Misusing the Inaction Argument

One commonly repeated argument for doing something about climate change is based on comparing the cost of action with the cost of inaction. This argument sounds compelling, and almost every major politician in the world uses it, but it turns out to be entirely fallacious.

SAN JOSÉ, COSTA RICA – One commonly repeated argument for doing something about climate change sounds compelling, but turns out to be almost fraudulent. It is based on comparing the cost of action with the cost of inaction, and almost every major politician in the world uses it.

The president of the European Commission, José Manuel Barroso, for example, used this argument when he presented the European Union’s proposal to tackle climate change earlier this year. The EU promised to cut its CO2 emissions by 20% by 2020, at a cost that the Commission’s own estimates put at about 0.5% of GDP, or roughly €60 billion per year. This is obviously a hefty price tag – at least a 50% increase in the total cost of the EU – and it will likely be much higher (the Commission has previously estimated the cost to be double its current estimate).

But Barroso’s punchline was that “the cost is low compared to the high price of inaction.” In fact, he forecasted that the price of doing nothing “could even approach 20% of GDP.” (Never mind that this cost estimate is probably wildly overestimated – most models show about 3% damages.)

To continue reading, please log in or enter your email address.

To read this article from our archive, please log in or register now. After entering your email, you'll have access to two free articles every month. For unlimited access to Project Syndicate, subscribe now.

required

By proceeding, you are agreeing to our Terms and Conditions.

Log in

http://prosyn.org/Mi2sAsF;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.