Zugzwang …

… is a term from chess meaning compulsion to move. Most of the time, it’s an advantage to have the next move, but there are situations, particularly in the endgame when you’d much rather it was the other player’s turn.

So it has been with climate change, at least for some players in the game. The big divide in the negotiations for the Kyoto protocol was between the more developed countries, which had created the problem and continued to produce most emissions of greenhouse gases, and the less developed, which were the main source of likely future growth. The agreement reached was that the developed countries would make the first round of cuts, reducing emissions below 1990 levels* by 2012, after which a more comprehensive agreement would require contributions from everyone.

As soon as the Bush Administration was elected though, it denounced this as unfair and said the US would do nothing unless China and India moved first. The Howard government, until then a fairly enthusiastic proponent of Kyoto, immediately echoed the Bush line. Meanwhile, not surprisingly, China and India stuck to the agreement they’d signed and ratified.

The resulting standoff suited lots of people. Most obviously, while the Bushies were denouncing the unfair advantages given to China and India, they were also pushing as hard as they could to ensure that they and other developing countries did nothing that would facilitate a post-Kyoto agreement. And of course plenty of people in China and India were happy enough not to have to take any hard decisions on the topic.

In the last month or so, this has all started to fall apart. The Australian policy debate has shifted to the point where Howard has had to announce support both for emissions trading and for the logical corollary, binding targets for emissions reductions, though he still refuses to give any actual numbers. China and India have agreed to negotiate a post-Kyoto agreement by 2009, though they are still resisting targets.

That has left Bush isolated. Only a week or so ago, the Administration contemptuously rejected a draft G8 meeting statement on climate change prepared by the Germans, who are hosting the meeting. But as Bush’s lame-duck status has become increasingly apparent, his capacity to throw his weight around has diminished. The reaction from the Germans, and the rest of the Europeans was ferocious. It became clear that the G8 meeting would be a disaster, possibly even ending with an overt statement of disagreement, although (as far as I can tell) such an outcome is viewed by those who run these events as unthinkable.

So Bush came out with a plan. As with his response to the recent Supreme Court decision requiring the EPA to control CO2 emissions, Bush came up with a plan that would have no effect until late 2008, by which time his term would be nearly finished. As Dan Froomkin observed, the US reaction showed that Bush still knows how to play the American press like a harp, but the European reaction ranged from tepid (those who interpreted Bush as offering largely meaningless rhetoric) to hostile (those who viewed him as attempting to derail the post-Kyoto process). And this gradually fed back into US coverage.

So, the pieces are moving again, and the system o mutually supportive intransigence is breaking down. It remains to be seen if anything positive can be achieved, but the untenability of Bush’s position is now clear for all to see.

* Australia held out for a special deal, allowing an 8 per cent increase, then decided not to ratify anyway.

Scorcher

I reviewed Clive Hamilton’s Scorcher: The Dirty Politics of Climate Change in the Fin on Friday. It’s over the fold.

I was amused to read, the next day, the Oz praising emissions trading as The free market way to save the world, and noting “the rapid change that has taken place in community and business attitudes over a relatively short period of time as the science of climate change has become more widely known and better understood.” Of course, it would have been more widely known and better understood if it weren’t for the continuous attacks on the science that the Oz was making right up to the last possible moment.

Meanwhile, I notice lots of others making an inelegant retreat from Lavoisier-style scientific delusionism to the long-prepared Lomborg line that it will all cost too much. But, thanks to the Stern Review, the recent statement by Australian economist the forthcoming IPCC report and even the PM’s Task Group, that line has already been outflanked. We’re down to arguing about details and numbers now, an argument where rightwing bloviators have little to contribute. Howard has belatedly realised the fact, accepting both emissions trading and quantitative targets (but not until 2008!).
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What I’m reading

Vanity Fair by Thackeray. Becky Sharp is a wonderful creation, even better than I remembered her. Thackeray’s only problem is to keep her plans from succeeding so well as to establish her in the boringly safe wealthy position she aspires to. Rather than stress out over verisimilitude in this respect, he just keeps reminding us that if Becky’s plans (to snare a rich husband, or to placate her poor husband’s wealthy relatives) had come off, we wouldn’t have anything more to read.

If I were you, I wouldn’t start from here (or now)

I’ve had a quick look at the report of the PM’s Task Group on Emissions Trading. It gives a pretty good summary of the main issues, constrained by the political requirement that it should not even look at the obvious implication of an argument for participation in an international emissions trading scheme, namely that we should ratify Kyoto forthwith. The choice of 2012 (when Kyoto expires) as the target date neatly avoids the issue, as well as meeting the political imperative of not endorsing what Labor has proposed.

The main implication of the Report is that we should have got started on all this ten years ago (or at least, back in 2003 when Howard killed the idea), and that we’ll now have a more costly adjustment path than if we had acted sooner.

Something of a surprise is that the McKibbin-Wilcoxen hybrid idea didn’t get more than a couple of brief mentions. Some of the leaks I saw suggested that the Task Group might go this way, as did Howard’s rhetoric about an “Australian, practicaL” scheme. As I mentioned a while back, the big problem with this idea is its incompatibility international trading, and this is presumably why the Task Group didn’t go this way.

Heterodoxy is not my doxy

Following up on a couple of recent posts on Crooked Timber, I thought it might be useful for me to explain why I don’t think of myself as a ‘heterodox’ economist or even find the concept particularly useful. Although I’m clearly to the left of most people in the economics profession (including a fair number who would call themselves heterodox) I’m happy to identify myself with the mainstream research program in economics.
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Weekend reflections

Weekend Reflections is on again. Please comment on any topic of interest (civilised discussion and no coarse language, please). Feel free to put in contributions more lengthy than for the Monday Message Board or standard comments.