Global warming and climate change: Why they’re so hard to get right
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By Navin Kumar
Article ID: 1337
1.8 trillion US dollars. That’s the cost that Climate Change will inflict upon the United States by 2100 . But there is a problem with the 2008 NRDC report that generated this figure: it’s based on 2008 technology.
One of the oldest problems facing long-term forecasters is that no one can tell what technology is around the corner. In his 1968 book “The population bomb“, Paul Ehrlich predicted, “In the 1970s and 1980s . . . hundreds of millions of people are going to starve to death in spite of any crash programs embarked upon now.” Oddly enough, 1968 was also the year in which the phrase “Green Revolution” was coined.
What people frequently fail to notice is that the scientific controversy around Global Warming is (or, anyway, ought to be) as much social as it is physical. The global temperature going up by a few degrees is not a problem in itself – problems occur because we get an increase in the use of air-conditioning, more expensive electricity, the rising demand for water, et cetera. If possible, I want to avoid debating this physical science and focus on the social aspects.
By “social aspects”, I mean how humans react to climate change, especially when there are also changes in technology. To see why this is a problem, lets look at the NRDC report. At one point, the NRDC looks at energy consumption and concludes that by 2100, “climate change will increase the retail cost of electricity by $167 billion and will lead to $31 billion in annual purchases of air conditioning units”. However, the increase in the cost of electricity is calculated by looking at the impact of higher temperatures on power generation plants with the technology that is being used now. If global warming (and energy prices) turn out to be as large problems as is projected, it wouldn’t be very surprising to see cheaper, more efficient air conditioning units hit the market. Indeed, the increasing efficiency of air conditioners is responsible for the fact that the amount of electricity consumed by AC units remains steady (as a fraction of the total electricity consumed by homes) even though the number of air conditioners bought has gone up dramatically.
The same logic can be extended over the other sectors where the NRDC claims there will substantial damage: agriculture, for example. The NRDC claims that although the crops won’t be too badly affected in the first half of the century, the second half of the century (after temperature increases beyond six degrees Fahrenheit) will see crop yields fall dramatically. To see what’s wrong with this projection, put yourself in the shoes of a 1958 agriculturalist and try to guess what the global yield will be in 2008. (This puts Paul Ehrlich’s 1968 predictions into a different – and more error-prone – perspective.)
The NRDC seems to have forgotten that by 2050, hardier, heat resistant crops will be developed, especially if companies believe that a huge market for them is around the corner. To be fair, the NRDC does wonder about “the speed and accuracy of the farmer’s response to changing conditions…in view of the large year-to-year variations, it seems unrealistic to expect rapid, accurate adaptation.” Although this lack of savvy on the part of farmers is questionable, the loss of crops is not the real cost. Instead, the bigger picture must include the cost of adaptation.
The ability of forecasters to predict the reactions of humans is terrible, and this includes those forecasters who have a strong incentive to be right. In a move that has since become a standard case study in economic textbooks, OPEC cut oil production in the mid 1970s in order to increase prices and make more profits. They succeeded for a while with the price of petrol quadrupling in many parts of the world. However, by 1980 prices had fallen back to their pre-crisis levels. When oil prices hit the roof, people began to look for ways around it. Although they found it difficult to change habits (and vehicles) in the short run, as time went on, people bought more fuel-efficient cars and drove less, automobile companies invested more money in research to produce more fuel efficient cars and marginal players in the global oil market (such as Britain) began to search for oil fields. Eventually, OPEC had to step up production again.
It’s the same thing with Global Warming predictions. Even if accountants were to include the current rate at which AC efficiency is rising, it wouldn’t be good enough because they can’t determine the effects of AC research and the AC efficiency increase spurred by an ever-increasing global temperature.
(For those of you who think that research into more efficient methods will happen regardless of the situation, remember that the new lightweight SUVs didn’t exist until oil prices rose in the late 2000s.)
To summarize, scientists are unable to predict leaps in technological advance. Technological advances are what will determine the costs of global warming.Therefore, scientists are unable to predict the costs of global warming. Since we can’t accurately know these costs, can we say that “the cost of inaction is greater than the cost of action”? No, we can’t, because we can’t prove that statement either way.
Other articles related to this topic:
- Modeling population and technology: Why haven’t you starved to death?
- Human static electricity generators: Can a person’s body generate static electricity?
- Ice cubes, cornflakes, inflation and what caused the sub-prime lending crisis: Why theories are so hard to get right
- Private Military Companies, civilian contractors and the Global War on Terror
- DRM is failure in action
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