11 December 2016, The Guardian, On climate change and the economy, we’re trapped in an idiotic netherworld. The shrieks of horror that follow mentions of pricing carbon show politics remains wedded to the belief that economic growth trumps concerns of climate change. This week was a prime example of how economics and, by extension, politics doesn’t cope very well with the issue of climate change. The news that Australia economy went backwards in the September quarter was greeted with alarm by politicians and then used as a reason to push their policy barrow. And most of the barrows were piled high with coal. The treasurer and the prime minister in their press conferences on Wednesday made great mention of the need to keep electricity prices low for the economy to grow. Malcolm Turnbull especially was in full Tony Abbott 2010 mode out of a desire to cover the silly back flip on the issue of investigating whether or not to introduce an emissions intensity trading scheme. When asked about the prospect of GDP growth going backwards he immediately responded by suggesting the issue was for Bill Shorten to “explain why he is proposing to increase the price of electricity”. Never mind that such a scheme would more efficiently price emissions than does the current system, for now we remained trapped in an idiotic netherworld where any mention of pricing carbon (no matter how oblique) must be greeted with shrieks of horror, with the prime minister leading the chorus. And while you do wonder if Malcolm Turnbull ever looks in the mirror in the morning and asks himself how it all came to this – or whether he first rings Cory Bernardi to ask whether he is allowed to look into the mirror and ask such questions – the broader issue is that this netherworld is one that inherently sees action on climate change as a negative for the economy. And by contrast, the economic impact of anything that will cause climate change is seen as inherently positive. Read More here
Tag Archives: consumption
8 December 216, The Guardian, Why electric cars are only as clean as their power supply. Experts argue whether electric cars are worse for the environment than gas guzzlers once the manufacturing process and batteries are taken into account. Jorge Cruz has just finished his overnight shift stacking shelves at Whole Foods in Los Altos, California, and is waiting at the bus stop outside. Like much of Silicon Valley, there’s a regular flow of Tesla, BMW, Nissan and Google electric cars that cruise past from their nearby headquarters, and Cruz rather likes them. “I really wouldn’t mind having an electric car,” he says, though his first choice is probably a Honda or an Acura. Regardless, for now, he rides the bus. “I need to save up for a car,” he explains. As Cruz waits, a newly purchased Tesla zips by, advertising “ZERO EMISSIONS” on its license plate. Electric cars have never been closer to the mainstream, the market pushed ahead by California subsidies for electric car buyers, and a wide array of new models from established car firms such as Toyota and Chevy. Tesla’s focus on luxury, high-performance vehicles has also broadened their appeal; electric cars are no longer purely an environmental statement, but a tech status symbol too. Yet the “zero emissions” claim grates on some experts, who have continued to argue over whether electric cars are really more environmentally friendly than gas guzzlers, once the manufacturing process for the vehicles and their batteries are taken into account. Read more here
30 November 2016, BIEN, Catalonia (Spain): Catalonian Economy and Tax Office presents profound study on social policies, featuring basic income. In the Spanish region of Catalonia, serious efforts are being made to reduce poverty and to reduce inequalities. Last week, on the 17th of November, the Catalan Economy and Tax Office presented a thorough study on social policies, which includes the contributions of 30 academics and other experts and technicians. The document points out that current restrictions on the Catalan regional government public policies are stalling necessary changes, such as the implementation of more redistributive measures. This is due, in part, to the fact that the main tax revenue is managed by the Spanish State. The Catalan regional government is making attempts to address poverty and inequality, with the 2017 regional budget considered to be “the most social ever”. Under the new budget, more tax will be collected from both large property transfers and non-productive assets, and put into a budget that surpasses all other previous budgets in terms of social spending (education, health and social affairs). Despite this, Catalan officials recognize that the government should do even more to reduce poverty and tackle inequalities. Although Catalonia’s poverty rate (19%) is lower than the Spanish average (22,1%), it is still above the European Union’s average poverty rate (17,2%). Catalonia also faces a persistently high unemployment rate (11,2%), despite the economic recovery in recent years. The document presented by the Economy and Tax Office in Catalonia recommends profound changes to the regional social benefits scheme, which has been inadequate in poverty alleviation and prevention. At one point, it refers to basic income as a possible solution to this structural social problem. The regional basic income would amount to an unconditional allowance of 7471 €/year for every adult citizen, plus a 1494 €/year for every child (under 18 years of age) in Catalonia. According to the study, replacing all current benefits which are valued below the basic income amount would save around 90 thousand million euros per year, in 2010 numbers. The study also states that basic income would reduce inequalities and allow young people to enjoy a larger degree of freedom and emancipation. Read More here
4 November 2016, The Conversation Company directors can be held legally liable for ignoring the risks from climate change. Company directors who don’t properly consider climate related risks could be liable for breaching their duty of due care and diligence, a new legal opinion has found. Although the alarm for business leaders has been sounding for some time, the release of the opinion by senior barristers and leading solicitors confirms the potential liability for Australian company directors. Australian companies are particularly exposed to the physical, transition and liability risks posed by climate change. The Paris Climate Agreement, which comes into force today, brings the transition risks (and opportunities) forward, given the policy and business changes necessitated by the agreement’s commitment to a sustainable economy. Directors’ liability hinges on the foreseeability of risks or opportunities material to the best interests of the company. Courts have long experience of finding fault for inadequate responses to foreseeable risks, even where there is supposed uncertainty. Examples of this are when health risks associated with HIV and asbestos were improperly understood or managed. A defendant can be liable even though they are ignorant, if a reasonable person would have known about them. Some corporate leaders might want to hit the snooze button again, but today’s challenges to business as usual are acute. The long foreseen economic and environmental impacts of a changing climate are intensifying. Legally, any excuse that prior uncertainty about the science or impacts of climate change may have previously afforded directors has expired. Corporate leadership ignoring interdependent economic, social and environmental risks and drivers of value has never been a sustainable long term strategy. Here are four reasons why there is only upside for business leaders to change course: Read More here