: tgirsch | March 24, 2008 at 18:29
Paul:
Bravo. You said virtually everything I needed to, and in a fraction of the time! :)
Posted by: tgirsch | March 24, 2008 at 18:31
I realize that I'm not getting my point across, so I'll say one last thing and then cross my fingers. When I discuss having perfect knowledge, I do so in the context of the hypothetical proposed by tgirsch, which, I believe, is the following:
Assume, just for the sake of argument, that anthropogenic global warming is a real problem, that it is overwhelmingly caused by human consumption of carbon-based fuels, that its consequences will be very bad, and that the only way to stop it is to drastically reduce human consumption of fossil fuels within the next five to ten years.
Please don't take anything I say to be about actual global warming--I think I've been very clear about this, but I am confining my comments to tgirsch's hypothetical because I think it is flawed in a way that he refuses to acknowledge. If we assume, as we must to test the hypothetical, that we can somehow know that the consequences of global warming "will be very bad," then I am trying to understand what it means to have that knowledge. If it merely means that some number of humans (less than all) have some evidence (less than absolute certainty) that global warming will be bad unless habits are changed, then I submit that this is inconsistent with true knowledge of a future event, and the hypothetical is worthless because it has too many variables. Stepping outside the hypothetical, we normally don't have that kind of perfect knowledge about anything in the world, as some of you have pointed out. Yet, again, remember that I am discussing the meaning of the hypothetical.
If, instead, we define the knowledge in question as complete knowledge by all humans of all of the ramifications of unchecked energy use, then I don't think there can be any doubt that we would all simply change our behavior. Again, please note how I am commenting only on the hypothetical--that seems to have thrown some of you off. My overall point, thus, is that the hypothetical, which I imagine tgirsch thinks is a clever way to trap those who don't favor additional government interference, actually does nothing of the sort. Rather, it is either (a) a ridiculous exercise in which a critical term is defined in contravention of its typical definition or (b) an example of how the free market works in the ideal sense.
Posted by: Steve Clarke | March 25, 2008 at 08:55
Given that you're just talking about the hypothetical (and we should keep in mind that it's not intended to be totally realistic, that's why it's a hypothetical) then I don't think knowledge even plays into it. I read tgirsch as saying that we should assume that everything he stated is true for a moment, and then see where that leads us. It's as reasonable as imagining that global warming is false, or that it's true but not anthropogenic. Add tgirsch's hypothetical to those two and you've got every major option; one of them *has* to be true, whether we know it or not. That's the value of a hypothetical - it removes the unknown for a moment, and lets us think about what that means.
Now I believe that if you work through each of the three possible hypotheticals you couldn't possibly decide to do absolutely nothing, if only because there are so many things you can do that are essentially free. But even if you disagree with my conclusion, the thought experiment that takes me there is valid, surely?
Posted by: Paul | March 25, 2008 at 09:18
Steve Clarke:
I'm afraid you're still not making any sense. Knowledge is not relevant to the hypothetical at all. Truth is. But let me revise the hypothetical slightly to try to address your objection. Suppose you knew, with 99% certainty, that global warming was real, that it was primarily caused by human CO2 production, and that if left unchecked, the results are likely to include dramatic increases in drought, famine, and disease. What actions would you recommend to correct the problem? What others believe does not sway you: you are absolutely convinced. If it helps, put yourself in a position of power: make yourself emperor of the world. What do you propose?
As to your suggestion that if everyone had "perfect knowledge" that global warming met the criteria I listed above, then everyone would magically change their behavior for the better (and by enough of a degree to make a real difference), I disagree with that, too, on the basis that people are by nature short-sighted, and that when their short-term interests and long-term interests are in apparent conflict, they almost always act in accordance with their short-term interests, irrespective of their relative weights or importances. But I also submit that this hypothetical is far more absurd than anything I've suggested. (Further, I submit that your "knowledge" objection could be thrown out as an objection to pretty much any hypothetical that anyone suggests, as a means of avoiding addressing it directly.)
Again, I return to the fried food example. Everybody "knows" that fried food is bad for them, but they really don't know just how bad, or precisely how and when this will affect them. So, against your claim that people will act in their own self-interest, in this case, they don't -- at least, not their long-term self-interest (health); instead, they favor their short-term interest (they like fried food). Unless it's something abundantly clear, precise, and immediate (e.g., if you eat this, you'll die within an hour), it doesn't have the huge impact on behavior that you seem to think it does.
What I've described in my hypothetical, on the other hand, is very close to being true today. The overwhelming weight of expert opinion is in concurrence that the CO2->Warming connection is real, and that the consequences of continued warming will be far-reaching and largely very bad for humanity. Models predict more severe weather, periods of extended drought, rising sea levels, etc. There are very few credible experts who dispute these predictions, and of those few, most are on the payroll of the hydrocarbon energy industry, a serious conflict of interest.
Further, Republican strategy guru Frank Luntz authored a now-infamous memo advising GOP candidates to work to cast doubt on the science of global warming, because if people believe global warming is a real problem, Republican policies look bad and lose. He recommended strategies similar to those used by tobacco firms for years, as they denied the science of a link between smoking and cancer. So it's not as if I'm imagining this concerted effort to distort the science.
(In case Matt Curtis is reading, and wants to demand a cite, here:
The memo, by the leading Republican consultant Frank Luntz, concedes the party has "lost the environmental communications battle" and urges its politicians to encourage the public in the view that there is no scientific consensus on the dangers of greenhouse gases.
"The scientific debate is closing [against us] but not yet closed. There is still a window of opportunity to challenge the science," Mr Luntz writes in the memo, obtained by the Environmental Working Group, a Washington-based campaigning organisation.
"Voters believe that there is no consensus about global warming within the scientific community. Should the public come to believe that the scientific issues are settled, their views about global warming will change accordingly.
"Therefore, you need to continue to make the lack of scientific certainty a primary issue in the debate."
...snip...
The environment, the memo says, "is probably the single issue on which Republicans in general - and President Bush in particular - are most vulnerable".
Posted by: tgirsch | March 25, 2008 at 09:43
Tom,
You persist in stating I "dodged" your hypothetical and that I should have asked you to clarify it. Here goes: (1) What are the bad things that will necessarily happen if we do not implement changes such as those proposed by Kyoto? (2) What segment of the World's population (or just the U.S.'s) will recognize and agree? (3) What specific changes are necessary? (4) How will those necessary changes impact global warming? (5) What are the costs, including externalities, of implementing the necessary changes? (6) What are the costs, including externalities, of doing nothing specifically targeted at global warming?
At the risk of poorly stating what Steve Clarke has done an excellent job of saying here already, the role of knowledge in your hypothetical is critical. Not because knowing something makes the something more or less true, but because the free market does depend on knowledge, imperfect as it may be and most times is. That knowledge is equally critical to government action. You do agree, do you not, that whether it is the private sector or the public, making the wrong decision can often have disastrous consequences despite the motivation behind the action?
In responding to the honeybee problem, you state that,
"If the problem is truly as serious as you claim ... it doesn't seem wise to me for us to wait around for someone to figure out a way to make money diagnosing and solving the problem."
So is it the seriousness of a particular problem that determines whether government or the market is better suited to deal with it? Please provide some support for this assertion.
Now let me say again what I have said elsewhere in this thread, I do not believe the free market is always the best suited to deal with a particular problem. Rather, I believe that the free market is the system that generally best utilizes man's inherent self-interest to produce the most good for the most people while maximizing individual freedom. In some cases, government intervention would undeniably work better.
Let's look at a non-economic problem: the threat of terrorism. Unrestrained government wiretaps and other surveillance would undoubtedly better protect us from those that would do us harm. However, we see such as overly intrusive and destructive of personal liberty. We have weighed one self-interest, security, against another self-interest, freedom, and we have chosen freedom at the expense of some degree of security. The point is, even if some contemplated government intervention would better achieve one goal, we still reject it because it harms a separate interest.
Frankly, I do not believe we are even at the point in the science (and I use that word somewhat lightly here) of global warming to consider whether government intervention would be more capable of solving the perceived problem, or if the market left to its own devices would. Frankly, if the decision ultimately comes to liberty or more government, I'll choose liberty and live with the consequences (whatever the global warming models currently predict today, or what they will predict next week).
Now, to go back to the issue of truth. I wholeheartedly agree that knowledge is independent of truth; in other words, something is true whether you believe it to be or not. New York City exists even if you believe it doesn't.
Yet in one of your next posts you state,
"The overwhelming weight of expert opinion is in concurrence that the CO2->Warming connection is real, and that the consequences of continued warming will be far-reaching and largely very bad for humanity."
You seem to be saying here that we know global warming is occurring and it will be bad because the majority of scientists say so. I'm afraid that's not good enough to me. True science has nothing whatsoever to do with consensus. It is not a popularity contest. A thing either is true or it isn't. Global warming either is occurring due to man, or it isn't, and it matters not one whit how many people believe it is.
--matt
Posted by: matt curtis | March 25, 2008 at 19:51
Matt - I remain puzzled by your response! Let me try to use another example to illustrate my confusion. We don't *know* that capitalism is the right economic/political path to follow. The vast majority of (at least Western) economists think that it is, though they vary widely on any number of parameters that play into it such as regulation. We have evidence that, while not conclusive, is sufficient to convince these knowledgeable people and many others. We have models that we know are flawed, but still seem useful in making general predictions, and they predict that capitalism is 'a good thing'.
Now you seem to be suggesting that we abandon capitalism because we don't, and indeed probably can't, *know* that capitalism is the right choice. I won't bother wasting the pixels here, but I think I could quite easily modify the 6 questions you ask to apply to the theory of capitalism.
Now I'm sure you could come back with the (very reasonable) defense that we have to have some sort of system, that there is really no such thing as no system; the choices we make inevitably aggregate to something that theorists could put a label on. I'd agree with you 100%, and then point out that we're doing the same thing with the environment. We already have an environmental policy, it's just a staggeringly stupid one. Even if you think that we happened to luck out and grow up on a world that will automatically compensate for any abuse we throw at it, literally burning oil, a limited and valuable resource, for fun has to count as stupid.
Posted by: Paul | March 26, 2008 at 05:06
(Oh no, now I'm double posting)
"Global warming either is occurring due to man, or it isn't, and it matters not one whit how many people believe it is."
Absolutely true. I took tgirsch's hypothetical to be a division of the problem - first work out what you would do if the problem were real (and to be fair, you should also think what you would do if the problem were not real, though of course that's simpler), then work out whether it's real or not.
As an aside: that might seem like the wrong way round, but I don't think it really matters. Working out whether something actually is a problem is clearly important, but it can be just as useful to decide what yo'd do first - imagine if the entire problem could be solved by raising CAFE standards by 5%. I hope we'd decide to do that even if the problem wasn't known to be real.
So, back to your point. You're right that not everyone agrees, and it wouldn't necessarily matter even if they did. But once we've left the nice safe world of hypothetical assumptions we have to make real world decisions. Most experts think that eating vegetables has a protective effect against cancer, so while we don't *know* that it's true it's wise to get your 5-a-day. The fact that some people think it isn't true doesn't mean we should stop and wait for universal consensus.
Now the earth is clearly orders of magnitude more complex, and hence has the potential to suck up similarly huge amounts of cash. That suggests that we proceed with caution, concentrating on quick wins, low-hanging fruit and all the other business cliches. It doesn't mean that we wait until we achieve perfect knowledge. Instead we use the best understanding available to us, and as we move forward we work hard and finding out whether we're right, too pessimistic, or even too optimistic!
Posted by: Paul | March 26, 2008 at 07:58
Paul,
It appears that you largely misunderstood my last post - probably due to my inartful statement of my positions, critiques, etc.
I addressed a number of things including the hypothetical posed by Tom. First of all, let me say that I do not disagree with you that using hypotheticals, assuming certain things to be true, can be a useful way of testing possible courses of action. In fact, I do it all the time in my line of work.
Your concern appears to be with my addressing the degree of knowledge possessed by the U.S. or the World of the facts assumed in the hypothetical. I asked that question not to raise the issue of perfect knowledge, or, in that part of my post, to challenge the linkage between knowledge and fact. Knowledge, whether it is correct or incorrect, plays an essential part in the market. Consequently, in addressing a hypothetical that makes certain assumptions and asks for a description of how the market would respond to the assumed facts, it is necessary to make some assumption about what is believed by market actors. You simply cannot begin to assess what the market response would be until you make some assumption about the beliefs of its actors. For purposes of answering Tom's hypothetical, it doesn't matter whether the beliefs are actually true, but it is essential to know what the actors are assumed to believe.
The latter part of my post was unrelated to the hypothetical other than that the issue arose during discussion of the hypothetical. That issue was Tom's correct assertion that truth is independent of what someone believes to be true, and his additional correct assertion that truth is not subject to a democratic process. I took issue with his later post suggesting that the issue of global warming and its cause is settled because of the scientific consensus and the conflicts of interest possessed by its naysayers. I won't go on about the latter assertion other than to say that it is a classic fallacious argument (an ad hominem).
The first point he made, however, is simply the suggestion that the thing (global warming caused by man) must be true because so many scientists say it is. This assertion was clearly in contrast with his previous correct statements that truth or fact is not a popularity contest or subject to a vote.
What I am ultimately arguing in this thread is the following: (1) the free market, as a general rule, is better at responding to and addressing problems than government regulation; (2) that no system, including the free market, is perfect; (3) that choosing to address certain problems with government regulation is usually destructive of the overall free market system because it has an impact on incentives (the idea that if you bail out one company because of the likely bad effects on the economy caused by its failure, makes the market more likely to take unwarranted risks because of the expectation that there will be another bailout in the future); (4) that there are other interests at stake, such as liberty, that are better preserved by the market; (5) that those other interests are often more important than whatever harm the market might allow without government interference; (6) that perfect knowledge about future events is unobtainable; (7) that neither the market, science, nor government will ever possess perfect knowledge concerning future events; (8) that it is unnecessary - even ridiculous - to require perfect knowledge before determining a course of action; (9) the global warming crowd has rushed to conclusions for which there is not currently sufficient support, both as to the causes and effects of global warming; (10) that proponents of government action to address global warming have not adequately considered the consequences of their proposed actions or possible alternatives; and (11) it is frankly ridiculous to suggest that there is insufficient motivation within the private sector to come up with alternative energy sources that are renewable and/or cleaner.
--matt
Posted by: matt curtis | March 26, 2008 at 12:35
tgirsch and Paul, you so easily elide the difference between knowledge and truth. Yes, I believe in absolute truth regardless of knowledge by anyone, but that is only half of the picture. If the scenario proposed in tgirsch's original hypothetical was absolutely true, but not a single person had knowledge of it, there can be no doubt that no changes would be made as a result. So, you see, knowledge matters. And if we're going to stretch the bounds of thought and imagine that absolute certainty about a future event were possible (an assumption on which the original hypothetical relies), then the only reason why humans would not voluntarily make whatever change necessary to stop the horrible effects of global warming is because their knowledge of the effects of their actions was less than perfect (and the apparent dichotomy between short- and long-term preferences falls squarely within my intended definition of "less than perfect knowledge"). That is why the fried food analogy is silly--I can understand the medical evidence regarding the adverse health effects of consuming fried food, but I can't know with absolute certainty that fried food will kill me.
Any economist worth his salt will tell you that free market principles break down when there are information assymetries. With perfect knowledge, there are no such assymetries. What tgirsch apparently doesn't want to admit is that his original hypothetical relies on such assymetries. It's almost tautological that the elimination of the assymetrical information in the hypothetical will produce the free market result. Assuming perfect knowledge does just that. And I submit that assuming perfect knowledge is no more absurd than assuming the certainty of a future event. This is why the hypothetical is, in my opinion, essentially worthless.
Posted by: Steve Clarke | March 26, 2008 at 14:50
matt curtis:
Again, if only you demanded that level of certitude for things like starting wars with foreign countries...
Seriously, I direct you to Paul's response concerning hypotheticals. The point of a hypothetical is to intentionally simplify: to start from the generalities and work toward specifics. I continue to view your demand for detailed specifics (which will likely lead to another demand for even further specifics) as away of avoiding the overarching general question. It's frankly disingenuous.
But just for fun, I'll take your points one by one:
(1) What are the bad things that will necessarily happen if we do not implement changes such as those proposed by Kyoto?
I believe I've already mentioned some of these, but you're looking at extended periods of drought in some areas and the subsequent shortages of fresh water (also hydroelectric power implications in the west); increasing strength and frequency of severe storms; sea level increases threatening coastal areas; the extinction of coral reef ecosystems (harming both the tourism and commercial fishing industries); increased occurrence of disease (warmer temperatures are more hospitable to many pathogens); greater problems with insect infestation; just to name a few.
(2) What segment of the World's population (or just the U.S.'s) will recognize and agree?
Seriously? Does it matter? In an even broader hypothetical, if X is the right thing to do, should we do X, or wait for everyone else to do it first?
A more serious response, however, is to take action here in the US, and use our still-substantial economic power to influence our trade partners to make similar changes.
(3) What specific changes are necessary?
A substantial reduction in CO2 output. As previously mentioned, the two best ways of doing that are investments in renewable (non-fossil-fuel) energy sources like wind, wave, and solar, and improved efficiency.
(4) How will those necessary changes impact global warming?
They will slow the rate at which the planet warms, hopefully buying time to improve technology to a point where more dramatic improvements can be made.
(5) What are the costs, including externalities, of implementing the necessary changes?
Already asked and answered, although nobody can predict this with certainty. Also, people in glass houses, and all that: "the market" would do an even worse job at figuring this, because the market cannot account for externalities unless forced to by external influences, such as your proposed regulation.
The biggest direct cost is that energy becomes more expensive in the short term, although in case you haven't noticed, that's already happening anyway.
(6) What are the costs, including externalities, of doing nothing specifically targeted at global warming?
Your math is as good as mine (and probably better). What would the cascading costs be of dramatically reduced agricultural production? Of a nationwide fresh water shortage? Of disease and infestation?
Not because knowing something makes the something more or less true, but because the free market does depend on knowledge, imperfect as it may be and most times is.
Actually, I would argue that vast segments of the free market depend on a lack of knowledge. Watch an hour's worth of cable television, and pay attention to the commercials. How many of these are relying on consumer ignorance? A surprisingly high percentage. (Lipozene and Enzyte spring to mind, but I'm sure you can come up with other examples without working too hard.)
But setting that aside, you're basically making my point for me. The market cannot act on what it does not know, and the market sucks at "knowing" long term things of any kind. The market exists to maximize profit in the short term, and worry about tomorrow, well, tomorrow.
That knowledge is equally critical to government action.
Here I think you're abusing the term "knowledge" a bit. Or, at a minimum, you're conflating two very different examples of who knows what. Something has to be widely known and generally accepted among the general public before the market can do a damn thing. Not so with organizational action (whether the organization is a company or a government doesn't matter here). All you need is a group of experts who can discern the truth and develop a plan of action, and then empower them to act on that plan.
Surely you wouldn't rely on "the market" to decide whether or not we should drop an atomic bomb on Hiroshima. So why should a looming environmental crisis be any different than a looming military crisis?
You do agree, do you not, that whether it is the private sector or the public, making the wrong decision can often have disastrous consequences despite the motivation behind the action?
Of course I agree, but so what? Do you agree that the inaction owed to analysis paralysis can also lead to disastrous consquences? Fortunately, real life doesn't conform to those two extremes. There comes a point at which we can deem a course of action to be both worthwhile and worth its inherent risks, and with global warming, we hit that point over a decade ago.
If you're in a war zone and you hear a bang, do you take cover? Or do you wait until you're absolutely certain what you heard is gunfire and explosions?
So is it the seriousness of a particular problem that determines whether government or the market is better suited to deal with it?
No. I'm beginning to question your reading comprehension, frankly. It's not the "either or" scenario that you pretend it is, nor have I ever claimed any such thing. The seriousness of a problem determines the extent to which government should involve itself in the search for solutions, yes. But nothing about that government action prevents private enterprise from also searching for such solutions.
Unrestrained government wiretaps and other surveillance would undoubtedly better protect us from those that would do us harm.
At the risk of digressing, I actually question that assessment. For all intents and purposes, we have that right now, and all it has resulted in is a much larger chaff-to-wheat ratio.
The point is, even if some contemplated government intervention would better achieve one goal, we still reject it because it harms a separate interest.
Of course that's true. There's always that balance to be considered. That said, I think it's a giant stretch to try to pretend that taxpayer-funded wind power plant construction (for example) is anything remotely like setting up a surveillance state in which the right to privacy of law abiding citizens is effectively nullified.
Frankly, I do not believe we are even at the point in the science (and I use that word somewhat lightly here)
This serves only to underscore your ignorance of the science.
Frankly, if the decision ultimately comes to liberty or more government, I'll choose liberty and live with the consequences (whatever the global warming models currently predict today, or what they will predict next week).
Setting aside the fact that you're far from the only one who will have to "live with the consequences," the models you cavalierly disparage have been right a hell of a lot more than they have been wrong, and in most cases where they weren't sufficiently precise, their estimates were too conservative. I have a book from 1996 that discusses global warming, and its predictions are remarkably on-target. A few misses on degrees of precision, but there aren't any that turn out to be exactly wrong.
You seem to be saying here that we know global warming is occurring and it will be bad because the majority of scientists say so. I'm afraid that's not good enough to me. True science has nothing whatsoever to do with consensus. It is not a popularity contest.
No, science is not a popularity contest. It's a meritocracy. That is, those ideas which have merit become accepted by qualified experts, and those that don't are rejected by those experts. Once in a great, great while in modern science, the consensus turns out to be wrong, but on the whole, they have an excellent track record.*
Even Newton wasn't wrong about the laws of gravity; he was simply imprecise. And to the extent that he was "wrong," Einstein and Bohr are also wrong. But we don't ignore gravity, relativity, and quantum mechanics just because a certain degree of uncertainty still exists concerning them, even though we know that none of these is 100% accurate.
All that said, if scientific consensus isn't a good analog for lay people to determine what the science says about highly complicated subjects, then what in the world ever could be? In your effort to disparage the science concerning global warming, you're in effect disparaging the entire scientific method.
Global warming either is occurring due to man, or it isn't, and it matters not one whit how many people believe it is.
I agree with that. But what's the best way we have of finding out whether or not that's actually true? Oh yeah, right, the scientific method, the very thing you just disparaged. Again, if scientific consensus means "nothing," then how on earth are we ever to know anything?
So all of this appears to reveal a much more fundamental question: Just exactly how much certitude do you need? What level of proof must be met before you concede that government action is wise? Apologies in advance if this hypothetical question doesn't meet your rigorous standards for level of detail. ;)
Summing all of this up, I stand by my original contention that your objections to global warming -- and the objections of the overwhelming majority of those who deny AGW -- are primarily political in nature, and not scientific.
* - The beauty of the scientific consensus, by the way, is that in those highly unusual cases where it turns out to be wrong, the consensus changes. And it does so for a very specific reason: somebody (or, more likely, a group of somebodies) builds a detailed and compelling case for the new understanding, which supplants and replaces the old. Global warming has been hotly debated for over two decades, and despite the fact that there's a whole lot of money and prestige waiting for anyone who can conclusively prove it wrong, nobody has yet been able to do so. Beyond just that, the case for global warming and AGW has only gotten stronger in the face of increased scrutiny over the years.
But it's crystal clear that all the evidence in the world won't be enough to convince those whose political views demand that they pretend it's not really a problem...
Posted by: tgirsch | March 26, 2008 at 16:45
Tom,
I finally got around to looking at the cite for your assertion that China lead the way in investment in alternative energy. Somewhat frustrating for me was being unable to sort out what had actually been spent versus how much had been pledged, and what the source of the information was. Additionally, there was discussion of both public and private investment without any clear distinction about who was contributing what and who started it. At the same time, I think we can safely assume that government spending constitutes the lion's share because of the largely state run and owned economy.
Another thing that struck me about the article was the recognition by the author of the profit motive driving much of the commitment to renewable energy sources. Moreover, despite the perfunctory statements of China's leadership of concern for the environment, the motivation behind the investments clearly appeared to be economic and strategic.
But finally, and most importantly, the article details no innovation, development, or marketing of alternative energy sources. It detailed only investment in already existing alternative energy sources: hydroelectric, biofuel, wind, and solar. So, my original question stands.
Finally, let me respond to your "extensive" list of government developed technologies (I may miss one or two, but forgive me - it was a really long list): computers, cellular, communication satellites, medicine, and the internet. Granted, there are many others that would fall into this category, but I would feel quite comfortable lining up market driven advances next to government driven ones. Just to name a few: wind, biofuel, solar, hydro, internal combustion engine, steam, hydrogen fuel cells, electric power, hybrid technology, cellular telephone (cited in your list but it appears to have been developed initially and largely as a commercial venture according to Wikipedia. Wikipedia also appears to detail the development of the computer as a commercial process.), the incandescent light bulb, the telephone, the CT scan.... Need I go on?
--matt
Posted by: matt curtis | March 27, 2008 at 15:33
Steve Clarke:
Any economist worth his salt will tell you that free market principles break down when there are information assymetries. With perfect knowledge, there are no such assymetries. What tgirsch apparently doesn't want to admit is that his original hypothetical relies on such assymetries.
If I'm following you here (and I may not be), this is essentially correct. But what I'm arguing is that there will always be information asymmetries with respect to complex problems, which is why the market cannot properly respond to them on its own.
When you assume perfect knowledge, you render the hypothetical completely useless, because you're not just assuming a scenario that does not exist, but one that simply cannot exist. That's an important difference.
The other issue is that your view of the market seems to be ignoring the "bad actor" problem. If there's a problem (of any kind) that requires a dramatic change in the status quo, there will always be parties who are making a lot of money off the status quo, and who stand to lose a lot if that status quo changes. There's tremendous market incentive for those parties to do anything in their power to preserve the status quo, up to and including obfuscation. That's not just hypothetical, by the way -- there's a long and storied history of it actually happening, with cigarettes, CFCs, and global warming being just three examples. I've even linked to GOP strategists explicitly recommending that course of action!
And I submit that assuming perfect knowledge is no more absurd than assuming the certainty of a future event.
Which is why I took the certainty out of the equation. Make it 99% certainty, rather than 100% certainty. You need to address my revised hypothetical.
matt curtis:
I'm sorry, but I'm afraid you're just being disingenuous now. The whole point of my hypothetical was to pretend, just for the sake of argument, that you became convinced that AGW is a real problem, and to find out how you would propose dealing with that problem with no or extremely minimal government involvement. But you keep circling back around to "the science isn't in yet," and that's the very definition of ducking the question: I'm telling you to assume that it is for the sake of argument, and you're patently refusing to do so. If that's not being evasive, then what is?
Setting all that aside for a moment, there's another question that lies underneath all this. It's becoming increasingly clear that you take the falsity of AGW as an article of faith. You've already essentially stated that all the scientific consensus in the world wouldn't be enough to convince you. So if the overwhelming majority of the world's qualified experts coalescing around a single opinion isn't enough to convince you, I ask again: What on Earth ever could be good enough?
This is yet another reason why I'm accusing you of being disingenuous: You're setting the burden of proof for AGW impossibly high. And I stand by my accusation that your dismissal of AGW is not born of legitimate scientific objections to the theory, but of a conflicting political philosophy.
You seem to be operating from the assumption that those who advance AGW theory do so because they want more government regulation, when in fact that's exactly backward. At least in my case, I want government regulation in this area because I can conceive of no other solution that would do enough, quickly enough, to have a real impact.
Posted by: tgirsch | March 27, 2008 at 15:53
Matt:
So, my original question stands.
You're right, I misread the question. Somehow I read it as leading in alternative energy investment rather than "innovation." As to who leads in innovation, I honestly don't know. I do know, however, that much of the innovation that's happening here in the states is happening thanks to federal grants -- precisely the kind of anti-market activity you'd generally oppose.
Just to name a few: wind, biofuel, solar, hydro, internal combustion engine, steam, hydrogen fuel cells, electric power, hybrid technology, cellular telephone
Kind of a flawed list there, given that biofuel, solar, hydroelectric, hydrogen fuel cells, and electric power have been and are all beneficiaries of quite a bit of government funding. The internal combustion engine doesn't gain its current pervasiveness without the building of roads, which is primarily done by (guess who?) the government. The incandescent light bulb only goes so far without rural electrification. Who did that? You guessed it: the government. The PC remains largely a hobbyist's toy if not for the advent of the Internet, built in large part by -- say it with me! -- the government!
The problem with your reasoning here is that you seem to view "market-driven" and "government-funded" as being mutually exclusive, and they're not. Most of the examples you list would be neither as pervasive nor as advanced as they are today without government involvement of some sort. Similarly, they wouldn't exist in their current form without market forces, either.
The purpose of my list isn't to show that government is somehow "better," but to refute your claim that government action inhibits the market. On the contrary, done right, it can enhance and take advantage of the market. I see no reason why this shouldn't be the case for the problem of global warming.
Even from a regulatory perspective, it doesn't hold. Banning DDT didn't destroy commercial agriculture, and "the market" wasn't going to get rid of it any time soon. Government regulation opens new markets even as it closes old ones. The market can adapt quickly to that sort of change.
Posted by: tgirsch | March 27, 2008 at 16:25
Tom,
I think you and I both need to take a breath. We're both getting a little sarcastic rather than dealing honestly with the debate.
I would love to simply answer your hypothetical, but simple desire doesn't give me the information needed to answer it. That was the reason for the questions - that you first invited and then suggested was a way of avoiding answering the hypothetical.
Let me tackle one of your assumed effects of global warming. First, however, I am going to insist that the degree and nature of the knowledge possessed by the market be assumed. Let's say that there is a consensus in the market that whatever "bad" effect we're addressing will occur (assuming no knowledge means no market reaction, but also calls into question the accuracy of the predicted effect; while assuming perfect knowledge is ridiculous but also means that the market would, without question, respond appropriately).
"extended periods of drought in some areas":
Presumably, this means less agricultural production in these regions and rising costs due to shortages or relocation of agricultural production. For the sake of argument, let's assume that none of the agricultural production is shifted to those areas of the globe that currently underproduce or have lower living standards; all of it is shifted to regions where the standard of living is already quite high (Let's also not forget that vast areas of the Western U.S. became agricultural centers because of the commerical irrigation of otherwise arid land.).
Rising prices have what impact on consumers? They either lower their demand - difficult with something like food - or they modify their behavior. So, how might they modify their behavior? They might buy less of one thing and more of another. They might devote more of their budget to food while decreasing the amount of their budget that goes to gasoline either by using less (presumably beneficial to the global warming problem) or by trading in their gasoline powered car for a hybrid (also presumably beneficial). What about the growers? Will they be motivated to increase efficiency and cut costs (fuel costs included)? What about other commercial enterprises? Will they have increased incentives to develop more drought resistant crops - benefitting even those historically drought ridden regions?
Now, you might respond that these are all actions taken only after some bad effect. But, of course, the entrepreneurs who are successful (and I am sure we can agree that there is an entrepreneurial spirit within the U.S.) are those who are ahead of the times. They are able to forecast a future need or desire before it's so commonly known that everyone would find a similar solution. They profit by being first, not by being one of many. They profit by taking risk where there is significantly less than a consensus. The individual or comapany that is able to make solar power an economic and reliable source of energy will profit significantly.
You state that the market cannot rationally and effectively react to your hypothetical because the market is terrible at accounting for externalities. But, why is the scientific community or Capitol Hill, in your opinion, any better at accounting for externalities? Have you ever heard the term, "the absent-minded professor"? Have you ever met someone who was incredibly smart, but who you said lacked common sense? Have you ever heard the term, "ivory tower." Granted, these are all generalizations, but they refer to those who, in a sense, are unable to recognize or deal with externalities. Perhaps you can provide some evidence at how government or science is more capable of dealing with externalities than the market and explain why that is the case.
I do not disparage the scientific method. Quite the contrary, I am a strong proponent of the scientific method. And that is precisely why I am so frustrated with the nature of the statements made by the global warming crowd. The scientific method is largely ignored in a rush to judgment and criticism is not addressed on its merits but shouted down - almost as if to criticize is to be heretical.
How much of your conviction that global warming is occurring due to man is based upon the stated conclusions of the scientists and environmental groups who say it is?
--matt
Posted by: matt curtis | March 27, 2008 at 17:26
Tom,
You asked, "So if the overwhelming majority of the world's qualified experts coalescing around a single opinion isn't enough to convince you, I ask again: What on Earth ever could be good enough?"
Simple. Sound data and science.
You said, "You seem to be operating from the assumption that those who advance AGW theory do so because they want more government regulation..."
No. I don't care what the motivations are and I certainly don't believe that there is a single driving motivation. Some of the motivations are undoubtedly pure, and others are not. Frankly, you have simply dismissed critics of global warming as just being oil company hacks. Whether they are or not, you still have to deal with the merit of their criticism.
Going back to your hypothetical (I'm getting a little tired of being called disingenuous when I have, quite frankly, done my best at every turn to respond to your hypothetical despite its defects). If you want a market driven solution, you have to assume some degree of knowledge by market actors. That's why the knowledge part is necessary to the hypothetical - not perfect knowledge, or even correct knowledge, just some degree of knowledge.
Your statement regarding resistance to changing the status quo applies equally to the scientists who have staked their reputations on research papers and public statements - their minds will not be easily changed even in the face of overwhelming evidence they're wrong. Funny, they're motivated by self-interest too.
--matt
Posted by: matt curtis | March 27, 2008 at 17:41
Matt - I read your 11 points with interest, not least because I agree with most of them. But let me just pick up a couple:
(9) the global warming crowd has rushed to conclusions for which there is not currently sufficient support, both as to the causes and effects of global warming
tgirsch has made this point at least twice, but it's such a good point that I can't help but chip in. It's entirely possible for people to rush to conclusions like this, especially when those people are poorly informed. Scientists are, broadly, people, and as such are not immune to such errors of enthusiasm. But when we have so many *knowledgeable* people who are convinced by the evidence, and so few *knowledgeable people who are not, then whether you or I are convinced is almost irrelevant. In fact it's worse than irrelevant in some ways, because it's demonstrably blocking action that it seems probably we need to take now.
I have no problem with a climate Galileo coming forward and showing the science community at large where we've gone wrong (in fact I'd love it; I'd really rather not have to spend the rest of my life wearing hessian and burning dung in my Yurt). All I ask of those with the Galileo complex is that they exhibit the same characteristic Galileo did, which is being right! That's entirely different from being loud, or populist, or even convincing.
(11) it is frankly ridiculous to suggest that there is insufficient motivation within the private sector to come up with alternative energy sources that are renewable and/or cleaner.
Risking civil debate for a moment, it is frankly ridiculous to suggest that this is frankly ridiculous. The private sector does not need to care AT ALL whether an energy source is renewable or cleaner. It only has to care whether it is the most affordable, and whether they can use it without breaking the law. Tgirsch briefly mentioned CFCs, which are a great example. They were used at first because they worked well, were cheap, and there was nothing to stop their use. Once science showed pretty clearly what the effect of their use was they continued to be used as before because neither of the key criteria had changed. An alternative was found, and I believe some machines may even have been sold to particularly concerned citizens because there was the sort of market that you allude to. But it wasn't until government *made* the manufacturers switch that any significant change happened, even though the proof of harm was clear.
I don't blame the fridge manufacturers for that, btw (well, not entirely). They are only one part of the free market, the other main constituent being the consumer. And the sad failing of consumers is that we don't care about problems that don't smack us around the head. As obvious as the problem of ozone holes was, it wasn't nearly obvious enough for someone comparing fridge prices at Best Buy.
A very recent though minor example is plastic bags. A news program this week visited Midway island, where 2-3 million birds of a particular species live (sorry, that's the point where I turned it on so I'm a little hazy on that fact). Based on their research the scientists claim (reasonably) that there's probably not a bird on the island that doesn't have plastic in its stomach, and that there are huge numbers of deaths because of that. That's just one example on one island in the middle of nowhere; scale that up globally for thousands of different animals and environments, and it becomes clear that saying we need a solution yesterday is an understatement. But we still consume millions of plastic bags every week, and they're a tiny fraction of overall plastic use. Consumer activism has started to drive some change from both government and industry, but if we wait until consumer pressure/demand alone changes the market we risk waiting until we've lost too much.
This is, incidentally, why I don't worry about over-enthusiasm for the greening of the economy ending up breaking it. People are fantastically good at apathy. Amazingly they may even surpass politicians in this regard. Add in the 'bad actors' and entrenched interests and we have all the drag factors we could ever need.
Posted by: Paul | March 28, 2008 at 10:09
Paul,
A couple of comments in response. First, what I see occurring in the scientific community regarding global warming is group-think. A certain number of individuals (not necessarily all scientists) have been so vocal and unequivocal in their assertions about global warming, its connection to CO2, and the predicted dire effects of such warming, that a critical mass has been reached where other individuals quickly sign on without ever critically examining the data, hypotheses, theories, or models.
Moreover, because the theory's proponents are so concerned about the possible effects, they engage in hyperbole pointing at each instance of a natural disaster as somehow related to global warming (e.g. Hurricane Katrina, tornadoes in Kansas, dying frogs, drought, even colder than normal temperatures). We heard predictions based upon the global warming theory that 2007 would be the warmest year yet - it wasn't. We heard predictions that 2006 was going to see a greater number and more severe hurricanes, but it was a relatively mild year for hurricanes. Granted, these are isolated events and other predictions have been correct.
Here's one very real problem I see with the current science. Do we have sufficient historical data to determine whether we are moving toward the Earth's temperature equilibrium or away from it? In other words, if we had temperature data going back 2000, 5000, 10,000 years or farther what would it show about the average temperature? Would it show that we were above or below that average?
Another apparent problem with the science is that no one seems to know how soon and by how much we would have to reduce greenhouse gases in order to have a significant enough impact on global temperatures? Consequently, assuming that government action is otherwise legitimate, does it make sense even to spend the money necessary to go after what you described as "low hanging fruit"? If we can far more easily determine the costs of government intervention, but we can't say that the intervention is going to be at all beneficial in addressing the stated problem of global warming, then what is the justification for doing so?
On your comments regarding CFCs and the Ozone layer, a quick google search turned up information on the current status of the holes in the ozone layer. According to one article in Scientific American (http://www.sciam.com/article.cfm?id=ozone-hole-gapes-despite) asserts that despite seeing a decrease in the number of CFCs in the atmosphere and a leveling off in the stratosphere, there is currently a record setting size hole over Antarctica which the author of the article attributes to CO2 and the record low temperatures in Antarctica. The article clearly accepts that CFCs are damaging to the ozone layer and that CO2 levels are contributing to the size of the hole, the facts do seem to call into question the original science that led to the regulation of CFC production.
In any event, without any significant research on the CFC issue, it appears to me that government action likely better responded than the market would have. However, as I have stated elsewhere, picking out single instances where government action did or would have performed better than the market in addressing a particular problem does not justify that intervention. Such intervention necessarily infringes liberty and establishes precedent for more and more intervention.
--matt
Posted by: matt curtis | March 28, 2008 at 11:55