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Economy

Obama chief scientist cools on climate crisis news coverage

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Article originally published at CFACT.org

President Barack Obama’s Energy Department Chief Scientist Steven Koonin’s soon-to-be-published book will discuss information that the public really needs to have regarding grossly overheated “climate crisis” media hype.

Titled “Unsettled: What Climate Science Tells Us, What it Doesn’t, and Why It Matters,” a preview of it’s contents is provided in an April 16 Wall Street Journal interview with the author posted by Holman Jenkins, Jr.

Jenkins’ piece is titled “How a Physicist Became a Climate Truth Teller,” and I recommend it to readers who are interested in a fuller book content and author background account.

Having followed the science over more than a decade — and written a couple of pretty good books and likely a hundred or so articles on the subject — I find Koonin’s descriptive accuracy and candor enormously refreshing.

Sadly, few — if any — others in the Obama-Biden White House really cared about facts, paid attention, or learned anything from him at all.

First, because this is particularly relevant to me, Steven Koonin’s background as a physicist combines his technical understanding of applications and limitations of computer modeling of complex systems and practical experience in dealing with real-world realities such as assessing how we can most effectively and efficiently apply fundamental energy principles to meet complex human conditions and requirements.

Koonin taught physics at Caltech for nearly three decades, where he also served as provost; was recruited by the non-profit Institute for Defense Analysis which provided advisory services to military and congressional leaders; worked at JASON, another private scientific organization where he conducted and supervised cold-fusion energy and human genome mapping research; and later worked as chief scientist for British Petroleum (BP) which was later rebranded as “Beyond Petroleum.”

While at BP, Koonin created the multidisciplinary Energy Biosciences Institute at Berkeley which studies a wide range of scientific issues ranging from the isotopic composition of micro-fossils in the sea floor through regulation of industrial power plants.

Steven Koonin’s research into the world’s energy system led him to become convinced that the only “real climate crisis was a crisis of political and scientific candor,” and that the world “isn’t going to be able to reduce [greenhouse gas] emissions enough to make much difference.”

Koonin argues that while he supports responsible climate science, his issue is that what media and activist say about climate science has drifted so far out of touch with the actual science as to be absurdly, demonstrably false.

With reference to a 2019 report by presidents of the National Academy of Sciences which asserted that the “magnitude and frequency of certain extreme events are increasing,” for example, he notes that the “United Nations Intergovernmental Panel on Climate Change (IPCC), which is deemed to compile the best science, advised that all such claims should be treated with “low confidence.”

The U.S. government’s 2017 Climate Science Special Report had claimed that, in the lower 48 states, the “number of high temperature records set in the past two decades far exceeds the number of low temperature records.” On closer inspection, Koonin points out, “that’s because there’s been no increase in the rate of new record highs since 1900, only a decline in the number of new lows.”

A 2018 U.S. Fourth National Climate Assessment which relied on such “ovegged” worst-case emissions and temperature projections, Koonin concludes, “was written more to persuade than to inform.” He says, “It masquerades as objective science but was written — all right, I’ll use the word — propaganda.”

Koonin emphasizes the absurdity of basing climate change alarm on century-long forecasts claiming to know how 1% shifts in poorly understood variables will affect a future global climate that we don’t understand with anything even resembling that precision.

Nevertheless, the IPCC will issue a report next year that will purport to determine how much warming to expect by the end of this century based upon 40-plus computer model simulations which have been diverging in projections — not converging — coming together — as one would hope to enable determination of which one should be trusted.

Without tweaking, the modelers can’t even agree on a current simulated global average surface temperature — varying by 3 degrees Celsius – three times the observed change over the past century.

Koonin, both an experienced computer practitioner and modeling enthusiast, recognizes that they are wonderful where the simulation variables and their interactions being projected are well known and results can be empirically tested.

“But these are more controlled, engineered situations,” he adds, “whereas the climate is a natural phenomenon. It’s going to do whatever it’s going to do. And it’s hard to observe. You need long, precise observations to understand its natural variability and how it responds to external influences.”

Koonin, who has been building models and watching others do so over 45 years, cautions that climate models “are not to the standard you would trust your life or even trillions of dollars to.”

For the record, Koonin agrees — as many of my well-informed climate scientist friends also do — that the world has warmed by about 1 degree Celsius since 1900, and it will likely warm by another degree by the end of this century.

There is no dispute I’m aware of that temperatures began warming at the end of the last “Little Ice Age” in the mid-1800s — before the Industrial Revolution — and will likely continue to do so in fits-and-starts with little or no influence from us until Mother Nature once again changes her mind.

Neither Koonin nor any real-world scientific climate or economic studies, however, have seen anything in the offing which he says “would justify the rapid and wholesale abandoning of fossil fuels, even if China, India, Brazil, Indonesia and others could be dissuaded from pursuing prosperity.”

Even John Kerry, Joe Biden’s “climate czar,” recently admitted that the current administration’s “net-zero” climate plan will have zero effect if developing countries don’t go along, and as Koonin notes, “they have little incentive to do so.”

In any case, Koonin believes that any warming that occurs will emerge slowly and with modest effect — not a runaway crisis that alarmists such as Al Gore and John Kerry hype. To the extent that reduced CO2emissions will make any measurable difference, the solutions should let technology and markets work together at their own pace.

“The climate might to continue to change at a pace that’s hard to perceive, but society will adapt.”

Konnin adds, “As a species, we’re very good at adapting.”

Perhaps the biggest challenge will be to survive the current political climate crisis.

 

Author: CFACT Advisor Larry Bell heads the graduate program in space architecture at the University of Houston. He founded and directs the Sasakawa International Center for Space Architecture. He is also the author of “Climate of Corruption: Politics and Power Behind the Global Warming Hoax.”

Article originally published at CFACT.org

In 1985, the Committee For A Constructive Tomorrow (CFACT) was founded to promote a much-needed, positive alternative voice on issues of environment and development. Its co-founders, David Rothbard and Craig Rucker, strongly believed the power of the market combined with the applications of safe technologies could offer humanity practical solutions to many of the world’s most pressing concerns. A number of leading scientists, academics, and policy leaders soon joined them, along with thousands of citizens from around the U.S. and around the world.

Today, CFACT is a respected Washington D.C.-based organization whose voice can be heard relentlessly infusing the public-interest debate with a balanced perspective on environmental stewardship and other important issues.  With an influential and impressive scientific advisory board, effective collegiate program on U.S. college campuses, CFACT Europe, official United Nations’ NGO representation, Adopt-A-Village project, Global Social Responsibility program, and “Just the Facts” daily national radio commentary, CFACT continues to offer genuine solutions to today’s most important global challenges.

CFACT has been termed “invaluable” by the Arizona Republic, it has been lauded for its “effort to bring sound science to the environmental debate” by a former president of the National Academy of Sciences, and has been praised by a respected Boston Herald columnist for “a record of supplying absolutely solid information.”

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Business

Canada’s economy has stagnated despite Ottawa’s spin

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From the Fraser Institute

By Ben Eisen, Milagros Palacios and Lawrence Schembri

Canada’s inflation-adjusted per-person annual economic growth rate (0.7 per cent) is meaningfully worse than the G7 average (1.0 per cent) over this same period. The gap with the U.S. (1.2 per cent) is even larger. Only Italy performed worse than Canada.

Growth in gross domestic product (GDP), the total value of all goods and services produced in the economy annually, is one of the most frequently cited indicators of Canada’s economic performance. Journalists, politicians and analysts often compare various measures of Canada’s total GDP growth to other countries, or to Canada’s past performance, to assess the health of the economy and living standards. However, this statistic is misleading as a measure of living standards when population growth rates vary greatly across countries or over time.

Federal Finance Minister Chrystia Freeland, for example, recently boasted that Canada had experienced the “strongest economic growth in the G7” in 2022. Although the Trudeau government often uses international comparisons on aggregate GDP growth as evidence of economic success, it’s not the first to do so. In 2015, then-prime minister Stephen Harper said Canada’s GDP growth was “head and shoulders above all our G7 partners over the long term.”

Unfortunately, such statements do more to obscure public understanding of Canada’s economic performance than enlighten it. In reality, aggregate GDP growth statistics are not driven by productivity improvements and do not reflect rising living standards. Instead, they’re primarily the result of differences in population and labour force growth. In other words, they aren’t primarily the result of Canadians becoming better at producing goods and services (i.e. productivity) and thus generating more income for their families. Instead, they primarily reflect the fact that there are simply more people working, which increases the total amount of goods and services produced but doesn’t necessarily translate into increased living standards.

Let’s look at the numbers. Canada’s annual average GDP growth (with no adjustment for population) from 2000 to 2023 was the second-highest in the G7 at 1.8 per cent, just behind the United States at 1.9 per cent. That sounds good, until you make a simple adjustment for population changes by comparing GDP per person. Then a completely different story emerges.

Canada’s inflation-adjusted per-person annual economic growth rate (0.7 per cent) is meaningfully worse than the G7 average (1.0 per cent) over this same period. The gap with the U.S. (1.2 per cent) is even larger. Only Italy performed worse than Canada.

Why the inversion of results from good to bad? Because Canada has had by far the fastest population growth rate in the G7, growing at an annualized rate of 1.1 per cent—more than twice the annual population growth rate of the G7 as a whole at 0.5 per cent. In aggregate, Canada’s population increased by 29.8 per cent during this time period compared to just 11.5 per cent in the entire G7.

Clearly, aggregate GDP growth is a poor tool for international comparisons. It’s also not a good way to assess changes in Canada’s performance over time because Canada’s rate of population growth has not been constant. Starting in 2016, sharply higher rates of immigration have led to a pronounced increase in population growth. This increase has effectively partially obscured historically weak economic growth per person over the same period.

Specifically, from 2015 to 2023, under the Trudeau government, inflation-adjusted per-person economic growth averaged just 0.3 per cent. For historical perspective, per-person economic growth was 0.8 per cent annually under Brian Mulroney, 2.4 per cent under Jean Chrétien and 2.0 per cent under Paul Martin.

Due to Canada’s sharp increase in population growth in recent years, aggregate GDP growth is a misleading indicator for comparing economic growth performance across countries or time periods. Canada is not leading the G7, or doing well in historical terms, when it comes to economic growth measures that make simple adjustments for our rapidly growing population. In reality, we’ve become a growth laggard and our living standards have largely stagnated for the better part of a decade.

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Business

New capital gains hike won’t work as claimed but will harm the economy

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From the Fraser Institute

By Alex Whalen and Jake Fuss

Capital taxes are among the most economically-damaging forms of taxation precisely because they reduce the incentive to innovate and invest.

Amid a federal budget riddled with red ink and tax hikes, the Trudeau government has increased capital gains taxes. The move will be disastrous for Canada’s growth prospects and its already-lagging investment climate, and to make matters worse, research suggests it won’t work as planned.

Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50 per cent inclusion rate, which means that 50 per cent of the gain in the asset’s value is subject to taxation at the individual or business’ marginal tax rate. The Trudeau government is raising this inclusion rate to 66.6 per cent for all businesses, trusts and individuals with capital gains over $250,000.

The problems with hiking capital gains taxes are numerous.

First, capital gains are taxed on a “realization” basis, which means the investor does not incur capital gains taxes until the asset is sold. According to empirical evidence, this creates a “lock-in” effect where investors have an incentive to keep their capital invested in a particular asset when they might otherwise sell.

For example, investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate. This means the Trudeau government is likely overestimating the potential revenue gains from its capital gains tax hike, given that individual investors will adjust the timing of their asset sales in response to the tax hike.

Second, the lock-in effect creates a drag on economic growth as it incentivises investors to hold off selling their assets when they otherwise might, preventing capital from being deployed to its most productive use and therefore reducing growth.

And Canada’s growth prospects and investment climate have both been in decline. Canada currently faces the lowest growth prospects among all OECD countries in terms of GDP per person. Further, between 2014 and 2021, business investment (adjusted for inflation) in Canada declined by $43.7 billion. Hiking taxes on capital will make both pressing issues worse.

Contrary to the government’s framing—that this move only affects the wealthy—lagging business investment and slow growth affect all Canadians through lower incomes and living standards. Capital taxes are among the most economically-damaging forms of taxation precisely because they reduce the incentive to innovate and invest. And while taxes on capital do raise revenue, the economic costs exceed the amount of tax collected.

Previous governments in Canada understood these facts. In the 2000 federal budget, then-finance minister Paul Martin said a “key factor contributing to the difficulty of raising capital by new start-ups is the fact that individuals who sell existing investments and reinvest in others must pay tax on any realized capital gains,” an explicit acknowledgement of the lock-in effect and costs of capital gains taxes. Further, that Liberal government reduced the capital gains inclusion rate, acknowledging the importance of a strong investment climate.

At a time when Canada badly needs to improve the incentives to invest, the Trudeau government’s 2024 budget has introduced a damaging tax hike. In delivering the budget, Finance Minister Chrystia Freeland said “Canada, a growing country, needs to make investments in our country and in Canadians right now.” Individuals and businesses across the country likely agree on the importance of investment. Hiking capital gains taxes will achieve the exact opposite effect.

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