Will it cost $45 trillion or $545 trillion to cut CO2 levels in half?

Last week, the International Energy Agency (IEA) released a report which estimated that cutting CO2 levels in half by 2050 would cost $45 trillion. According to Roger Pielke Jr., these estimates are very dependent on the “spontaneous decarbonization” of economic activity. There is obviously some “spontaneous decarbonization” that occurs in economies. Energy efficiency means that less energy (and carbon dioxide emissions) are required to produce the same amount of work. For example, from 1990 through 2000, the the US used 1.6% less carbon dioxide per dollar of GDP per year. That’s a pretty impressive improvement.

If you don’t assume this kind of spontaneous decarbonization, reducing CO2 concentrations in half will cost between $255 trillion and $545 (far more than IEA’s estimate of $45 trillion). What will it cost to reduce CO2 levels in half? Who knows, but these estimate tells us that that IEA’s projections are very sensitive to these assumptions. This pretty sobering when we are talking about trillions of dollars of cost.

The Value of Global Climate Models

A new paper was published in Nature that finds that natural forces may offset human-caused global warming over the next few decades. This is very interesting because it means that our current global climate models tell us almost nothing of value. But don’t take my word for it, take from Roger Pielke, Jr, a  professor of  Environmental Studies at the University of Colorado at Boulder and a staff scientist at the National Center for Atmospheric Research. He writes:

I am sure that this is an excellent paper by world class scientists. But when I look at the broader significance of the paper what I see is that there is in fact nothing that can be observed in the climate system that would be inconsistent with climate model predictions. If global cooling over the next few decades is consistent with model predictions, then so too is pretty much anything and everything under the sun.

Don’t get me wrong, models are great tools for probing our understanding and exploring various assumptions about how nature works. But scientists think they know with certainty that carbon dioxide leads to bad outcomes for the planet, so future modeling will only refine that fact. I am focused on the predictive value of the models, which appears to be nil. So models have plenty of scientific value left in them, but tools to use in planning or policy? Forget about it.

Just a reminder–all the threats of climate doom are based on the global climate models. But the modelers don’t tell us what real-world happenings would falsify their predictions (as real science would require). Climate models have their place, but they shouldn’t be used for planning or policy.