Stand up against Wlliam Nordhaus

Why?

William Nordhaus is probably a well-meaning person with excellency in mainstream economics and mathematics. Nordhaus himself does not deny the reality of climate change. He is, however, extremely important because of his reputation also as a Nobel Prize winner in economics. He is followed by a lot of economists, politicians, businesspeople, financial institutions, civil servants and NGOs. His work is very convenient for those prioritizing economic growth at the expense of nature and climate. His thoughts are also used as a basis for the Paris Agreement. He is often used for providing the final answers about the climate crisis in public debate.

His basic approach

He has developed a method of cost-benefit analysis intended to provide a pragmatic guide for policymakers to ensure that our response to the climate crisis is economically cost-efficient.

This means that narrowly defined consequences on “the economy” is the one and only lens for designing climate and environmental policies. The success of the policies is also considered seen through this lens

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He without much hesitation assumes and concludes that market mechanisms, not regulations, are the only effective measures. 

This means focus on putting a price on carbon emissions. According to Nordhaus the present carbon prices should be approximately $40 per ton and increase over time to bring the planet to a future warming of 3 degrees Celsius (seen from the perspective of nature and climate, however, this would be catastrophic).

In his calculations Nordhaus make a lot of assumptions regarding what climate effects that influence the economy. Many of these assumptions seem relatively strange. To use only mean temperature for calculations is also dubious. The main point, however, is the lens of mainstream economy used.

Nordhaus does not take “tipping-points” into account. Warming of the Tundra with its permafrost and the cessation of ocean currents are examples of phenomena that could result in irreversible changes.

So what?

Only the lens of nature and climate itself can be used. That means that the work of the United Nations organ IPPC – Intergovernmental Panel on Climate Change and the United Nations organ IPBES – Intergovernmental Platform on Biodiversity and Ecosystem Services must be the starting point for assessing measures for protecting climate and nature. Economic considerations must come next, not first.