Green Options

By Lester R. Brown

When Nicholas Stern, former chief economist at the World Bank, released his ground-breaking study in late 2006 on the future costs of climate change, he talked about a massive market failure. He was referring to the failure of the market to incorporate the climate change costs of burning fossil fuels. The costs, he said, would be measured in the trillions of dollars. The difference between the market prices for fossil fuels and the prices that also incorporate their environmental costs to society are huge.

The roots of our current dilemma lie in the enormous growth of the human enterprise over the last century. Since 1900, the world economy has expanded 20-fold and world population has increased fourfold. Although there were places in 1900 where local demand exceeded the capacity of natural systems, this was not a global issue. There was some deforestation, but overpumping of water was virtually unheard of, overfishing was rare, and carbon emissions were so low that there was no serious effect on climate. The indirect costs of these early excesses were negligible.

Now with the economy as large as it is, the indirect costs of burning coal–the costs of air pollution, acid rain, devastated ecosystems, and climate change–can exceed the direct costs, those of mining the coal and transporting it to the power plant. As a result of neglecting to account for these indirect costs, the market is undervaluing many goods and services, creating economic distortions.

By Lester R. Brown

There are many things we do not know about the future. But one thing we do know is that business as usual will not continue for much longer. Massive change is inevitable. Will the change come because we move quickly to restructure the economy or because we fail to act and civilization begins to unravel?

Saving civilization will take a massive mobilization, and at wartime speed. The closest analogy is the belated U.S. mobilization during World War II. But unlike that chapter in history, in which one country totally restructured its economy, the Plan B mobilization requires decisive action on a global scale.

On the climate front, official attention has now shifted to negotiating a post-Kyoto protocol to reduce carbon emissions. But that will take years. We need to act now. There is simply not time for years of negotiations and then more years for ratification of another international agreement.

In an attempt to chain themselves to a conveyor-belt and ratchet up pressure on the coal industry, activists disrupted production and forced evacuation at the state-owned Tarong power station in northern Queensland, Australia.