Economics of climate change innovation | Bjørn Lomborg

Summary

The speaker discusses the urgent issue of global warming and challenges the effectiveness of renewable energy solutions like solar and wind, which still comprise a tiny fraction of global energy. They emphasize the importance of innovation over subsidies, pointing to historical examples where technological advancements solved major issues. The speaker advocates for increased investment in green energy innovation rather than continuing ineffective policies. They also acknowledge the role of carbon taxes but stress that innovation is the key to driving down the cost of green energy, ultimately solving the global warming crisis.

Takeaways

• 😀 Global warming is a real problem, but current efforts, such as renewable energy reliance, are not effectively addressing it.
• 😀 CO2 emissions continue to rise, largely because renewable energy sources like solar and wind are not yet fully ready to replace fossil fuels.
• 😀 Despite efforts to push renewable energy through taxes and subsidies, these methods have not successfully reduced emissions or improved energy access for everyone.
• 😀 Energy taxes, particularly in places like Britain, have led to rising costs, which disproportionately affect the poor, with some elderly individuals struggling to stay warm during the winter.
• 😀 There is a significant financial burden from subsidies, which currently amount to $11 billion globally for green energy, and this is projected to rise to $223 billion per year in the future.
• 😀 The solution to climate change is not about more subsidies but about innovation in green energy technologies, as innovation has historically been the key to solving global challenges.
• 😀 Historical examples, such as the transition from whale oil to kerosene, show that technological innovations often provide better solutions than subsidies or restrictions.
• 😀 Investing in research and innovation, rather than spending on existing, inefficient technologies like wind turbines, would have a greater long-term impact on reducing climate damage.
• 😀 According to Nobel laureates, investing a dollar in research could save up to $11 in climate damage, a much better return than current subsidy strategies.
• 😀 A carbon tax, though not a perfect solution, is worth considering but won't be enough to address the problem on its own. Political and financial challenges make it hard to implement globally, especially in places like China.

Q & A

What is the main argument of the speaker in this transcript?

The speaker argues that global warming is a real problem, but the current approach of relying on subsidies for renewable energy and energy taxes is not effective. Instead, the solution lies in green energy innovation, which can make renewable energy affordable and widely adopted.

How does the speaker describe the current state of renewable energy adoption?

The speaker highlights that, despite spending centuries trying to move away from renewable energy, today only about 1/3% of energy comes from solar and wind, while the rest mainly comes from water and wood in developing countries.

What impact have green energy policies had in the UK, according to the speaker?

The speaker mentions that green energy policies in the UK have led to a 63% increase in heating costs over the past five years, which has caused financial difficulties for the elderly. This has resulted in an estimated 2,700 deaths annually due to cold in the winter.

What is the speaker's critique of subsidies for green energy?

The speaker criticizes the long-standing reliance on subsidies for green energy, arguing that they are ineffective and lead to increasing costs over time. They also claim that subsidies mostly fund existing technologies, like wind turbines, that aren't sufficiently effective in solving the climate crisis.

Why does the speaker emphasize the importance of innovation in solving global warming?

The speaker believes that, historically, innovation has been the key to solving major global challenges, citing examples such as the shift from whale oil to kerosene and the development of the catalytic converter. Innovation, rather than subsidies, is the way to reduce the cost of green energy and make it competitive with fossil fuels.

What is the comparison the speaker makes between green energy subsidies and historical technological innovations?

The speaker compares the innovation of kerosene to replace whale oil and the invention of the catalytic converter to reduce car pollution, arguing that these solutions were achieved not through subsidies but through technological advancements. This is the same approach needed for green energy.

How does the speaker propose we should invest in green energy solutions?

The speaker suggests investing more in research and innovation rather than continuing to fund existing technologies. They argue that investing in research could lead to breakthroughs that will drive down the cost of green energy significantly.

What is the speaker's stance on carbon taxes?

The speaker agrees that carbon taxes are a good idea but argues that they will not solve the problem of global warming. They believe a carbon tax would only reduce global emissions by 5-10% and is politically divisive, making it difficult to implement in many countries.

What is the political challenge with carbon taxes mentioned by the speaker?

The speaker points out that carbon taxes are politically divisive and have been hard to implement in countries like Australia and the US. Additionally, they argue that places like China, which would struggle to afford such taxes, may not be able to adopt them.

How does the speaker suggest we can make green energy more widely adopted?

The speaker believes that if green energy innovation can lower its cost to be cheaper than fossil fuels, it will be adopted globally, including in major countries like China and India, without the need for subsidies or taxes.