Ethical Issues with Relying on Pricing Carbon as a Policy Response to Climate Change.

I. Introduction.

This entry will examine ethical issues raised by relying on putting a price on carbon as a policy response to reduce the threat of climate change.

Establishing a price on carbon emissions as a response to reduce a government’s greenhouse gas (GHG) emissions has received strong support around the world. One observer of global climate change policy developments has concluded:

Not only is there a robust consensus among economists, but they have been remarkably successful in spreading the gospel to the wider world as well. Climate activists, wonks, funders, politicians, progressives, and even conservatives (the few who take climate seriously) all sing from the same hymnal. It has become conventional wisdom that a price on carbon is the sine qua non of serious climate policy. (Roberts, 2016)

This article will identify potential ethical problems with relying on carbon pricing to reduce the enormous threat of climate change despite the widespread popularity of pricing carbon regimes. As we shall see, although a few ethicists have ethical problems with any carbon pricing scheme, many others approve of carbon pricing schemes provided that the regime design adequately deals with certain ethical issues that carbon pricing regimes frequently raise.

Climate pricing regimes vary greatly from the government to government and among different types of carbon pricing regimes. However, there are two basic methods for using a price on carbon to reduce greenhouse (GHG) emissions.

The first is to distribute carbon caps, often referred to as carbon allowances, to GHG emitters usually followed by a tightening of the cap over time to achieve desired GHG  emissions reduction goals.  Those who have more allowances than they need may sell allowances to those who do not have enough.  Thus carbon allowances may be bought and sold, a scheme that is often justified by economists by claiming that this approach leads to GHG reductions at the lowest cost thereby finding an efficient solution to climate change while the amount`of GHG emissions achieved by the scheme may be determined by the total amount of allowances permitted. This method is usually referred to as “cap and trade”

Many cap and trade regimes allow those who need additional allowances to reduce GHG emissions to levels required by the cap to fund GHG emissions reduction projects often anywhere in the world including in places without a cap and get credit for the amount of GHG reductions achieved by the funded project, which credit then can be applied to determine whether the cap has been achieved. Different trading regimes have different rules specifying where and under what conditions emissions credits can be obtained by funding projects in other places.

The other common carbon pricing scheme is for government to charge a price for carbon emissions, a method usually referred to as carbon taxing. The carbon tax works also to lower GHG emissions because it makes technologies which produce less GHG per unit of energy more attractive thereby creating strong incentives for energy users to switch to energy technologies which produce less GHG emissions per unit of energy produced.  A price on carbon also creates incentives for all those responsible for GHG emissions to do what they can to emit less GHGs, including, for instance, reducing their carbon footprints by driving less, walking more, lowering thermostats in the winter, adding insulation to buildings, etc.

For these reasons, putting a price on carbon emissions as a policy response to human-induced climate change has strong global support particularly among economists.

This article will identify ethical issues created by (a) any carbon pricing scheme, (b) cap and trade regimes, and (c) carbon taxing regimes. This analysis will be followed by several conclusions.

II. Ethical Issues Raised By Any Carbon Pricing Scheme.

Although many ethicists who have identified ethical issues raised by policy responses to climate change that rely on putting a price on carbon acknowledge that pricing schemes have shown to be effective in reducing GHG emissions often at lower costs than other regulatory approaches, some ethicists nonetheless oppose carbon pricing schemes because of certain ethical problems with these schemes. Many other ethicists who acknowledge potential ethical problems with carbon pricing schemes believe these problems can be adequately dealt with by appropriate carbon pricing regime design. Yet even if ethical problems raised by carbon pricing regimes can be averted through carbon pricing regime design, policymakers and citizens need to understand these ethical problems so that they can be mitigated in the design of the carbon pricing scheme.

An ethical approach to climate change would limit GHG emissions by law at levels necessary to prevent human-induced climate change harms to people and ecological systems. For instance, many governments have established legal requirements on the percentage of renewable energy required of electricity providers, a policy response that does no rely on pricing carbon. An ethical approach to climate change is based on different justifications for reducing change harms than some economic approaches. As Vanderhelen said:

An ethical approach to climate policy is based on different assumptions than economic-based policy assumptions. The ethical approach says we should act on climate change now, not because the future costs of inaction exceed those of mitigation, but because the failure to do so harms others. It is our ethical duty to avoid this. (Vanderhelen, 2011)

And so an ethical approach to climate change requires those who are responsible for human-induced climate change harms to comply with their duty to not harm others without regard to the economic value of costs and benefits of climate change policy responses. All national governments in the world have duties to take actions that reduce GHG emissions from their jurisdiction to the nation’s fair share of safe global GHG emissions under the Paris Agreement and the United Nations Framework Convention on Climate Change. 
In addition, an ethical approach to climate change also identifies ethical issues raised by carbon pricing schemes including the following:

A.  Assuring the price will achieve GHG reductions at levels entailed by the government’s ethical obligations.

The amount and speed of GHG emissions reductions that government policies should achieve is fundamentally an ethical question that economic reasoning alone cannot determine. As the Intergovernmental Panel on Climate Change concluded in its 5th Assessment Report:

  • How should the burden of mitigating climate change be divided among countries? It raises difficult questions of fairness, and rights, all of which are in the sphere of ethics. (IPCC, 2014, WG III, Ch. 3, pg. 215).
  • The methods of economics are limited in what they can do. They are suited to measuring and aggregating the wellbeing of humans, but not in taking account of justice and rights (IPCC, 2014, AR5, WG III, Ch. 3, pg.224).
  • What ethical considerations can economics cover satisfactorily? Since the methods of economics are concerned with value, they do not take account of justice and rights in general. (IPCC, 2014,.AR5, WG III, Ch. 3, pg. 225).
  • Economics is not well suited to taking into account many other aspects of justice, including compensatory justice (IPCC,2014, AR5, WG III, Ch. 3,pg. 225).
  • [I]t is morally proper to allocate burdens associated with our common global climate challenge according to ethical principles. (IPCC, 2014, AR5, WG III, Ch. 4, pg. 317).

Thus, no carbon pricing scheme alone without consideration of ethical issues can determine what the magnitude and timing of a government’s GHG emissions reduction goals should be because a government’s GHG emissions reduction goals must be based on fairness, justice, and obligations to not harm others or the ecological systems on which life depends without the consent of those who will be harmed. These are essentially ethical matters that economic rationality alone cannot deal with. Proponents of carbon pricing schemes claim that pricing regimes allow those responsible for reducing GHG emissions to achieve reductions at the lowest cost, yet the amount of reductions that a nation is obligated to achieve is essentially an ethical matter.  So the goal of any pricing scheme should be designed to achieve ethically justified national GHG emissions reduction targets.

All nations in the world have agreed under the 2015 Paris Accord that they are duty bound to adopt policies that will enable the international community to limit warming to between 1.5 degrees C and 2.0 degrees C, the warming limit goal, on the basis of equity and common but differentiated responsibilities and respective capabilities in light of national circumstances, the ‘equity’ requirement under the Paris Agreement.(UNFCCC, Paris Agreement, 2015, Art 2.) And so all nations have an ethical duty to determine their GHG emissions reduction goals which at a minimum would limit warming to as close as possible to 1.5 degrees C although no greater than 2.0 degrees C on the basis of what equity requires of it to achieve these warming limits. Equity is understood by philosophers as a synonym for distributive justice.

Although there are differences among ethicists about what equity requires,  “equity” may not be construed to mean anything that a nation claims it to mean, such as national economic self-interest. As IPCC said, despite ambiguity about what equity means:

there is a basic set of shared ethical premises and precedents that apply to the climate problem that can facilitate impartial reasoning that can help put bounds on the plausible interpretations of ‘equity’ in the burden sharing context. Even in the absence of a formal, globally agreed burden sharing framework, such principles are important in establishing expectations of what may be reasonably required of different actors. (IPCC, (IPCC, 2014, AR5, WG III, Ch. 4, pg. 317).

The IPCC went on to say that these equity principles can be understood to comprise four key dimensions: responsibility, capacity, equality and the right to sustainable development. (IPCC, 2014, AR5, WG III, Ch. 4,  pg 317)

As a result, because some pricing regimes will not reduce national GHG  emissions to levels required by their national obligations under the Paris Agreement even those nations that have adopted some kind of carbon pricing regime have had to enact other climate change policies to achieve the nation’s GHG reduction goals. For this reason and because some politicians have conditioned their support for a proposed carbon pricing scheme on acceptance of legal provisions that prohibit policy responses that are in addition to a carbon pricing scheme under consideration by a legislature, policymakers and citizens need to understand that any carbon pricing scheme must assure that a government’s emissions reduction policies will achieve the government’s ethically determined carbon emissions reduction obligations.  Thus they must oppose legislation that prohibits a government from supplementing carbon pricing schemes with other laws to reduce GHG emissions.

Thus the quantity of the price placed on carbon under a taxing scheme or the magnitude of allowances under a cap and trade regime should be established after express determination of the government’s ethically prescribed obligations to reduce GHG emissions to its fair share of adequately safe global emissions.

Every national GHG emissions reduction target is implicitly a position on two profound ethical questions among others. They are:

  • the amount of warming and associated harms the nation is willing to inflict on others including poor vulnerable people and nations, Since all nations have agreed under the Paris Agreement to limit warming to as close as possible to 1.5 degrees C and no greater than 2.0 degrees C, these warming limits should be the default assumptions of governments’ GHG reduction target formulation;
  • the nation’s fair share of total global GHG emissions that may not be exceeded to keep global warming from exceeding the Paris Agreement’s warming limit goals of 1.5 degrees C to 2.0 degrees C

Thus, to make sense of the acceptability of any carbon pricing scheme, government’s should; (a) identify its GHG reduction target, (b) how the target achieves its GHG emissions reduction obligations in regard to warming limits and fairness, (c) the date by which the target will be achieved, and (e) the reduction pathway that will achieve the GHG reduction goal.

The date by which the GHG reductions will be achieved is ethically relevant because any delay in achieving required reductions affects the remaining carbon budget that is available to assure that any warming limit goal is achieved. Carbon budgets that must constrain global GHG emissions to achieve any warming limit goal such as the 1.5 degrees C to  2.0 degrees C warming limit goals under the Paris Agreement continue to shrink until total GHG emissions are reduced to levels that will stabilize atmospheric GHG concentrations at levels that will not cause warming greater than the warming limit goal. Therefore both the magnitude of the government’s GHG emissions reduction goals and the time it takes to achieve the goal are relevant factors in regard to whether any government will achieve GHG reductions that represent its fair share of safe global emissions. In fact the reduction pathway by which the reduction goal will be achieved is also relevant to whether a government will reduce its GHG emissions to levels required of it by its obligations because pathways which produce rapid reductions early in any period will consume less of a shrinking carbon budget than pathways that achieve most of the reductions at later times in the relevant period.  This fact is depicted in this chart.

This chart demonstrates that different GHG reduction pathways may consume different amounts of any relevant carbon budget even if the percent amount of reductions, in this case, 100% reduction by 2050, is the same for the different pathways. The amount of the budget consumed by the two pathways is represented by the areas underneath the curves.

B. Intrinsic Ethical Problems With Any Carbon Pricing Scheme.

A few ethicists argue that relying on putting a price on carbon to achieve a government’s obligations is ethically problematic without regard to the details of the pricing scheme.

Ethicist Michael Sandel, for instance, in a 1967 OpEd in the New York Times entitled It’s Immoral to Buy the Right to Pollute identified the following ethical problems with pricing carbon after acknowledging that trading GHG emissions allowances could make compliance for the United States cheaper and less painful. (Sandel, 1967)

Turning pollution into a commodity to be bought and sold removes the moral stigma that is properly associated with it. If a company is fined by a government for spewing excessive pollutants into the air, the government conveys its judgment that the polluter has done something wrong. A fee, on the other hand, makes pollution just another cost of doing business, like wages, benefits, and rent. (Sandel, 1967)

The distinction between a fine and a fee for despoiling the environment is not one we should give up too easily. Suppose there was a $100 fine for throwing a beer can into the Grand Canyon, and a wealthy hiker decided to pay $100 for the convenience. Would there be nothing wrong with his treating the fine as if it were simply an expensive dumping charge?

Or consider the fine for parking in a place reserved for the disabled. If a busy contractor needs to park near his building site and is willing to pay the fine, is there nothing wrong with his treating that space as an expensive parking lot?

In effacing the distinction between a fine and a fee, emission trading is like a recent proposal to open carpool lanes on Los Angeles freeways to drivers without passengers who are willing to pay a fee. Such drivers are now fined for slipping into carpool lanes; under the market proposal, they would enjoy a quicker commute without opprobrium. (Sandel, 1967)

Some human behavior is so morally reprehensible that charging a price for the behavior to create a disincentive is widely seen as morally unacceptable. For instance, most societies would agree that a strategy to reduce child prostitution that relies on increasing the price of child prostitution or taxing a sexual transaction in which children are involved is morally unacceptable. Because some countries’ GHG emissions are far greater than any reasonable determination of their fair share of safe global emissions and these GHG emissions are already contributing to the killing or harming millions of people around the world while threatening tens of millions of others, allowing GHG emitters to continue to emit GHGs at unsafe levels if they are willing to pay the price required by a government rather then establishing a legally determined maximum emissions rate consistent with the emitter’s morally determined emissions limits can be argued to be as morally unacceptable as dealing with child prostitution by imposing a tax. Even though a tax might achieve the same amount of reductions as a legal limit implemented by an enforceable cap on GHG emissions amounts, applying a tax implicitly signals that it is morally permissible to continue emitting GHGs at current levels as long as the carbon tax is paid. Thus, the tax can diminish the moral stigma entailed by status quo levels of emissions.

Putting a price on carbon as a policy response to climate change is often justified by economists as a way to make sure that market transactions consider the value of harms caused by climate change that are unpriced in market transactions.  For instance, because the price of coal does not consider the value of the harms caused by the burning of coal that will be experienced by some people who are not participants in the sale of the coal, putting a price on carbon equivalent to the value of the harms caused by the burning of coal is a way of assuring that the value of the harms caused by the coal are considered in the market transaction. This addition to the price is referred to as a Pigovian tax or a tax on any market transaction that generates negative externalities, so that the value of the negative externalities is included in the market price.  Most economists recommend that the amount of the tax be based on the social cost of the negative externalities where the social costs are measured in dollars or other monetary units determined by the amount people would be willing to pay to prevent the harm. Once the cost the harms is determined and included in a tax, the market will be able to operate efficiently.

Economists thus justify a tax set in this way because it enables the market to maximize preferences. But ethics is interested not in maximizing preferences people have but in assuring that people’s preferences are those that people should have morally.  For ethicists, it is wrong to harm people without their consent, even if those causing the harm could pay victims money calculated by the market value of the harm. That is, according to most ethicists it is morally wrong to harm people or the ecological systems on which life depends even if those causing the harm are willing to compensate those harmed. Some ethicists therefore argue, putting a price on carbon as a policy response to climate change does not pass ethical scrutiny unless the price prevents all non-trivial harms to life, health, and ecological property that people have not consented to. Given that some human rights have already been demonstrated to be violated by climate change (UNHR, 2018), any price on carbon that allows human rights violations to continue does not pass ethical scrutiny.

And so putting a price on carbon does not pass ethical scrutiny as long as the price does not prevent the harms that people have right to object to without their consent.

Although the money from the carbon tax could be used to compensate people for harms caused by climate change, this potential use of the tax revenues does not ethically justify continuing the behavior which causes serious harms to others without the consent of those who are harmed. In addition, because those being harmed by GHG emissions are people all around the world, if the revenue from a tax is to be used to compensate those who will be harmed by the GHG emission, the revenues from a tax would have to be distributed worldwide.  At this time there is no such global revenue stream from national carbon pricing schemes.

Many citizens and institutions around the world including many colleges and universities have significantly reduced their carbon footprint because they believed they had a moral obligation to do so as long as their GHG emissions could contribute to harming people, animals, ecological systems on which life depends, or things of great value to people.  A sense of moral obligation, without doubt, motivates, at least some people and institutions, to do the right thing. Yet pricing carbon as a response to climate change does not create a legal prohibition to reduce GHG emissions but only an economic incentive to do so.  A government could always legally prohibit activities that create GHG emissions that create harms, an approach to changing behavior that was the dominant strategy in environmental law for many decades. Economists, however, have often objected to these “command and control’  approaches because they claim that market-based mechanisms can achieve needed reductions in a more efficient economic way, that is, at a price that includes consideration of the value of the harms created.

At least in the United States, many of the proponents of carbon pricing are failing to educate civil society about the moral obligations of all nations and people to reduce GHG emissions to their fair share of safe global emissions, a concern particularly in light of the very limited time left to limit warming to non-catastrophic levels. These proponents often passionately advocate for the adoption of a carbon pricing scheme because they are accurately convinced that a price on carbon will reduce GHG emissions, yet ignore discussing the non-discretionary moral duty to reduce GHG emissions thus inadvertently leaving the impression that provided that those who are willing to pay a price placed on carbon they have no moral obligation to cease activities which are responsible for carbon emissions. 

Economists often justify their market-based solutions as a method for maximizing the enjoyment of human preferences.  They thus calculate the value of harms avoided by climate policies by determining a market value of the harm and if there is no market value they often determine the value of the harms by determining what people are willing to pay to prevent the harm. This allows the economists to compare the cost of reducing GHG emissions against the value of harms prevented through pricing and in so doing allows a policymaker to select a policy option which maximizes human preferences. Yet, as we have seen ethics is concerned not solely with efficiently achieving the preferences people have but with establishing what preferences people should have in light of their moral obligations.

Under an ethical approach to climate change based on an injunction against harming others, because any additional GHG are raising GHG atmospheric levels which are already increasing harms people are suffering from droughts, floods, intense storms, tropical storms, and heat waves among other causes of  climate-induced harms, an ethical argument can be made that any carbon pricing scheme should seek to achieve the lowest feasible GHG emissions levels as quickly as possible. Ethics refuses to define what is ‘feasible’ in terms of the balance of costs and benefits. Ethics requires that harm to innocent victims must be avoided, even when the cost of reducing pollution exceeds the monetary value of harms to life and ecological systems on which life depends. Not all economists, of course, argue that government policies should be based on cost-benefit analysis but many do.

An ethical approach to climate change also requires that polluters should pay for the harms and damages they create as well as the costs to them of reducing the pollution.  Many carbon pricing schemes ignore the duty of GHG emitters to compensate those who have been harmed by their GHG emissions and base the amount of the tax on the amount of money needed to reduce GHG emissions while ignoring any obligations to compensate those who have been harmed by their emissions. This problem could be remedied by basing any price on the amount of money needed to compensate those who have experienced loses and damages or by providing separate funds to compensate those who are harmed by climate change but most carbon pricing schemes fail to take these matters into consideration.

Ethicists also acknowledge that climate-related harms are more likely to affect the poor, not just those who are now being asked to contribute toward its mitigation. For this reason, many ethicists prefer laws that prohibit certain immoral behaviors over laws that allow people to continue their immoral behavior if they are willing to pay higher prices entailed by the value of the harms caused by their behavior.

Economists often support pricing schemes if the pricing leads to the market incentivizing the use of alternative technologies that don’t create the harms of concern. In such cases, the morality of the pricing scheme likely depends on whether the technical transformation created by the pricing scheme will take place soon enough to prevent the harms of concern.

However, even in these cases, many ethicists believe that human activities that create morally unacceptable levels of GHG emissions should be responded to as moral obligations and only support pricing schemes so long as the scheme will enable reducing GHG emissions to morally acceptable levels as rapidly as possible. However, even so, some ethicists warn against erasing the moral stigma entailed by morally unacceptable levels of GHG emissions that could occur by allowing some to continue to exceed their moral obligations if they are willing to pay to do so.

Pope Francis in Laudato Si, the papal encyclical released in July 2015, questions whether market capitalism can effectively protect the poor, and in one passage specifically criticized “the strategy of buying and selling ‘carbon credits.’ More specifically Laudato Si argues that:

The strategy of buying and selling ‘carbon credits’ can lead to a new form of speculation which would not help reduce the emission of polluting gases worldwide. This system seems to provide a quick and easy solution under the guise of a certain commitment to the environment, but in no way does it allow for the radical change which present circumstances require. Rather, it may simply become a ploy which permits maintaining the excessive consumption of some countries and sectors. (Laudato Si 171).

The Pope’s objection appears to be based in part on the fact that a carbon pricing scheme will allow those who can afford to continue emitting GHGs after paying the pricing fee to do so while those that are unable to afford to pay the fee will need to reduce the activities that create GHG emissions. Yet this problem can be somewhat ameliorated by carbon pricing regime design decisions on how revenues are distributed or how allowances to emit are allocated.  However, these decisions raise questions of distributive justice, that is questions about how burdens or benefits of public policy should be allocated to comply with what fairness requires. For this reason, carbon pricing schemes often raise serious questions of distributive justice.

In addition if revenues from pricing schemes are to be used to help compensate those who are most harmed by climate change, given that those who are most harmed are often very poor people in poor nations that usually have done little to cause climate change, the revenues would need to transferred to poor nations and people around the world. Yet no national carbon pricing schemes have yet proposed such international financial transfers.

III. Ethical Issues Raised by Cap and Trade GHG Emissions Reduction Schemes

This paper next examines the following ethical issues raised by cap and trade regimes that are additional to those discussed in Section II.

A very detailed examination of some ethical issues raised by cap and trade regimes by Simone Carey and Cameron Hepburn is entitled Carbon Trading: Unethical, Unjust, and Ineffective? The Carey/Hepburn paper discusses in detail the following ethical issues raised by cap and trade regimes that are in addition to those discussed above. The following is a summary of issues discussed by the Carey/Hepburn paper.

A. Rights to use nature cannot be owned

Because GHG emitters that receive allowances or buy allowances from those that have excess allowances could under some trading mechanisms hold or bank these allowances, holders of allowances could be understood under some trading schemes to have a right pollute the atmosphere at levels entailed by the allowances they hold. However, most ethicists believe that no one should have a property right to pollute the atmosphere.  Because in absence of a rule that would prevent the owner of allowances to bank the allowances for use far into the future, the owners of the allowances could accumulate the right to pollute far into the future. As a result, some ethicists have argued that allowances should be limited to a specific time period and be understood to be revocable if the science changes and concludes that greater reductions are necessary then those that were understood to be necessary to prevent harm when the allowances were distributed.

B  Responsibilities to abate harms cannot be transferred to others

Some ethicists believe that some human responsibilities should not be allowed to be transferred to others. For instance, it is generally believed to be ethically unacceptable for those who are potentially subject to being drafted into the military to be able to buy their way out of this obligation by paying someone else to agree to take one’s place if he or she is drafted. For this reason, some ethicists claim that is ethically problematic for high GHG emitters to get a credit for reductions made by others while not requiring more of the high emitters to reduce their emissions.

C. Distributive justice issues with how allowances and revenues are allocated

Because those with the money to do so can buy scarce allowances, participants in a cap and trade regime can wind up with vastly unequal levels of allowances creating significant differences among participants in rights to emit GHGs. In addition, because rules determining who can get allowances and what is done with the money generated from allowance trading can create great imbalances, rules for allocating allowances and revenues from sales of allowances should be consistent with what distributive justice requires to assure fair burden and benefit sharing. Distributive justice requires that people should be treated equally unless there are morally relevant reasons for treating people differently. There is no reason in principle for allowance and revenue allocations to lead to a more unequal distribution of wealth. It will depend on how the cap and trade scheme is designed.

These issues are discussed in more detail by the Carey/Hepburn paper.

D. Ethical issues created by the fact that some cap and trade regimes allow high emitters of GHGs to count emissions reductions made by projects of others funded by the emitters in achieving the high emitters’ GHG reduction obligations.  

Some cap and trade regimes allow those with GHG emissions reduction obligations to count the reduction of GHG emissions made by others’ projects funded by the emitter as a credit in achieving the emitter’s cap obligations. Economists justify this feature of cap and trade because it allows emitters to achieve GHG reductions at a lower price, However, not all GHG reduction strategies will reduce GHG emissions with equal probabilities that GHG reductions made by the emitter would actually have achieved. For instance, an electricity supplier can commit to reducing its emissions to amounts that will be achieved with high levels of confidence by installing non-fossil energy but if the electricity supplier relies on funding a forestation project in a third world country to obtain a credit for its emissions reductions. the actual reductions to be achieved by the funded project are much more speculative because of problems in assuring that any forest project will keep GHG reductions achieved by photosynthesis of the forest out of the atmosphere forever. Thus funding a project to achieve GHG emissions credits raises issues about the reliability of achieving specific GHG emission reduction amounts that are more reliable if the person responsible for GHG emissions must assure that GHG emissions will actually be achieved.

Thus cap and trade regimes often also raise the following ethical problems which were discussed in more detail in a prior entry on this website. (Brown, Ethical Issues Raised By Carbon Trading, 2010).:

a. Permanence. Many proposed projects for carbon trading raise serious questions about whether the carbon reduced by a project will stay out of the atmosphere forever. Yet permanent storage of carbon is needed to assure equivalence between emissions reductions avoided if no credits were issued and atmospheric carbon reductions attributable to a project which creates carbon credits. This is so because emissions reductions should guarantee that some quantity of GHG will not wind up in the atmosphere, yet some projects which are used to substitute for emissions reductions at a source have difficulty in demonstrating that the quantities of carbon reductions projected will actually be achieved. For instance, carbon stored in forests, soils, or geological carbon sequestration projects could be released to the atmosphere under the certain conditions. For example, rapid temperature change could kill trees thus releasing back into the atmosphere carbon stored in the trees. This problem is usually referred to as the problem of “permanence” of carbon reduction projects. For this reason, only projects that assure permanent reduction of carbon in the atmosphere can be categorized as environmentally effective projects and should be used to offset activities which actually release carbon.

b. Leakage. Many proposed projects for carbon trading raise serious questions about whether carbon reduced by a project at one location will result in actual reductions in emissions because the activity which is the subject of the trade could be resumed at another location. For example, paying people to plant trees in location A is not environmentally effective if these same people that receive the money chop down trees at place B. This is the problem usually referred to as “leakage.” Forest and other kinds of bio-sequestration projects that sequester carbon in particular often create leakage challenges. Industrial projects can also create leakage problems if the industry gets credit for reducing carbon at one industrial plant while moving the carbon producing activities to another place. If leakage occurs, then the trade is not environmentally effective.

c.  Additionality. Getting a credit for a project which is used in a trade will also not be environmentally effective if the project would have happened anyway for other reasons. This is so because trading regimes usually assume that a GHG emitter should get credit because of their willingness to invest in projects that reduce carbon emissions that would not happen without the incentive to get credit for carbon reductions. If the project would happen without the investment of the emitter, then the investment in the project is not “additional” to business as usual. This is the problem usually referred to as the “additionality” problem.

d.  Enforcement of trading regimeA trading regime is environmentally ineffective if its conditions cannot be enforced. Although enforcement of trading regimes is sometimes practical when the project on which the trade is based is within the jurisdiction of the government issuing the allowances, enforcement is particularly challenging when the project is located outside of allowance issuing government. In such cases, enforcement must be “out-sourced” to other institutions or governments In addition, while many hundreds of millions of dollars are being invested in setting up emissions trading schemes all over the world, virtually no resources are being channeled into their enforcement or verification. Although most cap and trade regimes have built-in carbon reduction verification steps, verification remains extremely difficult for many types of carbon reduction projects for which credits are being issued because of the lack of enforcement or long-term verification potential. This enforcement challenge is exacerbated when projects for which credits are issued are in poor countries without the technical capability to enforce or verify that reductions have been made. Because of this, a strong case can be made that those who desire to rely on projects that have dubious enforcement and verification potential should have the burden of demonstrating enforcement and verification potential before they may obtain credits generated from these projects.

 e. Distributive justice and internal allocation of a government-wide cap. How a cap is allocated among entities within a government creates many potential distributive justice problems. Governments sometimes distribute a cap they have by giving away allowances, auctioning allowances, and other ad hoc considerations that often take into account political feasibility. Each of these methods of distributing a cap raises distributive justice issues that are often ignored for political reasons. For instance, both auctioning allowances and giving away allowances could be significantly regressive, making higher-income households better off while making lower-income households worse off. Auctioning could also be regressive if the most wealthy get the most permits forcing those without the financial resources into non-polluting options. Sometimes governments choose to allocate the cap by placing caps on “upstream” carbon users such as coal and petroleum companies and ignoring “downstream” carbon emitters such as coal-fired industrial users. A decision to place a cap upstream makes the climate change regime easier to administer but could have regressive effects on those least able to afford increased fuel costs. An upstream cap also can create little incentives for those who can afford to waste energy to change behavior. In contrast, downstream caps puts the responsibility on energy users. There is no ethically neutral way to decide these design questions.

f. Distributive justice and revenue from allowancesWhen allowances are auctioned or otherwise purchased, governments must make decisions about how to use allowance revenues. These decisions raise a host of distributive justice issues that are often ignored for political reasons. Some governments have chosen, for instance, to use allowance revenues to fund climate change technology research, to meet international obligations to fund climate change adaptation projects in developing countries, to fund programs to reduce deforestation projects in developing countries, to buy off politically powerful opponents to climate change legislation, to help those least able to cope with rising energy costs, or to subsidize nuclear power, geologic carbon sequestration, or renewable energy.  Thus, decisions about how to allocate revenues from distributing allowances raise distributive justice issue

IV. Ethical Issues With Carbon Taxes.

In addition to the ethical issues that apply to all carbon pricing regimes identified in section II of this entry, carbon taxing regimes can raise the following additional ethical issues.

a. Distributive Justice and a Carbon Tax.  Carbon taxing regimes must decide who must pay the tax and just as is the case for cap and trade regimes in the allocation of allowances, taxing schemes may choose to apply the tax either to upstream producers of carbon fuels such as petroleum or coal companies that distribute fossil fuels or further downstream to entities such as electricity generators who consume the fossil fuels. Upstream taxation creates fewer taxable entities who have a huge tax burden. Therefore the decision on who to tax creates different winners and losers, an outcome which has political significance particularly in places where fossil energy is mostly produced. If the tax is based on the amount of CO2 per unit of energy, then some fossil fuel industries such as coal production will pay a much higher tax per unit of energy, a fact which most greatly affects those places and communities that produce fuels with higher CO2 emissions levels per unit of energy.  This fact creates heavy burdens from the tax for those who are dependent on the sale of fuel with higher CO2 production levels. And so a decision about who must pay a tax has distributive justice implications.

How the tax revenues are used by the government also has enormous political and distributive justice implications. Policymakers are faced with many competing ways of using tax revenues generated by putting a price on carbon.  Many parts of the world that have established a carbon tax use it primarily to subsidize technologies that produce lower amounts of GHG per unit of energy such as wind and solar power. Other governments use the revenues to ease the burden on those who are most affected by the tax, including poor people. Thus how the revenues of a carbon tax are distributed raises deep questions of distributive justice which also create issues of political feasibility.

b. Amount of the tax. 

As we have seen all carbon pricing schemes raise ethical issues about whether the price is sufficient to achieve GHG emissions reductions consistent with the government’s ethically determined obligations to reduce GHG emissions. A pricing  regime that is based on taxing carbon emissions raises more challenging questions about whether the tax is ethically stringent enough than cap and trade regimes because governments are able more easily assure that the cap is stringent enough than a regime based on taxing carbon because the size of the cap may be set directly on the magnitude of GHG reductions required for the government to achieve its ethically determined GHG emissions reductions obligations while the sufficiency of a tax must rely on economic modelling to determine the magnitude of reductions that will be achieved by different levels of the tax. Determining the amount GHG reductions that will be achieved by different levels of the tax is always somewhat of a guessing game due to the inherent imprecision of economic modeling to predict how entities and people will respond to different price signals. For this reason, taxing schemes that seek to assure that the government will reduce GHG emissions reductions levels congruent with the government’s ethically determined reduction obligations should include accelerator provisions that would increase the amount of the tax once it is determined that actual GHG reductions are not consistent with reductions pathways required to achieve ethically determined reductions obligations. However, because experience with carbon taxing programs around the world has demonstrated that political backlash will likely arise that undermines government support for continuing a carbon tax that is judged to be too high, governments which seriously seek to reduce their GHG emissions through imposing a tax alone may need to consider back up strategies rather than rapidly accelerating taxes if the original tax does not achieve the GHG reductions required of it by its ethical obligations.

c. Considering responsibility for prior emissions, an issue relevant to distributive  justice. 

Distributive justice supports an allocation of burden sharing obligations on the basis of who is most responsible for causing the current problem. Carbon tax regimes are usually forward-looking; in that most schemes make everyone pay the same price for using the atmosphere’s capacity to absorb CO2.    Thus the scheme ignores responsibility determined by looking backward at questions such as:

  • Who caused the problem?
  • Who benefited from past emissions?
  • Who is in the best position to fix the problem?

To deal with these questions, a carbon tax may need to be supplemented by additional policies, for example by tax credits for poor people or sharing of tax revenues with those who must pay the tax but who have done little to cause the current problem so that the tax scheme can consider the distributive justice implications of looking backward at who is most responsible for the current problem

V. Conclusions.

As we have seen carbon pricing schemes designed to reduce GHG emissions raise a host of ethical issues and problems.

Although many of these ethical problems can be dealt with by the pricing carbon regime design, given the enormous threat to life and ecological systems created by human-induced climate change, perhaps the most important ethical issue raised by carbon pricing regime is whether the carbon pricing regime will be successful in reducing a government’s GHG emissions to its fair share of safe global emissions.

Because there is limited political support for enacting carbon pricing schemes with sufficient pricing levels to achieve the enormous reductions in GHG emissions now necessary to prevent very dangerous climate change, carbon pricing schemes will likely require policy responses in addition to carbon pricing alone.

Because of the need to judge whether any carbon pricing scheme will achieve a government’s ethically determined GHG emissions reduction obligations, all proposed carbon pricing schemes should be clear and transparent on how the pricing scheme will achieve the government’s ethically determined GHG reduction goals. A pricing scheme could contribute to achieving a nation’s GHG reduction obligations either by establishing a price that will sufficiently reduce a government’s GHG emissions to achieve the nation’s GHG reduction obligations by itself or in combination with other GHG reduction policies. However, to judge the adequacy of the pricing scheme, governments should explain the role of any carbon pricing scheme in achieving its ethically determined GHG reduction obligations.

References: 

Brown, D. (2010, Ethical Issues Raised By Carbon Trading; https://ethicsandclimate.org/2010/06/15/ethical_issues_raised_by_carbon_cap_and_trade_regimes/

Carey, S.& C.Hepburn, (2011) Carbon trading: unethical, unjust and ineffective? http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2011/06/WP49_carbon-trading-caney-hepburn.pdf

Intergovernmental Panel on Climate Change (IPCC), 1995, AR2, Working Group III, Economic and Social Dimensions of Climate Change, https://www.ipcc.ch/publications_and_data/publications_and_data_reports.shtml#1

Intergovernmental Panel on Climate Change (IPCC), 2014, Working Group III, Mitigation of Climate Change, http://www.ipcc.ch/report/ar5/wg3/

Pope Francis, (2015), Laudato Si http://w2.vatican.va/content/francesco/en/encyclicals/documents/papa-francesco_20150524_enciclica-laudato-si.html

Roberts, D. (2016) Putting a price on carbon is a fine idea. It’s not the end-all be-all, Vox, https://www.vox.com/2016/4/22/11446232/price-on-carbon-fine.

Sandel, M. (1967) It’s Immoral to Buy the Right to Pollute, http//www.nytimes.com/1997/12/15/opinion/it-s-immoral-to-buy-the-right-to-pollute.html

UNFCCC, Paris Agreement2 (2015), https://unfccc.int/resource/docs/2015/cop21/eng/l09r01.pdf

UNHR, UN High Commissioner on Human Rights, (2018) Climate Change is a Human Rights Issue, http://www.ohchr.org/EN/NewsEvents/Pages/ClimateChangeHumanRightsIssue.aspx

By:

Donald A. Brown

Scholar in Residence, Professor

Widener University Commonwealth Law School

dabrown57@gmail.com

 

COMMENTS

The following comments on this entry were made by Eric Haites, an economic consultant for Margaree Consultants Inc, in Toronto

 

Ethical Issues Entailed by Pricing Carbon as a Policy Response to Climate Change confuses benefit-cost analysis with carbon pricing and criticizes carbon pricing on grounds that also apply to non-price policies.

Carbon pricing policies – cap and trade systems (CTSs) and carbon taxes – are regulatory measures to limit greenhouse gas emissions (GHGs) by specified sources within a jurisdiction. They may be implemented in conjunction with or as substitutes for non-price regulations such as subsidies for non-carbon energy, minimum gasoline efficiency standards for vehicles, funding for affordable public transportation, requirements/incentives to increase the supply of renewable energy and energy efficiency standards for buildings.

Benefit-cost analysis of climate change compares the estimated costs of different levels of global emissions reductions with the estimated value of reduced global climate change damages associated with those emission reductions. Benefit-cost analysis of climate change is extremely complex conceptually and in practice. Since the analysis must span a century or more due to the long atmospheric lives of greenhouse gases, the calculations are very sensitive to the discount rate and have large uncertainty ranges.

A CTS or carbon tax can be implemented by a jurisdiction to help achieve its GHG reduction goal regardless of how that goal is established. A country that has a nationally determined contribution under the Paris Agreement can use carbon pricing and/or non-price policies to meet its commitment.

It is true that many economics textbooks suggest that the carbon tax be set at the level determined by benefit-cost analysis, but that is not necessary and is based on the implicit assumption that an emissions reduction goal has not been established by other means, such as international negotiations.

Many of the criticisms of carbon pricing policies do not specify an alternative policy. If emissions are to be reduced, the alternative is a set of non-price regulations including efficiency standards and increased reliance on renewable energy. In practice, neither carbon pricing nor non-price regulations cover all GHG emissions, so there are regulated emissions and exempt emissions under every policy.

Consider then the claim that it is immoral to buy the right to pollute. Before a regulation is implemented, the right to pollute in unlimited quantities is free. Regulations impose costs and/or quantity limits on the right to pollute. In the case of a carbon tax, there is a cost for each ton of GHGs emitted by specified sources. In the case of a CTS, total emissions by specified sources are capped. In the case of non-price regulations there is a compliance cost, but any remaining emissions are free and unrestricted. The cost of an efficient automobile is higher, but its emissions are not priced or restricted.

One of the arguments by Simone Carey and Cameron Hepburn cited by the paper is that the rights to nature can not be owned. Many CTSs explicitly state that the allowances are not property rights. Almost all of the CTSs have cancelled or greatly devalued surplus allowances.

In the paper, the discussion of the distinction between a fine and a fee is misleading for a CTS. Every CTS has penalties for non-compliance, so the correct comparison is the fine for a CTS and that for a non-price policy. The non-compliance penalty for most CTSs is a reduction in emissions equal to the exceedance plus a penalty. To use the analogy in the paper, a CTS requires the offender to pick up the beer can and pay a penalty. In contrast, a non-price regulation only imposes a fine.

The paper raises the concern that “the tax can diminish the moral stigma entailed by status quo levels of emissions.” Why would the moral stigma associated with residual emissions differ? Are the residual emissions by a source subject to a carbon tax morally less acceptable than those by the owner of a more efficient automobile. Sources subject to carbon pricing policies have a financial incentive to make emission reductions that cost less than the tax/allowance price. Sources subject to non-price policies have no incentive to reduce their emissions.[1]

Issues of distributive justice arise for all regulations; which sources are regulated, how stringent is the regulation, how should groups that are adversely affected by compensated? The paper clearly identifies these issues for CTSs and carbon taxes. But they apply equally to non-price regulations. Who pays for the more efficient vehicles and buildings, the public transit and the additional renewable energy? Those costs will be borne by specific groups or the government. Carbon pricing policies have the advantage that they generate revenue that can be used to help address distributive justice.

The paper argues that past emissions should be considered when addressing distributive justice. Presumably, this consideration applies to any policy, not just carbon pricing. In practice the ability to do this is limited due to lack of data and the long atmospheric lives of GHGs. Non-price regulations often differentiate between existing and new sources and CTSs address this concern through their allowance allocations.

In summary, carbon pricing can be implemented by a government to help meet its GHG emissions reduction target regardless of how that target is established. A CTS or carbon tax can be implemented alone, jointly or in combination with non-price policies. In practice all jurisdictions with a pricing policy also implement non-price policies. Many of the ethical criticisms of pricing policies apply to non-price policies as well. Price policies have the advantage of raising revenue that can be used to address distributive justice.

[1] Indeed, they may have a financial incentive to increase emissions. A more efficient vehicle may have a lower operating cost per km so the owner may drive more.

Resonse to comments

I agree that levels of GHG reductions achieved by a pricing scheme need not be determined by Cost-Benefit Analysis although some economists recommend this. In such cases the ethical issues discussed in this paper apply

Mr, Haite is correct that the articles criticism of carbon pricing schemes may also apply to other responses to climate change, However, if the level of reductions that constitute a nation’s GHG reduction target are based on a nation;s ethical obligations, then the problem entailed by some carbon pricing scheme’s allowing emitters to continue emit as long as they pay  a tax is not possible.

 

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Improving IPCC Working Group III’s Analysis on Climate Ethics and Equity, Second In A Series.

ipcc_postcard

jutice climate

 

This is the second in a three part series examining the ethical and justice issues discussed by the IPCC Working Group III in its 5th Assessment Report (AR5) . In the first entry in  this series we concluded that although the recent IPCC AR 5 Working Group III report is laudable improvement over prior IPCC reports in regard to identifying ethical and equity issues that should be considered in developing climate change policy, some criticisms are also warranted of how IPCC has articulated the significance and implications of the ethical, justice, and equity principles that should guide nations in developing climate change policies.

In short, we will argue improvement is possible in how IPCC deals with ethics, justice, and equity issues entailed by climate change policy-making despite very significant improvements on these matters in the AR5 report compared to prior IPCC reports.

In this entry we will examine several preliminary ethical and justice issues raised by the new IPCC Working Group III Chapter 3, on Social, Economic, and Ethical Concepts.  The last entry will continue the examination Chapter 3 and then turn to Chapter 4 on Sustainable Development and Equity.

As a preliminary matter, one of the challenges that IPCC faces in its mandate on of ethics and justice issues relevant to climate change policy-making is that it is not IPCC’s role to be prescriptive in deciding what governments should do. It’s mandate is to synthesize the extant social-economic and scientific literature for policy-makers. In this regard, the IPCC chapter on ethics said expressly:

This chapter does not attempt to answer ethical questions, but rather provides policymakers with the tools (concepts, principles, arguments, and methods) to make decisions. (IPCC, 2014.WG III, Ch. 3, pg. 10)

And so it is not IPCC’s role to do ethical analyses of policy issues that raise ethical questions. IPCC can, however, distinguish between prescriptive and descriptive questions that arise in relevant socio-economic literature about climate policy-making, identify important ethical and justice issues that arise in this literature, where there is a consensus on ethics and justice issues in the relevant literature describe the consensus position, where there is no consensus on ethical and justice issues describe the range of reasonable views on these issues, and identify hard and soft law legal principles relevant to how governments should resolve ethical and justice issues that must be faced by policy-makers.

There are several subjects in climate change policy-making which raise important ethical and justice issues. They include policy judgements about:

  1. how much warming will be tolerated, a matter which is implicit but rarely identified when nations make ghg emissions reduction commitments,
  2. any nation’s fair share of safe global emissions, matters which are referred to by the IPCC usually as burden-sharing or effort-sharing considerations and a matter taken up in chapter 4 of IPCC, Working Group III chapter on sustainability and equity,
  3. any nation’s responsibility for funding reasonable adaptation and compensation for losses and damages for those who are harmed by climate change,
  4. when a nation is responsible for its ghg emissions given differences in historical and per capita emissions among nations,
  5. responsibility for funding technology transfer to poor nations,
  6. how to evaluate the effects on and responsibilities to others of climate change technologies that are adopted in response to the threat of climate change, including such technologies as geo-engineering or nuclear power, for instance,
  7. who has a right to participate in climate change policy-making, a topic usually referred to under the topic of procedural justice,
  8. the policy implications of human rights violations caused by climate change,
  9. the responsibility of not only nations but subnational governments, entities, organizations, and individuals for climate change,
  10. when economic analyses of climate change policy options can prescribe or limit national duties or obligations to respond to the threat of climate change,
  11. ethical and justice implications of decisions must be made in the face of scientific uncertainty,
  12. whether action or non-action of other nations is relevant to any nation’s responsibility for climate change,
  13. how to spend limited funds on climate change adaptation,
  14. when politicians may rely on their own uninformed opinion about climate change science,
  15. who is responsible for climate refugees and what their responsibilities are.

nw book advOn some of these issues, the recent IPCC report included a good summary of the extant ethical literature, on other issues important gaps in IPCC’s analysis can be identified, and lastly on a few of these issues, IPCC Working Group III is silent. IPCC reports cannot be expected to be exhaustive on these matters and therefore gaps and omissions in the IPCC reports in regard to ethics and justice issues relevant to policy-making is not necessarily a criticism of IPCC and is here pointed out only for future consideration. In fact, IPCC’s work on the ethical limits of economic arguments is a particularly important contribution to the global climate change debate. What is worthy of criticism, however, is if IPCC’s conclusions on guidance for policy-makers is misleading on ethics and justice issues.

II. Ethical Issues Raised by Economic Arguments About Climate Policy

Perhaps the most important practical ethical and justice issues raised by Working Group III’s work on ethics is its conclusions on the ethical and justice limitations of economic analyses of climate change policy options. This topic is enormously practically important because nations and others who argue against proposed climate change policies usually rely on various economic arguments which often completely ignore the ethical and justice limitations of these arguments (In the case of the United States, see Brown, 2012.) Because most citizens and policy-makers have not been trained in spotting ethically dubious claims that are often hidden in what appear at first glance to be “value-neutral” economic arguments, IPCC’s acknowledgement of the ethical limitations of economic arguments is vitally important.  It is also practically important because the first four IPCC reports, although not completely ignoring all ethical and justice problems with economic arguments about climate change policies, failed to examine the vast majority of ethical problems with economic arguments against climate change policies while making economic analyses of climate change policies the primary focus of Working Group III’s work thereby  leaving the strong impression that economic analyses, including but not limited to cost-benefit analyses, is the preferred way to evaluate the sufficiency of proposed climate change policies.  On this matter, the AR5 report has made important clarifications.

The AR5 III report included a section on this very issue entitled: Economics, Rights, and Duties which we reproduce here it  its entirety because of its importance to this discussion,  followed by comments in bold italics:

Economics can measure and aggregate human wellbeing, but Sections 3.2, 3.3 and 3.4 explain that wellbeing may be only one of several criteria for choosing among alternative mitigation policies.

Other ethical considerations are not reflected in economic valuations, and those considerations may be extremely important for particular decisions that have to be made. For example, some have contended that countries that have emitted a great deal of GHG in the past owe restitution to countries that have been harmed by their emissions. If so, this is an important consideration in determining how much finance rich countries should provide to poorer countries to help with their mitigation efforts. It suggests that economics alone cannot be used to determine who should bear the burden of mitigation.

What ethical considerations can economics cover satisfactorily? Since the methods of economics are concerned with value, they do not take into account of justice and rights in general. However, distributive justice can be accommodated within economics, because it can be understood as a value: specifically the value of equality. The theory of fairness within economics (Fleurbaey, 2008) is an account of distributive justice. It assumes that the level of distributive justice within a society is a function of the wellbeings of individuals, which means it can be reflected in the aggregation of wellbeing. In particular, it may be measured by the degree of inequality in wellbeing, using one of the standard measures of inequality such as the Gini coefficient (Gini, 1912), as discussed in the previous section. The Atkinson measure of inequality (Atkinson, 1970) is based on an additively separable social welfare function (SWF), and is therefore particularly appropriate for representing the prioritarian theory described in Section 3.4.6 . Furthermore, distributive justice can be reflected in weights incorporated into economic evaluations as Section 3.6 explains.

Simply identifying the level of inequality using the Gini Index does not assure that the harms and benefits of climate change policies will be distributed justly. For that a theory of just distribution is needed. The Gini index is also at such a level of abstraction that it is very difficult to use it as a way of thinking about the justice obligations to those most vulnerable to climate change. Even if there is strong economic equality in a nation measured by the Gini index, one cannot conclude that climate change policies are distributively just.

Economics is not well suited to taking into account many other aspects of justice, including compensatory justice. For example, a CBA might not show the drowning of a Pacific island as a big loss, since the island has few inhabitants and relatively little economic activity. It might conclude that more good would be done in total by allowing the island to drown: the cost of the radical action that would be required to save the island by mitigating climate change globally would be much greater than the benefit of saving the island. This might be the correct conclusion in terms of overall aggregation of costs and benefits. But the island’s inhabitants might have a right not to have their homes and livelihoods destroyed as a result of the GHG emissions of richer nations far away. If that is so, their right may override the conclusions of CBA. It may give those nations who emit GHG a duty to protect the people who suffer from it, or at least to make restitution to them for any harms they suffer.

Even in areas where the methods of economics can be applied in principle, they cannot be accepted without question (Jamieson, 1992; Sagoff, 2008). Particular simplifying assumptions are always required, as shown throughout this chapter. These assumptions are not always accurate or appropriate, and decision‐makers need to keep in mind the resulting limitations of the economic analyses. For example, climate change will shorten many people’s lives. This harm may in principle be included within a CBA, but it remains highly contentious how that should be done. Another problem is that, because economics can provide concrete, quantitative estimates of some but not all values, less quantifiable considerations may receive less attention than they deserve.

This discussion does not adequately capture serious ethical problems with translating all values into monetary units measured by willingness to pay or its surrogates nor that such transformation may greatly distort ethical obligations to do no harm into changes in commodity value.

The extraordinary scope and scale of climate change raises particular difficulties for economic methods (Stern, forthcoming). First, many of the common methods of valuation in economics are best designed for marginal changes, whereas some of the impacts of climate change and efforts at mitigation are not marginal (Howarth and Norgaard, 1992). Second, the very long time scale of climate change makes the discount rate crucial at the same time as it makes it highly controversial (see Section 3.6.2 ). Third, the scope of the problem means it encompasses the world’s extremes of wealth and poverty, so questions of distribution become especially important and especially difficult. Fourth, measuring non‐market values—such as the existence of species, natural environments, or traditional ways of life of local societies—is fraught with difficulty. Fifth, the uncertainty that surrounds climate change is very great. It includes the likelihood of irreversible changes to societies and to nature, and even a small chance of catastrophe. This degree of uncertainty sets special problems for economics. (Nelson, 2013) (IPCC, 2014.WG III, Ch. 3, pg. 12-13)

Again this discussion does not adequately describe the ethical problems with economic determinations of all values. In fact it leaves the impression that if non-market values can be discovered the problems of transforming all values to commodity values are adequately dealt with.

Chapter 3, also includes additional statements about the ethical limits of economic reasoning sprinkled throughout the chapter. They include:

1. Most normative analyses of solutions to the climate problem implicitly involve contestable ethical assumptions.(IPCC, 2014. WG III, Ch. 3, pg.10)

2. However, the methods of economics are limited in what they can do. They can be based on ethical principles, as Section 3.6 explains. But they cannot take account of every ethical principle. They are suited to measuring and aggregating the wellbeing of humans, but not to taking account of justice and rights (with the exception of distributive justice − see below), or other values apart from human wellbeing. (IPCC, 2014.WG III, Ch. 3, pg. 24)

And so Chapter 3 of the IPCC report contains a number or clear assertions  about the ethical limitations of economic arguments. However there are important gaps missing from this analysis. Also several sections of Chapter 3 that can be interpreted as claims that policy makers are free to choose economic reasoning as justification for climate policies. That is, some of the text reads as if a policy-maker is free to choose whether to base policy  on economic or ethical and justice considerations, choosing between these two ways of evaluation is simply an option. Some of these provisions follow with responses in italics

Chapter 3 page 6 says:

Many different analytic methods are available for evaluating policies. Methods may be quantitative (for example, cost‐benefit analysis, integrated assessment modeling, and multi‐criteria analysis) or qualitative (for example, sociological and participatory approaches). However, no single best method can provide a comprehensive analysis of policies. A mix of methods is often needed to understand the broad effects, attributes, trade‐offs, and complexities of policy choices; moreover, policies often address multiple objectives  (IPCC, 2014.WG III, Ch. 3, pg. 6)

Although economic analyses can provide policy-makers with valuable information such as which technologies will achieve ethically determined goals at lowest cost, thereby providing criteria for making remedies cost-effective, there are serious ethical problems with cost-benefit analyses used prescriptively to set emissions reductions targets. Some of these are alluded to in IPCC Chapters 3 and 4, others are not acknowledged. Because of the prevalence of cost-benefit justifications for climate change policies, future IPCC reports could make a contribution by identifying all of the ethical issues raised by cost-benefit analyses.

 Any decision about climate change is likely to promote some values and damage others. These may  be values of very different sorts. In decision making, different values must therefore be put together or balanced against each other. (IPCC, 2014. WG III, Ch. 3, pg. 6)

This provision can be understood as condoning a consequentialist approach to climate policy that fails to acknowledge deontological limits. Since when any nation makes policy on climate change it affects poor people and vulnerable nations around the world, there are serious procedural justice issues which go unacknowledged in this section and,  for the most part, all throughout Chapter 3. Nowhere does the chapter acknowledge that when a climate policy is  under development at the national level,  nations have no right to compare costs to them of implementing policies  with the harms to others that have not consented to the method of valuation being used to determine quantitative value.

Ideally, emissions should be reduced in each place to just the extent that makes the marginal cost of further reductions the same everywhere. One way of achieving this result is to have a carbon price that is uniform across the world; or it might be approximated by a mix of policy instruments (see Section 3.8 ). (IPCC, 2014.WG III, Ch. 3, pg. 26)

This statement fails to acknowledge that emissions reductions amounts should be different in different places according to well accepted principles of distributive justice. Although other sections of the chapter acknowledge that responsibility for climate change is a matter of distributive justice, this section and others leave the impression that climate policy can be based upon economic efficiency grounds alone. The way to cure this problem is to continue to reference other sections that recognize ethical limits in setting policy on the basis of efficiency.

(IPCC, 2014.WG III, Ch. 3, pg. 6)

Since, for efficiency, mitigation should take place where it is cheapest, emissions of GHG should be reduced in many developing countries, as well as in rich ones. However, it does not follow that mitigation must be paid for by those developing countries; rich countries may pay for mitigation that takes place in poor countries. Financial flows between countries make it possible to separate the question of where mitigation should take place from the question of who should pay for it. Because mitigating climate change demands very large‐scale action, if put in place these transfers might become a significant factor in the international distribution of wealth. Provided appropriate financial transfers are made, the question of where mitigation should take place is largely a matter for the  economic theory of efficiency, tempered by ethical considerations. But the distribution of wealth is amatter of justice among countries, and a major issue in the politics of climate change (Stanton, 2011). It is partly a matter of distributive justice, which economics can take into account, but compensatory justice may also be involved, which is an issue for ethics. (Section 3.3).(IPCC, 2014.WG III, Ch. 3, pg. 26)

There are a host of  potential ethical problems with mitigation taking place in one part of the world to satisfy the ethical obligations of a nation in another part of the world which is emitting above its fair share of safe global emissions that are not mentioned in this article. Included in these problems are:

  • Environmental Sufficiency. There are many technical challenges in assuring that a project in one part of the world that seeks to reduce ghg by an amount that otherwise would be required of a polluter will actually succeed in achieving the reductions particularly when the method of reduction is reliant on biological removal of carbon.
  • Permanence. Many proposed projects for reducing carbon in one part of the world to offset reductions ethically required in another part of the world raise serious questions about whether the carbon reduced by the project will stay out of the atmosphere forever, a requirement that is required to achieve the environmental equivalence to ghg emissions reductions that would be achieved at the source.
  • Leakage. Many proposed projects used to offset emissions reductions of high-emitters raise serious questions about whether carbon reduced by a project at one location will result in actual reductions in emissions because the activity which is the subject of the offset is resumed at another location.
  • Additionality. A project that is proposed in another part of the world to offset emissions reductions of a high-emitting entity may not be environmentally effective if the project would have happened anyway for other reasons.
  • Allowing Delay In Investing In New Technology. The ability to rely on a cheaper emissions reductions project in another part of the world as a substitute of reducing emissions creates an excuse for high-emitting entities to delay investment in technologies that will reduce the pollution load. This may create a practical problem when emissions reductions obligations are tightened in the future. 

Chapter 3 also treats other important ethical issues that arise in climate change policy formation. They include:

3.3 Justice, equity and responsibility,

3.3.1 Causal and moral responsibility

3.3.2 Intergenerational justice and rights of future people

3.3.3 Intergenerational justice: distributive justice

3.3.4 Historical responsibility and distributive justice

3.3.5 Intra‐generational justice: compensatory justice and historical responsibility

3.3.6 Legal concepts of historical responsibility

3.3.7 Geoengineering, ethics, and justice

3.4 Values and wellbeing

3.4.1 Non‐human values

3.4.2 Cultural and social values

3.4.3 Wellbeing

3.4.4 Aggregation of wellbeing

3.4.5 Lifetime wellbeing

3.4.6 Social welfare functions

3.4.7 Valuing population

III. Some Additional Gaps In Chapter 3

Some of the gaps in Chapter 3 on ethical issues raised by climate change policy-making include: (1) ethics of decision-making in the face of scientific uncertainty, (2) whether action or non-action of other nations affects a nation’s responsibility for climate change, (3) how to spend limited funds on climate change adaptation, (4) when politicians may rely on their own uninformed opinion about climate change science, and (5) who is responsible to for climate refugees and what are their responsibilities.

The last entry in this series will continue the analyses of IPCC  Chapter 3 on Social, Economic, and Ethical Concepts and Chapter 4 on Sustainability and Equity.

References

Brown, 2012,  Navigating the Perfect Moral Storm: Climate Change Ethics In Light of a Thirty-Five Year Debate, Routledge-Earthscan, 2012

Intergovernmental Panel on Climate Change (IPCC), 2014, Working Group III, Mitigation of Climate Change, http://www.ipcc.ch/report/ar5/wg3/

By:

Donald A. Brown

Scholar In Reference and Professor

Sustainability Ethics and Law

Widener University School of  Law

dabrown57@gmail.com

 

 

Degrees of Responsibility for Climate Catastrophe

Editors Note: The following entry has been written by guest bloger, Michael Hoexter. This entry was first published on the Web Site New Economic Perspectives on February 27, 2014. We republish this article with permission of the author because it contains a number of excellent points about the ethical dimensions of climate change particularly in regard to who should be understood to be responsible for the failure of the United States to take adequate action on climate change. This analysis concludes that different parties should be differentially responsible for inaction on climate change. In addition, the article makes several compelling arguments for the urgent practical need to understand climate change as an ethical and moral problem. The article also explains why government action on climate change is indispensable to an adequate climate change solution, that is, why market solutions such as cap and trade or even carbon taxes will not alone create an adequate US response to climate change.  

ethics-nuclear

Degrees of Responsibility for Climate Catastrophe

The climate crisis is an event with such profound personal and broadly social moral implications that many shy away from discussing the crisis itself let alone its ethical aspects. Via our society’s use of fossil fuels we are, if our combustion of these fuels remains unchecked and in addition we further destroy the carbon fixing capacity of natural systems, destroying almost all wealth, the likelihood of their being future civilizations, and even the possibility for existence for future generations. To continue ignoring climate change and effective climate action is definitely an après moi le deluge stance, an expression of callousness and self-absorption unsupportable by moral justification. Morality and ethics is here not an exotic preoccupation of a select group but a basic reality-check: does what we are doing make sense and promote the general ends to which these activities are devoted? How do we assess our own agency and role and those of others, in events that are occurring around us and will with very high likelihood exacerbate in the future?

In addition to the lulling effects of the organized climate denial industry as well as propaganda for fossil fuels broadcast in all media channels, one of the difficulties facing climate change activism is that, taking effective, durable action is not primarily an individual phenomenon but a massive group enterprise, ideally with full participation and leadership by governments. It is difficult for people to understand how a sense of personal ethical obligation, which people may or may not feel, can translate into effective action, given the uncertainties and variability of the participation of others and of the varying, non-existent, or contrary commitments of social institutions to the necessary changes in our energy system. With some justification, people on the ground believe they are, in their isolation, too small and insignificant to remake the energy basis of society and the economy.

Also, because the way to effective climate action is not clearly in mind, people who do not feel themselves to be in positions of power or influence might resent people pointing out, as I am doing now, their role, moral or otherwise, regarding climate change. We are living in an age where people feel that ethical appeals, more generally, are felt to be a hindrance to living one’s life unencumbered by obligations to others, that ethics competes with and impedes the light sense of freedom that is one of the sought-after states of mind in our time. Often this sense of freedom is defined by many throughout the developed and developing world as a choice of a variety of consumer goods for immediate or near-term consumption. The attachment to near-term pleasures can even turn into a form of climate nihilism, a philosophical rejection of ethics in favor of sensuous pleasure über alles. Nihilism’s formal severance from ethical considerations in turn leads ultimately to an acceptance or enactments of varying degrees of psychopathy/sociopathy and eventually to the collapse of civilization.

new book description for website-1_01As of late, the North American climate action movement and outspoken climate scientists such as Michael Mann have focused on counteracting the massive propaganda and obfuscation campaign that has delayed climate action. Fingers have been pointed at the fossil fuel industries and their role in creating clouds of doubt and confusion around the findings of climate science, while continuing to profit from climate change denial and or fossil fuel addiction. The climate movement is pointing out that unconventional fossil fuel extraction techniques (fracking, tar sands excavation, deep-water drilling, mountaintop removal coal mining) are leaving or will leave toxic wastes and scars on the landscape as the fossil fuel industry gouges and lacerates the earth in search of combustible fossil resources. The freight rail network in North America is being turned into a conduit for crude oil from the landlocked Canadian tar-sands and the Bakken Shale, as construction timelines and permitting decisions are awaited for new pipelines. It appears that conventional oil has reached its peak and is, as well, controlled by sovereign oil companies not the oil majors.

Local groups and national environmental organizations are attempting to combat fracking operations, pipeline build-out and crude-by-rail programs either by reference to their local damages and risks, or too little, in my opinion, via reference to the impact of these activities on global warming. I am active in groups that are focused on halting the expansion plans of the fossil fuel industries including the Keystone XL pipeline and yet the climate movement is still figuring out how a focus on local damages and pollution translate to action on the global long-term issue. The phrase “leave it in the ground” has started to gain currency, though it appears not have yet become the central demand of any national campaign. Recently, activists in our area have created the slogan “NIMBY => NOPE” (“’Not in My Back Yard’ to ‘Not on Planet Earth’”).

While some of the defenders of the fossil fuel industries deny climate change, there are others like President Obama and those who support his energy policy, who simultaneously admit that climate change is a problem and continue encouraging the expansion of fossil fuel extraction and therefore its ongoing use. The MSNBC commentator Ed Schultz, known as a progressive, has voiced support for the expansion of the Keystone XL pipeline as does his frequent guest, the supposed progressive and would-be challenger to Hillary Clinton’s candidacy for President in 2016, former Governor Brian Schweitzer of Montana. Schultz, to his credit, has been devoting considerable time on his air to the issue of the pipeline, and may be reconsidering his stance. As another MSNBC commentator, Chris Hayes, points out, the stance of Obama and others, that they are against global warming but for the building of new pipelines, are the protestations of fossil fuel addicts, who haven’t yet confronted their addiction.

And it is and will be very difficult for us, particularly here in North America, to confront our fossil fuel addiction as well as lessen our impact on the climate more generally, individually and also as a society as a whole. We are, all of us, in various positions along a continuum of lesser to greater individual or family climate virtue, whether by intention, by pre-existing preference, or by level of means, though in the developed societies, we are as individuals and families bunched towards the less virtuous end of the spectrum in terms of the stability of the climate. However, as many people know, individual and familial efforts even if all of us were paragons of climate virtue within our various means, do not add up to the systemic changes required to cut emissions on a grand scale across the economy. The vision of climate action as simply the accumulation of individual and familial choices overlooks the importance of public goods like infrastructure and the design and locations of cities and towns, which can only be changed by government action or other coordinated collective means. This fact alone reveals that market-based instruments (either cap and trade or carbon taxes) are more likely auxiliary policies rather than the central policy structure to transform our societies. Carbon pricing instruments, at least in the form of a gradually escalating carbon price, are “nudges” when we are needing in many areas a reversal of direction and a major concerted push, or time will have run out on our best intentions.

Chicken and Egg: Demand- vs. Supply-Focused Campaigns

Among those who have taken some interest in addressing climate change, there have over the last decade or so been discussions about whether a focus on curtailing the activities of the fossil fuel industries or a focus on reducing demand for fossil fuels is the right single or leading method to move society into a transition away from fossil energy. Economics is divided on the subject of what is the primary cause of business activity in general, though strangely in the area of curtailing fossil fuel use, almost everybody is a “Keynesian” in the sense of theorizing a demand-led business cycle. Keynes is the most influential economist who challenged the old dogma of Say’s Law that states that supply creates its own demand; i.e. “build it and they will come”. With, in theory, supply no longer controlling the business cycle, Keynes advocated stimulation of demand via government spending and/or tax cuts as a cure for economic depressions caused by what turned out to be a collapse in demand.

With fossil fuels, a large majority of economists that contemplate climate action advocate a price on carbon, either a tax or a permit to emit, which would reduce demand for the fuels without restricting supply. By contrast, this is the reverse of the current right-leaning consensus among policymakers regarding what to do about unemployment, which prescribe, almost exclusively, supply-side solutions. The unemployed or youth are said to lack the proper skills, so the focus is on skills training and educational reform would supposedly create jobs. Meanwhile few economists are advocating curtailing the activities of the fossil fuel industry or rationing fuel, both supply-side measures, to meet the challenge of global warming. This could be seen as a tribute to the relative political power of the fossil fuel industries and high-consumers of fossil energy (large corporations and the affluent) versus the power of the unemployed and youth; the former are treated, if at all, with gentle “nudges” while the latter are viewed as “clay to be molded” by elites.

Demand and supply-side interventions have different ethical implications, with ethics being the social discourse about how we manage our own agency or agencies (our “doing”) in the light of what is best or better for us or for a greater community or some combination thereof. Policy focused on reducing demand for fossil fuels starts from the premise that we are not able by internalizing legal-ethical mandates/strictures, foresight, and rational planning to change our behavior. Only after incurring a succession of monetary losses or anticipated losses from the “sin” tax or increased price do “appetites” for fossil fuel use diminish: consumers, as they have limited monetary resources, figure out for themselves the trade-off in monetary terms of one set of appetites for another and start choosing the higher benefit-to-cost satisfactions. The process of choosing between those appetites, or the restriction of the satisfaction of other appetites because of a lack of funds, leads eventually, in some, to a waning of interest in the targeted product or service. A supply-side restriction, such as rationing or cutting off certain types of fossil fuel supply (reducing overall supply), assumes that people are able to rein in their appetites via either their own internalized moral compass, or they accept the legitimacy of the external moral instance of government or the community to regulate their usage of, in this case, fossil fuels

The divide between supply- and demand-side policies is a byproduct of mainstream economic assumptions and academic disputes that some heterodox economists criticize, yet have not yet presented an alternative causal model of business and sectoral development. Presented in current contretemps between self-identified Keynesians and anti-Keynesians as an “either/or”, a longer view look at economic history suggests that the causal role of supply and demand are historical and sectoral snapshots of the complex unfolding of the actual economy. Due to the rapidity of energy transition required for human civilization to survive as well as the need for a change in energy systems, a combination of supply- and demand-side measures are required, together applied with as much force and speed as possible and effective. Supply-side restrictions of fossil fuels, for instance, would create a feedback loop where a restriction of supply will for instance act as a virtual “carbon tax” as oil companies charge more for their scarcer product. This should be seen as intentional rather than accidental, if one is advocating that both supply and demand be simultaneously curtailed. At the same time, government needs to supply or help design and subsidize the building of many of the connective pieces of a zero-carbon infrastructure. A new source or switch of suppliers is not well theorized by the supply-demand framework.

Even the institution and maintenance of an effective demand-side policy, advertised as the more moderate and “reasonable” solution, would in reality require a high degree of ethical commitment by the polity to effective climate action, more than the neoclassical economic fantasy of what constitutes the human being could accommodate. A behavior-changing carbon price (a tax or fee) of perhaps $150-200 per metric tonne CO2-equivalent emissions (with or without a refundable tax credit, sometimes called a dividend to blunt its regressivity) would require sacrifice differentially among economic sectors and groups, as well the need to change comfortable habits and ways of life. Such sacrifice would need to be openly acknowledged beforehand, requiring people, as citizens beyond their roles as consumers, to develop an ethical commitment to the large-scale task of preventing climate catastrophe.

Primary, Secondary and Tertiary Responsibility for Climate Catastrophe

 A political campaign on climate that focuses its anger and claims of responsibility only on the role of the fossil fuel industries and their political surrogates is naïve: their power is sustained by the number of paying customers available for their products, as well as their accumulated wealth from a 225-year history of fueling industrial growth via fossil energy. On the other hand, campaigns that focus only on demand-side policy, on the population’s demand for cheap, polluting fuel, tend to overlook the effects of the massive political-economic disinformation campaign by the fossil fuel industries and their political surrogates on laming climate action once human-caused climate change was recognized internationally as a problem around 25 years ago. The assumption of demand-side policy is that our “appetite” for the products and services that fossil fuels enable is the driving force and therefore a wide-swath of the developed world is culpable for climate catastrophe.

Holding ordinary consumers in the developed world responsible on an individual basis for the continued dominance of fossil fuels either implicitly or explicitly is unfair and unrealistic. Some combination of an appeal to the moral sense of each individual as well as an appeal to macroethical justice for those who have delayed climate action and profit from climate inaction is required for climate action to be both heart-felt by many and also politically and economically astute.

Furthermore, there is a third category of people who have neither made executive decisions nor consumption/purchasing decisions that have had significant climate impacts. Some of these people live in poverty in the developing world or are too young now to have made significant decisions about how to live their lives yet. These people will pay the price of the decisions of others yet are or will become responsible for protecting the climate from further negative change and devastation of a conducive life-world for them and humanity more generally. Their responsibilities then start now or lie in the future.

I am proposing then that we subdivide responsibility into three categories or levels with regard to climate change, though this type of subdivision may be applicable with other large scale societal institutions and events. In delaying action on climate, some people have had a much greater role than others in prolonging our addiction to fossil fuels. As a parallel example, many legal jurisdictions, for instance, assign a higher culpability to drug pushers/dealers than to drug addicts, though unfortunately the latter group is in the United States subject to excessive legal penalties for non-violent drug offenses. The dealer/user distinction found in many legal codes should be carried over to the politics and ethics of global warming.

Around global warming then, at the current juncture in history, we can say that there are those who have primary moral responsibility for causing climate catastrophe, a much larger group of those who have secondary ethical responsibility for climate catastrophe, and a still larger group who are bystanders in terms of causality of global warming to date but will need to assume some responsibility in solving the climate crisis. The growth of a political movement will be in part by determined by how these relative responsibilities as we will see below will be addressed by climate politics and climate policies.

Historical Responsibility and Present-Day Responsibility

 With large-scale complex systems such as energy infrastructure, an industrial economy, or an entire civilization, it is fair to distinguish between historical responsibility and ethical responsibility. The socially-constructed complex systems we live in are the product of generations of decisions and actions by our ancestors as well as those now living, some of whom may be retired from positions of power and authority. There are those who set up and reinforced the fossil-fuel-dependent industrial base of our civilization who were and are responsible but cannot be said, because of their lack of awareness of global warming and the continued dominance of fossil energy up to the present to be ethically responsible for global warming. John D. Rockefeller, Henry Ford, Franklin Roosevelt, Robert Moses, Dwight D. Eisenhower and many others made crucial decisions in the design of American civilization. The American model of development remains one of the primary models for many developed and developing industrial cultures from early 20th Century onward that, of course, require a large supply of fossil energy with current infrastructure. These historical figures and others hold historical responsibility but they cannot be held ethically responsible for global warming as they were not made aware of the consequences of their actions at the time. We then can only discuss the ethical responsibilities for global warming of those in the current generation because a crucial piece of that ethical responsibility is having been made aware, in this case, by the geosciences and in particular climate science, of the consequences of maintaining the status quo in these complex large-scale systems.

Global warming emerged as a very strong hypothesis in the then-obscure scientific discipline of climate science in the 1980’s with mounting empirical data supporting the human role in increases in greenhouse gas emissions, particularly carbon dioxide. The climate science community alerted policymakers to the danger in the late 1980’s with among other events, James Hansen’s dramatic testimony to Congress during the heatwave of 1988. From these interactions and subsequent meetings between policymakers, there eventually emerged in 1997 the UN Framework Convention on Climate Change with the Kyoto Protocol and its emissions-trading (cap and trade) instrument selected as the general policy tool to reduce emissions worldwide. Emissions trading is an implementation of the economic idea of carbon pricing, the idea that an escalating carbon price will shape economic behavior to emit less greenhouse gases, while supposedly being able to meet an overall “cap” in quantity of emissions, set by policymakers. While the Kyoto Protocol had already been set into place as the primary solution to climate change, the historian of science Stuart Weart marks the point at the year 2001 where climate scientists had actually reached a consensus that human activity was warming the planet via GHG emissions and land-use changes, the former largely from fossil fuel use.

Having been alerted of an impending catastrophe in 2001, perhaps in terms that were soft pedaled at the time and filtered through the politics of national governments, it can be said in theory that all adults in the world were at that point informed enough to know that they had an ethical responsibility as citizens and consumers to address climate change. Even if the emissions trading instrument chosen by the UN was and is opaque and faulty, as it turned out to be, theoretically it was then and is now incumbent upon people as citizens to correct or amend climate policy.

However, in reality, a number of trends and events have intervened that make it unreasonable to have conferred responsibility upon all adults in 2001 when the climate science consensus was formed. Unfortunately, it has required a real degradation in the climate and a series of failures of the cap and trade instrument before it is reasonable to assume that ethical responsibility has been fully transferred, in varying degrees, to all adults in the world. In the intervening time between 2001 and today, the international and various national policy communities, outside of a few nations like the US and China, were claiming that it was on the road to “solving” the climate issue with emissions trading. I have devoted a good portion of my writing over the past decade to showing how insufficient and ineffective emission trading is and also a diversion from leaders’ and citizens’ primary ethical duties to act on climate change. It may be that the transmission of ethical responsibility is not yet complete until it is made abundantly clear that:

  1.  It is incumbent on everyone to act in some way to save the climate.
  2. Existing solutions and actions are insufficient to address climate.
  3. There must be a search for new solutions on political and economic levels to climate.
  4. These new solutions must be implemented until such time as we see radical reductions in the emissions of warming gases.

This document is part of this transmission of responsibilities.

The climate change denial industry acts as an effort to delay the realization and transmission of ethical obligations as well as deflect accusations of immoral behavior or deficient character on those who continue to drive us toward climate catastrophe. By attacking the level of certainty that people may hold with regard to either the existence of or human causation of global warming, climate change denial has attractions for those outside the inner circle of beneficiaries from the fossil fuel industry who do not want to reckon with either changes in their own lifestyle or with the increased role of government required by effective climate action. Climate denial functions to blunt either the pangs of internal conscience or to deflect accusations of climate destruction or sluggish inaction.

As hinted at above, ethical responsibility with regard to taking action on climate is not discharged simply by committing to a putative or first-offered greenhouse gas emissions reduction plan, but effectively seeing through the execution of that plan. If the plan first selected is ineffective or not sufficient effective, either via prima facie analysis based on its highly likely outcomes or by empirical results, then continued subscription to the initial reduction plan becomes itself as unethical as inaction. One’s ethical responsibilities in this case are discharged by effective actions, not by expressions of good intention or commitments to climate virtue in the future.

Primary Responsibility for Climate Catastrophe

As discussed above, responsibilities and therefore accusations of culpability with regard to the impending climate catastrophe should not be equally distributed. Responsibilities are differentially distributed in society already by the different levels of power that people exert in relationship, largely, to their roles in the social institutions relevant to a given phenomenon. A fire chief is more responsible for extinguishing fires throughout a town than a baker or for that matter a trainee in the fire department. Now, 13 years after 2001 and 22 years after the 1992 Rio Summit that initiated international action on global warming, we can determine with a high degree of certainty that some people bear primary responsibility for at least the last decade if not the longer 22 year delay in substantive climate action. To bear primary responsibility means to have been exposed to the overwhelming scientific data and analysis on anthropogenic global warming and willfully and misleadingly denied or acted in ignorance of that consensus. Additionally primary responsibility for climate catastrophe falls on those who bear substantial responsibility by dint of economic positioning, scientific obfuscation, political patronage, political influence or political position as to the direction of our political-economic system, where that system effects our society’s energy and land use and therefore climate impacts.

The following categories of people then bear primary responsibility for the impending climate catastrophe, if they do not soon change their course by attempting to radically change the course of the institutions they are involved in (which is not always possible), agitate in the public sphere for immediate and thoroughgoing climate action and/or to publicly leave those institutions, transferring a substantial portion of their financial gains to investments in or contributions to effective climate action. Though they are primarily responsible for the continuance and acceleration of global warming, those primarily responsible for the disaster should not expect to be responsible for the solutions, though they should at least get out of the way of those solutions, for their sake, the sake of their children, and for the sake of humanity more generally. Some individuals will fit more than one category of the following:

 1) “Denier-Leaders” – Political leaders that over the past 13 years to the present have promoted denial or unscientific doubt of anthropogenic global warming and its highly likely negative effects or have promoted, voted for, passed into law or administered local, regional or national government’s transport, land use and energy policy as if there were no ongoing catastrophic, human-caused global warming trend. Much of the current U.S. Republican Party leadership and Congressional delegation as well as the leadership of other right-wing parties in a number of countries including Canada and Australia are thus primarily responsible for the continuation of our global warming trend. These politicians can be viewed as spokespeople for the fossil fuel industries of their countries. The slightly more respectable “doubter” position has similar effects to “denial” in sensitive positions where the critically important instrument of government is either put to work to change the energy system or in the case of denier-leaders, used to reinforce the fossil energy status quo.

 2) “Lip-Service Leaders”- Political leaders on the local, regional, national or UN levels that acknowledge human-caused global warming exists and is a problem but either a) support the expansion plans of the fossil fuel industries as they veer into “extreme” extraction techniques, b) support “fig-leaf” or ineffective climate policies such as most existing emissions trading schemes, c) continue to subscribe to the fiction that natural gas is a “bridge” fuel to a greener future or d) some combination a) , b) and c). Many of the center and left-leaning political party leaders and political representatives in the US and around the world fit into this category. Barack Obama is a leading example of category “d)”. Likewise the leadership of fossil fuel exporting nations such as Russia that acknowledge climate change but are sluggish to implement effective policies are similarly primarily responsible for global warming. The weakness of the policy proposals and leadership on climate of this group is a reflection of compromises that these groups make with climate deniers, with the power of the fossil fuel lobbies, and with the dominance over the past 30 years of neoliberal theories of government’s fallibility and the market’s infallibility. However their stance and the policy infrastructure they have erected are, in many ways, a dangerous diversion of attention from designing and implementing more effective and timely climate action that involves both direct investment by government as well as regulation of markets via rule-making and tax policy/direct carbon pricing. Both “Lip-Service Leaders” and “Denier Leaders” are avoiding the difficult though necessary confrontation with both the fossil fuel industries and with their own political constituencies. These leaders have turned away from the task of preparing their constituents to wean themselves off or pay more for fossil-dependent conveniences available in developed nations. Additionally these leaders have avoided providing their constituents with the public funding and programmatic guidance to enable them to devote themselves to remaking the energy and transportation basis of our societies for their and for future generations’ benefit.

 3) “Climate Destruction Sponsors” – There are some extremely wealthy people, most of which have or have had substantial investments in fossil fuel extraction and sales who have funded climate science denial efforts by institutions such as the Competitive Enterprise Institute and the Heartland Institute as a means of delaying action on climate change. These are the funders of the odd collection of scientists that Naomi Oreskes has termed “the Merchants of Doubt”. The Koch Brothers and the corporate leadership of Exxon/Mobil are the most famous of these funders, who also have almost their entire business empires devoted to fossil fuels. There are also a large tranches of funding that are donated as “dark money” via Donors Trust and Donors Capital Fund directed in the direction of delay of climate action. These sponsors (who may also be profiteers from delay of effective climate action) cloak their activities in the rhetoric of “freedom” or the fictions of free market economics, distracting themselves from the physical consequences of our emissions trajectory as well as distracting others from their often substantial financial interests in climate destruction.

 4) “Climate Destruction Profiteers” – There is substantial overlap between the “sponsors” group and those who profit from the destruction of the climate but what I am calling the “sponsors” have shrouded themselves in the ideological mantle of the dominant neoliberal political philosophy that idealizes markets. The Koch Brothers are of course also profiteers on the destruction of the climate as are major stockholders and share owners of large and medium-size fossil fuel companies. There are others, high level employees and strategists of major oil companies, who are driving the business of fossil fuel extraction and can no longer take the defense that they were just following orders. The same goes for passive fossil fuel investors, who have become the target of the “Go Fossil Free” fossil fuel divestment campaign. At some point, at lower level employees or small service businesses within the oil, gas and coal industries, the argument can be made that the existential needs of their families keep them in the business, rather than the accumulation of profits. At these lower levels of the organization or market segment, it can be no longer said that they bear primary responsibility for climate catastrophe and their work or business would simply be replaced if they withdrew bids for business, if they quit, or would be fired if they sought to change the terms of their work.

 5) “Media Deniers/Equivocators” – Newspapers, magazines, television, and Internet journalism play key roles in telling people what they should think about and how they should think about it. While there are obvious prominent owners of right-leaning media, like Rupert Murdoch of Fox News and News Corporation who are climate change deniers or “doubters”, the media in general in the United States and other key countries has suppressed or downplayed the story of global warming, delegating it to obscure web-only blogs or leaving it out entirely of their offerings. Instead of a steady drumbeat of stories reminding people of the present danger, media outlets have tended to reflect the “comfort zone” of a political spectrum where one side is devoted to half-measures and lip service while the other is militantly against the idea of human-caused global warming because it contradicts their political-economic ideology. Many media outlets for too long have seen their work as trying to “split the difference” between two opposed sides on a number of issues, including global warming, rather than investigate the terrifying facts, report those facts as well as who is representing those facts more truthfully. In the United States, a critical role has been played by among others by environmental reporter Andrew Revkin, who at a critical point turned over his blog at the New York Times to largely serve as a forum for doubt and contrarianism about basic climate science. It cannot be underestimated how much the doubt sowed by supposed environmental journalists has distracted readers from the critical questions of how to deal with impending climate catastrophe.

 6) “Characterological Contrarians/Merchants of Doubt” – The fodder for much media coverage of climate change has been supplied by the self-styled courageous “skeptics” that claim to challenge the climate science consensus that human activity is driving global warming on supposedly scientific grounds. Using scant data and ignoring most findings that suggest warming, these “merchants of doubt” have attempted to suggest that political motivations and/or sloppy science has led to the what would amount to a massive “conspiracy” of climate scientists to assert that humans are causing global warming. While in science, true skepticism is welcome, the climate “skeptics” play primarily to a political and media audience and some have received funding from the “Climate Destruction Sponsors”. While some deniers may be driven by a psychological compulsion towards contrarianism, this also leads to the “reward” for some of enjoying a great deal of attention as well as some financial support. Whether paid or simply driven to contradict for psychological reasons, this group has with the aid of the media and their sponsors, helped humanity continue on its destructive path vis-à-vis the climate, providing reassurance to the ill-informed and to those with more malevolent or destructive intentions.

 7) “Fossil-Dependent Electric Utility Executives & Large Shareholders” – One of the prime consumers of coal and natural gas is the electricity generation industry, which consumes almost all of the coal produced in the world, and a high percentage of the natural gas. While many electric utilities have built their capital intensive infrastructure around the availability of fossil energy to drive their generators, utilities have had the choice to lead the transition to a zero net emissions energy system via the use of renewable and nuclear energy to generate electricity. Electric utilities have for the most part only under the duress of regulators moved towards renewable energy and energy efficiency. Some have made gestures towards acknowledging that we live in a carbon-constrained world, only to continue on with the fossil fueled status quo. New nuclear generation has not been an option in many areas, as there have been prohibitive technical, environmental and political challenges associated with building and operating new nuclear plants. Many utilities continue to undermine the spread of renewable energy, in part because it has meant a loosening of their monopoly on electricity generation. Unfortunately this has also meant with few exceptions that they remain prime supporters of the coal and natural gas industries.

 8) “Propagandists of Neoliberalism/Neoliberal Government, Corporate and Financial Elites” – The discovery of global warming and attempts at concerted climate action have occurred within the neoliberal era, (1978 to the present). Neoliberalism is a political-economic philosophy derived from neoclassical economic dogmas and “Austrian” political philosophy that persistently holds up the idealized construct of “free markets” as infallible (and supposedly real or about-to-be-realized) and government as the nexus of fallibility in society. Neoliberalism’s over-praising of markets has supported an idealization of an increasingly deregulated private financial sector among political elites who came to believe that finance should lead the economy and was a magical fountain of wealth. Subsequently, economies in the last 30 years have become financialized, de-industrialized at the geographic metropolitan “center” where political and economic power is concentrated, highly economically unequally, and burdened down with mountains of private (corporate, financial and household) debt. Neoliberalism is the overarching current political-economic philosophy of elites, and some of these elites may believe that global warming is a problem (some are “Lip-service Leaders” or the corporate equivalent) but their neoliberal philosophy makes actual effective government action on climate to seem “beyond the pale” to them. Beyond these elites steeped in neoliberal dogma, the economists and pundits that continue to reinforce and reproduce the dogma of neoliberalism are equally responsible for removing the most important tool in the fight against climate catastrophe from the table, i.e. government committed to the public good. The following are the real effects of neoliberal governance and corporate policy that lead its propagandists and practitioners to be primarily responsible for climate catastrophe:

 In the first 20 years of carbon policy, as noted above, policymakers’ almost exclusive focus on “market-based” policy rather than the combined political-economy as a whole including direct public investment and utilizing the policy space available to monetarily sovereign government in the area of fiscal policy more generally.

In turn, the choice of a market regulation that relies on a financialized concept (emissions trading) rather than a binding tax obligation. Emissions trading systems have been intentionally riddled with loopholes to enable companies to postpone cutting emissions as well as mute the carbon price signal that would favor the lower-emitting products or services on the market.

The politically- or philosophically-motivated devaluation of the reputation of government by neoliberal academics, business leaders and government officials has made much more difficult the effective deployment of government to address climate change. Governments not markets, particularly monetarily sovereign national governments, are the central institution to transform the energy and systems and social practices that require fossil fuel inputs.

The ballooning of private debt in step with worldwide ballooning of real estate/asset bubbles is a product of a financialized political economy that has shunned public provision of financial assets via government spending in favor of debt issuance by banks. Mounting private debt claims a portion of nominal economic growth for debt service and therefore increased emissions that contributes only to the welfare of the credit issuers, mostly large financial institutions or speculative traders and not to overall social welfare or, on average, net incomes of the borrowers.

 9) “Austerity-Mongers” – A subset of neoliberals and the latest iteration of the neoliberal philosophy after the 2007-2008 financial crisis are the advocates of fiscal austerity, which is a hyperaggressive campaign of sabotaging government functions from within by arbitrary restriction of government spending, leading to the giveaway of public functions and assets to supposedly more efficient “market” actors, i.e. private corporations. The pretext for this fire-sale of the public sector is the intellectual and/or politically-motivated confusion in mainstream economics of financially-constrained local, regional, and Euro-Zone nations that do not control their currencies and the governments of countries like the US, Great Britain, Japan and many others that issue their own currencies. Austerity-mongers claim that all public entities are “running out of money” for social programs and public spending projects, when the latter can at will create more currency units to pay for necessary projects. Austerity advocates are knowingly or unknowingly the useful idiots of the bloated financial sector, as artificially limiting government expenditure and giveaways to public assets, makes more room for and dependence upon private debt issuance. While some austerity mongers, like David Cameron in Britain, claim to care about global warming and may believe that the fictional shortage of government money he promotes is a stand-in for the real shortage of atmospheric assets of the earth, the overall effect of austerity is to, as with neoliberalism more generally, to undermine the critically important instrument of government at exactly the time when it is needed most. One leader of the U.S. austerity drive, Wall Street billionaire Pete Peterson, seems to have no position on climate change but nevertheless continues on his quest to hand financial dominion over the economy to Wall Street and scuttle the power of government to mobilize real assets by public spending for public purposes. The timing of this drive for power by the private financial sector, cloaked in the rhetoric of fiscal prudence, could not come at a more inopportune time for the collective good of the current and future generations.

 10) “Leaders of Large Organizations without a Low-/Zero-Carbon Strategy” – Besides electric utilities, much fossil energy or electricity generated by combusting fossil fuels is consumed by large corporations, non-profit organizations, and departments/ministries of various governments throughout the world. These large organizations are some of the major customers for oil companies, gas and electric utilities, sustaining demand for fossil energy. While a high-enough carbon tax/fee would provide a financial incentive for organizations to transition off carbon-based energy, it makes sense for many to anticipate this move by starting an energy transition before it is a requirement. Those organizations that move sooner will have greater advantages and also contribute less to emissions overall. For some sectors this is much more difficult than others and therefore the obligation is greater for leaders of organizations in sectors where technological or organizational process choices already exist.

Secondary Responsibility for Climate Catastrophe

Those primarily responsible for accelerating and exacerbating the degradation of the climate do not generally make decisions in isolation about energy policy or the course of our society but as part of larger social systems in which there are many participants, workers, co-beneficiaries and counter-parties. The use of fossil fuels has made the physical lives of many in these countries much easier, as human labor is either aided or replaced by mechanical work fueled largely by fossil fuels. While these fuels may have brought into the production process primarily to increase profits for the owners of a business, the mechanical work of machines has had secondary benefits for workers especially with the advent of consumer durables and Fordism, the ability of those in the lower middle and working classes to afford major energy using devices like automobiles.

The powers and convenience conferred on poor, working-class, and middle-class individuals by participation in a majority fossil fueled energy system are great in comparison to the existence of those in “Dickensian” early industrial society and in comparison to those in underdeveloped societies currently. Much of the relative physical ease of those in developed nations would be much sought-after by those who must do hard physical labor to enjoy just a basic and uncertain subsistence in those underdeveloped societies. Most residents of the wealthier OECD countries (Western Europe, North America, Australia, Japan) and many of the wealthier residents of the less wealthy OECD (Eastern Europe, Mexico) and developing countries have secondary responsibility for impending climate catastrophe.

It is patronizing and fatalistic to assume that people in positions of relative but not absolute powerlessness, who nevertheless benefit from a high carbon-emitting society, are entirely bereft of the ability to chose and therefore of power. With that power comes moral responsibility, especially as their/our activities and choices lead to durable “memorials in the sky” in the form of carbon emissions.

So while there are those with primary responsibility for the ongoing climate catastrophe, who have had a central decision-making role, there are largely passive beneficiaries who can additionally be used as ideological cover by those with primary responsibility. The benefits that the services that this broader swath of the population enjoys from our energy- and carbon-intensive society can be put forward as a quasi-sacred duty, by those who defend the energy status quo. And many who enjoy these conveniences agree that these are indeed valuable goods or services offered by our energy-intensive society.

However, that these enjoyments are leading to a negation of all of our work and our desires to build a future for our family and loved ones should give us all pause. The question for each remains: “Which is more valuable: our current satisfactions or the satisfactions of many future generations?” It is this, what I am calling “secondary”, moral responsibility that can be the basis of action as citizens and consumers start upon the road of transforming societies and economies. Without recognizing this secondary moral responsibility, a movement for climate action will be inconsequential and unserious.

Prospectively, the movement for climate solutions draws from those who are secondarily responsible for climate change as political activists and leaders. This process involves recognizing one’s own agency and choices, an ethical process, and fomenting a broader discussion and subsequent actions that remedy to some degree the damages done to the viability of the earth for human life and civilization.

Tertiary Responsibility for Climate Catastrophe

 Furthermore, there are many people in the world, mostly the billions of poor in the developing and underdeveloped world, who may wish to enjoy the ease and benefits of a supplementary-energy powered society but have not yet enjoyed them. Or they may be satisfied with some version of their own current lifestyle with or without the addition of some of the conveniences offered by supplementary-energy powered technology. While they have had very little of the benefits of fossil fuel use, there are still matters of choice and moral agency which are entirely their prerogative, as the climate catastrophe sweeps the globe.

Those with tertiary moral responsibility, who aspire to a better life, have a choice to pursue a more or less carbon-intensive lifestyle and development path, even as they are by international agreements entitled to pollute more than those who pollute less. Secondly, as the effects of climate change mount, it is incumbent on them, as it is every individual, to help protect their families and their nation more generally from the effects of climate chaos. They could become powerful political agents and world political leaders, which is a process that involves moral choices, in favor of climate solutions that makes the earth more habitable for all.

Degrees of Responsibility Counteracts Psychological “Splitting”

While the notion of degrees of responsibility may seem obvious, this is a departure from the assumption of a “perpetrator-victim” or “transgressor-transgressed” model for relationships assumed by many who discuss the relative blame or varying moral rights with regard to underdevelopment and climate change. In politics and in other stress-ridden domains of life, there are tendencies for people to engage in milder and more severe forms of the psychological defense mechanism called “splitting”. In “splitting”, a defense that emerges in early childhood, children imagine that some people or things are “all-good” and some are “all-bad”. They are “split” because the child cannot see “shades of grey” in goodness and badness. Many of the fairy-tales of childhood are built around children’s attachment to “all-good” and fear of “all-bad” characters.

There are contexts in adult life where splitting is a cultural norm though one could argue it also has deleterious effects. The adversarial process in legal proceedings as well as political conflicts between parties are two of the main cultural institutions where a polarization of good and bad is encouraged in peacetime and in wartime or international conflicts, there is often a tacit acceptance of jingoism in public discourse. In many parts of popular culture particular in action and suspense movies, television and games, the polarization of good and bad becomes the prelude to various forms of combat and dehumanization of antagonists.

Splitting is particularly unrealistic in dealing with the differential responsibilities for climate catastrophe. The entire developed world is implicated by its dependence upon fossil fuels to function yet some have over the past few decades struggled valiantly to change this while others have fought to keep the status quo. Some who have fought for what they thought were climate solutions, have in my opinion and given the trajectory of emissions, been fighting for ineffective instruments and with the wrong allies (the finance sector). Even if we have been fighting for the most effective and appropriate tools to reduce emissions, we are still to some degree morally responsible for the impending climate catastrophe. On the other side, those who are primarily responsible are not necessarily “all-bad” but they still are primarily responsible for causing grievous harm to the climate that has been favorable to human growth and civilization.

Meeting the Evolutionary Challenge of the Anthropocene

 Already a different animal than co-evolved species, humanity has initiated as a byproduct of its activity over the last several decades, if not before, a new geological era that scientists are calling the Anthropocene. The Anthropocene means that what marks this era in terms of geologic phenomena are the traces of human activity on the biosphere, the atmosphere, and even the geosphere, of which the mining and burning of fossil fuels is one of the most powerful agents. But human-caused climate change is only the most critical of a number of ways in which humanity is putting its imprint on the planet, having effects that are largely unintended by people with feedbacks that are out of the immediate control of humanity.

This places humanity in an unprecedented situation as a species. While many different animal and plant species can be said to shape their various ecosystems by activity “pre-programmed” by their genomes, no single species until human beings has had its own future within its voluntary control via the outsized impacts it has had through its tool creation and use and through the ability to coordinate social activity, think alone and deliberate together via the use of language. Humanity is both endangering its own future and has the potential to secure, within the limits of untoward events occurring in the universe or an upsurge in violent geological activity, its own future.

In order to meet the evolutionary challenge of an environment that no longer will accept the byproducts of human activity without destroying our future, we will have to care enough about ourselves and future generations to institute new systems and sets of rules that coordinate nationally and internationally our use of the environment, starting with the concentration of warming gases in the atmosphere. A recognition of our agency (our “ability to do”) and our ethical choices in the immediate past, now and in the future, is an important starting place for this evolutionary journey.

By:

Michael Hoexter

The Ethical and Justice Issues At the Center of the Warsaw Climate Change Negotiations-Issue 2, Equity and National GHG Emissions Reductions Commitments in the Medium- to Long-Term

 

climate justice

This is the third paper in a series which is looking at the ethical and justice issues entailed by the Warsaw climate change negotiating agenda. This paper looks at issue two, namely, the ethics and justice issues entailed by the need to find a global solution to climate change that includes national ghg emissions targets after 2020. The last entry looked at ethical issues entailed by the need to increase the ambition of national emissions targets before 2020 when a new climate change treaty that will be negotiated by 2015 comes into effect.

new book description for website-1_01The issues of long-term national commitments to reduce ghg emissions is being negotiated in Warsaw under the Durban Platform. The Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) is a subsidiary body of the UNFCCC that was established by a decision of the Durban COP in December 2011. The mandate of the ADP is to develop a protocol, another legal instrument, or an agreed outcome with legal force under the Convention applicable to all Parties, which is to be completed no later than 2015 in order for it to be adopted at the twenty-first session of the Conference of the Parties (COP) and for it to come into effect and be implemented from 2020. Among many other issues, the new treaty will need to take a position on several issues relating to national ghg emissions obligations after 2020.

The last entry in this series examined some of the most recent scientific evidence that has concluded that the world is rapidly running out of time to prevent dangerous climate change. The staggering magnitude of the challenge facing the international community to limit warming to 2 degrees C can be visualized by understanding the following chart that depicts three ghg emissions reductions pathways which would allow the world to stay within a specific remaining budget to achieve a specific atmospheric concentration of ghgs. As we explained in the last entry, the IPCC has in September of this year described a budget that would give the world a 66% confidence of preventing the 2 degree C warming limit which the international community has agreed upon.

Any atmospheric ghg concentration target can only state the warming that will be experienced at the concentration limited by  a probability statement because there is scientific uncertainty about climate sensitivity, a term which is used to describe the warming that will be caused by different concentration of atmospheric ghgs. The level of certainty that we should seek to limit warming to a specific atmospheric concentration is itself an ethical question, not just a scientific question which often goes unexamined by the scientific community when discussing warming limits and emissions budgets to achieve warming limits.

One might ask why the budget prepared by IPCC was not based upon achieving the 2 degree C with much higher levels of certainty, a question which is not discussed in the IPCC report, yet one might speculate that IPCC’s failure to discuss a budget that would assure 100% certainty that the 2 degree C warming limit would not be exceeded was because it would leave no remaining budget for additional ghg emissions. The international community has already emitted so much CO2 that limiting warming to 2 degrees C with very high levels of certainty would mean that future emissions must be negative emissions, that is activities which remove ghg from the atmosphere while immediately ceasing ghg emissions activities.

As we have seen in the last entry, if the IPCC budget would have included all ghgs that have been emitted, it would have concluded that there remains only 269 billion tons of CO2e left to be emitted by the entire global community to stay within an emissions budget that will give a 66% confidence that the 20C warming limit would not be exceeded. Achieving the global reductions entailed by this budget is a civilization challenging problem of the highest magnitude.

The following chart prepared by the Global Commons Institute provides a visualization of the enormity of the challenge entailed by a budget of approximately 242 billion tons. This chart shows 3 different potential missions reductions pathways which will stay within the budget which differ depending upon how fast the needed emissions reductions are begun. The later global emissions peak and begin to be reduced, the steeper the emissions reductions pathways must become. This fact alone leads to the conclusion that any delay in emissions reductions has ethical significance because the steeper emission reductions are needed, the more difficult, if not impossible, it becomes to achieve the needed reductions. For this reasons, those who have been advocating for a delay in implementing a very aggressive ghg emissions policy can be understood to be engaged in ethically troublesome activities because it is alreadly likely to be too late to prevent some very serious consequences from climate change to hundreds of millions of people around the world.

Slide22

This chart, being a depiction of total global emissions reductions pathway, does not attempt to display what the emissions reductions pathway in any one nation would be if equity and justice were to be taken seriously by nations. High emitting nations will need even steeper reductions in global missions than those depicted in the above  chart. If there is any hope of achieving the global emotions needed to limit warming to 2°C, as we explained in the last entry in the series, nations will need to limit their emissions based upon equity. Yet, equity-based emissions for high emitting developed countries will lead to an even greater challenge for high emitting nations. The following chart, also prepared by the Global Commons Institute, depicts what the US share of total global missions must be if United States were to agree on a per capita allocation of the remaining global budget to satisfy its clear obligations to take equity into account although this chart would change depending upon when nations would agree on equal per capita shares and when global emissions peaked. Nevertheless it is helpful to demonstrate the enormity of the challenge entailed by the undeniable need to take equity into account by depicting the consequences for one nation as this chart does.

Slide23

This chart uniquely shows why the United States and other high-emitting nations likely do not want to discuss “equity” in the Warsaw climate negotiations. If United States and other high-emitting nations were to take seriously its obligation to reduce its emissions based upon equity or distributive justice, such a decision would create an enormous challenge for them. And so, it would appear that the United States and several other developed countries have entered the Warsaw negotiations as if they can ignore the equity and justice issues while justifying their national ghg reductions commitments ultimately on the basis of national economic interest.

However, emissions reductions commitments based upon national economic interest can not be understood to satisfy any reasonable definition of equity or plausible formula for distributive justice.

Distributive justice does not require that all parties be treated equally. But distributive justice does require that parties who want to be treated differently justify their different treatment on the basis of morally relevant criteria. For instance, according to theories of distributive justice, I cannot justify my desire for more food on the basis that I have blue eyes. The color of my eyes it not a relevant basis for unequal treatment when it comes to food distribution. For the same reason, a justification for national ghg emissions reduction target commitments  based upon national economic interest alone that does not consider global responsibilities does not pass minimum ethical scrutiny. It is totally ethically bankrupt.

Many commentators on the “equity” issue arising in international climate negotiations dismiss any plea for “equitable” allocations on the basis that because different people reach different conclusions about what equity requires the search for an equitable global solution to climate change should be abandoned. For instance it has been reported that the United States has resisted discussing equity on the basis that there is no objective way of determining what equity requires.

Yet the fact that different people reach different conclusions about what equity means does not mean that all opinions about what acting equity means or entitled to respect. As we’ve seen, theories of distributive justice require that people want to be treated differently identify morally relevant criteria for being treated differently. As we have seen, the color of my eyes is not a morally relevant criteria were being treated differently. Similarly my race is not a morally relevant justification for giving me the right to vote above others.

The world urgently needs a deeper conversation about equity and justice and national climate change policies.

To move the equity debate along, nations should be required to specify specifically how their emissions reductions commitments deal with both the enormity of the challenge entailed by the global emissions budget identified by the IPCC and how their emissions reductions target specifically can be justified on the basis of equity and justice.

Although reasonable people may disagree on what equity and justice may require of any national ghg emission reduction commitment, there are only a few considerations that are arguably morally relevant to national climate targets. This entry will end with the identification of a few equity frameworks that have received serious attention in the international community. It is important to stress, however, that although there is some legitimate disagreement about which of these formats to follow in international negotiations, almost all national emissions reductions commitments of large emitting countries fail to pass any reasonable ethical scrutiny. In discussing equity and the distributive justice of national commitments, the relevant criteria for being treated differently that have been recognized by serious participants in the debate about equity include: (A) per capita considerations, (B) historical considerations, (C) luxury versus necessity emissions, (D) economic capacity of nations for reductions, (E) levels of economic development, and (E) and combinations of these factors.

The fact that reasonable people may disagree about the importance of each one of these criteria does not mean that anything goes as a matter of ethics and justice. In addition, the positions actually been taken by nations on these issues in the negotiations utterly fail any reasonable ethical scrutiny. For this reason, concerned citizens of the world should focus heavily on the obvious injustice of national positions on these issues rather than worrying about what perfect justice requires.

In addition, in all probability, a global framework for equity would include some forward looking considerations including per capita considerations and backward looking considerations such as historical responsibility from a specific date, modified by certain economic considerations including economic ability to respond rapidly and perhaps differences between necessity emissions and luxury emissions.

We would stress, it is not as necessary to get immediate agreement on the final framework as it is to achieve a wider understanding of the utter failure of national commitments thus far to deal with the equity and justice issues. Along this line each nation should be asked to answer a series of questions about their commitments which include:

A. What specifically is the quantitative relevance of your emission reduction commitment to a global ghg emissions budget to keep warming below the 2°C warming target. In other words how does your emissions reduction commitment in combination with others achieve an acceptable ghg atmospheric concentration that limits warming to 20C.

B. What is the atmospheric ghg concentration level  that your target in combination with others is aiming to achieve?

C. How specifically does your national commitment take into consideration your nation’s undeniable obligation under the UNFCCC to base your national climate change policy on the basis of “equity.” How have you operationalized equity?

D. What part of your target was based upon “equity.”

E. Are you denying that nations have a duty under international law to assure that:

a. the “polluter pays,”

b. that nations have a duty to assure that citizens in their country not harm other people outside their national jurisdiction,

c. nations should have applied the precautionary approach to climate change policy since 1992 when the UNFCCC was adopted?

F. How does your national ghg target commitment respond to these settled principles of international law?

As we have noted, citizes of the world need to increase international understanding of the failure of nations to respond to equity and distributive justice. The following equitable framework formats are among others in serious discussion in international climate negotiations about what “equity” requires. However, as we have argued, it is more important in this moment in history to achieve a higher level of understanding of the utter injustice of national ghg emissions commitments than it is to get agreement on what perfect justice requires. This is particularly because, the international media, for the most part, is utterly failing to cover the obvious ethical unacceptability of most national commitments on climate change.

Contraction and Convergence (C&C) is a proposed global framework for reducing greenhouse gas emissions to combat climate change. Conceived by the Global Commons Institute [GCI] in the early 1990s, the Contraction and Convergence strategy consists of reducing overall emissions of greenhouse gases to a safe level (contraction), resulting from every country bringing its emissions per capita to a level which is equal for all countries (convergence). It is intended to form the basis of an international agreement which will reduce carbon dioxide emissions to avoid dangerous climate change, carbon dioxide being the gas that is primarily responsible for changes in the greenhouse effect on Earth. C&C does not require immediate per capita emissions per country but allows a later convergence on capita allocations to deal with other equitable considerations.

Greenhouse Development Rights is a framework wherein the burdens for supporting both mitigation and adaptation are shared among countries in proportion to their economic capacity and responsibility. GDRs seeks to transparently calculate national “fair shares” in the costs of an emergency global climate mobilization, in a manner that takes explicit account of the fact that, as things now stand, global political and economic life is divided along both North/South and rich/poor lines.

Equity in the Greenhouse, South-North dialogue is a global “multi-stage approach,” based on principles of: responsibility; capability; mitigation potential; right to development.

Brazilian Historic Responsibility is based primarily on historic responsibility for emissions: developed countries are each allocated emissions cuts based on the total contribution of their historic emissions (going back to 1800s) to the current global temperature increase.

Oxfam has proposed an approach, subsequently supported by various other NGOs, that uses a calculated responsibility and capability index to allocate an overall developed country target of 40%, and allows for a climate finance budget of $150bn to be allocated using the same method. Developing countries individual need for financing is assessed in line with available economic capability, taking into account intra-national inequality, and hence climate finance is provided on a sliding scale (below a minimum ‘available capability threshold’).

The EU has (e.g. EU Commission Proposal of 2009) suggested a method for distributing targets amongst Annex 1 countries that includes starting with an overall target for Annex 1 countries of 30% below 1990 levels by 2020 and allocating this target on the following basis: GDP per capita, addressing the capacity to pay for emission reduction within a country and through the global carbon market [capacity]; GHG per GDP, addressing the opportunities to reduce GHG emissions within one economy [capacity/mitigation potential]; Change of GHG emissions between 1990 and 2005, rewarding early action by developed countries to reduce emissions [reward early action/recognize latent mitigation potential]; Population trends over the period 1990 – 2005, recognizing different population trends between countries and as such different pressures on the projected emission evolution [equal rights to pollute]

There is a need to turn up the volume on the ethical dimensions of climate change for many reasons including the fact that ethically dubious positions of nations are being hidden in self-interested arguments made in opposition to climate change policies and there is no hope of meeting the 2 degree C  warming target without a serious national response based upon equity.

One need not seek agreement on what ethics requires to get traction on ethical issues because most opposition to action on climate change fails to survive minimum ethical scrutiny. The key is to spot the injustice of positions not on getting agreement on what justice requires.

The longer the world waits to develop a global approach to climate change, the more central the ethics questions become about the most contentious issues in consideration.

By:

Donald A. Brown

Scholar In Residence and Professor,

Widener University School of Law

Harrisburg, Pennsylvania

Visting Professor, Nagoya University,

Nagoya, Japan

Part-time Professor

Nanjing University of Information Science and Technology

Nanjing, China

dabrown 57@gmail.com

 

 

New York Times Article Misleads On The Moral Acceptability of Climate Change Policies.

cost-bene

money burrning

Many observers of the state of global response to climate change have concluded that there is no hope in preventing devastating climate change harms unless nations and individuals understand that they have ethical and moral responsibilities that are not captured by framing climate change as a matter of economic interest or welfare maximization alone not to mention that framing climate change policies as matters of economic interest distorts and ignores ethical responsibilities. For this reason, there is a growing consensus among serious observers of national commitments on climate change, that the only hope to increase national ghg emissions emissions reductions targets to levels that will avoid dangerous climate change impacts is to find ways to assure that national ghg targets are based upon “equity” and justice.

 

A New York Times article on September 11, 2013 makes a greatly misleading claim about the moral basis for action on climate change.  The article, Counting the Cost of Fixing the Future, by Edwardo Porter,  erroneously claims that a moralist would respond to climate change by demanding that the price on carbon be significantly higher than what the business world would recommend the price should be ($65.00/ ton versus  $13.50 /ton).  Although the article doesn’t say explicitly that that if the social cost of carbon is high enough there are no moral objections to using welfare maximization considerations as the basis for determining the acceptability of climate change policies, this is implied by the article because the use of the social  cost of capital  calculations  by policy-makers is almost always used in cost-benefit analyses. The problem with this claim is that there is an unexamined premise in this article that is deeply ethically flawed. The article assumes that whether a government should act to prevent climate change depends upon whether a proposed government climate change policy will increase welfare after the social cost of carbon is calculated and compared to the costs entailed by reducing greenhouse gas (ghg) emissions.  There are strong strong moral and ethical reasons against using the social cost of carbon in this way.

new book description for website-1_01Whether a nation or individual should act to prevent climate change is a matter of justice, not simply a matter of economic efficiency or welfare maximization. Although some utilitarians might agree that government policy should maximize welfare or utility, there are  strong ethical objections to a nation basing its climate policy on the basis of welfare maximization alone.  Moral problems with the use of the social cost of carbon calculations in cost-benefit determinations used to determine whether a government should act to reduce the threat of climate change include the following:

  • Some governments and individuals more than others are more responsible for climate change because they have much higher emissions of ghg in total tons, per capita levels, and historical contributions to elevated atmospheric concentrations.  Justice requires that these considerations be taken into account in determining emissions reductions targets. 
  • Some of the poorest people in the world who have done almost nothing to cause climate change are the most vulnerable to climate change. These people will suffer the most if  governments and individuals refuse to reduce their emissions based upon “efficiency” or “welfare maximization” considerations. These people have not consented to be harmed because costs to polluters of reducing their emissions are high. “Efficiency” and “welfare maximization” justifications unjustly sacrifice vulnerable people to the economic prosperity of the entire community.
  • The harms to vulnerable people from climate change are not mere reductions in economic welfare, they include catastrophic loses to life and damages to ecological systems on which life depends.
  • Damage estimates on which the social cost of carbon are based are not evenly distributed. Some places more than others face catastrophic risk. People in these places have not consented to be harmed. Theories of procedural and distributive justice prevent these people from being harmed without their consent.
  • Climate change will interfere with the enjoyment of human rights. Those who violate the human rights of others may not use “efficiency” or “welfare maximization” justifications for violating the human rights of others.
  • Nations and individuals have ethical and moral duties to reduce the threat of climate change, not simply economic interests.

These are only a few of the ethical and moral problems with the use of social cost of carbon calculations in cost-benefit analysis as justification for non-action on climate change.  For additional ethical problems with economic arguments made about the acceptability of climate change policies see articles on this website under the category Economics and Climate Change Ethics in the Index. 

The New York Times article makes a claim about what moralists would do which is very misleading because it implies that as long as the calculation of the social cost of carbon is high enough, there are no moral objections with  the use of  welfare maximization calculations as the basis of climate change policy.

The New York Times article should have acknowledged that there are ethical objections to a nation basing its climate policies on cost-benefit analyses.  One of the reasons why there has been a widespread  failure of citizens to understand their ethical responsibilities to reduce the threat of climate change is because free-market fundamentalist ideologies have successfully framed the climate change debate as a matter of economic interest rather then global responsibility. The New York Times article implicitly continues to encourage people to look at climate change policies as a matter of economic self-interest rather than ethical obligation. This both distorts and hides obvious ethical problems with national and individual responses to climate change.

 

By: 

Donald A. Brown

Scholar In Residence

Widener University School of Law

dabrown57@gmail.com

 

 

 

The Practical Importance For Policy Of Ignoring The Ethical Dimensions of Climate Change

 I. Introduction

 Here we  examine the practical importance of identifying and expressly examining ethical issues that must be faced in policy formation as policy is debated and unfolds.

What distinguishes ethical issues from economic and scientific arguments about climate change is that ethics is about duties, obligations, and responsibilities to others while economic and scientific arguments are usually understood to be about “value-neutral” “facts” which once established have usually been deployed in arguments against action on climate change based upon self-interest. For instance, proponents of climate change often argue that costs of action to reduce the threat of climate change to a nation such as the United States should not be accepted because it is not in the US economic interest.

By ethics we mean, the domain of inquiry that examines claims that under certain facts, something is right or wrong, obligatory or non obligatory, or when responsibility attaches to human action.  Since policy disputes are about what should be done given certain facts, ethical claims are usually already embedded in arguments about what should be done about policy questions, yet the ethical basis of these claims are often hidden in what appear, at first glance,  to be “value-neutral” scientific and economic arguments. As a result, the ethical bases for arguments in support or in opposition to policy action on climate change are frequently ignored in policy debates. a phenomenon frequently discussed in EthicsandClimate.org

II. The Consequence For Policy Of Ignoring Ethical Issues. 

If the ethical issues raised by climate change policies are ignored, several consequences for policy follow. The failure to examine arguments opposing climate change policies trough an ethical lens virtually guarantees that:

  •  Those opposing climate change policies on ethically dubious grounds will not be challenged on the basis of their ethically problematic positions.
  • Those making economic arguments based upon short-term narrow self-interest will not be forced to admit that those causing climate change have duties, responsibilities, and obligations to others who can do little to reduce climate change’s threat but who are most vulnerable to climate change’s harshest consequences.
  •  The ethical dimensions of economic arguments will remain hidden in public debates in cases where economic arguments against climate change policies appear to based on “value-neutral” economic “facts” although the calculations of the “facts” contain ethically dubious calculation procedures such as: (a) discounting future benefits that make benefits to others experienced in the middle to long-term virtually worthless as a matter of present value. (b) economic arguments usually only calculate the value of things harmed by climate change on the basis of market-value thus translating all things including human life, plants, animals, and ecological systems into commodity value, or (c) the economic calculations often ignore distributive justice issues including the fact that some people and places will be much more harshly impacted by climate change than others.
  • Important ethical issues entailed by decision-making in the face of scientific uncertainty will remain hidden including: (a) Who should have the burden of proof? (b) What quantity of proof should satisfy the burden of proof when decisions must be made in the face of scientific uncertainty? (c) Whether the victims of climate change have a right to participate in decisions that must be made in the face of uncertainty? and, (d) Whether those causing climate change have obligations to act now because if the world waits to act until all uncertainties are resolved it will likely be too late to prevent catastrophic impacts to others and to stabilize greenhouse gas atmospheric concentrations at safe levels?
  • Because no national, regional, local, business, organization, or individual climate change strategy makes sense unless it is understood to be implicitly a position on its duties and obligations to others to prevent climate change, whether the strategy is just or fair in relationship to the entity’s obligations to others will go unexamined.
  •  Given that the world needs a global solution to climate change, and that only just solutions to climate change are likely to be embraced by most governments, barriers to finding an acceptable global solution will continue.
  • Unjust climate change policies will be pursued that exacerbate existing injustices in the world.
  • Because those who cause climate change are ethically responsible for damages caused by them, funding for adaptation projects needed by those most vulnerable to climate change will not be generated.
  • Because no nation may ethically use as an excuse for non-action on climate change that it need not reduce its greenhouse gases to its fair share of safe global emissions until other nations act, nations will continue to inappropriately refuse to act on the basis that other nations have not acted.
  • Because the amount of reductions that nations should achieve should be based upon principles of distributive justice and not-self interest, nations will continue to make commitments to reduce their emissions based upon self-interest rather than what is their fair share of safe global emissions.

III. Whose Ethics Counts?

Climate change raises not one civilization challenging ethical issue, but a host of them including:

  •  What greenhouse gas atmospheric concentration stabilization goal should be agreed to by all nations?
  • What is each nation’s fair share of safe global emissions?
  • Who is responsible for paying for the costs of climate change adaptation needs or damages in poor, vulnerable nations?
  • Ethical issues that arise when arguments are made against action on the basis of scientific uncertainty or cost to national economies?
  • Are individuals, sub-national governments, organizations, and businesses responsible for climate change?
  •  What ethical issues arise from the solutions to climate change such as geo-engineering, nuclear power, or biofuels, just to name a few?
  • Are nations responsible for historical emissions?

These and other very challenging ethical questions need to be faced when climate change policies are developed. Yet a reasonable question might be asked at this stage about whose ethics should count in resolving these questions given that there are different ethical theories that are supported by different people that might reach different conclusions about what ethics requires.

We would agree that climate change raises some civilization challenging ethical questions about which different respectable ethical theories might reach different conclusions about what should be done.  However, the fact that different ethically acceptable positions may lead to different ethical conclusions about climate change issues does not lead to ethical agnosticism or even confusion about all climate change issues including some of the most important ethical questions that must be faced in climate change policy formation. Three possibilities exist:

  •  For some climate change ethical questions, there is an overlapping consensus among ethical theories about what ethics requires.
  •  For some climate change issues, ethics issue spotting sometimes leads to conflicts among ethical theories about what ethics requires.
  •  For some climate change issues, ethical issue spotting may lead to disagreement among ethical theories about what should be done yet very strong agreement that some positions taken on these issues are ethically bankrupt even though there is disagreement on what ethics requires.

Although it is beyond the scope of this paper,  there are some climate change ethical issues about which there appears to be agreement about what ethics requires. For instance, most cultures and religions support variations of the golden rule that holds that individuals should not be able to severely harm others because of economic self-interest, polluters should pay for harm that they caused, and nations should prevent their citizens from harming others beyond their boarders.

More importantly, even on matters about which there are legitimate differences about what ethics requires, there appears to be ethical agreement that the position of some nations are ethically bankrupt despite disagreement about what ethics requires.

For this reason, ethical issue spotting often can lead to narrowing positions in contention to those that pass minimum ethical scrutiny.  For this reason alone, spotting the ethical issues that arise in policy formation may be key to making progress.

And so, perhaps the most important practical consequence of spotting the ethical issues raised by climate change is that failure to do so will likely create a missed opportunity to make progress to an urgently needed global solution.

By:

Donald A. Brown

Scholar In Residence, Sustainability Ethics and Law

Widener University School of Law

dabrown57@gmail.com

 

The Ethical Abhorrence of the Climate Change Disinformation Campaign, Part 3

This is the third in a three part video series that looks at the ethical obnoxiousness of the climate change disinformation campaign. All three of these are available on http://ethicsandclimate.org. The first in the series introduced the concept of the disinformation campaign that has been described in a rich sociological literature while explaining why this movement has been so ethically abhorrent. The second entry looked at some of the specific tactics of this campaign while distinguishing this phenomenon from responsible skepticism. This entry continues the examination of specific tactics and concludes with lessons learned about this disinformation campaign.

 


 

To view the other two videos in this series see the two proceeding entries on this website.

 

A much more detailed four part written analysis of the disinformation campaign is available on this website under the category of “climate disinformation.”

The series is:

1. Ethical Analysis of the Climate Change Disinformation Campaign: Introduction to A Series Series.

2.Ethical Analysis of Disinformation Campaign’s Tactics: (1) Reckless Disregard for the Truth, (2) Focusing On Unknowns While Ignoring Knowns, (3) Specious Claims of “Bad” Science, and (4) Front Groups.

3. Ethical Analysis of Disinformation Campaign’s Tactics: (1) Reckless Disregard for the Truth, (2) Focusing On Unknowns While Ignoring Knowns, (3) Specious Claims of “Bad” Science, and (4) Front Groups

4. Irresponsible Skepticism: Lessons Learned From the Climate Disinformation Campaign

 

B y:

Donald A. Brown

Scholar In Residence, Sustainability Ethics and Law

Widener University School of Law

dabrown57@gmail.com

Introduction to Climate Ethics, Video- Part Two

Video

Why is it practically important to identify the ethical questions that need to be faced in making climate change policy? A new video, 14 minutes long, is the second in a two part introduction on the basics of climate change ethics that answers this question. Part two identifies a number of specific civilization challenging ethical issues, looks at these issues briefly, and makes the case for the urgent practical need to turn up the volume on the ethical dimensions of these issues. Part one in this series explained why climate change must be understood essentially as an ethical problem and why this understanding has profound practical consequences foe policy. Par one is found on this web site and is 11 minutes long. This second part takes up the issues introduced in part one in the context of several specific climate change ethical issues.

By:

Donald A. Brown

Scholar in Residence, Sustainability Ethics and Law

Widener University School of Law

dabrown@widener.mail.edu