Bjørn Lomborg: ‘Climate policies can end up costing more than 11% of world’s GDP’ – ‘We ought never to have entertained the notion that the world’s greatest challenge could be to reduce temperature rises in our generation by a fraction of a degree’
Lomborg notes 'global warming has dramatically slowed or entirely stopped in the last decade and a half' - 'When politicians around the world tell the story of global warming, they cast it as humanity’s greatest challenge. But they also promise that it is a challenge that they can meet at low cost, while improving the world in countless other ways. We now know that is nonsense...Climate change has been portrayed as a huge catastrophe costing as much as 20% of world GDP, though brave politicians could counter it at a cost of just 1% of GDP. The reality is just the opposite: We now know that the damage cost will be perhaps 2% of world GDP, whereas climate policies can end up costing more than 11% of GDP.'
We live in a world where one in six deaths are caused by easily curable infectious diseases; one in eight deaths stem from air pollution, mostly from cooking indoors with dung and twigs; and billions of people live in abject poverty, with no electricity and little food. We ought never to have entertained the notion that the world’s greatest challenge could be to reduce temperature rises in our generation by a fraction of a degree.
Following the release of the Stern Review, one British newspaper reportedly wrote: “Act now or the world we know will be lost forever.” Being accurate is less sexy, but much more informative.
What makes this story all the more amazing is that experts have known almost all of these facts for a long time. The Stern Review was produced by bureaucrats and never subjected to peer review. Economists knew that the damage costs had been extensively massaged, and that the estimates were outliers compared to the academic literature. The unfathomably low projections for policy costs were artifacts of ignoring most liabilities, again contradicting the academic literature.