ALARM! GLOBAL WARMING WILL COST US
An article today argues that if we do nothing about global warming, it will cost us about 11 trillion pounds or $20 trillion per year in 2100. The article argues that with a small investment of only $3 trillion per year now, we could limit the damage to only $12 trillion per year in 2100.
Maybe the article is written wrong, but investing $3 trillion a year today to save $8 trillion a year 95 years from now seems like a really awful investment. Further the risk premium on such an investment is high because we don't really know if there will be global warming or if we can actually stop it.
Besides, at 2.5% growth rate, GDP in 2100 should be around $132 trillion and those money grubbing baby boomers will all be dead by then.
I am all for investing to reduce global warming... except we should invest our money into creating new assets and new technoligies, not just by reducing economic activity.
Maybe the article is written wrong, but investing $3 trillion a year today to save $8 trillion a year 95 years from now seems like a really awful investment. Further the risk premium on such an investment is high because we don't really know if there will be global warming or if we can actually stop it.
Besides, at 2.5% growth rate, GDP in 2100 should be around $132 trillion and those money grubbing baby boomers will all be dead by then.
I am all for investing to reduce global warming... except we should invest our money into creating new assets and new technoligies, not just by reducing economic activity.
posted by Sloanasaurus | 10/13/2006 10:18:00 AM
Warming... schwarming. Although the article didn't say how the $3,000,000,000,000 is to be 'invested' (it always looks more impressive when you actually show the zeros), I'll bet they recommend that a substantial portion be allocated to the same institutions that proclaim that global warming is an eminent problem. Hmmmm… Seems to me I’ve heard something like this before in a gangster movie…
Guido: “Nice business ya got here Mac.”
Business Owner: “Yep, busted my back and bank account to get it started.”
Guido: “Sure would hate to see any ‘accidents’ happen to it.”
Business Owner: “Accidents? Like what?”
Guido: “Like the kind that don’t happen if you got protection.”
Business Owner: “You mean insurance?”
Guido: “Something like that, call it a grant.”
Business Owner: “How much does this protection cost?”
Guido: “Three trillion dollars, and that’s a bargain – it’ll be more in the future.”
Business Owner: “What happens if I don’t pay… I mean buy”
Guido: “My boss, Al, that’s Mr. G. to you, he’ll… oh my gosh, I can’t even say it, it’s so awful.”
Business Owner: “What! What! I have to know!”
Guido: “Al will make… a Documentary!!!”
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