Nordhaus Critiques Stern’s Case for Environmental Disaster


My only major disagreement with the commentary below, is that I have much more confidence that, given free market institutions, our descendants will have the incentives, energy, and ingenuity, to solve the problems that they will face.

 

The Stern Review’s most influential critic has probably been William Nordhaus, a 65-year-old Yale professor who is as mainstream as economists come.  Jeffrey D. Sachs, the anti-poverty advocate, calls Mr. Nordhaus “about the most reasonable man I know.”

He was the first speaker after lunch, and, of course, he had some very nice things to say about Sir Nicholas. The report “was presented here very eloquently by a distinguished scholar,” Mr. Nordhaus said. But then came the juicy stuff: the Stern Review “commits cruel and unusual punishment on the English language,” Mr. Nordhaus said, and the British government’s opinion on climate change is no more infallible than was its prewar view about weapons of mass destruction in Iraq.

This was fairly tame compared with the comments of another Yale economist, Robert O. Mendelsohn. “I was awestruck,” he said, comparing Sir Nicholas to “The Wizard of Oz.” But “my job is to be Toto,” he added, in the same good-humored tone Mr. Nordhaus used. “Is it in fact The Wizard of Oz, or is it nothing at all?”

The two professors raised some questions about the science in the Stern Review. Mr. Nordhaus wondered if carbon emissions and temperatures would rise as quickly as the report suggests, and Mr. Mendelsohn predicted that people would learn to adapt to climate change, reducing its ultimate cost.

But their main objection revolved around something called the discount rate. The Stern Review assumed that a dollar of economic damage prevented a century from now (adjusted for inflation) is roughly as valuable as a dollar spent reducing emissions today. In effect, the report argues for spending the money to cut emissions because future generations have as much claim on resources as current generations. “I’ve still not heard a decent ethical argument” for believing otherwise, Sir Nicholas said at the debate.

I’m guessing that your instinct is to agree with him. Mine certainly was. The problem is that none of us actually behave this way. If we really thought that our great-grandchild deserved our money as much as we do, we would never go out to dinner again. Instead, we would invest the $50 we would have spent on dinner, confident that it would grow over time and become perhaps $1,000 for our great-grandchild to put toward health care, education or a supercomputer. Any of that is preferable to our measly dinner.

But a dollar today truly is more valuable than a dollar a century from now. For one thing, your great-grandchild will almost certainly be richer than you are and won’t need your money as much as you do. So spending a dollar on carbon reduction today to avoid a dollar’s worth of economic damage in 2107 doesn’t make sense. We would be better off putting the money toward something likely to have a higher return than alternative energy, like education.

Technically, then, Sir Nicholas’s opponents win the debate. But in practical terms, their argument has a weak link. They are assuming that the economic gains from, say, education will make future generations rich enough to make up for any damage caused by climate change. Sea walls will be able to protect cities; technology can allow crops to grow in new ways; better medicines can stop the spread of disease.

 

For the full commentary, see: 

DAVID LEONHARDT.  "Economix; A Battle Over the Costs of Global Warming."  The New York Times  (Weds., February 21, 2007):  C1 & C5.


“Reports of Oil’s Demise Are Greatly Exaggerated”

 

  Valves being checked by Brian Roe, at the Kern River oil field.  Source of the photo:  online version of the NYT article cited below.

 

(p. A1)  BAKERSFIELD, Calif. — The Kern River oil field, discovered in 1899, was revived when Chevron engineers here started injecting high-pressured steam to pump out more oil. The field, whose production had slumped to 10,000 barrels a day in the 1960s, now has a daily output of 85,000 barrels.

In Indonesia, Chevron has applied the same technology to the giant Duri oil field, discovered in 1941, boosting production there to more than 200,000 barrels a day, up from 65,000 barrels in the mid-1980s.

And in Texas, Exxon Mobil expects to double the amount of oil it extracts from its Means field, which dates back to the 1930s. Exxon, like Chevron, will use three-dimensional imaging of the underground field and the injection of a gas — in this case, carbon dioxide — to flush out the oil.

Within the last decade, technology advances have made it possible to unlock more oil from old fields, and, at the same time, higher oil prices have made it economical for companies to go after reserves that are harder to reach. With plenty of oil still left in familiar locations, forecasts that the world’s reserves are drying out have given way to predictions that more oil can be found than ever before.

In a wide-ranging study published in 2000, the U.S. Geological Survey estimated that ultimately recoverable resources of conventional oil totaled about 3.3 trillion barrels, of which a third has already been produced. More recently, Cambridge Energy Research Associates, an energy consultant, estimated that the total base of recoverable oil was 4.8 trillion barrels. That higher estimate — which Cambridge Energy says is likely to grow — reflects how new technology can tap into more resources.

“It’s the fifth time to my count that (p. A11) we’ve gone through a period when it seemed the end of oil was near and people were talking about the exhaustion of resources,” said Daniel Yergin, the chairman of Cambridge Energy and author of a Pulitzer Prize-winning history of oil, who cited similar concerns in the 1880s, after both world wars and in the 1970s. “Back then we were going to fly off the oil mountain. Instead we had a boom and oil went to $10 instead of $100.”

. . .

“I am very, very seriously worried about the future we are facing,” said Kjell Aleklett, the president of the Association for the Study of Peak Oil and Gas. “It is clear that oil is in limited supplies.”

Many oil executives say that these so-called peak-oil theorists fail to take into account the way that sophisticated technology, combined with higher prices that make searches for new oil more affordable, are opening up opportunities to develop supplies. As the industry improves its ability to draw new life from old wells and expands its forays into ever-deeper corners of the globe, it is providing a strong rebuttal in the long-running debate over when the world might run out of oil.

Typically, oil companies can only produce one barrel for every three they find. Two usually are left behind, either because they are too hard to pump out or because it would be too expensive to do so. Going after these neglected resources, energy experts say, represents a tremendous opportunity.

“Ironically, most of the oil we will discover is from oil we’ve already found,” said Lawrence Goldstein, an energy analyst at the Energy Policy Research Foundation, an industry-funded group. “What has been missing is the technology and the threshold price that will lead to a revolution in lifting that oil.”

 

For the full story, see:

JAD MOUAWAD.  "Oil Innovations Pump New Life Into Old Wells."  The New York Times   (Mon., March 5, 2007):  A1 & A11. 

(Note: ellipsis added.)

 

Also view the excellent little video "New Life for Old Oil Fields" that the NYT put together to accompany the article.

 

OilPipelinesAndPump.jpg   Kern River pipelines in front, and pump in back.  Source of graphic and photo:  online version of the NYT article cited above.

 

A Sincere Environmentalist: “If I Was a Student, I Would March Against Myself”

 

ConlinMichelleEnvironmentalist.jpg   Environmentalist Michele Conlin scooters around New York during the winter.  Source of photo:  online version of the NYT article cited below.

 

(p. D7)  Ms. Conlin, . . . , said she saw “An Inconvenient Truth” in an air-conditioned movie theater last summer. “It was like, ‘J’accuse!’ ” she said. “I just felt like everything I did in my life was contributing to a system that was really problematic.” Borrowing a phrase from her husband, she continued, “If I was a student, I would march against myself.”

 

For the full story, see: 

PENELOPE GREEN.  "The Year Without Toilet Paper."  The New York Times  (Thurs., March 22, 2007):  D1 & D7.

(Note:  ellipsis added.)

 

Destroying Dams Can Hurt the Environment Too

 

SandyRiverDamRemoved.jpg   In response to environmental concerns, the Sandy River Dam is destroyed.  Source of photo:  online version of the WSJ article cited below.

 

The WSJ summarizes an article from the March Scientific American:

 

Environmental concerns have led the U.S. to pull down an increasing number of aging dams in the last decade, returning water to dry streams, birds to wetlands, and migratory fish to rivers. But environmentalists are also learning a torn-down dam can leave a host of challenges, writes Jane C. Marks, an ecologist at Northern Arizona University.

Sediment that has accumulated behind the dam can muddy the waters of a river, choking insects and algae that fish need to survive. Seeds buried in the sediment might unleash alien crops that kill local species and contaminated sediment might make fish poisonous.  . . .

Exotic fish can also become a problem. A dam in Arizona had been blocking exotic fish such as bass and sunfish from getting into a creek. Biologists were concerned that, without the dam, local fish in the creek would be wiped out as the exotic fish arrived.

. . .

Dams can cause dilemmas beyond the environment. Ms. Marks mentions how a father and son bitterly disagreed over the Loire dams’ removal. The father wanted the salmon and wild waters of his youth to return, whereas the son wanted to preserve the swims and boating trips of his youth.

 

For the full summary, see:

"Informed Reader; Environment; As U.S. Tears Down Dams and Rivers Rebound, Scientists Find a Flood of Ecological Risks."  The Wall Street Journal  (Weds., February 21, 2007):  B12.

(Note:  ellipses added.)

 

Global Warming Would Give Access to Huge Oil and Gas Now Under Ice

 

The WSJ summarizes a Feb. 18, 2007 article from the Boston Globe.  Here is an excerpt from the summary:

 

(p. B12) Among the many changes global warming might bring, the melting ice in the Arctic could eventually give access to the oil and gas under the ice, estimated by the U.S. Geological Survey to amount to a quarter of the world’s reserves. Fifty-five million years ago the region was a warm land of crocodiles and palm trees whose remains have since become fossil fuel, reports Drake Bennett. The Arctic ice has made the fuel practically inaccessible by making drilling hard and blocking ships.

 

For the full summary, see:

"Informed Reader; Global Warming; Arctic Melting May Clear Path to Vast Deposits of Oil and Gas."  The Wall Street Journal  (Weds., February 21, 2007):  B12.

 

DNA Scientist-Entrepreneur Venter at Sea

VenterSeaMap.jpg   The projected path of Venter’s Sorcerer II ship in collecting sea organisms.  Source of map:  http://scrippsnews.ucsd.edu/Releases/?releaseID=706

 

Craig Venter’s private gene-sequencing effort beat the government’s effort.  His new research is being funded by a $24.5 million private grant from the Gordon and Betty Moore Foundation.  (For more information beyond the WSJ article excerpted below, see the Scripps Institution of Oceanography press release.)

 

(p. B1)  Marine microbes are among the most abundant life form on the planet and among the most mysterious. Now, results from the first phase of a global expedition are expected to provide a glimpse into this long-hidden world while potentially leading to new drugs and even fighting climate change.

Craig Venter, the brash biologist who helped crack the human genome seven years ago, says he and other scientists have used DNA-analysis techniques to discover millions of new genes and thousands of new proteins in ocean microbes. These microscopic life forms are mainly bacteria and organisms known as archaea.

"Everything we’ve seen is a surprise," Mr. Venter said in a phone interview from his marine research vessel, Sorcerer II, in the Sea of Cortez. The unexpected variety of microbial DNA he’s found overturns earlier notions that the oceans are a homogenous soup of bacteria and other microscopic life. The details are being published today in the Public Library of Science Biology, an Internet-based scientific journal.

A diverse supply of microbial DNA from the oceans could be a rich lode for scientists. Drug companies are hunting for new compounds in sea creatures, especially to attack cancer and neurodegenerative diseases. The new data will also allow researchers to compare the DNA of oceanic bacteria to the genetic code of microorganisms that cause human disease.

"This is the largest DNA sequence ever obtained, and the magnitude of what’s being done is entirely unparalleled," said Douglas Bartlett, professor of marine microbiology at the University of California, San Diego, who isn’t involved in Dr. Venter’s project. Marine microbes "have all kind of metabolic activity. It is expected that [Dr. Venter’s team] will discover new pathways for making drugs and treating infectious disease."

 

For the full story, see: 

GAUTAM NAIK.  "Seafaring Scientist Sees Rich Promise In Tiny Organisms."  The Wall Street Journal  (Tues., March 13, 2007):  B1 & B5.

 

   Photo on left shows Venter (on left) on his Socerer II research ship.  Photo on right shows a slide of sea bacteria collected by Venter.  Source of photos:  http://scrippsnews.ucsd.edu/Releases/?releaseID=706

 

New York Times Reports Al Gore Inaccurate and Alarmist on Global Warming

 

   Al Gore lectures.  Source of photo:  online version of the NYT article quoted and cited below.

 

(p. D1)  Hollywood has a thing for Al Gore and his three-alarm film on global warming, “An Inconvenient Truth,” which won an Academy Award for best documentary. So do many environmentalists, who praise him as a visionary, and many scientists, who laud him for raising public awareness of climate change.

But part of his scientific audience is uneasy. In talks, articles and blog entries that have appeared since his film and accompanying book came out last year, these scientists argue that some of Mr. Gore’s central points are exaggerated and erroneous. They are alarmed, some say, at what they call his alarmism.

“I don’t want to pick on Al Gore,” Don J. Easterbrook, an emeritus professor of geology at Western Washington University, told hundreds of experts at the annual meeting of the Geological Society of America. “But there are a lot of inaccuracies in the statements we are seeing, and we have to temper that with real data.”

. . .

(p. D6)  Geologists have documented age upon age of climate swings, and some charge Mr. Gore with ignoring such rhythms.

“Nowhere does Mr. Gore tell his audience that all of the phenomena that he describes fall within the natural range of environmental change on our planet,” Robert M. Carter, a marine geologist at James Cook University in Australia, said in a September blog. “Nor does he present any evidence that climate during the 20th century departed discernibly from its historical pattern of constant change.”

In October, Dr. Easterbrook made similar points at the geological society meeting in Philadelphia. He hotly disputed Mr. Gore’s claim that “our civilization has never experienced any environmental shift remotely similar to this” threatened change.

Nonsense, Dr. Easterbrook told the crowded session. He flashed a slide that showed temperature trends for the past 15,000 years. It highlighted 10 large swings, including the medieval warm period. These shifts, he said, were up to “20 times greater than the warming in the past century.”

Getting personal, he mocked Mr. Gore’s assertion that scientists agreed on global warming except those industry had corrupted. “I’ve never been paid a nickel by an oil company,” Dr. Easterbrook told the group. “And I’m not a Republican.”

 

For the full story, see: 

WILLIAM J. BROAD.  "From a Rapt Audience, a Call to Cool the Hype." The New York Times  (Tues., March 13, 2007):  D1 & D6.

(Note:  ellipsis added.)

 

EasterbrookDon.jpg   Geologist Don Easterbrook.  Source of photo:  online version of the NYT article quoted and cited above.

 

GE Stands Up for Innovation and Free Choice

MoorheadRandallLightBulbs.jpg   Randall Moorehead’s Phillips Electronics wants the government to force us to switch from the incandescent bulb on the left, to bulbs like the Phillips bulb on the right.  Source of photo:  online version of the NYT article cited below.

 

WASHINGTON, March 13 — A coalition of industrialists, environmentalists and energy specialists is banding together to try to eliminate the incandescent light bulb in about 10 years.

In an agreement to be announced Wednesday, the coalition members, including Philips Lighting, the largest manufacturer; the Natural Resources Defense Council; and two efficiency organizations, are pledging to press for efficiency standards at the local, state and federal levels.  . . .

. . .

The Australian government said on Feb. 20 that it would seek to ban incandescent bulbs and replace them with compact fluorescents. Shortly thereafter, the environment minister of Ontario, Laurel Broten, said her province was considering a similar step, and a California assemblyman, Lloyd Levine, introduced a bill to do the same.

“Incandescent light bulbs were first developed almost 125 years ago,” Mr. Levine said, “and since that time they have undergone no major modifications.”

Kathleen Rogers, president of the Earth Day Network, one of the groups in the alliance seeking to end the use of incandescent bulbs, predicted, “I think you’re going to see these disparate efforts adding up to this great tidal wave.” The problem, she said, was that “the incandescent spends most of its life making heat, not light.”

But General Electric, which traces its origins to Edison, said that could change.

“It’s shortsighted to freeze technology in favor of today’s high-efficiency compact fluorescent lamps,” the company said in a statement. ”We’d rather keep innovating and offering traditional, commercial and industrial consumers more energy-efficient choices — not fewer choices.”

 

For the full story, see: 

MATTHEW L. WALD.  "A U.S. Alliance to Update the Light Bulb."  The New York Times   (Weds., March 14, 2007):  C3.

(Note:  ellipses addd.)

 

Why is Al Gore Afraid of Bjorn Lomborg’s Questions?


GoreAlCartoon.gif   Al Gore.  Source of the image:  online version of the WSJ article quoted and cited below. 

 

(p. A16) The interview had been scheduled for months. Mr. Gore’s agent yesterday thought Gore-meets-Lomborg would be great. Yet an hour later, he came back to tell us that Bjorn Lomborg should be excluded from the interview because he’s been very critical of Mr. Gore’s message about global warming and has questioned Mr. Gore’s evenhandedness. According to the agent, Mr. Gore only wanted to have questions about his book and documentary, and only asked by a reporter. These conditions were immediately accepted by Jyllands-Posten. Yet an hour later we received an email from the agent saying that the interview was now cancelled. What happened?

. . .

Clearly we need to ask hard questions. Is Mr. Gore’s world a worthwhile sacrifice? But it seems that critical questions are out of the question. It would have been great to ask him why he only talks about a sea-level rise of 20 feet. In his movie he shows scary sequences of 20-feet flooding Florida, San Francisco, New York, Holland, Calcutta, Beijing and Shanghai. But were realistic levels not dramatic enough? The U.N. climate panel expects only a foot of sea-level rise over this century. Moreover, sea levels actually climbed that much over the past 150 years. Does Mr. Gore find it balanced to exaggerate the best scientific knowledge available by a factor of 20?

Mr. Gore says that global warming will increase malaria and highlights Nairobi as his key case. According to him, Nairobi was founded right where it was too cold for malaria to occur. However, with global warming advancing, he tells us that malaria is now appearing in the city. Yet this is quite contrary to the World Health Organization’s finding. Today Nairobi is considered free of malaria, but in the 1920s and ’30s, when temperatures were lower than today, malaria epidemics occurred regularly. Mr. Gore’s is a convenient story, but isn’t it against the facts?

. . .

Al Gore is on a mission. If he has his way, we could end up choosing a future, based on dubious claims, that could cost us, according to a U.N. estimate, $553 trillion over this century. Getting answers to hard questions is not an unreasonable expectation before we take his project seriously. It is crucial that we make the right decisions posed by the challenge of global warming. These are best achieved through open debate, and we invite him to take the time to answer our questions: We are ready to interview you any time, Mr. Gore — and anywhere.

 

For the full commentary, see:

FLEMMING ROSE and BJORN LOMBORG  "Will Al Gore Melt?"  The Wall Street Journal (Thurs., January 18, 2007):  A16. 

(Note:  ellipses added.) 

 

“You Have to Keep On Trying New Things”

   Stewart Brand with his prototype for a computer-clock that he hopes will continue to tell time for 10,000 years.  Source of photo:  online version of the NYT article cited below.

 

Decades ago, I really enjoyed the spirit, and sometimes the usefulness, of Stewart Brand’s refreshing, libertarian, over-the-top Whole Earth Catalog.  From the article excerpted below, I learned that Brand, and his spirit, are still alive:

 

(p. D1)  Stewart Brand has become a heretic to environmentalism, a movement he helped found, but he doesn’t plan to be isolated for long. He expects that environmentalists will soon share his affection for nuclear power. They’ll lose their fear of population growth and start appreciating sprawling megacities. They’ll stop worrying about “frankenfoods” and embrace genetic engineering.

He predicts that all this will happen in the next decade, which sounds rather improbable — or at least it would if anyone else had made the prediction. But when it comes to anticipating the zeitgeist, never underestimate Stewart Brand.

He divides environmentalists into romantics and scientists, the two cultures he’s been straddling and blending since the 1960s. He was with the Merry Pranksters and the Grateful Dead at their famous Trips Festival in San Francisco, directing a multimedia show called “America Needs Indians.” That’s somewhere in the neighborhood of romantic.

But he created the shows drawing on the cybernetic theories of Norbert Wiener, the M.I.T. mathematician who applied principles of machines and electrical networks to social institutions. Mr. Brand imagined replacing the old technocratic hierarchies with horizontal information networks — a scientific vision that seemed quaintly abstract until the Internet came along.

. . .

(p. D3)  Mr. Brand’s latest project, undertaken with fellow digerati, is to build the world’s slowest computer, a giant clock designed to run for 10,000 years inside a mountain in the Nevada desert, powered by changes in temperature. The clock is an effort to promote long-term thinking — what Mr. Brand calls the Long Now, a term he borrowed from the musician Brian Eno.

Mr. Brand is the first to admit his own futurism isn’t always prescient. In 1969, he was so worried by population growth that he organized the Hunger Show, a weeklong fast in a parking lot to dramatize the coming global famine predicted by Paul Ehrlich, one of his mentors at Stanford.

The famine never arrived, and Professor Ehrlich’s theories of the coming “age of scarcity” were subsequently challenged by the economist Julian Simon, who bet Mr. Ehrlich that the prices of natural resources would fall during the 1980s despite the growth in population. The prices fell, just as predicted by Professor Simon’s cornucopian theories.

Professor Ehrlich dismissed Professor Simon’s victory as a fluke, but Mr. Brand saw something his mentor didn’t. He considered the bet a useful lesson about the adaptability of humans — and the dangers of apocalyptic thinking.

“It is one of the great revelatory bets,” he now says. “Any time that people are forced to acknowledge publicly that they’re wrong, it’s really good for the commonweal. I love to be busted for apocalyptic proclamations that turned out to be 180 degrees wrong. In 1973 I thought the energy crisis was so intolerable that we’d have police on the streets by Christmas. The times I’ve been wrong is when I assume there’s a brittleness in a complex system that turns out to be way more resilient than I thought.”

He now looks at the rapidly growing megacities of the third world not as a crisis but as good news: as villagers move to town, they find new opportunities and leave behind farms that can revert to forests and nature preserves. Instead of worrying about population growth, he’s afraid birth rates are declining too quickly, leaving future societies with a shortage of young people.

Old-fashioned rural simplicity still has great appeal for romantic environmentalists. But when the romantics who disdain frankenfoods choose locally grown heirloom plants and livestock, they’re benefiting from technological advances made by past plant and animal breeders. Are the risks of genetically engineered breeds of wheat or cloned animals so great, or do they just ruin the romance?

Mr. Brand would rather take a few risks.

“I get bored easily — on purpose,” he said, recalling advice from the co-discoverer of DNA’s double helix. “Jim Watson said he looks for young scientists with low thresholds of boredom, because otherwise you get researchers who just keep on gilding their own lilies. You have to keep on trying new things.”

That’s a good strategy, whether you’re trying to build a sustainable career or a sustainable civilization. Ultimately, there’s no safety in clinging to a romanticized past or trying to plan a risk-free future. You have to keep looking for better tools and learning from mistakes. You have to keep on hacking.

 

For the full story, see:

JOHN TIERNEY.  "FINDINGS; An Early Environmentalist, Embracing New ‘Heresies’."  The New York Times  (Tues., February 27, 2007):  D1 & D3.

(Note: ellipsis added.)

Beaver Returns to Bronx: More Evidence of Environmental Improvement

          A beaver whose discoverers call "José" is the first beaver to make a home in the Bronx in 200 years.  Source of photo:  online version of the NYT article quoted and cited below. 

 

(p. A12) A crudely fashioned lodge perched along the snow-covered banks of the Bronx River — no more than a mound of twigs and mud strewn together in the shadow of the Bronx Zoo — sits steps away from an empty parking lot and a busy intersection.

Scientists say that the discovery of this cone-shaped dwelling signifies something remarkable: For the first time in two centuries, the North American beaver, forced out of town by agricultural development and overeager fur traders, has returned to New York City.

The discovery of a beaver setting up camp in the Bronx is a testament to both the animal’s versatility and to an increasingly healthy Bronx River.

 

For the full story, see:

O’CONNOR, ANAHAD. "After 200 Years, a Beaver Is Back in New York City."   The New York Times  (Fri., February 23, 2007):  A21.