EconTalk Robert Pindyck on Averting and Adapting to Climate Change
Mar 21, 2022
Robert Pindyck, an MIT economist and author of "Climate Future," discusses the economic implications of climate change. He emphasizes the uncertainties surrounding climate predictions and the importance of preparing for worst-case scenarios. Pindyck advocates for adaptation strategies as essential parts of climate policy, critiquing the overconfidence in emissions reduction. He also explores the role of carbon taxes and the promotion of nuclear energy as viable solutions. The conversation highlights the need for humility and proactive planning in responding to environmental challenges.
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Uncertainty in Climate Change
- People crave certainty, especially in areas like climate change, but the reality is far more uncertain.
- The scientific and policy communities may have inadvertently harmed public understanding by overstating certainty.
The Homeowner's Insurance Analogy
- Robert Pindyck uses the analogy of homeowner's insurance to illustrate the importance of acting despite uncertainty.
- Just as people insure their homes against unlikely events, we should take action on climate change to mitigate potential catastrophic outcomes.
The Stock and Flow of CO2
- The existing stock of CO2 in the atmosphere, not just future emissions, contributes to rising temperatures.
- Even if emissions were drastically reduced, the temperature would continue to rise due to past CO2 accumulation and a time lag in the climate system.
