The Daily Should The Government Pay for Your Bad Climate Decisions?
53 snips
Mar 24, 2023 
Jim Tankersley, a White House correspondent for The New York Times, dives into the Biden administration's recent report highlighting the economic risks posed by climate change. He discusses the complexities of aligning government funding with climate-friendly policies and critiques existing practices that unintentionally lead to risky behaviors, like flood insurance and mortgage lending. Tankersley emphasizes the urgent need for the government to provide better information and withdraw support from harmful environmental practices to foster safer, more informed public decisions.
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Government's Role in Climate Adaptation
- The federal government's climate adaptation policies are problematic.
- They incentivize risky behavior by misallocating resources and failing to reflect true climate costs.
Federal Policies and Perverse Incentives
- The federal government fights wildfires in risky areas, encouraging people to live there.
- It also backstops flood insurance, enabling people to stay in flood zones despite the increasing risks.
Government's Role in Risky Mortgages
- The government's role in the mortgage market contributes to risky lending.
- Lenders offload mortgages for houses in climate-vulnerable areas to Fannie Mae and Freddie Mac, reducing their risk exposure.