Jennifer Marohasy

a forum for the discussion of issues concerning the natural environment

Economics

Business Must Answer to ‘Occupy Wall Street’: Adam Creighton

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I don’t usually touch on economics at this blog, unless there is a clear science link, because it is not something I know much about. But I was so pleased to read the following piece by Adam Creighton this morning at On Line Opinion. It clearly articulates what I perceive to be right about the ‘occupy protests’, what is right about capitalism, and what is wrong with ‘the economic system’ at the moment.

I’ve been particularly disappointed to see many so-called right wing commentators so dismissive of the efforts of the protestors. People on the right too readily equate their ideology with the financial sector making lots of money, which is wrong.

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Garnaut’s Second Update, Sceptics are the White Swans: A Note from David Stockwell and Cohenite

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THE Australian government relies on various science experts to argue its case in favour of anthropogenic global warming [AGW]; people like Will Steffen, David Karoly and the ubiquitous Tim Flannery supply the scientific credentials for the government’s belief in AGW.

The economic gravitas to the government’s proposed economics measures to solve AGW are provided by their go-to man, Professor Ross Garnaut. Garnaut does come with some impressive economic academic credentials from ANU and the University of Melbourne. Garnaut also has considerable experience in private industry and is chairman of Lihir Gold, the New Guinea based gold-mining company.

In 2008 former PM Rudd engaged Garnaut to prepare an Interim Report to support the then Rudd government’s intention to introduce an ETS to solve AGW. With Rudd no longer PM, the current government under PM Gillard has commissioned Garnaut to provide updates to his 2008 Interim Report to justify the Gillard government’s intention to introduce a carbon tax to solve AGW; make of that what you will.

This article looks at Garnaut’s second update [there is a link to a critique of Garnaut’s first update below]. Garnaut’s second update looks at the science supporting AGW. This science shows warming over the recent period. That much can be agreed with, but just about everything else Garnaut’s science says, how much warming and particularly what has caused that warming, is problematic and subject to strong contrary scientific evidence. So, when Garnaut boasts in the press “I was right about climate change” that is a hollow boast.

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‘Carbon Price’ Won’t Reduce Emissions from Power Stations

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THE Australian government has announced plans to introduce a carbon price scheme forcing industry to buy a permit for each tonne of carbon dioxide emitted from July 1, 2012.  A trading system, with the carbon permit price set on a market linked to other schemes overseas, could follow in three to five years.  But the scheme is unlikely to achieve a reduction in carbon emissions from coal fired power stations.  Tony explains:

The Carbon Price and Coal-Fired Power:  A Note from Tony

We are being told that the introduction of this ‘Carbon Price’ will drive down the emissions of the offending greenhouse gas, carbon dioxide.

When those politicians stand at the podium and tell you this, it indicates only that they have no idea whatsoever of how electrical power is generated.

When I try and explain that what they say is incorrect, that is somehow perceived as my taking a political standpoint by disagreeing with the politics of either the Labor Government who are introducing this, or The Australian Greens Party, who are in fact driving the Labor Government on this matter.

To effectively understand what effect a ‘price on carbon’ will have on coal fired power generation, you need to understand how a coal fired power plant produces its electrical power, and once you can visualise this, then it becomes patently obvious that just placing a price on those emissions will not lower those emissions by any amount whatsoever.

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The Cost of Reducing Carbon Emissions

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‘MORE than $5.5 billion has been spent by federal governments during the past decade on climate change programs that are delivering only small reductions in greenhouse gas emissions. 

‘An analysis of government schemes designed to cut emissions by direct spending or regulatory intervention reveals they have cost an average $168 for each tonne of carbon dioxide abated.

‘While some have reduced emissions cost-effectively, many of the more expensive schemes are exorbitant ways of tackling climate change, costing far more for each tonne of carbon avoided than any mooted emissions trading scheme or carbon tax.

‘The worst offenders have included the Labor government’s rebates for rooftop solar panels, which cost $300 or more for every tonne of carbon abated, and the Howard government’s remote renewable power generation scheme, which paid up to $340 for each tonne of carbon.

‘By contrast, the proposed emissions trading scheme blocked by the Coalition and the Greens in the previous Parliament was expected to put a price on carbon of $20 to $25 a tonne in its early years…

Read more here: http://www.theage.com.au/environment/climate-cash-goes-up-in-smoke-20110214-1atnh.html 

[Climate cash goes up in smoke, Mark Davis and Lenore Taylor, The Age]

More Politics from Ross Garnaut: A Note from Des Moore

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LAST November Ross Garnaut was commissioned, for an unknown fee, to produce an Update of the Review of climate change he completed in 2008. Garnaut is an economist who describes himself as an independent expert but he acts like a believer in a greater role for government and has worked closely with Labor governments. As one commentator put it yesterday, “his work has been a key feature of Labor’s campaign to introduce a carbon trading scheme”. Indeed, his first Update and associated comments present a blatantly political perspective in portraying all developments since the Review as supporting the need for emission reducing action by government and dismissing or ignoring the reality that those developments have clearly heightened the uncertainties about the so-called science and whether there will be any agreed international political action.  

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Climate-Related Policy Should be Evolutionary Not Presumptive

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I have come to believe that the official expert advisory process, and the IPCC process within it, are seriously flawed… Two related forms of evidence have brought me to this view. They represent findings on my part, not presuppositions.

First is the evidence that work which the IPCC and its member governments have drawn on has been marred by professional deficiencies which have gone unacknowledged and unremedied. Second is the evidence that the influential expert advisory processes have been throughout, and continue to be, subject to chronic and pervasive bias.

From this assessment I draw a straightforward conclusion for policy. In a subject area where so much remains uncertain or unknown, today’s confident and far-reaching policy settings should not be taken as given. Policy should be evolutionary, not presumptive; and its evolution should be linked to a process of inquiry, review and advice which is more open, more balanced and more professionally watertight than is now the case.

This was the main message presented by David Henderson at a conference held on 22 April 2009 at the Said Business School, Oxford University. The subject of the conference was ‘Beyond Kyoto – Green Innovation and Enterprise in the 21st Century’.  

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