by Georgia McKirgan
The curse of our age is
the fact that public debate is driven by what people ‘feel’ rather than
rational argument and facts. There are many examples, from Brexit, to Trump
where the result has been driven by an emotional ‘feeling’ rather than a
rational analysis of the facts on both sides of the arguments. While there are
many examples of this, the one I would like to focus on is the contemporary
political response to climate change. In this, I am influenced by the work of
the political scientist Bjorn Lomborg and the Copenhagen Consensus project.
Amongst people of my generation, climate change is often cited as one of the
most important challenges facing mankind. The work of Lomborg and his
colleagues looks at a range of challenges facing the world like poverty,
famine, disease and climate change and takes a cost/benefit approach to analyse
different policy responses. In terms of return on investment, measures to
tackle climate change come at the bottom of the list. One dollar spent on
subsidising renewable energy will bring rewards of three cents. Compared to
this, one dollar spend tackling communicable deceases in the developing world
will will bring eleven dollars of benefit.
People in the developed
world, do not face a significant risk from communicable diseases but climate
change strikes people like us as a potentially catastrophic threat. Most
scientists agree however, that while man-made climate change is real, the net
effect of climate change will be positive for at least the next 50 years before
the effects become negative overall. Despite this, there is an overwhelming
desire in developed countries that “something must be done”. The only short
term policy solution offered is to subsidise renewable energy and tax fossil
fuels and once these policies are implemented, voters get the psychological
income of feeling that they are making a difference. They feel ‘good’ about
themselves. They feel like virtuous, responsible people who are doing something
for the world and future generations. As the amount spent subsidising renewable
energy has gone up, the amount spent on aid to developing countries to address
problems like poverty, disease and lack of education have been cut in half in
real terms since the 1970s. From a rational perspective, the money spent as a
result of political choices in developed countries is spent in a way that makes
voters feel good about themselves rather than actually making the biggest
difference to the lives of the greatest number of people.
Levies on fuel bills to
subsidise inefficient renewable energy cause increased deaths among older,
lower income people in the developed world but this fact has done little to
dampen enthusiasm for the current approach. Even if one isolates the issue of
climate change, investing in lowering the cost of renewable energy is much more
efficient than subsidising inefficient current technologies but this would not
make voter ‘feel’ as ‘good’. Lomborg points out that the problem of too much
horse manure in cities at the end of the 19th century was not solved by taxing
horses and subsidising walking. It was solved by the development of the motor
car. The problem of smog in cities like LA in the 1970s and 1980s was not
solved by taxing cars but by the development of the catalytic converter. As is
always the case, the solution to the problems humans face is technology. Once
renewable energy is cheaper than conventional non-renewable energy, coal, gas
and oil-fired power stations will be shutdown as quickly as safely possible.
The biggest current technical challenge is to develop cheap ways to store
energy produced from renewable sources. Wind, wave and tidal power don’t always
produce power when it is needed so as well as being more expensive than
conventional sources, the electricity companies need to keep these conventional
sources online to fill the gaps when the wind is not blowing or the tide is
slack. These are all solvable problems but they need substantial investment.
Growing swathes of
subsidised wind turbines and solar panels are visible badges that voters can
point to as evidence that ‘something is being done’. The fact that there are
many more effective uses for public funds and even in addressing climate
change, the current approach is inefficient shows that the public discourse is
more about emotional victory rather than practical progress. The polling
company YouGov conducted a series of interviews where they asked residents of
Brighton what they thought of the giant Rampion offshore wind farm off the
Sussex coast. In case you haven’t seen it, this wind farm is 250 meters high
and on a clear day, can be seen from the hills above Portsmouth. The following
answers were pretty typical:
“Clean, renewable
energy that doesn't harm the planet. I don't understand why anyone wouldn't
want them. Because they look bad? They look better than coal factories or
nuclear power plants (although I do support nuclear energy)" Dani,
Oxford
"I don't understand
why people say they ruin the landscape, whenever I see them in the countryside
I am filled with pride that we are moving in the right direction"Jon, Dorset
So, basically, they like
it because it looks good and makes them feel we are doing something. But at
what cost? Due to the intermittency of the wind, this wind farm will produce
10% of the electricity of a new gas-fired power station that costs half as much
and it is not being built out of generosity by the giant utility company that
is building it. E.on will receive £325m a year but £220m will come from green
taxes added on to our electricity bills. That is a lot of money and could be
put to much better use.
This is not an argument
about denying climate science or saying the future of the planet isn’t our
concern. It is a plea for a rational cost/benefit approach to political
decision making. What are the big problems we face? How much are we willing to
spend addressing those problems? What policy choices will give us the best
return in terms of those objectives? Unfortunately, we are stuck in a world
where people tend to go for expensive, symbolic policies like the Rampion wind
farm. A very expensive, symbolic piece of offshore sculpture.
If you are concerned
about the future of the planet there are two simple policies you could adopt in
your life that would make a huge difference. Stop eating beef and stop buying
single-use plastic drink bottles. You won’t get the same psychic Income that
you get when you drive past a wind turbine but you will actually be doing
something that will make a difference.
If ‘something must be
done!’, let’s make sure it’s something that will actually work.
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