Paul Krugman, the NY Times columnist and Nobel Prize-winning economist, provides a clear, concise explanation in today's paper of why action on climate change is not only affordable, but a very good way to stimulate the economy. Calling a spade a spade, he labels denials of climate change "junk science," and predictions of economic disaster resulting from doing anything about it "junk economics."
Citing a recent MIT study of the cost of climate change proposals, he concludes that, contrary to what many conservatives assert, the cost to consumers, while not zero, would be quite modest. But ultimately, he explains, adopting strong climate-change policy will "create major incentives for new investment — investment in low-emission power plants, in energy-efficient factories and more."
His column, which is well worth reading, is reprinted below. And you can link to his blog here.
An Affordable Salvation
by Paul Krugman
The 2008 election ended the reign of junk science in our nation’s capital, and the chances of meaningful action on climate change, probably through a cap-and-trade system on emissions, have risen sharply.
But the opponents of action claim that limiting emissions would have devastating effects on the U.S. economy. So it’s important to understand that just as denials that climate change is happening are junk science, predictions of economic disaster if we try to do anything about climate change are junk economics.
Yes, limiting emissions would have its costs. As a card-carrying economist, I cringe when “green economy” enthusiasts insist that protecting the environment would be all gain, no pain.
But the best available estimates suggest that the costs of an emissions-limitation program would be modest, as long as it’s implemented gradually. And committing ourselves now might actually help the economy recover from its current slump.
Earth day is coming up, and with along with it a spate of events, blogs, web sites, films, and publications all dealing with the environment in one way or another. It's hard to know which to pay attention to. Among many worthy contenders for our attention, I recommend a new book, "Ecological Intelligence," by Daniel Goleman, author of the bestseller "Emotional Intelligence."
In his new book, Goleman argues that, much as we might wish to buy products and services that are more environmental responsible, in most cases it is all but impossible to find the information we need to make those decisions. And partial information may actually do more harm than good, leading us to believe that our small efforts at recycling and green awareness are enough, while we fail to appreciate the wider-ranging life-cycle implications of all that we buy and do.
Greenwashing is rampant; many products tout one eco-friendly attribute - made from organic cotton, say - without mentioning that the item was made using child labor in a factory with dangerous and unfair working conditions.
In other cases, even with no attempt at greenwashing, the information we need is just not available. Consumer products contain thousands of chemical compounds, only a tiny fraction of which have been tested for safety. Many products have been reformulated to remove compounds that have been found harmful, yet they contain dozens, or even hundreds, of other chemicals that no one knows the long-term effects of.
Goleman's solution for this mess is a system of "radical transparency." As more product information becomes readily available and widely disseminated, consumers vote with their wallets and business takes heed. He offers trans-fats as a textbook example of what happens when consumers have access to information.
When scientists first discovered that trans-fats, even in small doses, had serious adverse effects, Congress began investigating. A long debate about how or whether to regulate trans-fats ensued. But while Congress deliberated - a long process - more and more information about trans-fats came out in the news and was quickly spread by blogs, web sites, and social media. Sales of food containing trans-fats plummeted.
As a result, manufacturers reformulated hundreds of products; today it is nearly impossible to find food items containing trans-fats on the grocery store shelf. This happened without any government regulation.
Likewise, when car makers were required to display a rating system for the rollover potential of SUVs, the public voted with its buying power. When the rating system first appeared, thirty models were rated with one or two stars - indicating a 30% or greater chance of rollovers. Just one SUV achieved four stars, meaning less than a 20% chance. Resulting consumer pressure convinced automakers to speed up efforts to make SUVs safer. Within four years, twenty-four models received four stars, and only one SUV rated two stars. (Of course there are lots of other problems with SUVs, but that's a subject for another post.)
The profit motive, Goleman argues, is what will ultimately move the world in a more environmentally responsible direction. "Eco-transparency," he writes, "transforms the core assumptions . . . transforming the business model to create a market reality where doing good becomes synonymous with doing well."
You can listen to an audio clip of Daniel Goleman explaining the market implications of "radical transparency" by clicking the image at the top of this post. If you want to order the book from Amazon, please click here.
Bellingham, WA is one of the greenest cities in the United States. Among numerous lists that have cited this city in northwest Washington as among the top five or ten green places to live, Forbes magazine has rated Bellingham the second greenest metropolitan area, and Country Home magazine rated it as the third greenest city. Whether it is first or third or twentieth, there is no question that this is a place where people take their responsibility for the environment seriously.
Today, I am pleased to welcome Bellingham's mayor, Daniel Pike as a guest blogger. I asked Dan to write about his city's green initiatives, its commitment to sustainability, and to what extent that has helped mitigate the current financial crisis. Here's what he had to say. Take it away, Dan. . . .
"Bellingham is a community of about 75,000 people tucked into the
northwest corner of Washington State, itself tucked into the northwest
corner of the continental United States. As a community, we share the
challenges and joys common to most communities: tough finances, a
rising unemployment rate, businesses struggling, but also a shared
sense of place and connection with our neighbors. What makes us a
little different from the mainstream, though, is our commitment to a
triple bottom line, or TBL, approach to the issues before us. In
Bellingham, the conversations are not about jobs versus the
environment, rather the community talks about how to grow better. This
is a community whose ethos receives notice from authors such as Bill
McKibben and Paul Hawken, and that National Public Radio’s
“Marketplace,” in its Nov. 15, 2008 broadcast, described Bellingham as
“the epicenter of a new economic model for a post-consumerist economy:
locally produced goods and services focused on what surrounding
communities need and can sustain.”
Does this approach, does this ethos matter in an era where most
economies, large and small, personal and communal, are deteriorating? I
think so, though perhaps not for intuitive reasons. Bellingham is not
being spared from economic pain because it strives to do right, as a
community. However, we are working together well to deal with both the
immediate crisis and longer term solutions.
We are, in fact, a community, not just a haphazard collection of souls
sharing a living space.
This Friday, March 20, I will be a guest on the internet radio program, The Success Express to discuss Greening Your Businesswith hosts, Nancy & Lisa (editors of BigBlendMagazine) and special guest
co-host Gerry Rose – President of Integrity Networking Solutions.
The program airs from 3:00 PM to 4:30 PM. To listen, click here.
Other guests include, Daniel Sitarz
– author of Greening Your Business: The Hands-On Guide to Creating a
Successful & Sustainable Business; Leon Grundstein - GenCare
Lifestyle in Seattle, WA; and Stephanie Dowling - The Westin Kierland
Resort & Spa, Scottsdale, AZ.
If you can't listen at that time, you can listen to the archived program here.
Recent Comments