INTERNATIONAL BUSINESS DIARY
Global Warming Mission Creep At The World Bank
Posted 11/23/2012 07:21 PM ET
” …But he’s got it 100% wrong about the importance of the World Bank tackling climate change.
If it doesn’t, nothing will be lost. But if it does, lots is locked in.
Policy changes to mitigate carbon dioxide emissions, which the World Bank supports, will be costly.
The Stern Review, for instance, says that taking greenhouse-gas emissions back to 75% of 2007 levels by 2050 could cost as much as 3.5% of global GDP.
That review says a 1% gain is possible, but the more-likely scenario is a 1% loss in global GDP. A revised estimate says the loss will be 2%.
The argument, of course, is that those losses are small when compared to the much bigger losses that will occur due to global warming.
But what those larger costs will be are, at best, a poor guess.
We have yet to experience the climate change disasters that were predicted. Nor have the temperatures, which have actually been falling, reached the scorching heights we were warned about.
Yet calls for carbon taxes and cap-and-trade policies are in favor among governments. A carbon tax, which is inexplicably supported by some on the right, is not a cost-free solution.
In fact, it’s not a solution at all.
Consider Australia ‘s carbon-tax regime. Greg Sheridan, foreign editor of the Australian, convincingly wrote some months back that his country’s carbon tax is “environmentally inconsequential, economically costly, administratively nightmarish.”… “