Economic Assessments Overwhelmingly Support Climate Action

Conservatives commonly argue that acting on climate change is too costly, however, this is contradicted by a slew of economic assessments. When we look at the data it becomes clear that conservatives use economic insecurity to obscure the facts and control the narrative.

There are a number of studies that show global warming undermines economic growth, but the most compelling data comes from cost benefit assessments.

Summary of Recent Reports on the Costs of Climate Action/Inaction

Reports are coming in that make it hard to ignore the economic benefits of action on climate change. This includes recent reports from Citi the world's third largest bank and the London School of Economics, one of the most prestigious and respected schools in the world.

In April 2015 the World Health Organization (WHO) and the US Department of Energy published reports that demonstrate just how high the costs of inaction could be.

An LSE Cost Benefit Analysis Supports Climate Action

Research from the London School of Economics (LSE) makes the economic case for acting on climate change. This study along with many others (see related posts below) make the point that the costs of inaction on global warming are far greater than the costs of acting. This is in addition to the costs directly related to the damage caused by climate change.

Much has been said about the costs of combating global warming but a slew of independent research indicates that the benefits of climate action far outweigh the costs. This was also the conclusion of Citibank study published in August.

Two research institutes at the London School of Economics found that there are significant economic gains from limiting emissions. The LSE study published in July says that improved air quality, energy efficiency and energy security combine with falling renewable energy prices to make climate action the more economically compelling option.

Acting on Climate Change Makes Good Economic Sense According to Citibank

A recent Citibank report showed that if we act to slow climate change we could save as much as $50 trillion. This finding is significant because cost is one of the most common reasons put forth to avoid acting on climate change. The Citi report is but the most recent study to soundly refute the contention that acting on climate change is too expensive. Research shows that climate action offers excellent ROI not to mention saving trillions of dollars of additional costs associated with the damaging affects of a warmer world.

In a report entitled, "Energy Darwinism II: Why a Low Carbon Future Doesn’t Have to Cost the Earth," Citi Global Perspectives & Solutions (GPS), conducted a cost benefit analysis of a low carbon energy economy. The research explored the costs of inaction (business as usual) versus the costs of acting (transitioning to a low-carbon energy economy).

Graphics - Cost of Delaying Action to Stem Climate Change

The Cost of Delaying Action to Stem Climate Change

In July, the White House released a report that quantifies the cost of inaction on climate change. The 33-page report titled "The Cost of Delaying Action to Stem Climate Change," was produced by The Council of Economic Advisers. It makes the point that failure to act on climate change comes with a huge price tag for the American economy (at least $150 billion per year).

Increasing temperatures and rising sea levels demand that we act now if we are to minimize the huge expense associated with a warming world. As the White House explains in the introduction to the report:

"The scientific consensus is that these changes, and many others, are largely consequences of anthropogenic emissions of greenhouse gases that have led to a warming of the atmosphere and oceans."

Climate Change: Frequency, Costs and Mortality (World Meteorological Organisation)

Climate change is not some distant event in the future it is affecting us today. This is the finding in a new report from the World Meteorological Organisation, titled Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes (1970 - 2012). Because of the increasing risks climate change, the world is currently five times as prone to flooding and extreme weather events as it was in the 1970s.

Increasing Frequency

The first decade of the 21st century saw 3,496 natural disasters from floods, storms, droughts and heat waves. That was nearly five times as many disasters as the 743 catastrophes reported during the 1970s – and all of those weather events are influenced by climate change.

Businesses Feel the Heat from Declining Labor Productivity

There have been several studies that show how a warming planet will decrease labor productivity. Diminished productivity has negative economic implications both for individual companies and the economy as a whole.

A National Oceanic and Atmospheric Administration (NOAA) study warned that climate change is likely to have a significant negative impact on productivity for the US workforce as a whole.

Acting on Climate Change: A Cost Benefit Analysis

We are getting a much clearer picture of the costs associated with climate change and the benefits of action to combat it.

Economists are increasingly quantifying the risks associated with global warming including the costs associated with extreme weather, declining global food stocks, degraded ecosystems, the loss of biodiversity, flooding, sea level rise, droughts, fires, the collapse of the permafrost sink, ocean acidification, loss of productivity, business disruptions, conflict, and climate refugees.

Economic Benefits of Combating Climate Change (IIED)

Scientists led by Professor Martin Parry (a former co-chair of the IPCC) in a 2013 report published by the International Institute for Environment and Development (IIED) calculated that the benefit of combating climate change amounts to $615 to $830 trillion.

This is the finding in the IIED report titled, Assessing the costs of adaptation to climate change: a review of the UNFCCC and other recent estimates. It concludes that the costs of costs will be even greater if we factor the full range of climate impacts. According to the study these costs could go as high as $1240 trillion with no adaptation. However, with appropriate adaptation efforts the costs are about $890 trillion.

Related Articles
Action on Climate Change a Cost Benefit Analysis
The Cost of Delaying Action to Stem Climate Change
Climate Change: Frequency, Costs and Mortality (World Meteorological Organisation)
Graphics - Cost of Delaying Action to Stem Climate Change
Businesses Feel the Heat from Declining Labor Productivity
Economic Costs of Combating Climate Change (IPCC)
Reducing Fossil Fuel Use: The Longer We Wait the More it will Cost
Infographic - How Much Would it Cost to Go Green Globally?
Graphic - The Cost of Mitigating Climate Change
The Financial Costs of Biodiversity Loss
Extreme Weather and the Costs of Climate Change
Extreme Weather
The Costs of Global Warming
The Costs of Climate Change Related Flooding
Graphs - Global Cost of Flooding
The Costs of Flood Damage will Rise Along with Sea Levels
Balken Flooding and the Costs of Climate Change
Tornadoes and Floods Underscore the Costs of Global Warming
Floods in the Philippines Underscore the Deadly Toll from Climate Change
Hurricane Irene and the Staggering Costs of Climate Change
Extreme Weather Makes a Convincing Case for Climate Change

Economic Costs of Combating Climate Change (IPCC)

According to the third U.N. Intergovernmental Panel on Climate Change (IPCC) report, keeping temperatures within the internationally agreed upon upper threshold limit of 2°C (3.6°F) would have a negligible impact on growth compared to the powerfully destructive impacts of unchecked climate change.

The third of four IPCC reports released in April indicated that addressing climate change would have a net effect on growth of 0.06 percent per year. This cost to economic growth does not factor the economic benefits of avoiding climate catastrophe.

Infographic - How Much Would it Cost to Go Green Globally?

Graphic - The Cost of Mitigating Climate Change

Why Greens are Seeing Red in the 2013 Australian Elections

Hopes for a government serious about combating climate change in Australia were crushed by Labor party infighting. The election of a right of center coalition led by Tony Abbot spells the end of Australia's hope to play a leading role combating climate change. Kevin Rudd wrestled the leadership from Labor Prime Minister Julia Eileen Gillard after she demonstrated strong green leadership. Rudd ended Gillard's political career in a savage act of overt betrayal that may have cost labor the election and ended Australia's hopes for government leadership on climate change.

Dirty Digital Footprints: An Exposé of “Green” Websites

Although interest in sustainability is expanding to include a wide range of areas, an analysis of 40 leading “green” websites indicates that digital footprints are often overlooked. 

At the end of April, the World Wide Web celebrated its 20th anniversary, and while the Internet is often considered to be more environmentally friendly than traditional communications channels, this supposition is subject to a number of caveats.

Most people think the web is a green medium, but the average website has a carbon footprint that is similar to a book or a newspaper. Some web pages have a carbon footprint which exceeds that of a printed page, especially if the web page is left open for long periods of time.

Event - Ethics & Shareholder Value Summit

The Ethics & Shareholder Value Summit will take 13 - 14 June, 2013 at the Westin New York Grand Central in New York, NY, (on 12 June, 2013, there will be a pre-conference seminar). The Conference Board has retooled the previous Business Ethics & Compliance Conference to the Ethics & Shareholder Value Summit to address the role of the ethics and compliance officer which is reshaping as companies integrate risk, governance and sustainability in their discussions with shareholders. As public companies actively manage reputation-related practices, more emphasis is placed on shareholder value and linking ethics and compliance with Wall Street analysts, investment managers, and institutional investors. This conference addresses how ethics fits into the bigger picture of corporate performance and places a new set of expectations onto the role of ethics as a factor in creating long term shareholder value.

Powerful New Tool Analyzes Website Sustainability

Mightybytes is a Chicago-based company that is working to help green the digital space. They are pioneers in the often overlooked area of digital sustainability. They have launched a free innovative web-based app called EcoGrader that helps companies to assess and improve the carbon footprints of their websites.

As a certified B Corporation and a three-star certified Eco-Andersonville green business, Mightybytes has sustainability woven into their DNA. They embrace an imperative for sustainability and apply that passion to their work, their office environment, and their personal lives. They are committed to making a social impact with their work and they are equally passionate about environmental stewardship.

Mightybytes helps organizations to solve communication, design, and technical problems, build online brands, create software-based business solutions, nurture and support customer communities, reach new targeted audiences and develop digital products that meet specific marketing goals.

Republicans Need a Serious Policy Review

The GOP's election defeat of 2012 lends credence to the belief that Republicans desperately need to change their strategy. The party can no longer win by appealing only to older white males. Republicans did not win the Presidency and they lost ground in the Senate, however they did retain the House. If they want to be the party of the majority they will need to adopt more rational fact based policy positions, this includes the science of climate change.

Republicans are at odds the majority of the American voting public. There is popular support to raise taxes on the wealthly, and maintain spending on social programs. However, the GOP has painted itself into a corner as the Republican House was elected on a no-tax-hike pledge, and includes a larger contingent of small-government advocates than before.

The Business Case for Sustainability (Event)

On October 18, 2012, the event titled "The Business Case for Sustainability," will take place from 8:30 AM to Noon at the Enterprise Center in Burlington County College 3331 Route 38 – 300 College Circle Mount Laurel. At this even you can see how “The Triple Bottom Line” can help your small business save money, gain customers, and improve the environment.

20 Cool Roof Resources from the CRRC and Other Sources

Here is a compilation of resources for anyone interested in installing a cool roof. As reviewed in previous posts, cool roofs provide many benefits and cost savings can be measured with a couple of excellent tools. Below you will find a list of resources from the Cool Roof Rating Council (CRRC) and several other sources. The CRRC is an independent, non-profit organization that maintains a third-party rating system for radiative properties of roof surfacing materials. The resources listed below offer everything you need to know about cool roofs including guidelines and information related to materials. For more detailed information on other aspects of green building and construction see the "Related Posts' section at the bottom of this post. It contains a wealth of information spanning the gamut from natural lighting to ventilation.