Quotulatiousness

October 4, 2019

“Economics is … the science of not being able to have your cake and eat it”

Filed under: Economics, Environment, Health — Tags: , , , — Nicholas @ 05:00

Philip Booth on Greta Thunberg’s message and its economic over-simplifications:

In many senses, economic problems are more complex than scientific problems and Thunberg is, implicitly at least, pronouncing on economic matters. Whilst knowledge about climate science is uncertain, a judgement has to be and can be made on the balance of evidence. But economic decisions involve trade-offs. Economics is, as Lionel Robbins put it, the science of not being able to have your cake and eat it. We cannot both decrease carbon emissions hugely and enjoy standards of living increasing at the rate that would have been possible if emissions were not reduced.

It is tempting the believe the green rhetoric that we will all have fluffy green jobs and a green standard of living without any hardship from reducing emissions. We cannot. Reducing carbon emissions quickly to zero means that we will have much less of everything else. We might prefer decarbonisation to other goods and services, but it is not a cost-free choice. We considering this, we should remember that the average income in the UK is ten times the average income in the rest of the world. When other people face these trade-offs the sacrifice of decarbonisation is that much greater.

One of the advantages of being richer is that we are more resilient to natural disasters. It follows from this that there is a trade-off between decarbonisation, which might lead to fewer natural disasters, and our ability to cope with them, which might reduce if we become less rich. As we have become richer, deaths from natural disasters have plummeted. The figure shows the fall in deaths in natural disasters over the last century – they have reduced by, perhaps, 90 per cent.

The use of air conditioning illustrates this trade-off in a rather stark way. In a letter on the environment written by Pope Francis in 2015 called Laudato si, the pontiff strongly criticised the adoption of air conditioning in the strongest terms. An academic paper on air conditioning in the US produced such remarkable results that the abstract is worth quoting at length:

    “the mortality effect of an extremely hot day declined by about 80% between 1900-1959 and 1960-2004. As a consequence, days with temperatures exceeding 90°F were responsible for about 600 premature fatalities annually in the 1960-2004 period, compared to the approximately 3,600 premature fatalities that would have occurred if the temperature-mortality relationship from before 1960 still prevailed. Second, the adoption of residential air conditioning (AC) explains essentially the entire decline in the temperature-mortality relationship. In contrast, increased access to electricity and health care seem not to affect mortality on extremely hot days.”

Air conditioning leads to higher carbon emissions and, most likely, higher global temperatures. But the increase in resilience arising from air conditioning is astonishing – it has led to an 80 per cent drop in deaths from heat.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Powered by WordPress