Before and After Fossil Fuels
From New York:
The murmuring mantra of global neoliberalism, which prevailed between the end of the Cold War and the onset of the Great Recession, is that economic growth would save us from anything and everything. But in the aftermath of the 2008 crash, a growing number of historians studying what they call “fossil capitalism” have begun to suggest that the entire history of swift economic growth, which began somewhat suddenly in the 18th century, is not the result of innovation or trade or the dynamics of global capitalism but simply our discovery of fossil fuels and all their raw power — a onetime injection of new “value” into a system that had previously been characterized by global subsistence living. Before fossil fuels, nobody lived better than their parents or grandparents or ancestors from 500 years before, except in the immediate aftermath of a great plague like the Black Death, which allowed the lucky survivors to gobble up the resources liberated by mass graves. After we’ve burned all the fossil fuels, these scholars suggest, perhaps we will return to a “steady state” global economy. Of course, that onetime injection has a devastating long-term cost: climate change.
The most exciting research on the economics of warming has also come from Hsiang and his colleagues, who are not historians of fossil capitalism but who offer some very bleak analysis of their own: Every degree Celsius of warming costs, on average, 1.2 percent of GDP (an enormous number, considering we count growth in the low single digits as “strong”). This is the sterling work in the field, and their median projection is for a 23 percent loss in per capita earning globally by the end of this century (resulting from changes in agriculture, crime, storms, energy, mortality, and labor).
Tracing the shape of the probability curve is even scarier: There is a 12 percent chance that climate change will reduce global output by more than 50 percent by 2100, they say, and a 51 percent chance that it lowers per capita GDP by 20 percent or more by then, unless emissions decline. By comparison, the Great Recession lowered global GDP by about 6 percent, in a onetime shock; Hsiang and his colleagues estimate a one-in-eight chance of an ongoing and irreversible effect by the end of the century that is eight times worse.
The scale of that economic devastation is hard to comprehend, but you can start by imagining what the world would look like today with an economy half as big, which would produce only half as much value, generating only half as much to offer the workers of the world. It makes the grounding of flights out of heat-stricken Phoenix last month seem like pathetically small economic potatoes. And, among other things, it makes the idea of postponing government action on reducing emissions and relying solely on growth and technology to solve the problem an absurd business calculation.
Every round-trip ticket on flights from New York to London, keep in mind, costs the Arctic three more square meters of ice.