Ignoring The Global Warming Risks Could Sink The US Economy

Ignoring Global Warming Risks Could Sink US Economy

Failure to factor immediate action on climate change into American policies and business plans aimed at economic prosperity will lead to havoc, warns former US Treasury Secretary.

For the second time in a month, Americans have been warned that the economic cost of not acting on climate change is likely to be calamitous.

Robert Rubin, the co-chairman of the influential, non-partisan Council on Foreign Relations, says the price of inaction could be the US economy itself.

Writing in the Washington Post, Rubin, a former US Treasury Secretary, argues: “When it comes to the economy, much of the debate about climate change − and reducing the greenhouse gas emissions that are fuelling it − is framed as a trade-off between environmental protection and economic prosperity,

“But from an economic perspective, that’s precisely the wrong way to look at it. The real question should be: ‘What is the cost of inaction?’”

Widespread Disruption Unless Action Is Taken

He backed the Risky Business Project, a research initiative chaired by a bi-partisan panel and supported by him and several other former Treasury Secretaries. It reported in June that the American economy could face significant and widespread disruption from climate change unless US businesses and policymakers take immediate action.

In his opinion article in the Washington Post, Rubin argues that, in economic terms, taking action on climate change will prove far less expensive than inaction. He wrote: “By 2050, for example, between $48 billion and $68 billion worth of current property in Louisiana and Florida is likely to be at risk of flooding because it will be below sea level. And that’s just a baseline estimate; there are other scenarios that could be catastrophic.

“Then, of course, there is the unpredictable damage from superstorms yet to come. Hurricane Katrina and Hurricane Sandy caused a combined $193 billion in economic losses; the congressional aid packages that followed both storms cost more than $122 billion.

“And dramatically rising temperatures in much of the country will make it far too hot for people to work outside during parts of the day for several months each year − reducing employment and economic output, and causing as many as 65,200 additional heat-related deaths every year.”

Rubin believes a fundamental problem with tackling climate change is that the methods used to gauge economic realities do not take climate change into consideration. He wants climate-change risks reflected accurately, and companies required to be transparent in reporting vulnerabilities tied to climate.

“If companies were required to highlight their exposure to climate-related risks, it would change investor behaviour, which in turn would prod those companies to change their behaviour,” he argues.

Flawed Picture When Come To Climate Data

“Good economic decisions require good data. And to get good data, we must account for all relevant variables. But we’re not doing this when it comes to climate change − and that means we’re making decisions based on a flawed picture of future risks.

“While we can’t define future climate-change risks with precision, they should be included in economic policy, fiscal and business decisions, because of their potential magnitude.”

Rubin says the scientific community is “all but unanimous” in agreeing that climate change is a serious threat. He insists that it is a present danger, not something that can be left to future generations to tackle.

“What we already know is frightening, but what we don’t know is more frightening still,” he writes. “For example, we know that melting polar ice sheets will cause sea levels to rise, but we don’t know how negative feedback loops will accelerate the process. . . And the polar ice sheets have already started to melt.”

He concludes: “We do not face a choice between protecting our environment or protecting our economy. We face a choice between protecting our economy by protecting our environment − or allowing environmental havoc to create economic havoc.”

The White House’s Council of Economic Advisers  has estimated that the eventual cost of cutting greenhouse gas emissions will increase by about 40% for every decade of delay, because measures to restrict them will be more stringent and costlier as atmospheric concentrations grow. − Climate News Network

About the Author

Alex Kirby is a British journalistAlex Kirby is a British journalist specializing in environmental issues. He worked in various capacities at the British Broadcasting Corporation (BBC) for nearly 20 years and left the BBC in 1998 to work as a freelance journalist. He also provides media skills training to companies, universities and NGOs. He is also currently the environmental correspondent for BBC News Online, and hosted BBC Radio 4's environment series, Costing the Earth. He also writes for The Guardian and Climate News Network. He also writes a regular column for BBC Wildlife magazine.

English Afrikaans Arabic Chinese (Simplified) Chinese (Traditional) Dutch Filipino French German Hindi Indonesian Italian Japanese Korean Malay Persian Portuguese Russian Spanish Swahili Swedish Thai Turkish Urdu Vietnamese

LATEST VIDEOS

Jay Inslee Tells Hayes That He Wants To Gut The Filibuster To Fight Climate Change
by MSNBC
Washington Governor Jay Inslee is running for president on the single issue of climate change and argues that doing…
Causes and Effects of Climate Change
by National Geographic
What causes climate change (also known as global warming)? And what are the effects of climate change? Learn the human…
Extreme Weather and Global Warming
by NASA Goddard
Is the frequency of extreme weather events a sign that global warming is gaining pace and exceeding predictions? Bill…
Thanks to Climate Change, Wet Winters No Match for Drier California Summers
by KPIX CBS SF Bay Area
If the emerald-green hills around Northern California have you thinking recent rains have put a damper on the fire…
Climate Change Is Not One Issue
by MSNBC
"Climate change is not one issue," said David Wallace-Wells, author of "The Uninhabitable Earth," but is…
The Heat: Climate change
by CGTN America
Images gathered by NASA show an increase in foliage in China and India. The greening effect is mainly due to ambitious…
No company is doing enough to combat climate change: Jeremy Grantham
by CNBC Television
Jeremy Grantham, co-founder of GMO, on climate change and what needs to be done to combat it.
Power Plants Are POISONING Groundwater All Over America
by The Ring of Fire
According to a new report, 90% of coal-fired power plants across the country have completely contaminated the…

LATEST ARTICLES

Default Image
Come on, UK weather forecasters – tell it like it is on climate change
by Adam Corner
They have a national reach that most climate campaigners would die for. They are familiar and respected experts on the…
Green New Deal: 6 places already reducing emissions from buildings
Green New Deal: 6 places already reducing emissions from buildings
by David Roberts
One of the elements of the Green New Deal resolution that has caused the most consternation among critics on the right…
Default Image
UK environmentalists target Barclays in fossil fuels campaign
by Matthew Taylor
A UK-wide campaign is being launched to persuade one of the country’s biggest high street banks to stop investing…
Oceanic carbon uptake could falter
Oceanic carbon uptake could falter
by Tim Radford
What does oceanic carbon uptake achieve? Greenhouse gas that sinks below the waves slows global warming a little and…
Britain (Yes, Rainy Britain) Could Run Short of Water by 2050, Official Says
Britain (Yes, Rainy Britain) Could Run Short of Water by 2050, Official Says
by Global Warming & Climate Change
“Climate change plus growth equals an existential threat,” Mr. Bevan said. To avoid severe water shortages, he added,…
Default Image
Record high US temperatures outpace record lows two to one, study finds
by Associated Press
Over the past 20 years, Americans have been twice as likely to sweat through record-breaking heat rather than shiver…
Climate change: Water shortages in England 'within 25 years'
Climate change: Water shortages in England 'within 25 years'
by BBC News - Science & Environment
Image copyright PA Image caption Low water levels at Wayoh Reservoir near Bolton in the UK heatwave in July 2018 Within…
Default Image
Why you'll never meet a white supremacist who cares about climate change
by Rebecca Solnit
As the news of the Christchurch mosque massacre broke and I scoured the news, I came across a map showing that the…