16 April 2020

Fatal calculations: How bad economics encouraged climate inaction

Pandemics and climate disruption are existential risks that require that particular emphasis be placed on the high-impact possibilities, not middle-of-the road outcomes. Released today by Breakthrough, Fatal calculations: How economics has underestimated climate damage and encouraged inaction, shows how economists  have ignored the real risks of climate change.  This is the introduction to the report.

by David Spratt and Alia Armistead

At the heart of global policymaking is a concern that mitigation should not be economically disruptive or curtail future growth in production. Perhaps as a consequence, and in order to mesh with this policy paradigm, the economic methods of analysis applied to climate change have underestimated the risks and provided reasons to delay action.

The evidence is all around us. Listen to most governments and business leaders, and especially those nations with a large carbon footprint, and the climate conversation for decades has been about taking it slowly; of incremental policy change that does not rock the economic boat, cost jobs, disturb growth or disadvantage significant national industries.  With minimal discussion about the jobs and growth that will be destroyed in a hotter world.