Analytics

June 20, 2009

Migration, poverty and wealth

The Annan report on climate change says:
Poverty and environmental degradation have caused migration from rural to urban areas.
The opposite is true. Migration is caused by wealth - the new wealth of cities.

June 19, 2009

Global warming, mass migration, and xenophobia

Kofi Annan writes:
Copenhagen needs to be the most ambitious international agreement ever negotiated. The alternative is mass starvation, mass migration and mass sickness.
Unlike starvation and sickness, migration away from abjectly poor areas where people cannot cope with climate and other hardships is something any rational person should welcome. What makes migration look bad is xenophobia. But Annan seems to take xenophobia for granted. For Annan, xenophobia is not worth discussing; only CO2 is.

June 05, 2009

Economic value and biological conservation

Mark Sagoff writes in Bioscience (The Economic Value of Ecosystem Services):
The concept of economic value presents a dilemma. If conservationists refer to total value, they must concentrate on just those [ecosystem] service providing units that are in jeopardy. It serves no purpose to “valuate” services that are not threatened. If conservationists refer to marginal value, however, they tie themselves to the familiar conceptual framework of market failure, externalities, common pool resources, discounting, transaction costs, and so on. Conservationists then go down a long and weary road, at the end of which they will find mainstream environmental economists waiting for them.

June 04, 2009

How to fight envy

Michael Sargent reviews the book The Spirit Level: Why More Equal Societies Almost Always Do Better in Nature. Sargent and the authors of the book agree that more unequal societies fare worse because of envy, which they call "neuroendocrinological stress."
Governments can get there by using redistributive taxation and an extensive welfare state, as in Sweden, or by restraining income disparities and minimizing public spending, as in Japan. The book ends optimistically: whatever route is chosen, the authors argue, the current economic slump may be a providential opportunity to start righting the balance.
But why stop at equalizing income? Shouldn't we also "right the balance" of physical beauty, sports ability and dancing skills?

June 03, 2009

Robert Costanza and the broken window fallacy

Robert Costanza writes in Nature:
There is evidence in developed countries that economic growth beyond a certain point does not improve well-being, owing to the hidden, external costs of that growth, including climate impacts. For example, an oil spill increases gross domestic product (GDP) as someone must pay to clean it up, yet it detracts from well-being. Increased crime, sickness, war, pollution, fires, storms and pestilence are all positive for GDP because they increase economic activity.
Crime, sickness, war, pollution, fires, storms and pestilence all decrease economic activity.

Costanza also wrongly equates economic growth with GDP growth.