The recent weather in the South-West of England/Wales is frightening stuff. We have family in the thick of it, now counting the costs - initial relief at no serious losses is now tempered by the lengthening list of destroyed possessions. And for all of you concerned by such destructive weather patterns, there is evidence to suggest that anthropogenic global warming is to blame. The Independent reports that:
What this does is establish for the first time that there is a distinct 'human fingerprint' in the changes in precipitation patterns the increases in rainfall observed in the northern hemisphere mid-latitudes, which includes Britain.
"That means, it is not just the climate's natural variability which has caused the increases, but there is a detectable human cause climate change,caused by our greenhouse gas emissions. The 'human fingerprint' has been detected before in temperature rises, but never before in rainfall. So this is very significant.
The evidence will be published by Nature on Wednesday.
I'd like to claim that - if true - this new evidence reduces the economic argument for collective action against global warming.
In a recent talk on "Collective Goods Problems" that I gave in Cambridge, I tried to make the case that excludability and jointness of use (the two characteristics typically used to define a "public good") are cultural classifications. Because of this there's nothing inherent about goods, therefore economics cannot provide objective criteria to categorise on these grounds. This is a subjectivist argument, articulated well by Aaron Wildavsky:
This claim of externalities makes a good introduction to the assertion that there is a privileged class of goods so essentially public that government is justified in producing them if they are not available at all, or if they already exist, in providing more of them than people are willing to pay for. For the realization that externalities are what we think they are, even what we want them to be, brings us to the irremediable subjectivity of the concept of goods.
A good is not an item in a store with a price tag on it. If that were so, any one of us could put any item in any store at any price. No, a good is something someone values in exchange; someone is willing to give up something else for it. Truly, goods are goods only for those in whose eyes they are good enough.
Wildavsky 1998, p.23
The bottom line here is that a public goods argument rests on agreement about what we all define as externalities, and indeed what we define as "goods". If there's no unanimity about either of these points, economic science has no objective criteria by which to mediate.
Consequently, lets consider the following 3 statements:
a. Global warming is likely to lead to more rainfall
b. Global warming is influenced by man
c. Parts of the world suffer from drought
The evidence from Nature mentioned above suggests that a is true. b seems to be a fairly consensual position. And surely c is irrefutable.
What these points taken together suggest, is that mankind has discovered a way of influencing the global climate, without necessarily having a unanimous position on how to use it. *If* we can affect the weather, it *might* be possible to improve the lives of some people.
What this evidence from Nature suggests, is that the case for collective action - of government action - to improve upon the failures of a market system, is strengthened. But the economic rationale for doing so has weakened. There's convincing justification for government to combat global warming, but politicians cannot and therefore should not use economic rationale for doing so. It's a way to bamboozle a public held in the sway of science. But the emperor has no clothes.
* NB. I'll remind everyone that despite your inevitable and understandable instincts, I am not a "global warming skeptic".
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