Submission to House of Lords: Inquiry ‘Aspects of the Economics of Climate Change’

Some claim that climate change will result in an increase in vector-borne disease, flooding, catastrophic weather events, loss of biodiversity, changes in agricultural production and other problems. Yet these are problems today and are either caused or are exacerbated by poverty. Tackling poverty is likely to be better way to address these problems than attempting to control the climate. Climatic change may turn out to be benign or harmful: We do not know. But in the context of this uncertainty, policies that are narrowly focused on adaptation to possible negative effects are short-sighted and may even be counterproductive. Policies aimed at mitigation through control of atmospheric carbon are almost certainly counterproductive. Adaptive, sustainable development can only come through the adoption of institutions that enable people to engage in economic activities that create wealth and lead to technological progress. Policies that rely on these institutions provide the best way to deal with an uncertain climate future.