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Australia Economics of mitigation

December 4, 1989 – first anti-climate action economic “modelling” released in Australia

On this day, December 4 in 1989, the first anti-climate action “economics modelling” in Australia came out, and was reported by the business press. Oddly, they neglected to mention that the funding for this “research” came from… a company that was digging up and selling coal.  Can only have been space constraints that stopped them mentioning it, oh yes….

Australia will have to suffer the consequences of reduced economic growth to achieve the proposed international goal of a 20 per cent reduction in greenhouse gas emissions over 15 years, according to a group of leading economists.

A paper to be presented to a conference entitled Greenhouse and Energy, which starts at Macquarie University in Sydney today, states that, among other effects, the fight against the greenhouse effect will result in increased electricity bills and reduced increases in real wages.

Lawson, M. 1989. Fighting Greenhouse has an economic cost. Australian Financial Review, 4 December.  

[The amount of carbon dioxide in the atmosphere was 353ppm. At time of writing it was 419ishppm- but for what it is now,well, see here for the latest.]

The context was this – 

Everyone was talking about emissions cuts and how much (earlier in the year the Thatcher government had shat all over the Toronto Target (see here).

Why this matters. 

The “models” do not “reflect” reality. They are just made up bullshit.

John Kenneth Galbraith said it best – “The only function of economic forecasting is to make astrology look respectable.”

What happened next?

Those who want to stop climate action – because it would cut their profits and/or power, because it offends them, will always find some shonky “modellers” to give them the answers they want. Then equally shonky “journalists” will uncritically run the crap on page 1, and it will get picked up by shonky politicians… and presto, “common sense” is created.

See also – May 13, 1992 – Australian business predicts economic armageddon if any greenhouse gas cuts made

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