Economix Blog disses technological solutions to climate change

Re: The Ehrlich-Simon bet:

The analogy to global warming is obvious. Just as ingenuity came to the rescue in the past, allowing people to use resources more efficiently than they ever had before, it could do so again — providing us with ways to emit far less carbon for every dollar of gross domestic product.

And I — like many others, I imagine — would be thrilled if that were what the future held. But I think there are two big reasons to doubt that we’re on another Ehrlich-Simon path when it comes to global warming.

The first is basic economics. When the problem is resource scarcity, companies and individuals have a powerful incentive to become more efficient. It keeps their costs down. Mr. Simon understood this, and it’s the fundamental reason he won the bet.

But global warming is different. The fact that carbon emissions are warming the planet doesn’t make it more expensive to produce those emissions. So companies do not have an ever-increasing incentive to emit less — the way they would if the problem were, say, a lack of oil. Global warming doesn’t solve itself the way that resource scarcity does.

via economix.blogs.nytimes.com

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