We have Bigger Problems than Climate Change; So sayeth IPCC AR5

Guest essay by David M Hoffer [Doug L. Hoffman]

It is remarkable what gems of wisdom one can find simply by sitting down and reading the IPCC AR reports and seeing what they actually say. Having spent more time than I would like to admit on WGI (the science) over the years, I decided to spend some time on WGII (the impacts). How bad is it going to be according to the collective wisdom of 97% of the world’s climate science brain trust?

Now it is a long report, it would take weeks to work through all the chapters, the tortured language, and dig into the references, many of which would be pay walled. So I went straight for sections on the economy. Now I’m not an economist, but it doesn’t take a genius to figure out that anything bad that happens on a global basis will have a negative impact on our global economy. I wanted to know, if the 97% of scientists are right, how bad is it going to be? The answer blew me away. I won’t keep you in suspense, I’ll go straight to the money quote (bold theirs):

For most economic sectors, the impact of climate change will be small relative to the impacts of other drivers (medium evidence, high agreement). Changes in population, age, income, technology, relative prices, lifestyle, regulation, governance, and many other aspects of socioeconomic development will have an impact on the supply and demand of economic goods and services that is large relative to the impact of climate change. {10.10}

That’s the opening statement in the Executive Summary of IPCC AR5 WGII Chapter 10 (Key Economic Sectors and Services).

As [poll after poll] shows, the public rates climate change at the very bottom of their list of concerns. The United Nations IPCC AR5 brain trust is stating, point blank, that not only will changes in population, age, income, technology, lifestyle, regulation, governance, and many other things have a bigger impact on our socioeconomic wellbeing, they will be much bigger. Read it for yourself here:

Click to access WGIIAR5-Chap10_FINAL.pdf

In fact, Chapter 10 goes into considerable detail showing us how little climate change is going to affect us. Based on a two degree rise in temperature over the next 50 to 100 years, they break it down sector by sector:

Table 10-10 | Summary of findings.

Sector Climate change drivers Sensitivity to climate change Sign Other drivers Relative impact of climate change to other drivers
Winter tourism • Temperature

• Snow

clip_image002 Negative • Population

• Lifestyle

• Income

• Aging

Much less
Summer tourism • Temperature

• Rainfall

• Cloudiness

clip_image003 Negative for suppliers in low altitudes and latitudes Positive for suppliers in high altitudes and latitudes Neutral for tourists • Population

• Income

• Lifestyle

• Aging

Much less
Cooling demand • Temperature

• Humidity

• Hot spells

clip_image004 Positive for suppliers Negative for consumers • Population

• Income

• Energy prices

• Technology change

Less
Heating demand • Temperature

• Humidity

• Cold spells

clip_image005 Negative for suppliers Positive for consumers • Population

• Income

• Energy prices

• Technology change

Less
Health services • Temperature

• Precipitation

clip_image006 Positive for suppliers Negative for consumers • Aging

• Income

• Diet/lifestyle

Less
Water infrastructure and services • Temperature

• Precipitation

• Storm Intensity

• Seasonal Variability

clip_image007 Negative for water users Positive for suppliers Spatially heterogeneous • Population

• Income

• Urbanization

• Regulation

Less in developing countries Equal in developed countries
Transportation • Temperature

• Precipitation

• Storm intensity

• Seasonal variability

• Freeze/thaw cycles

clip_image008 Negative for all users

Positive for transport construction industry

• Population

• Income

• Urbanization

• Regulation

• Mode shifting

• Consumer and commuter behavior

Much less in developing countries

Less in developed countries

Insurance • Temperature

• Precipitation

• Storm intensity

• Seasonal variability

• Freeze/thaw cycles

clip_image009 Negative for consumers Neutral for suppliers • Population

• Income

• Regulation

• Product innovation

Less or equal in developing countries

Equal or more in developed countries

The tourism industry (both winter and summer) will be much less affected by climate change than by population, lifestyle, income and aging. You’d think cooling and heating demand would change dramatically with climate change, but no, climate change gets trumped by population, income, energy prices and technology. Health services? With all the disasters to befall us, you’d think there would be major stress on our healthcare services. Turns out that even diet trumps climate change as a driver of impacts to our wellbeing (Curiously, technology did not make the list of drivers for health services!) . For transportation climate change gets trumped by no less than a list that includes population, income, urbanization, regulation, mode shifting (if someone knows what mode shifting is, by all means post in comments) consumer and commuter behaviour. The insurance industry is apparently the only sector where climate change rivals other drivers, and then only in developed countries.

So where’s the alarm? The message to governments is pretty clear. On a global basis, there is a lot more to worry about while planning your country’s economy than climate change. Chapter 10 makes a valiant attempt to keep on message:

Losses accelerate with greater warming (limited evidence, high agreement), but few quantitative estimates have been completed for additional warming around 3°C or above.

So…. In trying to keep the fear and uncertainty at a fever pitch (losses accelerate with warming), the IPCC tacitly admits that they don’t actually know. They have, in their own words, limited evidence to draw this conclusion. Nonetheless, they forge on, insisting that they have high agreement (in the absence of evidence they nonetheless appear to have faith!). What evidence do they have? Here is the money chart from the same Chapter 10:

image

As can be seen from this chart, almost as many studies have been done at 3 degrees as have been done at 2.5 degrees, and they come up with almost the same result. In fact, their claim of a “few” studies at greater than 3 degrees is only two studies. One is a study done a 5.5 degrees. Given the constraints on sensitivity in the current literature, that large a temperature change could only be driven by natural variability. A single study done at 3.25 degrees which projects a negative impact of more than 12% appears to be the straw the IPCC is grasping at to keep the potential for the disaster meme alive. It is an obvious outlier from the rest of the literature, which the report tries to gloss over.

Now let’s ponder for a moment just how small these negative impacts actually are. The IPCC charts rating changes compared to other economic drivers as “less” or “much less” don’t paint the picture very well. Keeping in mind that 2% at two degrees (and that is the upper range in the estimate) is spread over the timeframe that it takes to reach that temperature. Since the target date in the Paris fear festival was 2100, let’s round it off to 100 years for easy figuring.

That’s 0.02% per year. Forecasted economic growth for most countries in the world ranges from -5% to +5% per year. In other words, the IPCC is telling us that the socioeconomic impacts of climate change are less than a rounding error. I’ll end this article by quoting the initial statement from the IPCC again. The public and government alike have a lot more to worry about than climate change:

For most economic sectors, the impact of climate change will be small relative to the impacts of other drivers

So sayeth the United Nations

IPCC AR5 WGII Chapter 10

I accept them at their word.

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121 Comments
Felix
January 3, 2016 11:29 am

Chapter 10 is one small part of the impact assessment in AR5.
https://ipcc-wg2.gov/AR5/report/full-report/

January 3, 2016 4:30 pm

This article made me think of my blog about prediction: https://logiclogiclogic.wordpress.com/2015/04/11/why-is-prediction-hard-some-prediction-connundrums-part-i-predictions-on-healthcare/
In 1980 computer models created by the club of Rome (a group of elite professors from MIT and other elite US universities) predicted in 20 years the earth would be practically despoiled by our rapacious need for the good life. No matter what we did the human population would die of massive pollution or lack of food or … unless we implemented a draconian socialist economy. 20 years later the earth was cleaner than it had been in decades and we were richer than ever after we had implemented the policies of Ronald Reagan which included reduced taxes, reduced government. In other words 20 years later by doing the exact opposite of what the Club of Rome said we averted worldwide disaster.
The computer models were extremely sophisticated. Everyone believed them. The IPCC is saying something amazing. The club of rome couldn’t make economic predictions 20 years in advance that were within 1% of being accurate. Now we are being told the IPCC with its amazing modeling capabilities can project 200 years into the future the economy of the world.
I am baffled how this kind of thing could be given 2 seconds thought by anybody. Any prediction is hard. These are ludicrous predictions. not because of what they say but like the climate models they have been artfully engineered to produce data they want us to accept. The models are constructions meant to produce a polticial agenda. There is ZERO POINT ZERO probability these models have any more validitiy than the climate models which project carefully programmed global warming. It is simply well beyond our ability to predict such things.

January 3, 2016 6:00 pm

So why does Obama say that the planet will be economically and socially (as well as physically) destroyed unless the COP21 agreements are not only followed, but followed by more agressive action?
A recent Idaho poll showed that 84% of Republicans and 20% of Democrats didn’t think climate change was a signficiant problem. If the current Republican/Democrat split (Trump et al/Clinton et al) is corrent at roughly 50:50, then 42% of the American population don’t think there is a problem worth their time or money. Despite all the rhetoric and fear-mongering!
So why the aggressive action on the climate? One can only speculate. Are our governors really that much smarter than us?

January 4, 2016 7:27 am

I found the blog interesting. I think impact assessment is a very uncertain field and I think Richard Tol has been given a perhaps unreasonably hard time (though I wasn’t party to any of the controversy). However I’ve now read the chapter and the SPM and I really can’t agree with the blog author’s reading of it. I didn’t find Chapter 10 purely sanguine — it indicates that the uncertainty lies towards the downside for any given amount of warming, that the increase in damage is likely not linear with temperature increase, and that the impacts are likely to be be worse for the worse off. The majority of the sectoral assessments are interesting but not necessarily that important from a welfare perspective in my opinion – they are of interest for those working on those sectors but this is mostly a question of facilitating market adaptation. The overall economic damage is visible in the aggregate. A social cost of carbon of 30/tonne implies pretty significant action, and if this chapter is a correct about high uncertainty towards the upside on that cost, then a higher CO2 price is implied. Anyway, combine this with the point made above that the impact assessment is actually much broader than Chapter 10 and I don’t really see a massive conflict between this chapter and the SPM. Both make much of the uncertainty and emphasise the downside risks. I think it takes a real effort to see a conspiracy unmasked here.