Response to Greg Sheridan

John Quiggin21 Comments

Greg Sheridan was upset about my piece in the Fin, attacking his claim that the effects of Australian action on climate change will “will have an impact on the global environment so tiny it will be unmeasurable.” I’ll respond to the details of his objections over the fold, but let’s first tackle the substantive question. Australia is currently responsible for a about 2 per cent of global emissions. Under business as usual projections, our emissions were expected to grow by 20 to 30 per cent between 2000 and 2020. If we achieve the target of 5 per cent below 2000 emission, that implies a reduction of 25 per cent relative to business as usual, 0.5 per cent of global emissions. That’s about 1 per cent of what is needed if the world is to cut total emissions by 50 per cent over the next couple of decades, as is necessary in a stabilisation scenario.

That’s a small step that is not going to solve the problem, but neither is it “so tiny as to be immeasurable”. In fact, it’s pretty typical of Australia’s weight in international affairs – small relative to the big players like the US and China, but large relative to our share of world population. As a comparison, Australia currently has about 1500 troops in Afghanistan, out of a total (ISAF and Afghan army) force of over 150 000. Would Sheridan want to argue that, since our troops are less than 1 per cent of the total, their effects are so immeasurably small that we might as well do nothing[1]. Well, no. It appears that Australia is immeasurably tiny only when we are doing things US Republicans don’t like.

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Bad news from the Northern hemisphere

John Quiggin12 Comments

Another really bad employment report from the US Bureau of Labor Statistics. Employment has been essentially static for the last couple of months, and most of the ground gained in 2010 has been lost. Unsurprisingly, public sector job cuts are leading the way downwards, as the stimulus fades into memory and austerity proceeds at the state and local level. In this context, it’s hard to know what outcome of the current negotiations over the debt limit would be worse: unconditional surrender to Republican demands for yet more spending cuts, or a failure to pass any legislation, with consequences that remain unclear[1].It’s hard to see US unemployment falling substantially any time soon. The decline in the participation rate (it’s fallen by about 3 percentage points of the population, equal to about 5 per cent of the labor force) means that the standard measure seriously understates the severity of the problem. If employment growth were to resume, lots of people would re-enter the labor market, so that unemployment would not decline fast.

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Reasons to be cheerful, Part 3: Energy efficiency

John Quiggin53 Comments

There are plenty of reasons to be gloomy about the prospects of stabilising the global climate, but there are also some promising developments, so I’ve started a series on this topic. Part 1 on peak gasoline herePart 2 on solar PV here

This post is about energy efficiency, which is often neglected, but is likely to be the biggest single source of emissions reductions over the next few decades. I’m going to define efficiency fairly narrowly, to refer to technologies that deliver essentially the same services using less energy than those they replace: so, for example, I’m including more efficient airconditioners, but not “smart” systems that cut off when demand is high.

The shorter version is

1. With existing technologies or straightforward extensions, it’s possible to double energy efficiency (reduce energy use per unit of energy services by 50 per cent) at relatively low cost and with marginal changes in performance.
2. With rising carbon prices over time, it’s likely that further improvements can be made in many areas

3. Concerns about possible rebound effects (aka the Jevons paradox) are misplaced

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Weekend reflection

John Quiggin18 Comments

It’s time again for weekend reflections, which makes space for longer than usual comments on any topic. In keeping with my attempts to open up the comments to new contributors , I’d like to redirect discussion, and restatements of previous arguments, as opposed to substantive new contributions, to the sandpit(s). In particular, please post nothing related to nuclear energy. As always, civilised discussion and no coarse language please.

A quick post for a long break

John Quiggin25 Comments

When my wife sent me the link, this ABC story was headlined Treasury head says Australians must work harder. It’s now been changed to “Australians must increase productivity: Treasury head”, which sounds a bit more reasonable, but I think is still a somewhat problematic.

I’ll try to discuss this in detail later, but for now I just want to push a point I’ve been making for a long time, which came up in comments recently. If governments want a simple reform that would improve our economic performance (though maybe not the standard measures of that performance), one of the best things they could do is legislate for six weeks annual leave as a standard employment condition. We have parental leave for parents of new babies, but there’s an equally big problem for parents of school age children trying to deal with the mismatch between school holidays (six weeks over summer, as well as term breaks) and the measly four weeks they are allowed, unchanged since the Whitlam government. And the rest of us could do with more of a break as well.

An extra week’s leave is like a 2 per cent wage increase. If annual leave were increased in a couple of stages to six weeks a year, it would only be necessary to find productivity increases or other offsets of 2 per cent, and, as Martin Parkinson implies, that shouldn’t be too hard.

Marxism without revolution: Capital

John Quiggin52 Comments

I’ve been writing series of posts examining the question – what is left of Marxism, as a way to understand the world, and as a way to change it, once it is accepted that capitalism is not going to be overthrown by a working class revolution. The first was about class and the second about crisis. Now for the final instalment: capital.

By the way, the first post got translated into Spanish, here. It’s one of the things that I still find stunning about the Internet that things like this can happen.
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Last day of the financial year

John Quiggin4 Comments

I’ve been travelling and going to meetings, hence slow posting. Light posting for a while to come, but I thought I’d throw in a last minute reminder that there’s still a few hours left in which to support the Queensland Cancer Council and claim a tax deduction in the process.