Ethics of emissions trading

"Emissions trading sounds like a compelling idea in principle but the practicalities are much less attractive. [...] it's depoliticized over-consumption (i.e. we are told it no longer matters who causes what harms, provided we all pay the right amount) [...] emissions trading carries a series of practical problems. A weak cap means increased emissions but a tight cap, based on a effective climatic targets would likely lead to regressive social consequences, for instance, privileging a Londoners' stag party over a Polish OAPs' warmth."

- Dr John Broderick in "Should we stop worrying about the environmental impact of flying?", Guardian 31st Jan 2013.

This neatly summarises one of my concerns with emissions trading schemes. The question of the relative social good associated with a particular set of emissions is assumed to be answered through a direct equation with the economic cost of that good. If a stag party for a rich Londoner costs as much as heating the home of an elderly Polish couple, then these social goods are deemed equivalent, despite the fact that one is a luxury while the other may well be a necessity under certain circumstances. In some ways, it is a similar issue to the globalisation of the food market. If there are wealthy people willing to pay for a luxury cash crop on another continent, this is taken as justifying the eradication of local food autonomy in a developing country.

But not all goods are commensurate on a common scale. It is not possible to put a price on everything. The logic of the market is not universally applicable.

On flying

The seven year old standing on the roof of his house believes that in stepping off and flying, he will be free. While he plunges through the air, the wind in his hair may be exhilarating, but the freedom in which he passionately believes and on which he has staked his future is an illusion. Freedom means discovering that we have two feet planted on the ground.

The "free" market, insofar as this requires belief in the possibility of infinite growth on a finite planet, is perhaps the largest exercise in unfreedom humanity has ever conducted. Can you feel the wind in our hair?

Then the devil took him to the holy city and placed him on the pinnacle of the temple, saying to him, 'If you are the Son of God, throw yourself down; for it is written,

"He will command his angels concerning you",
    and "On their hands they will bear you up,
so that you will not dash your foot against a stone."'

Jesus said to him, 'Again it is written, "Do not put the Lord your God to the test."'

- Matthew 4.5-6 (NRSV).

Two horizons of hope: justice vs economic growth III

Guest series by Matheson Russell

This is the third in a three-part series offering theological reflections on some issues raised by the Occupy movement. The first can be found here and the second here.

In the previous posts I’ve explored the way justice is prized in the biblical literature. To conclude this short series I want to return briefly to the puzzle I started with: why is it that Martin Luther King’s (thoroughly biblical) demands for justice strikes us today — even those of us who profess to be Christians — as somewhat naïve and perhaps even deserving of suspicion?

Is it that we have fundamentally lost our moral bearings and no longer care about justice? I don’t think that’s quite right. We do still care about justice—both individually and collectively. (Even bankers, it turns out, have moral intuitions about fairness and desert.)

It’s not so much that we’ve forgotten all about justice; it’s just that justice has slipped down our list of priorities. This is evidence of a subtle reorientation of the basic theological horizons of society: In the place of divine justice and mercy, economic growth has become our primary source of hope. Our faith is now firmly in free markets (alongside scientific and technological innovation) to provide for us a happy and prosperous future. And as a consequence, economists have become our high priests, periodically prescribing for us the sacrifices required to ensure economic growth (bailouts, stimulus packages, austerity measures, etc.).

One consequence of this theological reorientation is that our imaginative grip on the role of government has changed. We tend no longer to demand that governments order their activity above all else to the goals of justice and righteousness. Indeed, such demands seem to us potentially irresponsible insofar as they threaten to curb economic growth. The imperatives of justice compete with the things we truly believe to be the source of life and happiness, and so we keep them on a short leash. The ideal of government as an agent of justice to punish wrongdoing and to prevent injustice has thus become marginal for us. In its place we now tend to imagine government first and foremost as the manager of the economy and as a provider of services.

The shift has been gradual and it remains partial — we haven’t given up the previous cultural paradigm entirely — but it has been a marked shift all the same. Indeed, it is so deeply entrenched in our thinking that it has become second nature to us to size up our elected representatives almost entirely based upon their performance as managers of the economy and providers of services. Come election time, every politician knows that it would be electoral suicide not to promise economic growth and better — or at least more efficient — provision of health care, schools, roads and so on. These are the fixed parameters of public debate.

It goes without saying that economic growth and technological development have in many ways been a great blessing and have brought about staggering improvements in the quality of life. And if (and this is a big ‘if’) we can find ways to sustain economic development within the ecological limits of our planet and the moral limits of care, respect and solidarity, it may continue to be a path that we can and should pursue. But this should not obscure the underlying issue. Claims of justice have been displaced from the position of primacy given to them by the Christian tradition, and this is no mere oversight but is entirely consistent with the new reigning theology of our ‘secular’ world.

For those of us who are Christians, then, we need to reflect soberly and honestly on where our deep faith lies. We who confess faith in God and claim to share his concern for justice and righteousness — practically, what do we put our faith in? What do we support with our money, our voice and our vote? Are we prepared to choose justice over increases in our own personal material wealth and wellbeing? Are we prepared even to countenance decreases in our wealth and limits on our lifestyles for the sake of justice? And do we ultimately believe that this is the more excellent way — not just for us but for everyone?

Managing the economy and providing services are important, of course. But before all else the gospel teaches us that we need our institutions of public justice to answer the muted cries of those who are exploited and cast aside; and, today more than ever, that we need them to respond to the silent groans of the creation whose capacity to extend hospitality to the human race and all living things is being over-taxed in myriad ways that we are only now beginning to understand. We cannot execute these tasks merely as private citizens; we must also execute them collectively through public institutions that act in our name.
Dr Matheson Russell is lecturer in Philosophy at the University of Auckland.

Climate change contributing to rising food prices

Study links climate change and rising food prices, as I suggested back here, here, here and here. The study argues that changing weather patterns have held back the growth in global food production by around 5%, contributing about 20% of the recent doubling of prices (which also have other causes).

BBC: Nitrogen pollution estimated to be costing £55 billion to £280 billion annually in Europe alone.

Guardian: How to tell the difference between the rule of law and a police state in the light of Ian Tomlinson, the protester unlawfully killed by police and the subsequent alleged cover up.

Common Dreams: This is what resistance looks like.
H/T Matheson.

Paul Gilding: The great disruption arrives. Different authors use a variety of phrases to speak of the converging ecological and resource crises facing humanity: the great emergency, the long descent, Eaarth, planet triage, the Anthropocene, the great acceleration and so on.

Intergovernmental Panel on Climate Change (IPCC) releases a new report that finds up to 77% of global electricity primary power generation from renewable power by 2050 is both technically and economically feasible. The primary barriers are political.

Guardian: Why supermarkets are odious. We are blessed with a weekly farmers market a few hundred metres from our door, and have a deal with a local farm to receive a box of fresh produce each fortnight. Even so, it is hard to avoid supermarkets entirely.

SMH: How much does an iPad really cost? Although Apple are far from the only company with shady production conditions, they are the largest and were recently fingered as also having the worst ecological record, so highlighting their failure is legitimate. These conditions are not inevitable. Companies could be held responsible for the full life-cycle of their product, which would provide a significant incentive to shift design assumptions away from built-in obsolescence (which is currently the industry standard). It is also worth noting that many of these pieces of equipment are not just bad for the workers who produce them and the ecological systems on which we all rely for life, but can be part of the shrinking of the consumerist soul into finding an identity and satisfaction in what is bought and consumed.

Guardian: In a secret deal between Pakistan and the US, agreed in 2001 and renewed in 2008, Pakistan allegedly agreed to unilateral US strikes as long as they were allowed to publicly decry them afterwards. I don't think that this kind of agreement is conducive to healthy international relations in the long term, as it undermines trust when parties are revealed to be dissembling.

And because I haven't raised enough controversial topics in this post yet, I thought I'd mention this new study of more than ten thousand children that found that breast feeding is linked to fewer behavioural problems.

Better than growth

Is growth good? Australia needs more economic growth like a kick in the head.

The pursuit of ever more goods and services is not delivering what most people want, but their opposite. Rather than meaningful work and rest amongst genuine communities in tune with healthy natural environments, we are overworked (or unemployed), families and communities are fragmented and we are living well beyond our ecological means.

Many studies have shown that once a basic standard of material well-being has been achieved, further increases in consumption levels do not correlate with higher levels of reported happiness, health or mental well-being. Instead, we are fatter, more stressed and more depressed than previous generations. And worst of all, we are squandering our inherited ecological wealth at an alarming rate. Our average ecological footprint (the third largest in the OECD) means that were everyone to live like us, we would require four Earths. Australia has the highest percentage of threatened vertebrates and plant species in the world. Our carbon footprint is the highest in the OECD, despite possibly being the developed country most directly threatened by climate change.

The ongoing quest for growth all else is killing us, since growth without reference to its context is cancer.

So am I then a cheerleader for what economists quaintly call "de-growth" (i.e. recession), or am I perhaps advocating the dramatic overthrow of the present order? Both are too simplistic. It is possible to argue that creative, practical reforms are possible (and necessary). Things don't have to be this way and the alternatives don't have to involve living in caves or blood on the streets (though these could be some of the ultimate results of business as usual).

The Australian Conservation Foundation has recently released a very interesting 40-page report called Better Than Growth, which lays out three problems with our obsession over GDP growth and suggests eight areas in which a re-conceived better-than-growth economy would be an improvement over current assumptions and practices. Each of the eight areas receives a brief chapter suggesting creative changes to Australia's economic system. Here is the outline:

1. Better progress: improving quality of life, not quantity of wealth
Emphasising measurements of social and individual wellbeing, and ecological health, will give us better results than focusing on narrow economic measurements such as GDP.

2. Better work: balancing paid and non-paid work, family and leisure time
While some australians are unemployed, many more are overemployed. We’d be better off reducing average working hours and increasing time available for leisure, family, community and our democracy.

3. Better production: making cradle-to-cradle manufacturing a reality
Rather than producing disposable goods that are destined for the tip, we should reorient design and manufacturing toward completely reusable products.

4. Better consumption: stepping off the consumer treadmill
Overconsumption is at the root of many social and environmental challenges. Government can support people to become smart consumers; to consume less and consume smarter.

5. Better markets: aligning prices with social and environmental impacts
Ensuring that the full environmental and social costs are included in the price tag of goods and services will stimulate a cleaner economy.

6. Better business: matching private incentives with long-term public goals
Businesses that focus too much on short-term profits are unlikely to be part of a long-term transition to a more sustainable economy. Supporting non-profit business models and ensuring that executive compensation rewards long-term performance are needed.

7. Better taxation: rewarding work, not waste
Shifting taxes away from productive activity such as income generation and towards pollution and resource use would create jobs while improving environmental performance throughout the economy.

8. Better regulation: fixing cost-beneft analysis
Much government analysis depends on cost-benefit calculations which are based on faulty assumptions and exclude the full value of the natural environment. We should insist that cost-benefit analysis include all aspects of wellbeing.

Fortunately, many of the solutions are staring us in the face. As William Gibson said, “The future is here, it’s just not widely distributed yet." In each of this report’s sections, we outline some of the best thinking from around the world on what is needed to transform to a better-than-growth economy. All of these ideas and specific policy recommendations are already being implemented or seriously considered somewhere around the globe.

The full ACF report is available here.
H/T Greg.

To each according to need, from each according to ability

"Now the whole group of those who believed were of one heart and soul, and no one claimed private ownership of any possessions, but everything they owned was held in common. With great power the apostles gave their testimony to the resurrection of the Lord Jesus, and great grace was upon them all. There was not a needy person among them, for as many as owned lands or houses sold them and brought the proceeds of what was sold. They laid it at the apostles’ feet, and it was distributed to each as any had need."

- Acts 4.32-35.

Jeremy has been pondering the economic ethics of the Hebrew scriptures and makes the good point that both strict egalitarianism and totally free markets are largely caricature positions held by almost no one, so it does no service to charitable and productive discourse to assume your opponent to the left holds the former or your opponent to the right holds the latter. There are many other options that are far more interesting (he even has a chart of ten different possibilities).

One question I have about the passage quoted above is: what (if any) are the links between the economic arrangements of the early Christian community and the great power of the apostles' testimony to the resurrection and the great grace upon them all?
Jeremy has also been posting on the ethics of the creation and purchasing of clothes.

Something fishy about the free market?

I am no economist nor an economist's son, so correct my faulty thinking here please.

The free market is frequently trumpeted as the best thing since sliced bread, bringing wealth and happiness to millions through the wonders of the invisible hand that guides producers to make just what consumers desire. It's so efficient: rather than the farmer or factory owner or politician having to guess how many litres of semi-skimmed organic milk to produce, demand will set the right price. Consumers happily buy just as much as producers are bottling. This is because the market signals shifts in demand to the producer. Not enough milk coming through? The competition for milk will push the price up, giving the farmers incentive (and capital) to produce more and the consumers incentive to cut back until there is equilibrium once more.

But there is a certain situation in which this mechanism might actually be the worst possible one. Think about fish. The rivers, lakes and oceans have long been an important source of food for all kinds of cultures. And fish are a renewable resource; so long as we don't take all the fish out of the water, some will reproduce to ensure tomorrow's meal as well. But under free market conditions, a finite renewable resource will inevitably be overexploited. If a certain kind of fish is being fished faster than its natural rate of reproduction, fairly soon the fishing boats will return with smaller catches. This reduction in supply will push prices up, reducing consumer demand. Yet higher prices also justify further exploitation of the resource. If it can be sold for a higher price, it makes sense to put more resources into catching that species of (now rarer) fish. Although this higher price is a warning signal that the limits of the resource's ability to renew itself are being reached, the market actually rewards those who keep exploiting it if they can.

This is why regulation is important to avoid killing the goose that lays the golden egg. But of course, fishing is perhaps the classic case in which regulation is very difficult to enforce as it involves many countries and the tragedy of the commons. Also, since no country wants to be the first to cut down its industry, fishing is actually massively subsidised around the world, making the problem worse.*

There is, of course, a deeper problem than the free market, and that is our belief in the possibility and desirability of infinite growth. We need to learn that finitude is a gift.
*From Wikipedia:

"A major international scientific study released in November 2006 in the journal Science found that about one-third of all fishing stocks worldwide have collapsed (with a collapse being defined as a decline to less than 10% of their maximum observed abundance), and that if current trends continue all fish stocks currently fished will collapse within fifty years. However, they also conclude that "available data suggest that at this point, these trends are still reversible"."

For those worried about the effects of their consumer choices on overexploited fisheries, here is a pocket guide giving information about which species are under threat.

Corporate growth

What is wrong with the world?

But speaking the truth in love, we must grow up in every way into him who is the head, into Christ, from whom the whole body, joined and knit together by every ligament with which it is equipped, as each part is working properly, promotes the body’s growth in building itself up in love. (Ephesians 4.15-16)

Having been recently thinking about bodies and health, I've been pondering corporate metaphors. Here's my thought: free-market capitalism assumes that the selfish interest of each is good for the health of the whole. If we each pursue our private goals rationally, even if selfishly, the whole body politic will flourish. However, medically speaking, when a part of the body decides to maximise its growth without reference to the rest, we call it a tumour. Individualism might then be seen as cancer: a part of the body living for itself and ignoring those around it. In the end, either it goes or the body goes.

Perhaps strangely, cancer is simply too much of a good thing: growth. Or rather, it is a disordered growth, a growth without reference to the whole body. In terms of the Ephesians passage mentioned above, it is growth without reference to the head, the organising principle and ruler of the body, which for the church (and the entire created order) is found in Christ. What is wrong with the world is the pursuit of little goods without this being properly ordered to Christ as the head of all.

Perhaps we can push this picture further and apply it on both larger and smaller scales. Personally, when I select one good thing and absolutise it into the be-all and end-all of life, then I have not only become an idolater, but have stimulated a malignant condition that threatens the balance and health of my whole life. Whether it be a relationship, a goal, a sense of fulfilment or security, or even physical health itself, unless each part of life is working properly with reference to the others, growing together into Christ, then I have become a threat to myself and those around me.

Moving in the other direction, humanity as a whole can attempt to flourish without reference to the rest of the created order. We pursue our short-term goals of economic prosperity, little aware that unless the pace, nature and direction of our growth is directed by what is apt for our ecological context, then we too may be more hindrance than help to the earth we were directed to serve (Genesis 3.23).*
*Although often translated "the LORD God sent him forth from the Garden of Eden to till [or work] the ground from which he was taken," the Hebrew verb can also include the idea of 'service'.
Ten points for the famous museum in which this statue is presently located. More points available in comments.