Global Warming and the Global Economy

Global Warming and the Global Economy Global Warming and the Global Economy
"Will The Global Warming Bill Cool The Global Economy?
Nouriel Roubini, 07.02.09, 12:01 AM ET
http://www.forbes.com/2009/07/01/waxman-markey-cap-and-trade-global-emissions-bill-opinions-columnists-roubini.html
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How the Bill Works
At the heart of the bill is a cap-and-trade system, a market-based system that caps emissions at a certain level and allows large emitters to buy permits for additional emissions from other companies that emit less than the upper limit. The legislation calls for the number of permits to be reduced over time to encourage lower emissions. In practice, establishing a market for these permits will increase the cost of using carbon-based energy (especially electricity from coal), which will in turn reduce demand.
The revenue earned through auctioning would be distributed among households to offset the negative effect on their purchasing power from the higher cost of energy. Initial plans called for all, or at least a majority, of the permits to be auctioned, but the vote-getting process increased the number allocated. The bill passed by the House calls for 85% to be allocated and 15% to be auctioned. Some of the allocated permits will go to utility companies, the idea being that they will either invest the proceeds in renewable fuels or temper price increases for consumers. This change reduces the potential revenue generation of the policy and runs the risk that low electricity costs could actually encourage greater usage.
Cost Estimates
Estimates of the total economic costs of the U.S. cap-and-trade program have varied widely. According to the Congressional Budget Office (CBO), the net annual economic cost of the program in 2020 would be $22 billion--or about $175 per household. Analysis of the CBO results suggests that the implicit tax is relatively progressive. While this estimate has been accused of being understated (and it is worth noting that the Environmental Protection Agency came to an even lower estimate), it presented a baseline for analysis.
Other estimates put the ultimate cost much higher. An analysis from the Heritage Foundation concludes that the cap-and-trade system described in the bill would cost the economy $161 billion by 2020--or about $1,870 per household. Such estimates do not necessarily account for changes in the price of energy that would occur naturally as a lack of investment limits production of fossil-fuel-based energy.
Furthermore, they may not fully include the technological and efficiency gains that the current legislation hopes to encourage. For example, some of the allocations to utilities are granted with the expectation that they will be auctioned off and the proceeds will be used to fund renewable energy development. It's worth noting, however, that there's no guarantee the utilities will do this in practice. ****Nouriel Roubini, a professor at the Stern Business School at New York University and chairman of Roubini Global Economics, is a weekly columnist for Forbes.
(Analysts at RGE Monitor assisted in the research and writing of this piece.)"

It's progress that the government is more interested and more willing to do something about global warming and climate change. But there's something that can render worries about cap 'n trade null: an emissions-free energy that's renewable and less expensive to run. For more information, please see www.terrahumanafoundation.org.

Climate Change, Health, Technology

From the 10 February 2009 BBC Online News Site--

"UN chief in India climate warning

Mr Ban said that all countries are threatened by climate change
UN chief Ban Ki-moon has warned a climate change conference in India that failure to tackle the issue will lead to global economic upheaval.
He appealed to nations to reach agreement on carbon emission cuts.
Mr Ban is attending the Delhi Sustainable Development Summit which, organisers say will press for cuts in carbon emissions.
He is also expected to discuss with India the attacks in Mumbai (Bombay) last year which killed 170 people.
'Destabilise economies'
"Deserts are spreading. Water scarcity is increasing. Tropical forests are shrinking. Our once prolific fisheries are in danger of collapse," said Mr Ban at the start of the conference in Delhi.
Mr Ban is attending a climate change conference in Delhi
"Failure to combat climate change will increase poverty and hardship. It will destabilise economies, breed insecurity in many countries and undermine our goals for sustainable development."
He said that all countries must work towards a "conclusive carbon emissions reduction" deal at an international climate change conference in Copenhagen in December which will debate initiatives when the Kyoto Protocol expires in 2012.
"Copenhagen must clarify commitments of developed countries to reduce their emissions," said Mr Ban.
"We must also achieve clarity on what mitigation actions developing countries will be prepared to make. In Copenhagen we must now bring all this all together in an ambitious, comprehensive and ratifiable agreement."
India faces the "challenges of poverty eradication, sustaining the rapid economic growth and dealing with the global threat of climate change", Rajendra Pachauri, head of the UN's 2008 Nobel prize-winning climate panel and one of summit organisers, told the AFP news agency. "

The rest of the article goes on to discuss political and social unrest on one country. What I want to emphasize from this article is the need for technological changes that will restrict climate change and how that can help us economically. The fuels we use hurt the climate. Climate damage affects food production and costs lives. Making technological changes that result in zero carbon emissions will improve food production and health. These changes can be made. These changes must be made. For more information, please see www.campaignforgreen.com.