Progress on Global Warming Is Not Yet in Evidence in Copenhagen

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I am writing from Copenhagen, the site of the 15th Conference of Parties to the UN Framework Convention on Climate Change.     If one were to judge by outward appearances, the prospects look dim for a meaningful global agreement by the end of the week.   

First, most conference participants have been put through an experience that seems designed to convince them that global warming may not be such a bad idea after all:  a registration system that requires waiting in long lines in freezing temperatures.  (Wait times commonly reported this week vary from one hour for China’s negotiator to 8 hours for other participants, such as prominent NGO leaders.  Even 9 or 10 hours.)    
 
Second, there has been little convergence of positions.  The views expressed here cover the same fantastically and unbridgeably wide range as they did at the time of the Kyoto meeting 12 years ago.   At one end of the spectrum, developing countries are still asking for reparations – African delegations boycotted Monday’s meetings;  and demonstrators are still very confused about who they should be trying to persuade and how.   At the other end of the spectrum, the climate change deniers are also represented here.  Recent opinion polls show that the percentage of skeptics among the fickle American public has risen very recently, even though the scientific evidence for anthropogenic warming continues to mount.   (For some reason, many find it easier to deny science than to make any of the less indefensible arguments available to critics: that global warming wouldn’t be all bad, or that cutting emissions enough to prevent it would be too expensive, or that the U.N. is not a competent instrument, or that geo-engineering would be a cheaper approach.)     read more

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Ten Ways to Move the Budget Back Toward a Sustainable Path

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Question from the National Journal: “President Obama and his team said recently that the fiscal 2011 budget will represent a credible effort to reduce budget deficits and put the federal government on a path toward “sustainable” deficits …How would you alter taxes and spending to achieve (or at least pursue) that goal? ”

Here are my ten proposals to move the budget back to a sustainable path (like the one it was on until January 2001):

First, auction off most greenhouse gas emission permits, rather than giving them away to firms (which would confer windfall profits). This is what President Obama originally proposed last February, but it is not in the congressional climat change legislation. read more

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The Roller Coaster of Economic Indicators

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The economy has been on a roller coaster ride since the cyclical peak of December 2007. (See illustration.) The gradual slide of early 2008 turned into a terrifying freefall in the last quarter of 2008 (after the Lehman Brothers bankruptcy) and the first quarter of 2009. Now the train is probably at the bottom of the roller coaster valley.

The Index of Leading Economic Indicators, represented by the first car in the train, was this morning reported to have risen for the seventh consecutive month in October. Similarly, consumer confidence is substantially improved relative to February (though it, like all economic statistics, has experienced some bumps in the ride). The important middle cars, which represent measures of aggregate output, probably reached bottom in the early summer, and then started back up.  The BEA’s advanced estimate for GDP growth in the third quarter was 3 ½ % . read more

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