Posts tagged ‘India’

Cortlandt Homes

In India, Tata corp.  has a plan to build condos that would sell for as little as $8000 a unit.  Which got me thinking about the cost of regulation in the US.  Take California, a state that has an explicit government goal to promote affordable housing.  My bet is that the permitting alone would cost more than $8000 a unit, and building code mandates would certainly make such a figure impossible.

I have always thought it funny that residents of the San Diego coast, with perhaps the mildest climate in the country, have the most onerous requirements in the country for insulation and air conditioning efficiency.  Its like requiring residents of Seattle to put on sun screen every day.

Wealth and the Olympics

One of Megan McArdle's readers wonders why India, which in population is larger than any other country save China, has so few Olympic medalists.  I think the answer is fairly easy:  wealth.

It's a situation very parallel to the Italian Renaissance.  Then, the issue was the proliferation of so many great artists rather than athletes, but the fundamentals were fairly similar.  For a society to be able to give up its strongest and most talented youth to non-productive (meaning they don't contribute to food, clothing, or shelter) occupations like painting or competitive swimming requires a lot of wealth and leisure time.  Subsistence farmers can't give up a strong back from the fields, much less pay any kind of specialized training costs.  The explosion of artists in the Italian Renaissance was made possible
by an explosion of wealth in the great Italian city-states of Florence
and Venice and the like.   Further, wealth also means better neo-natal care and better childhood nutrition which leads to bigger and stronger adults. 

As with Renaissance painters, modern Olympic athletes need either a family that is wealthy enough to give up their labor and support him or her; or, they need a wealthy patron; or, they need support of the government.  US Olympic athletes generally have some of all three, though the role of the government is smaller than in other nations thanks to corporate patrons and the relative wealth of the American middle class.  China, and before it Russia, were successful because, lacking the first two, they had the government shoulder the entire burden.  India has chosen not to go the government route, which is fine.  It will have its successes in time, as the exploding middle class will raise kids who have the time and money to pursue excellence in various sports.

The Carbon Offset Sausage Factory

For quite a while, I have been arguing that cap-and-trade schemes are inferior to straight carbon taxes because of their susceptibility to rent-seeking and manipulation.  At the top of the list of problems is the carbon offset issue, the notion that someone can create and sell an offset to cap limits by reducing CO2 emissions in some novel way.  The offset products that exist to day are tremendously suspicious, as I wrote here and here.  In particular, the ability to resell the same emission reduction multiple times is a real danger.

The Guardian has an interesting look at the offsets being created by that bastion of good governance and management science, the United Nations.

The world's biggest carbon offset market, the Kyoto Protocol's clean
development mechanism (CDM), is run by the UN, administered by the
World Bank, and is intended to reduce emissions by rewarding developing
countries that invest in clean technologies. In fact, evidence is
accumulating that it is increasing greenhouse gas emissions behind the
guise of promoting sustainable development. The misguided mechanism is
handing out billions of dollars to chemical, coal and oil corporations
and the developers of destructive dams - in many cases for projects
they would have built anyway.

According to David Victor, a
leading carbon trading analyst at Stanford University in the US, as
many as two-thirds of the supposed "emission reduction" credits being
produced by the CDM from projects in developing countries are not
backed by real reductions in pollution. Those pollution cuts that have
been generated by the CDM, he argues, have often been achieved at a
stunningly high cost: billions of pounds could have been saved by
cutting the emissions through international funds, rather than through
the CDM's supposedly efficient market mechanism.

The key problem, as I have pointed out before, is how do you know the reduction is truly incremental?  How do you know that it would not have occured anyway:

The world's biggest carbon offset market, the Kyoto Protocol's clean
development mechanism (CDM), is run by the UN, administered by the
World Bank, and is intended to reduce emissions by rewarding developing
countries that invest in clean technologies. In fact, evidence is
accumulating that it is increasing greenhouse gas emissions behind the
guise of promoting sustainable development. The misguided mechanism is
handing out billions of dollars to chemical, coal and oil corporations
and the developers of destructive dams - in many cases for projects
they would have built anyway.

According to David Victor, a
leading carbon trading analyst at Stanford University in the US, as
many as two-thirds of the supposed "emission reduction" credits being
produced by the CDM from projects in developing countries are not
backed by real reductions in pollution. Those pollution cuts that have
been generated by the CDM, he argues, have often been achieved at a
stunningly high cost: billions of pounds could have been saved by
cutting the emissions through international funds, rather than through
the CDM's supposedly efficient market mechanism....

One glaring signal that many of the projects being approved by the
CDM's executive board are non-additional is that almost three-quarters
of projects were already complete at the time of approval. It would
seem clear that a project that is already built cannot need extra
income in order to be built.

LOL, yes that might be a good indicator something is amiss.  The other problem, beyond the staggering amount of outright corruption one would expect from any UN-operated enterprise, is this oddity:

Any type of technology other than nuclear power can apply for credits.
Even new coal plants, if these can be shown to be even a marginal
improvement upon existing plants, can receive offset income. A massive
4,000MW coal plant on the coast of Gujarat, India, is expected soon to
apply for CERs. The plant will spew into the atmosphere 26m tonnes of
CO2 per year for at least 25 years. It will be India's third - and the
world's 16th - largest source of CO2 emissions.

So nuclear plants, the one proven economic and scalable power technology that is free of CO2 emissions is the one technology that is excluded from the program?  But 4,000MW coal plants that can proves they are marginally more efficient than they might have been are A-OK?

Clintons: Welcome to 1905

Bill Clinton is at least honest to some extent in saying that cutting back on CO2 emissions will requires us to throttle back the economy:

In a long, and interesting speech, he [Bill Clinton] characterized what
the U.S. and other industrialized nations need to do to combat global
warming this way: "We just have to slow down our economy and cut back
our greenhouse gas emissions 'cause we have to save the planet for our
grandchildren."

But how much?  Activists try to make the average person feel like the amount is "not much" by spinning out rosy stories of 3rd graders fighting global warming by recycling.  But in fact Bill's wife Hillary makes the degree of cuts clearer:

...[Clinton's] plan would reduce greenhouse gas emissions by 80 percent from 1990 levels by 2050 to avoid the worst effects of global warming...

And recognize, this is the typical figure being cited by global warming catastrophists for "necessary" US cuts.  So how much is 80%?  With current technology, an almost unimaginable cut.  Its hard to get good Co2 data, but here is a chart from some place called the Carbon Dioxide Information Analysis Center that purports to show US historic CO2 production from man-made sources:
Usaco2_2

The chartsmanship sucks here, but 1990 looks like about 1.35 billion metric tons.  20% of that would be 0.27 billion metric tons.  That appears to be the level we hit in about ... 1905.  So, apparently without using nuclear power (since Clinton opposed nuclear expansion in one of the debates, I think in Nevada)  she wants us in the next 42 years to get back to the energy production of about 1905.  Now this is a bit unfair, since efficiencies and GDP per ton of CO2 have improved substantially since 1905.  So to be fair she may only want to take us back to about 1930.

While this is scary, what Clinton and other global warming crusaders want to do to the third world is even scarier.  Right now, close to a billion people who have been in poverty forever are posed, via growth in China, India, and SE Asia, to finally exit poverty.  Global warming crusaders want this to stop.  For example, here is the former World Bank chief economist Nicholas Stern says that India must stay poor:

Mr
Stern, the former chief economist of the World Bank, sends out a very
clear message: "We need to cut down the total amount of carbon
emissions by half by 2050." At current levels, the per capita global
emissions stand at 7 tonnes, or a total of 40-45 gigatonnes. At this
rate, global temperatures could rise by 2.5-3 degrees by then. But to
reduce the per capita emissions by half in 2050, most countries would
have to be carbon neutral. For instance, the US currently has, at 20-25
tonnes, per capita emissions levels that are three times the global
average.

The European Union's emission levels stand at 10-15
tonnes per capita. China is at about 3-4 tonnes per capita and India,
at 1 tonne per capita, is the only large-sized economy that is below
the desired carbon emission levels of 2050. "India should keep it that way and insist that the rich countries pay their share of the burden in reducing emissions," says Mr Stern.

No cars for these folks either!

Staggering Arrogance

This is a story that most people who care for humanity would consider good news:

After years of secret preparation, the world's cheapest car will be unveiled in Delhi this week...At 100,000 rupees (£1,290), the People's Car, designed and
manufactured by Tata, is being marketed as a safer way of travelling
for those who until now have had to transport their families balanced
on the back of their motorbikes.

Ratan Tata, 70, chairman of the
family-run business, who has spearheaded the race for a cut-price car,
wrote on the company website: 'That's what drove me - a man on a
two-wheeler with a child standing in front, his wife sitting behind,
add to that the wet roads - a family in potential danger.'

But Tata hopes also to create a 'new market for cars which does not
exist', making them accessible to India's booming middle classes made
recently rich by an economy growing at around 9 per cent a year. ...

Last
year just over one million cars and seven million motorbikes were sold
in India. Tata wants to transform some of those motorbike buyers into
car owners and believes that the company can eventually sell up to a
million People's Cars a year. Analysts say the project could
revolutionise car prices, not just in India, but globally. Several
other manufacturers have similar products in the pipeline.

Awesome.  This is a story about three quarters of a billion people who have lived in poverty, well, forever, starting to join the middle class.

But many environmentalists, about 100% of whom I would venture to say own a car themselves, oppose this transition to prosperity:

'There is this mad rush towards lowering the prices to achieve mass
affordability,' said Anumita Roychoudhury, of the Centre for Science
and Environment in Delhi. 'If vehicle ownership increases very rapidly,
we'll have a time bomb ticking away. When you lower the price that
drastically, how will you be able to meet the safety and emissions
standards? There are no clear answers yet.'

I would challenge this person to design a car that doesn't crash test better than a motorbike.  This is just incredible arrogance, attempting to deny millions of people the prosperity which western environmentalists already share.  (via Maggies Farm)

Postscript: The fact is that environmental quality in every developing nation tends to follow a J-curve.  Early stage development tends to muck things up a bit (think air quality in 1018th century Pittsburg or in China today) but things improve as people get wealthier.  Places like China and India are in some of the lowest reaches of that J-curve.  Attempting to freeze their development in place not only arrogantly denies these folks prosperity, but also cuts off future environmental gains that come with wealth.

Now I'm Really Mad at Ethanol Subsidies

OK, I was mad at the waste of tax dollars for ethanol programs that do nothing for the environment or to reduce net fossil fuel consumption.  I was mad that a technology that in no way reduces CO2 production but does introduce radical new land-use-related environmental problems could be sold as an environmental panacea, rather than the corporate welfare it truly is.  I was mad we have decided it is more important to subsidize corn farmers than to continue to provide the world's poor with cheap food.  And I was flabbergasted that Congress could call for production of more corn-based ethanol than is physically possible with our entire corn crop.

But I really am mad now that ethanol subsidies are making craft beers rarer and more expensive to make:

A global shortage of hops, combined with a run-up in barley prices, is
sending a chill through Arizona's craft-beer industry.

The hops shortage threatens to boost prices, cut into profits and close
down brewpubs. It could change the taste and consistency of treasured
local ales.

In Bisbee, "hop heads" already are weaning themselves from Electric
Dave's India Pale Ale. Dave Harvan closed his 7-year-old Electric
Brewing Co. in November, citing the scarcity and high cost of
ingredients.

So why aren't as many farmers growing hops and barley?  Because the government is paying them ridiculous jack to grow corn so we can burn food into our cars:

Papazian attributed the barley prices to ethanol subsidies that have
raised the price of corn, the main ingredient in the alternative fuel.
As a result, farmers have switched to barley for livestock feed, which
has pushed up prices.

The hops situation is more complex. Years of overproduction and low
prices led farmers to replace hops fields with more profitable crops.
Add to that corn subsidies that have caused farmers to replace hops
fields with corn, a drought in Australia that affected yields and heavy
rains in Europe that ruined much of this year's crop.

New York Inspired Thoughts on City Planning

I really can't stand to be in New York City for very long.  The crowds, the hassles and the lines all conspire to drive me crazy.  Every second I feel like I am packed around by more people, and I find it horribly claustrophobic.

If your immediate reaction to this statement is to feel like I am attacking you or your lifestyle, you are wrong.  My purpose is not to say that those who love it here in NYC are making an incorrect choice, for they are not.  If they derive energy from the people and the density and all the amenities that density can justify, great.  It is in fact an interesting (and depressing) feature of modern discourse that my saying that I don't personally choose a certain lifestyle is found as threatening to people who do.  Why should it?  My only answer is that this zero-sum statist society of activists has created the expectation that the next step of anyone who expresses a negative preference for something will be to run to the government to get it banned.

The reason I bring my preference up at all is that the vast majority of city planners get a huge hard-on for New York.  Their goal is to turn the world into Manhattan.  They wish to maximize densities and minimize personal automobile use and, well, backyards.  In other words, a bunch of folks who have the ear of the government wish to use the coercive power of the government to turn the world into something I can't live in.  Again, I have no problem with New Yorkers having New York, but why does Scottsdale have to be New York too?

By the way, on a quasi-related topic, the Anti-Planner has an interesting observation:  Supposed gains in sustainability in high-density urban areas have more to do with making everyone poor than with the density  (emphasis added):

Many planning advocates take it for granted that sprawl and auto driving are inherently unsustainable. McShane shows
just how this attitude can go when he describes Halle Neustadt, which
some Swedish urban planners once described as "the most sustainable
city in the world."

McShane here refers to some field work
done by the Antiplanner. To make a long story short, what made Halle
Neustadt "sustainable" was poverty
, and as soon its residents gained
some wealth, many of them moved out and most of the rest bought
automobiles, turning the cities many greenspaces into parking lots.

Owen then turns to climate change, which he describes as the last gasp
of smart growth. Smart growth, he notes, "has always been a policy in
search of a justification, a solution in search of a problem." Now, in
climate change, smart-growth advocates hope they have found such a
problem.

One difficulty, McShane notes, is that there is no guarantee that
smart growth is really more greenhouse-friendly than ordinary sprawl.
Depending on load factors, Diesel trains can emit more greenhouse gases
per passenger mile than autos, and concrete-and-steel high-rise condos
can emit more CO2 than wood homes.

McShane refers in particular to an Australian study
that found that "place doesn't matter," that is, low densities were not
particularly greenhouse unfriendly. Instead, income was much more
important, meaning that the high-rollers living in million-dollar
downtown condos were generating far more greenhouse gases than
moderate-income suburbanites
.

Which implies that the "solution" to sustainability (whatever that is) and CO2 emissions is to promote poverty.  That may seem like a tongue-in-cheek exaggeration, but in fact the latest IPCC warning on climate relies heavily on the work of Nicholas Stern, who says the solution to global warming is to make western income levels look more like those in India (emphasis added):

Mr Stern, the former chief economist of the World Bank, sends out a
very clear message: "We need to cut down the total amount of carbon
emissions by half by 2050." At current levels, the per capita global
emissions stand at 7 tonnes, or a total of 40-45 gigatonnes. At this
rate, global temperatures could rise by 2.5-3 degrees by then. But to
reduce the per capita emissions by half in 2050, most countries would
have to be carbon neutral. For instance, the US currently has, at 20-25
tonnes, per capita emissions levels that are three times the global
average.

The European Union's emission levels stand at 10-15
tonnes per capita. China is at about 3-4 tonnes per capita and India,
at 1 tonne per capita, is the only large-sized economy that is below
the desired carbon emission levels of 2050. "India should keep it that way and insist that the rich countries pay their share of the burden in reducing emissions," says Mr Stern.

Translation: India should stay poor and the West should become that way.

Analysis of "New" UN Climate Warming

Under
mounting pressure from climate catastrophists to ignore uncertainties
in the science and to produce definitive statements that can be used as
calls for government interventionism, the UN will apparently release a new "warning" this week:

Global
warming is destroying species, raising sea levels and threatening
millions of poor people, the United Nations' top scientific panel will
say in a report today that U.N. officials hope will help mobilize the
world to take tougher actions on climate change.

The report
argues that only firm action, including putting a price on
carbon-dioxide emissions, will avoid more catastrophic events.

Those
actions will take a small part of the world's economic growth and will
be substantially less than the costs of doing nothing, the report says.

For the first time, the UN is trying to
argue explicitly that the cost of CO2 abatement is lower than the cost
of doing nothing.  They are arguing that a cooler but poorer world is
superior to a warmer and richer world.  I am glad they are finally
arguing this point.  Because while we can argue about the truth of how
much the world has warmed and how much is due to man, the UN is DEAD
WRONG on this point.  The cost of aggressive CO2 abatement is far, far
higher than the cost of doing nothing.

The report presumably will be released by UN Secretary-General Ban Ki Moon, who demonstrated his stunning ignorance of climate science, geology, and geography on a recent climate-junket to Antarctica.  Let's take it line by line.

Is man destroying or threatening species?  Absolutely.  Is this threat from CO2 and warming? No, and I have read every inch of the UN IPCC report and you can find no evidence for this proposition.
But saying this rallies the environmental base (the hard core
environmentalists don't really care about poor people, at least when
their interests conflict with animals).  Most of the evidence is that
species thrive in warmer weather, and polar bears have survived several
inter-glaciation periods where the north pole melted entirely in the
summer.

Are sea levels rising?  Yes.  In fact, they have been
rising for at least 150 years, and in fact have been rising steadily
and at roughly the same rate since the last ice age.  We have seen
absolutely no acceleration of the underlying sea level rise trend.
Further, the UN's IPCC does have a forecast for sea level rise over the
next century.  Even using temperature forecasts I consider exaggerated,
the UN does not forecast more than about a foot of sea level rise over
the coming century, only a bit more than what the sea level has risen
over the last 150 years.  This is a great example of the disconnect
between the UN political climate reports and the science underlying
them.  The guys writing the summary know that their report says only a
few inches of sea level rise, so they just say it is rising, and then
let the crazies like Al Gore throw around numbers like 20 feet.

Here is an interesting thought:  If I say the sea levels
will rise 0" over the next 100 years, the UN will call me out and say I
am wrong.  However, when Al Gore said sea levels will rise 20 feet in
his movie An Inconvenient Truth, no one at the UN or the IPCC
called him out, despite the fact that my forecast was only a few inches off from theirs and his was 19 feet off the mark.

And of course, there are the poor.  The number one biggest
losers in any effort to abate CO2 emissions will be the poor.  In
wealthy countries like the US, the poor will be the hardest hit by $10
or even $20 gas prices that would be necessary to rolling CO2
production back to 1990 levels.  In the third world, nearly a billion
people just starting to emerge from poverty will have no chance of doing so if their economies are hamstrung with CO2 limits.  The poor will be devastated by aggressive CO2 limits.

Weighed against this economic disaster would be, what?
How would rising world temperatures hurt the poor?  Well, its not at
all clear.  A foot of sea-level rise is very unlikely to hurt many poor
people, though it might inconvenience a few rich owners of beach-front
luxury homes.  Here is a clarifying question I often ask people --
would you rather fifteen Atlantic hurricanes each year, or sixteen
hurricanes each year and Carribbean economies that are twice as rich
and therefore have twice the resources to handle hurricanes.  This is
the colder and poorer vs. warmer and richer choice.  We see this in Bangladesh today.  Why do orders of magnitude more people die in Bangladesh cyclones than class 5 hurricanes on the US shore?  Because they are poor, not because of anything having to do with global warming.

It is often claimed that global warming will cause
droughts, but in fact warmer world temperatures will vaporize more
water in the atmosphere and should net increase rain, not drought.  And
many of the farmers in the northern hemisphere would enjoy longer
growing seasons and thereby more food production.

Glaciers
and ice caps are melting at a rapid rate; animals and plants are
shifting their range to accommodate warmer air and water; and planting
seasons are changing, the report said.

Yes, land-based ice is melting in the Northern Hemisphere.  This is 15% of the world's ice.  85% of the world's ice is in Antarctica, which is increasing.
Seriously.  I know you don't believe this if you trust the media, but
the ice that is melting in Greenland is tiny compared to the ice that
is increasing at the South Pole.  In fact, the IPCC gets most of its
prjected sea rise from thermal expansion of warmer oceans, not from ice
melting.  And don't you love the "planting seasons are changing."  That
sounds like its scary, or something, until you recognize the truth is
that planting seasons are changing, becoming longer and more beneficial to food production!

On many occasions, I have discussed the bad science that
goes into these apocalyptic forecasts.  But that science is of top
quality compared to the economics that must have gone into the
statement that:

The most
stringent efforts to stabilize greenhouse gases would cost the world's
economies 0.12 percent of their average annual growth to 2050, the
report estimates.

This is absolute, unmitigated crap.
Though I have not seen specifics in this report, the UN's position has
generally been that emissions should be rolled back to 1990 levels (the
target embodied in the Kyoto treaty).  Such a target implies reductions
of more than 20% from where we are today and well over 50% from where
we will be in 2050.  These are enormous cuts that cannot be achieved
with current technology without massive reductions in economic growth.
The world economy is inextricably tied to the burning of fossil fuels.
And, unlike ancillary emissions like SO2, CO2 emissions cannot be
limited without actually reducing carbon combustion since it is
fundamental to the combustion chemistry.  Even supporters of
legislation such as the Bingaman-Specter bill admit that as much as a
trillion dollars will need to be spent to reduce global temperatures
about 0.13C.  And that is a trillion for the first tenth of a degree --
the law of diminishing returns means that each additional tenth will
cost more.

Lets look at history as our guide.  Most of the European
countries and Japan signed onto the Kyoto Treaty to reduce emissions to
1990 levels.  They have taken many expensive steps to do so,
implemented many more controls than in the US, and have gas prices as
much as double those in the US.  During the period since 1990, most of
these countries, unlike the US and China and India, have been in a deep
and extended economic recession, which tends to suppress the growth of
fossil fuel consumption.  Also, the CO2 numbers for countries like
Russia and Germany benefit greatly from the fall of the old Communist
Block, as their 1990 base year CO2 numbers include many horribly
inefficient and polluting Soviet industries that have since been shut
down.  And, given all this, they STILL are going to miss
their numbers.  These countries have experienced reductions in economic
growth orders of magnitude greater than this 0.12 percent quoted by the
UN, and that still is not enough to reduce CO2 to target levels.  Only
outright contraction of the world's economy is going to suffice [note:
A strong commitment to replacing coal plants with nuclear might be a
partial solution, but it will never happen because the people calling
for CO2 controls are the same ones who shut down our nuclear programs.
Also, technological change is always possible.  It would be awesome if
someone found a way to roll out sheets of efficient solar cells like
carpet out of Dalton, Georgia, but that has not happened yet.]

The UN has gotten to such low cost estimates for their
government controls because they have convinced themselves, much like
the promoters of building football stadiums for billionaire team
owners, that they will get a huge return from the government CO2
controls:

"There is high
agreement and much evidence that mitigation actions can result in
near-term co-benefits, for example improved health due to reduced air
pollution, that may offset a substantial fraction of mitigation costs,"
said the report, which summarizes research over five years of more than
2,000 of the world's top climate-change scientists...

The U.N. panel embraced the arguments of British economist
Nicholas Stern, who concluded last year that the cost of taking tough
measures to curb pollution will be repaid in the long run.

Nicholas
Stern?  Haven't we heard that name before?  Why, yes we have.  He is
the man that said that all of the world's climate problems would go
away if we forced all the western economies to look just like India.

Mr
Stern, the former chief economist of the World Bank, sends out a very
clear message: "We need to cut down the total amount of carbon
emissions by half by 2050." At current levels, the per capita global
emissions stand at 7 tonnes, or a total of 40-45 gigatonnes. At this
rate, global temperatures could rise by 2.5-3 degrees by then. But to
reduce the per capita emissions by half in 2050, most countries would
have to be carbon neutral. For instance, the US currently has, at 20-25
tonnes, per capita emissions levels that are three times the global
average.

The European Union's emission levels stand at 10-15
tonnes per capita. China is at about 3-4 tonnes per capita and India,
at 1 tonne per capita, is the only large-sized economy that is below
the desired carbon emission levels of 2050. "India should keep it that way and insist that the rich countries pay their share of the burden in reducing emissions," says Mr Stern.

Which,
by the way, is exactly my point.  I very much hope Mr. Stern continues
to make this clear in public.  One of the ways catastrophists support
their cause of massive government interventionism is to try to portray
the answer as little cutsie actions, like your 5-year-old helping with
the recycling
.  This is not what is require to meet these targets.
What is required is ratchet down the US economy until we are all about
as wealthy as the average Indian.  I guess that would at least take
care of the outsourcing "problem."

One of the ways that the UN gets away with this is that no
one has the time to read the detailed scientific report, and so
reporters rely on the summaries like these.  Unfortunately, the same
people who write the scientific sections are not the people who write
the summaries.  Careful language about uncertainties, which are still
huge, in the science are replaced by summaries written by politicians
that say:

The near-final draft,
approved Friday by representatives of more than 140 governments meeting
in Valencia, Spain, said global warming is "unequivocal" and said man's
actions are heading toward "abrupt or irreversible climate changes and
impacts."...

"This will be viewed by all as a definitive report. It is
the blueprint for the Bali talks," said Sen. John Kerry, D-Mass., who
will be at the Indonesian U.N. meeting beginning Dec. 3 as part of a
U.S. senatorial delegation.

Another
technique used by the UN that we see in play here is their willingness
to cherry-pick one author that follows the UN narrative to refute a
whole body of science that is contrary to the narrative.  Thus, the UN
latched onto Michael Mann's hockey stick to overturn a consensus that
there was a Medieval warm period, and now they have latched onto
Nicholas Stern to overturn the opinion of, approximately, every other
economist in the world who think CO2 mitigation will be really
expensive.

As always, you are encourage to view my movie What is Normal:  A Critique of Catastrophic Man-Made Global Warming Theory or check out my book (free online) called A Skeptical Layman's Guide to Anthropogenic Global Warming.

By the way, in the title I put "new" in quotes.  Here is why.  I just read a presentation by Dr. Richard Lindzen from 1992 that shows that catastrophists were declaring the debate "over" as early as 1989, before any real research had even been performed:

By early 1989, however, the popular media in Europe and the United States were declaring that "all scientists'' agreed that warming was real and catastrophic in its potential.
...
In the meantime, the global warming circus was in
full swing. Meetings were going on nonstop. One of the more striking of
those meetings was hosted in the summer of 1989 by Robert Redford at
his ranch in Sundance, Utah. Redford proclaimed that it was time to stop research and begin acting.
I suppose that that was a reasonable suggestion for an actor to make,
but it is also indicative of the overall attitude toward science.
Barbara Streisand personally undertook to support the research of
Michael Oppenheimer at the Environmental Defense Fund, although he is
primarily an advocate and not a climatologist. Meryl Streep made an
appeal on public television to stop warming. A bill was even prepared
to guarantee Americans a stable climate

Let's Emulate India!

Over at Climate Skeptic, we can see Nicholas Stern, former chief economist of the World Bank, argue that the only way to really abate CO2 is for all the world's countries to be just like India.  I kid you not.  And, in fact I agree with him that if we really wanted to eliminate CO2 emissions with current technology, exactly this kind of poverty promotion program would be required.  I just don't think it's necessary that we adopt such a goal. 

As a postscript, I take on Mr. Stern's temperature forecasts of 2.5-3 degree C rise by 2050 and show why they make absolutely no sense in light of the last 100 years of empirical data.

The Great Boom

Let me try something out on readers.  It strikes me that we are in the midst of what we may look back on as one of the great global economic booms of all time.  Here's my logic:  In the US, let's say that on average our labor is operating with a management and technology factor of "10." As management practices advance, and manufacturing and support technologies are developed, we might move this up to "11" [insert Spinal Tap joke].  We then enjoy the productivity upgrade of going from 10 to 11.  However, as the world invests in places like China and India, we see labor that has plugged along at "1" get brought up quickly towards "10."  What a huge change!  Two billion people with exponentially rising labor productivity -- what an enormous increase in wealth!

I think too many people look at the growth of China through the lens of low labor costs, and assume that as the wages in China begin to rise, the boom will be over.  But the source of wealth creation in China is not taking advantage of low wages, it is raising productivity.  The boom will continue as long as productivity increases by leaps and bounds; rising wages are just a sign that Chinese workers are getting a share of this productivity increase.

Free Trade Rules

Free trade, despite it enormous benefits, is constantly under attack.  Yesterday I heard a radio ad, with the sound of a toilet flushing, and the a voice over saying something like "that is the sound of 3 million jobs being lost due to NAFTA".  Since the US unemployment rate when NAFTA was passed was over 7% and is currently under 5.5%, its hard to figure out just how they did their math.  The problem is that it is relatively easy to spot job losses due to foreign competition (cars, apparel, memory chips) and much harder to find the jobs that were created due to lower cost materials supplies and increased exports.

Virginia Postrel has a really nice article in the NY Times (yes, reg required) on how industries and jobs have prospered due to NAFTA.

Economists argue for free trade. They have two centuries of theory and experience to back them up. And they have recent empirical studies of how the liberalization of trade has increased productivity in less-developed countries like Chile and India. Lowering trade barriers, they maintain, not only cuts costs for consumers but aids economic growth and makes the general public better off. 

Even so, free trade is a tough sell. "The truth of the matter is that we have one heck of a time explaining these benefits to the larger public, a public gripped by free trade fatigue," the economist Daniel Trefler wrote in an article last fall in The American Economic Review.

If you don't want to register, she has a longer excerpt at her site here.

Scrappleface: White House to Boost Empathy Statements

via Scrappleface:

As one unnamed reporter put it, "In the hours immediately following the disaster, millions of people in Thailand, India, Indonesia, Somalia and elsewhere turned their eyes toward America to discover whether the president would rush back to Washington D.C. and empathize with their plight. But Bush stayed in Crawford and made just one official statement, as U.S. military planes surveyed the damaged area and Air Force C-130 cargo planes with humanitarian goods headed for the region. It's as if Bush thinks that action is a substitute for news conferences."

LOL.  I have always hated the empathy dance after disasters, particularly the now required visit by the President to the disaster site.  What is he going to do?  The visit to the WTC site soon after the attack on 9/11 had value because it made a statement about security that gave confidence to people that they could return to Manhattan.  Why is it necessary, though, to tour hurricane damage by helicopter?  Isn't that the experts job? 

We had a number of our operations in Florida shut down for weeks after the recent hurricanes there.  Several of my friends asked me if I was going to go visit the damage.  "What for" I asked?  The damage had been described to me, and the folks in charge there who knew the area had a good plan in place for fixing things.  If I showed up, work would have to stop for a day while everyone showed me around.  The time to go back is after it is cleaned up, when you can thank everyone for their hard work.  But of course, I didn't have to deal with the media editorializing on my heartlessness because I didn't run to Florida and sight-see the damage.

Death of Kyoto

Kyoto and similar protocols are dying, and for entirely predictable reasons.  Story in TCS from Buenos Aires.

The conventional wisdom that it's the United States against the rest of the world in climate change diplomacy has been turned on its head. Instead it turns out that it is the Europeans who are isolated. China, India, and most of the rest of the developing countries have joined forces with the United States to completely reject the idea of future binding GHG emission limits. At the conference here in Buenos Aires, Italy shocked its fellow European Union members when it called for an end to the Kyoto Protocol in 2012. These countries recognize that stringent emission limits would be huge barriers to their economic growth and future development.

None too soon for me.

French vs. Anglo-American "Imperialism"

For some reason, a portion of our country has adopted France as the standard bearer of "anti-imperialism" (or at least anti-US imperialism). France publicly positions itself similarly, trying to make itself the leader and counterweight to US "Imperialism". I will leave aside for now the argument as to whether the US's recent actions constitute "imperialism". I will instead focus on the French as a role model.

The first thing that struck me was how long the French tried desperately to hold on to their colonial empire. Both the US and Great Britain either liberated or came to an acceptable living arrangement with their major colonies within a few years of the end of WWII. Both seemed to come to terms with the fact that the colonial era was over. The French, in contrast, were still involved in bloody conflicts in Indochina and Algeria to retain their empire through the late 50's and even into the early 60's.

So, I decided to do a little research to understand the relative success of French and Anglo-American colonies. Of course, when judging the success of a former colony, a lot of things come into play, and certainly the freed colony must take a substantial amount of responsibility for its own success and political freedom. However, after a bit of research, it is instructive to see how well prepared for independence Britain, France, and the US left their colonies. Did they leave the country with democratic systems in place and a capable local ruling class, or did they just suck the country dry and try to prevent any locals from gaining any capability.

To make this analysis, I have selected a number of each country's key colonies. Some of the smaller African and island nations have been left out. I also realize that I left off some of the ex-British middle eastern colonies, but I am too tired now to add them back in.

I have used two pieces of data to judge an ex-colony's success. First is GDP per capita, corrected for purchasing power parity, found in the 2003 CIA fact book via World Facts and Figures. The second is the Freedom index prepared by Freedom House.

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