Following on from part 1 and part 2 in this series, let’s conclude
by exploring climate models and risk assessment. On the physical nature of
climate change, some scientists argue that climate modelling should be trusted
because it is specific and can point to physical laws that are currently
observable and constant. Alas, this is only partially true - but even if it
were wholly true, that still does not justify such confidence that the world’s
extreme and hugely costly reactions to climate change are sensible, balanced
and well-conceived. Just because a model relies on physical laws doesn't mean
it has far-reaching predictability. The specific weather on any given day
relies on physical laws, but it does not have far reaching predictability. The
predictions are relatively short-term; in issues surrounding the perturbations
of the environment, short-term predictions are not very reliable antecedents
for long-term outcomes. Climate change science suffers from the same problem.
Trying to rely on long-term predictions by extrapolating current patterns would
be a bit like a man from another planet visiting earth for the first time in
January and measuring the temperature in Trafalgar Square every day from
January 1st through to August the 1st (increasing over the months from freezing
up to 28°), and hypothesising that by December the temperature in Trafalgar
Square will be 40°. But I don’t suggest that illustration just in terms of
future problems – it’s current and future problems plus current and future
solutions. Once you factor in responsive and pre-emptive human innovation into
the equation, the model is not as unyielding as most environmentalists assume
by their narrow projections.
Furthermore, focusing solely on the situation from a purely
physical perspective is not helping the so-called climate scientists' cause. No
one disputes that the underlying physics behind any purported climate changes
gives us empirical objects of study - and few deny that changes will occur, and
there will be problems to solve. But the climate change considerations must give more emphasis to how humans will respond to those changes. The environmentalists’
fear of the rate of temperature change - and that its impact on ecosystems,
societies, and economies can outpace the ability of ecosystems and human
systems to adapt – is highly likely completely backwards. Because what we are
dealing with is slow, gradual change in temperature, and a rapid rate of change
and adaptability from human ingenuity and natural scientific and technological
advancement. Most environmentalists fear x is fast and y is slow, when the reality
is almost certainly that x is slow and y is fast.
Yes, it is almost certainly true that climate change is in some
parts anthropogenic, but most of what we’ve done industrially and
technologically has been to the huge benefit of the human race, not least in
the way in which the industrial revolution and consequent progression-explosion
of the past 200 years has increased standards of living, life expectancy, prosperity, well-being,
knowledge, and the many other qualities that benefit the human race. Don’t
forget that our global emissions in the past century have been part of the very
same scientific and industrial advancements that have facilitated this extraordinary
human progression. To criticise our innovations as being environmentally
detrimental is a bit like criticising a vegetable patch for ruining perfectly
good soil, or criticising medicine for ruining perfectly good plants.
Professor Richard Tol (do Google his work - there's plenty of it)
has perhaps done the most of anyone I've researched to show that when you
factor in the economic, the ecological, the humanitarian and the financial
considerations, there is an overall positive effect in climate change. He
arrived at this conclusion after undertaking 14 different studies of the
effects of future climate trends. One of professor Tol's key findings is that
climate change would be beneficial up to 2.2˚C of warming from 2009 (when his
paper was written). Some say those temperatures may not be reached until the
end of the century, some say even longer. The IPCC predicts we will reach that
temperature increase by 2080. This means that, far from being a so-called
‘climate emergency’, even at worst case scenario, global warming could continue
to be of net benefit for another 60 years. And even if it is the case that
global warming will only benefit us for another 60 years (assuming current
conditions) then the people who will have to deal with it in 2080 will be about
nine times as rich as we are today (assuming economic growth continues on its
present trajectory), and more scientifically and technologically advanced than
we can possibly imagine. While I'm encouraged by Richard Tol's research, I
actually think he slightly underestimates the mood for optimism by making an
understated assumption himself. He talks of global warming possibly being a
problem by the time the planet undergoes 2.2˚C of warming (in 2080) without
paying enough regard to just how much better equipped we'll be in 60 years from
now to tackle perceived problems in 2009 (or even today).
This has always been a strange solecism from climate change
alarmists too: Look at how the world has gone from 1924 to 2024. Nobody sane
thinks that the world's population hasn't benefiting immensely from industrial
progression and technological advancements alongside a changing climate during
the past 100 years. Given that we are richer and more advanced in this day than
in 1924, it’s absurd that so many people are unconvinced that the world's
population won't benefit immensely from industrial progression and
technological advancements alongside a changing climate in the next 100 years.
Moreover, given that we in 2024 have most of the advancements to have been able
to solve the majority of economic problems people in 1924 faced, we should be
more confident of having similar capacities 60-100 years henceforward, given
that we are starting from an even stronger place, and that we have far more
people on the planet to help solve the problems that might arise. We seem
drastically unfair on ourselves when it comes to forecasting our ability to
work together to solve complex problems.
The climate change alarmists' assumption is that because climate
change is an emergency, we should be risk-averse, and risk-aversion here means
spending more money and resources on tackling climate change in the here and
now. But this is faulty reasoning, because risk-aversion should primarily focus
on the world’s biggest risks - and the biggest risk of all is not that future
(richer) generations will be born into a warmer climate, it is that present
(poorer) people are going to be born in a poverty-stricken state where they
can’t afford access to cheap, necessary, dependable energy. The way to be
rationally risk-averse is to help poorer people become more prosperous - not
adopt short-sighted climate change policies that make energy unaffordable for
those that need it most.
Here I refer you to a passage about risk in my previous series on climate change risk:
“Risk is assessing the potential costs with known probability.
Uncertainty, on the other hand, is not knowing the probability, which means an
inability to calculate a risk. If I have to draw a Jack, Queen or King card
from a 52 card deck to win £1,000,000 or else die, that is a ‘risk’ because I
can calculate the probability (12 in 52). On the other hand, if I have to draw
a Jack, Queen or King card from an unspecified pile of cards, and I don't know
how many are missing from the pack, then I have ‘uncertainty’. I cannot
calculate the probability of drawing a picture card because I don't know if any
picture cards have been removed.
Let me make it even clearer with an illustration. Suppose there is
a pile of 99 cards - all of which are either a Jack, a Queen or a King, and all
three cards are represented. You know that 33 of the cards are Jacks, but you
don't know the ratio of Queens and Kings in the remaining 66 cards. You can
choose from two scenarios:
Scenario 1: You win £1,000,000 if you draw a Jack, and nothing if
you draw a Queen or King.
Scenario 2: You win £1,000,000 if you draw a Queen, and nothing if
you draw a Jack or King.
Which scenario would you prefer? Due to scarcity of information
there really is no way to know which scenario is preferable because you don't
know the ratio of Queens and Kings - you only know there are 33 Jacks. If you
choose Scenario 1 you know you have a 1 in 3 chance of £1,000,000. If you
choose Scenario 2 you don't know what chance you have because you don't know
how many of the remaining 66 cards are Queens - there could be as few as 1 or
as many as 65. Scenario 1 offers you a risk; Scenario 2 offers you uncertainty.
The climate change assessments are generally more like Scenario 2
than Scenario 1 - they involve uncertainties where drastically little is
understood about the probability. It was important to mention that before we
got under way with the series. In the next part I will look at how mindful we
should be of future generations, and what we owe them.”
Rising
tides sinking some boats?
Let’s now focus one of the other main messages of the environmentalists
- that even small increases in temperature in the next 100 years are going to
be disastrous for people living in coastal areas (this amounts to about 650
million people according to a BBC report in 2019). Alas, this prophecy of doom
is a presumption they never attempt to justify. Whatever science tells us about
the changing climate, the future is far too complex for anyone to know the
magnitude of the effect of those changes, how future humans will be equipped to
deal with them, and who will be better and worse off. Anyone who tells you
otherwise is either mistaken or lying (or perhaps a bit of both).
Suppose the world gets a little warmer in the next 100 years, as
predicted. Through today’s lens of analysis, it’s expected to have a net
negative effect on places like Ethiopia, Uganda, Bangladesh and Ecuador. But no
one talks about the net positive effect it could have in regions of Russia,
Mongolia, Norway and Canada, where inhabitants are subjected to harsh winters.
But even that’s too simplistic, because you then have the unenviable task of
considering what future Norway or future Bangladesh will be like compared to
now, and undertake a separate measurement of forecasted temperature increase
alongside perceived impact at any given time. This is not a method of analysis
that we can undertake right now – and this is something that seems to be almost
entirely missing from the climate discussions.
Not only is a forecasted temperature increase alongside perceived
impact at any given time very complex, it’s almost certain to be short-sighted
and hasty. China in 1965 would be very poorly-equipped to deal with a metre of
rising tide compared with the China of now or future China, who could pay for
it with loose change. Just as in every decade that has passed recently, global
warming has produced both negative externalities and positive externalities,
and future global temperatures are too hard to predict in terms of whether or
not longer growing seasons and milder winters produce a net cost on the world.
All that said, let’s be generous to the environmentalists and
declare that their spectre is wholly accurate (against what my own reasoning
says) - that increases in temperature in the next 100 years are going to be
disastrous for people living in coastal regions. What might they still be
overlooking? Currently we live in a world in which about 71% of our world’s
surface area is ocean, where it could rise by half a percent if the ice caps
melt very much in the next few decades. Humans have done pretty well in the
past few hundred years adapting their industry in a world in which 71% of our
world is ocean – so it shouldn’t be so hard to believe that people in the
future with more money, greater knowledge and better technology will find it within
their grasp to adapt to a world in which 71.5% of the world’s surface is ocean.
Not convinced? Ok, let’s take a worst case scenario - that all of
the 650 million people living in coastal regions are going to be negatively affected
by rising sea levels in the next hundred years. A few key facts: firstly,
almost all of those 650 million people won’t be alive in 100 years, and during
that time they and future descendants will have had the capacity to move inland
or make the necessary infrastructural changes in response to the very gradual
increase in sea levels. During slow, gradual changes, the next 100 years is a
long time to make adjustments, especially in a future in which everyone is
richer than now and more technologically astute. Remember, environmentalists
fear x is fast and y is slow, when the reality is almost certainly that x is
slow and y is fast.
We are not sure how many of the 650 million people (and more
factoring in population increase and migration to cites) will be affected by
rising sea levels, but here's what we do know. If moving inland or making the
necessary infrastructural changes would be costly, not moving inland and not
making the necessary infrastructural changes will be a lot costlier. It's one
thing to discuss the costs of moving inland and making the necessary
infrastructural changes and weigh up those against all the benefits and the
future capabilities of dealing such things - but it's quite another thing to
warn about staying in coastal areas and getting washed away, because that's
just not going to happen.
If some relatively short-term extreme changes are the price that
future unborns have to pay for living in such a prosperous world (and it's
still a big IF), then it is certain that those future unborns will pay those
costs, and almost certainly a lot more easily than we can pay them. If rising
oceans and dealing with the consequences are not the price that future unborns
have to pay, either because we are burning almost no fossil fuels in the future
(which is highly likely to be the case) or because climate alarmists have got
their predictions wrong, or because future humans have technology that easily
helps them adapt to the gradual changes (which is almost certainly going to be
the case), then the alarmism has been absurdly wasteful and largely
unnecessary, because global market innovation is already doing about as much as
it can, and will continue to do so.
The environmentalists frequently seem to be confused by a base
rate fallacy regarding what they are doing. Even if we ignore the fact that
this level of uncertainty is not an obvious call to action (and we shouldn’t
ignore that, but we will for simplicity’s sake), and the fact that these reactionaries
have no real clue of the appropriate measure of range of possible outcomes
against range of possible actions, they are utterly confused by the concept of
‘doing’. They peddle the narrative along the lines of ‘What we should be doing’
when really they mean ‘What we should be doing now’. And I’m not saying
that everything we are doing is reactionary – we are making some terrific
progress on a whole range of innovations to help make us greener – but doing reactionary
things now for projected future scenarios is hasty and presumptuous because
time is inevitably going to reduce the cost of dealing with the problems
(because we’ll be richer, and with better technology, and have more information
and understanding).
That fact that uncertainty will decrease over time, and our
knowledge, resources and richness will increase over time is an argument that,
relative to our abilities, the problem will get smaller not larger, and our
ability to manage it will get better not worse. If you don’t believe me, and
still think we need immediate action otherwise it’ll be too late, you only need
remember that this has been said for every decade for at least the past five
decades, and with every passing decade we have gained in understanding, reduced
our uncertainty, made humanity better off, reduced poverty, increased global
trade and prosperity, become greener, and enhanced our technology - and this in
spite of the extreme environmentalists, not because of them.
So many people are getting taken in by the doomsday
eco-fundamentalism, on the pretext that ‘we have a climate emergency’ (or worse
'the end is nigh') is a consensual view among climate scientists. Climate
scientists are experts at understanding the climate (the clue's in their job
title) and the problems we are facing, but they are not economists, so they are
unlikely to present the full menu of considerations. Climate scientists can
tell us about the relationship between our activities and global warming, and
they can tell us about how different levels of carbon emissions in the near
future are likely to impact on climate change (to a degree, pun intended). But
the climate change situation is not simply a matter for the physical sciences,
it's largely a matter for economics.
Science is the systematic study of the physical environment within
nature. Economics is the science of allocating resources efficiently amidst
competing preferences. Science tries to tell us which challenges a region of
the Middle East might have to face if the planet is n degrees warmer in 20
years' time. Economics tries to consider the future resources and technology
available to change human behaviour in the region. Science tells us what might
happen to our ocean levels. Economics tries to consider how our coastal regions
will adapt to those changes. Politicised climate science focuses largely on the
costs of climate change, and is wilfully myopic when it comes to trade-offs.
Economics focuses on the costs and benefits of climate change, and on the complex
trade-offs that have been made over the past 150 years of humanity's great
material enrichment and unprecedented rise in living standards.
Climate scientists speak of future problems with scant regard for
how innovative, collaborative future humans will be economically, technically
and scientifically equipped to solve those problems. Isolated, reactionary
appeals to the expert climate science consensus are anaemic appeals, because
climate science consensus on its own is too a narrow perspective that neglects
to include many of the most relevant tenets of the analysis. Let's have more gratitude and more humility - and we can work together to solve these problems with more balance, and less extremism. Imbalanced extremism almost never acts as a force for good, or as a vehicle for efficient problem-solving.