Reader Mike Martin points to an initiative called the Copenhangen Consensus being promoted by The Economist and Bjorn Lomborg’s Environmental Assessment Institute in which nine economists, including four Nobel prizewinners, are supposed to set priorities for global challenges, notably including global warming and sanitation and water. As regular readers will know, one of Lomborg’s favorite arguments is that money spent on mitigating global warming would be better allocated to clean water, a point on which I’ve repeatedly challenged his consistency and sincerity. (Start here and work back).
So who’s on the panel. The list is (with Nobel prizewinners indicated by asterisks)
1. Jagdish Bhagwati
2. Robert Fogel*
3. Bruno Frey
4. James Heckman*
5. Justin Yifu Lin
6. Douglass North*
7. Thomas Schelling
8. Vernon L. Smith*
9. Nancy Stokey
What can we say about this list? The Nobel prizewinners are obviously eminent, but they’re not the names that spring to the front of my mind when I think about a question like setting global priorities for development and the environment. Heckman is a micro-econometrician, Smith is an experimenter, focusing on micro issues, and Fogel and North are economic historians (North’s ideas are relevant to the big-picture issues of growth and development, so he’s a partial exception, but only a partial one).
The problem becomes clearer when I consider the names of those Nobelists who would be obvious candidates, including Kenneth Arrow, Joseph Stiglitz, James Mirrlees, Robert Solow and Amartya Sen. All of these economists have made extensive contributions to the theory of economic growth and development, and all have been keenly interested in environmental issues. Unfortunately for Lomborg, though, all except Mirrlees[1] are strong supporters of action to mitigate global warming. Having looked at the absentees, I look back at the list of inclusions and note that the one thing they have in common is that they are all generally regarded as right-wing.
It might be argued that Arrow and the others, having already expressed a viewpoint, have been excluded for that reason. But Schelling and Bhagwati have been equally active in the debate, Schelling arguing that global warming is not a big problem and Bhagwati on the free-trade side of the trade and environment debate.
Of the remaining panellists, Frey is a public choice theorists whose views are consistent with those I’ve mentioned above. I’ve only seen one paper by Lin (on reform in China) but that also seemed consistent. I’ve only ever read technical papers by Stokey (very good ones, I should say) so I can’t comment on her views.
All things considered, I will be very surprised if this panel comes up with the conclusion that mitigating global warming should be a high priority for the world.
Update: As several commentators have noted, we have yet to see what conclusion the panel reaches. If, contrary to my expectation, the panel correctly concludes that a global emissions trading system for greenhouse gases would both contribute to the mitigation of global warming and, by transferring tens of billions of dollars to poor countries, facilitate meeting the other challenges, I’ll happily, if a bit shamefacedly, take back everything I’ve said in criticism of Lomborg.
fn1. Mirrlees was very critical of the Club of Rome as I recall, and this might lead to the supposition that he would support Lomborg’s viewpoint. But it was pretty hard for an economist not to be criticial of the Club of Rome. Perhaps readers can advise if Mirrlees has taken a public position on the issue of global warming.