Global Warming and our
Economic System
Economic System
6/25/02
JJ Burton
Global Warming and our Economic System
The increased amount of greenhouse gases we have been putting into the
atmosphere is in one sense another aspect of Capitalism vs. Ecology. But
this is a special case because the damage to us is in the future, not in the
present, and because all parts of the world contribute to it and all parts will
suffer, though in varying degrees, from the effects as they take place in the
latter part of this century. Because of this worldwide cause and effect
characteristic, the cooperation of all nations is needed for preventive
actions.
America’s economic and military predominance extends to our role in this
problem. We are the leading nation in the amount of greenhouse gases
already added to the atmosphere and in the amount we are adding at
present. And as the wealthiest nation we can best afford to undertake
preventive actions. Is it a coincidence that the U.S., with the most
unregulated free market economic system of all nations , is also the nation
most opposed to taking action to prevent global warming?
At this point we should recognize that the U.S., with the most unregulated
form of capitalism, shows up unfavorably with more socialist modifications
as practiced in most European nations. Sweden, with its peculiar mix of
capitalism and socialism is outstanding in energy saving practices.
Denmark is outstanding in its use of wind power for energy and its
recycling of beverage containers. All European nations favor going ahead
with the Kyoto Protocol but U.S. busnesses support President Bush in his
refusal to join in.
To understand why our corporate world is blocking actions to slow up
global warming, we need only to understand the basis of the problem. Of
the several greenhouse gases whose accumulation into the atmosphere
creates the warming effect, carbon dioxide is causing 60-70% of the
effect. Some of this CO2 has come from burning of tropical forests but the
principal amount is from burning of the fossil fuels, coal, petroleum and
natural gas. Since the start of the industrial age, we have thereby
increased the amount of CO2 in the atmosphere by 1/3. So if we are to
undertake slowing up global warming we should concentrate on reducing
our CO2 emissions by reducing our growing use of fossil fuels. Most of our
fossil fuel use goes to create energy – to generate electric power in our
utilities and to drive our autos, trucks, planes and trains.
To reduce our CO2 emissions, we can follow three types of actions:
1. Replace the generators in electric utilities with more efficient ones that
can produce electric energy with less CO2 emissions.
2. Cut the use of electric power and of petroleum by use of more efficient
motors, household appliances, automotive vehicles.
3. Change our lifestyles so as to use less energy – smaller cars, less air
conditioning, less travel for example.
Our business world with its objective of short-term profitability is in
opposition to all of these means of reducing our use of fossil fuels. The
use of coal as fuel for electric utilities produces more CO2 than oil or natural
gas but coal is the cheapest fuel. To switch to natural gas (the best fuel re
CO2 emissions) and to the more efficient designs would require huge
capital investments and higher prices for the electricity which powers
business enterprises as well as homes. Industry could cut electric use in
numerous ways but the payout is too long to fit its goal of short-term
profitability. Even in the many ways that individuals could cut their energy
use, the business world plays an opposing role. For the auto industry, the
sale of SUVs is far more profitable than sale of economy cars and all their
advertisements are to promote the sale of the gas guzzlers. The growth
that is essential to prosperity under our capitalist economics is seen to be
impossible to continue without our pattern of increasing use of energy.
U.S.free market style capitalism has succeeded in blocking action to reduce
(it’s too late to avoid it) global warming in several ways.
1. Influence on Congress and the Administration by its campaign
contributions and lobbying. A recent example was pressure by automotive
and petroleum corporations which succeeded in blocking efforts by some
members of Congress to raise CAFE mileage standards for cars and light
trucks.
2. Promotion of our high consumption materialistic culture. The bases of
advertising is to glorify high style living, to create wants where none
existed, to get us to replace that car or appliance with a new and better
model, to buy that new gadget that will do some chore for us.
3. A minor effort is by direct advertising as is done regularly by Exxon-
Mobil.
4. Funding those very few scientists who have been claiming that global
warming will not happen. For several years this was an effective delaying
action but by now practically no one believes them. So now this contrary
effort is devoted to arguing that actions to slow up global warming would
ruin our economic system.
Notes:
1. One of the prominent global warming skeptics is Dr. Fred Singer, who
did not deny in a TV interview that he had received funds from Exxon,
Shell, Unocal and ARCO.
2. In its 1998 annual report, Western Fuels Association, a supplier of coal
to western utilities, said it spent $18 million in support of those opposing
action on global warming.
3. A full page ad in “The Wall Street Journal” in 2001 signed by the CEOs
of 100 Fortune 500 corporations urged the Clinton/Gore administration
“not to rush to policy commitments” re global warming.
4 In 2001 President Bush rejected the Kyoto Protocol saying that it would
hurt the American economy. The plan he announced in February 2002
would only slow the U.S. CO2 emission rate a little and allows an
estimated 25% increase compared to 1990.
5. Perhaps the most influential business organization is the Pew Center for
Climate Change. It is made up of 21 major corporations. Its testimony
in Congressional hearings and its publications accept that global warming
will occur but advocates that any actions by corporations should be
voluntary ones – no government rules.