The interesting thing about global environmental problems, is the splendid platform from which they give politicians to spend money.
Consider the current plan from Gordon Brown to create a ‘fund’ to assist developing countries fight global warming. By the weekend, this fund has risen to a promised GBP13.4 bn (about $US22bn). The UK is going to contribute GBP800m of this (ha, what pesky recession).
Now, UNEP estimates of the global energy subsidy (that folks, is the amount of money governments elsewhere are spending to pay their citizens to burn fossil fuels) is $US300 bn every year. Within the OECD, agricultural subsidies (which pay farmers to have more ruminant animals, and to use more fertilisers) is about $280bn a year.
So, every year, governments spend around $US600bn to make global warming worse. You or I may have a straightforward and simple solution to this- just stop it. Fortunately, the leaders in which we have entrusted our future are too smart to be taken in by such a simple strategy. Afterall, does this not mean they will be forced to spend less money?
So, the really cunning plan we have, is to offset a global spendup of $600bn a year to make climate change worse, we’re going to spend $22bn- over three years. So, by 2013, we will have spent almost $2000bn making the problem worse, and $22bn making it better.
Could be time to be stocking up on canned goods.
Yes, we are doomed. Brendan Moyle Dec 01
2 Comments Leave a comment
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Brendan Moyle 1295 days ago
…and the nice thing, is that I haven’t counted the agricultural subsidies outside the OECD, nor the subsidies/distortions that encourage deforestation.
There are a number of political factors. One is that political decision cycles are often very short. Politicians need electoral payoffs in the short-term to stay in power. Doesn’t matter how noble their principles are, this is moot if you can’t stay elected. Kyoto afterall, was an agreement where costly actions were postponed and political kudos obtained upfront.
The cost of many subsidies are diffuse- spread over lots of people. But the people who receive the benefits are often fewer, more concentrated, and can exert a strong political effect. Ending many of these subsidies would create a new set of ‘winners’ and ‘losers’, and the losers aren’t at all keen on being made worse off. If you were an EU farmer, would you turn down a farmgate price that is 30% higher than international prices?
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