An Expression of Hope and Frustration re Climate Change Progress

In our podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” I’ve had the pleasure of engaging in conversations over the past three years with a significant number of truly outstanding economists who have carried out important work in the realm of environmental, energy, and resource economics.  My most recent guest is no exception, because I am joined by Geoffrey Heal, the Donald Waite III Professor of Social Enterprise at Columbia Business School, where he previously served as Senior Vice Dean, essentially the chief academic officer of the School.

More to the point, Geoff Heal is the author of 18 book and some 200 articles, a Fellow of the Econometric Society and the Association of Environmental and Resource Economists, where he served as President.  And Geoff has also held – and continues to hold – important advisory and other positions with governmental, multi-governmental, and non-governmental organizations.  I hope you will listen to our complete conversation here.

Among his writings is the pathbreaking 1979 book “Economic Theory and Exhaustible Resources,” co-authored with Partha Dasgupta, which is widely viewed as a seminal work in the field of resource and environmental economics.  I asked Geoff how the book came about.

“Partha and I enjoyed collaborating, and I think it’s something that we just felt sort of intellectually compelled to write because we felt the time was right and we felt that we could make a contribution … particularly acting together,” Heal remarks. “But I don’t think we had any sense of the impact it would have, quite frankly.  And I find students still reading it today, which is quite remarkable.”

Heal also addresses the question of how much the field of resource and environmental economics has changed during his time in academia over the past 40 years.

“The field has been transformed, hasn’t it? I mean, in the last decade or so, it’s been transformed into a much more empirical field than it was before that. What they call the ‘credibility revolution’ in economics has taken hold in environmental and resource economics,” he said. “We’ve got a vast number of papers using interesting novel data sets to look at climate impacts or regulatory impacts, and I think they’ve increased our understanding of the impact of environmental issues and environmental policies… considerably.”

Serving as a Coordinating Lead Author in Working Group III of the Intergovernmental Panel on Climate Change’s (IPCC) Fifth Assessment Report, which was finalized in 2014, Heal had a front row seat in the analysis of climate change policy. That said, he admits he is a bit frustrated with the pace of collective efforts to reduce greenhouse gas emissions and combat the effects of global climate change.

“I think that we know a lot about how to solve the climate problem. I think the technologies that we need to solve it are largely, perhaps not totally, but largely available… So, I think we know how to move to an electric grid which is powered entirely without fossil fuels,” he states. “We have a lot of the pieces available. We’re not just deploying them fast enough to reach the targets that we think we need to reach …so I find that frustrating. We’re very close to being able to achieve the goal, but we’re not actually doing what we need to do.”

When I ask Geoff Heal why current climate policies don’t seem to be accomplishing their goals, he cites politics.

“It’s the enormous influence of the fossil fuel industry and the sense of mostly some conservatives that this is a plot to increase the powers of the state. And of course, the Ukraine war has really been a major problem too, because it’s caused Europeans to move away from natural gas and in some cases back to coal, which is a terrible piece of backsliding, and it’s understandable under the circumstances, but it’s very regrettable from the climate perspective,” he says. “The Ukraine war, I hope, is a temporary phenomenon, whereas the power of the fossil fuel industry and the sort of conservative misapprehensions about what climate change is all about, I think are more real and more enduring.”

For this and much, much more, I encourage you to listen to this 47th episode of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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Forty-Plus Years of Leadership on Climate and Sustainability

In our podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” I’ve had the pleasure of engaging with a number of real stars from the environmental policy world, asking them not only to comment on relevant policy issues, but also to reflect on their own experiences over the years.  To have done an adequate job of this with my most recent guest, I would have needed an entire day, not just the 30 minutes that we had for a podcast recording.  I say that because my guest was Mary Nichols, whom I first became aware of some 40 years ago in the early-1980s when I was working at the Environmental Defense Fund (EDF) in Berkeley, California, before I moved across the country to enroll in the PhD program in economics at Harvard.  What is astonishing to me is that at the time Mary Nichols already had a prominent and highly successful career in environmental protection and regulation, and she has accomplished so much more in the decades since then!  I hope you will listen to our complete conversation here.

Mary is the former Chair of the California Air Resources Board, having served on the Board under Governor Edmund G. Brown, Jr. (1975–1982 and 2010–18), Governor Arnold Schwarzenegger (2007–2010), and Governor Gavin Newsom (2019–2020).  She also served as California’s Secretary for Natural Resources (1999–2003), appointed by Governor Gray Davis.  If that’s not enough, let me note that when not working directly for the State of California, she founded the Los Angles office of the Natural Resources Defense Council (NRDC), and held the Senate-confirmed position of Assistant Administrator for U.S. EPA’s Office of Air and Radiation, in the administration of President Bill Clinton.  Suffice it to say that as an environmental lawyer and leader in government and NGOs over 45 years, she has played a key role in U.S. progress toward healthy air and a clean environment, including having led CARB in crafting and implementing California’s internationally recognized climate action plan.

A graduate of Yale Law School, Mary Nichols was first appointed to CARB by then-Governor Jerry Brown in 1975, and played a key role in the State’s intensive efforts to mitigate urban air pollution, and much later returned to leadership of the Board to help craft and then implement California’s climate action plan, including its well designed cap-and-trade system.

“I have had a lot of good fortune as a lawyer to be in places where there was important work going on and where it was an opportunity to actually make changes happen,” Nichols says. “For me, it was more a question of not wanting to join the corporate establishment, not wanting to do what at that time seemed like the default, which was to go join a big law firm, but to do something that was more aimed at making the world a better place, which is why I had gone to law school in the first place.”

In our conversation, Mary notes that her early work on environmental regulation was focused on clean air, but eventually progressed to climate change policy as well.

“My focus was, and pretty much always has been, on implementation, on taking the statutory enactments laws and using them to actually make something happen in the real world, as we like to say, and climate just seemed to be too esoteric as well as distant. Obviously, my views changed on that and so has those of most of the rest of the world. But it took a while,” she says. “The key was recognizing that when it came to dealing with the causes of climate change, what was actually causing the increasing buildup of greenhouse gases in the atmosphere, it was essentially the same root causes, the same fundamental issues about how we use energy, how we use electricity, how we move ourselves around.”

“The combustion of fossil fuels is at the heart of it all. It’s obviously more complicated and nuanced than that, but to me, the recognition that if you were doing your job correctly in terms of dealing with air pollution that hurts people’s health and that they can see you were also potentially going to be able to make a real dent in the climate problem as well,” she says.

Nichols argues that the early work on environmental regulation in California, including the path-breaking Global Warming Solutions Act, has had an important impact on national policy (and – I will add – on international climate policy) in the subsequent decades.

“Our goal, of course, was to try to push the US government to adopt meaningful climate legislation. And while we’re still only, I think in some ways, working around the edges of that in terms of having a single comprehensive climate law, the work that we’ve done absolutely has formed the basis for other states to act, as well as help to give some of the backdrop and provide the experience that enabled the federal government to pass President Biden’s very ambitious agenda,” she states.

When I ask Mary where she places herself on the spectrum of hope for climate policy today, she describes herself as an optimist.

“I see that there are signs all over the world of people demanding action to deal with the climate change, which is now no longer theoretical but real, and the massive disruptions in patterns of weather are evidence. It’s not something that requires statistics or a deep knowledge to see what’s happening,” she remarks. “I think politicians are being increasingly pushed to do something meaningful, and it’s not just a matter of mitigation versus adaptation, which used to be the big question. The big argument was, are we going to do things that will protect ourselves against climate change versus trying to stop it. We have to be doing both, and I think there’s a lot of interest in doing that, certainly among the larger financial institutions in all of the countries and companies that do business around the globe.”

For this and much, much more, I encourage you to listen to this 46th episode of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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Another Informed View of the Outcome of COP-27 in Sharm El Sheikh

According to my most recent podcast guest, Billy Pizer, the Vice President for Research and Policy Engagement at Resources for the Future, agreement by negotiators at the 27th Conference of the Parties (COP27) of the United Nations Framework Convention on Climate Change (UNFCCC) in Sharm El Sheikh, Egypt, earlier this month on a mechanism to provide funding for particularly vulnerable nations suffering from climate change was a significant outcome, while the negotiators’ inability to achieve substantive commitments by nations to increase their Nationally Determined Contributions (NDCs) was a disappointment.  Dr. Pizer offers those views and much more in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” a podcast produced by the Harvard Environmental Economics Program.  I hope you will listen to the interview and our conversation here.

[As you know if you follow this blog, I have my own views of the outcome of COP27, about which I wrote just a couple of days ago, but in these podcasts I strive to feature the work and views of my guests, so in the podcast you won’t hear much from me on the various issues that arose at COP27.  If you want to get my own take on that, you can find it here and here.]  Now back to Billy Pizer …

The eyes of the world were focused on Sharm El Sheikh as negotiators representing nearly 200 countries discussed myriad issues with the goal of advancing international efforts to limit global warming to well below 2° C and pursuing efforts to limit it to 1.5° C this century, as specified in the Paris Agreement.  COP27 did not have a particularly ambitious agenda, Pizer observes in our conversation, but it did move the ball forward.

“We’re now at a place after Paris where everything is a little bit lower stakes, in a sense, because we have the framework in place. And everything now is simply moving that framework along to the next step,” he says. “I think it’s inevitable that there’s a little bit less high-level drama and stakes going on at the COPs. That doesn’t mean they’re not unimportant, it just means that the nature of the COPs is different.”

Pizer says that one of the most significant outcomes during the two weeks of the COP took place 6,000 miles away, at the G20 summit in Bali, where President Biden and China President Xi agreed to resume bilateral cooperation on climate change as well as other issues. 

“Now the negotiations have stepped back up,” Pizer remarks. “And I think that is certainly a significant development because I think it’s just very hard to make progress [on international climate policy] without the US and China talking.”

Another major outcome from this year’s COP was the agreement to establish a “Loss and Damage” fund to help poor nations suffering from the impacts of climate change. Pizer admits that he was somewhat surprised that the U.S. supported that proposal. 

“The United States has been very concerned about whether or not there would be a notion of liability that went with such compensation. But remarkably, it was on the agenda, it got negotiated. And in the end, there was an agreement to a new fund,” he states. “The United States typically does not like to create new funds. But in the end, they were isolated, and I don’t think they wanted to be responsible for a bad outcome. And I think they also recognized the writing on the wall, that this was what the majority of countries wanted, and so they agreed to it.”

As an aside, I will note that as a result of work by the United States – and other delegations – at COP27, the Loss & Damage Fund is explicitly not about compensation or legal liability.

On another topic, Dr. Pizer observes that the negotiators made little progress on the issue of increased ambition among the parties to increase their commitments through their NDCs, an outcome which Pizer found disappointing.

“There is a broad recognition that we’re not on track to meet the targets, the goals of the convention or the goals of the Paris Agreement to limit warming to two degrees or 1.5 Degrees. And despite that, there weren’t dramatic increases in ambition announced. So that’s almost like the lack of an outcome that was notable,” he says.

The author along with Billy Pizer and others at RFF’s recent Net-Zero Economy Summit in Washington, D.C.

On a very positive note, Billy Pizer cites the power of recent youth movements of climate activism to help advance international climate efforts.

“I think the youth movement and the popular movement to address climate change has that sort of catalyzing role to help move things along,” he notes. “And I think it also creates a dynamic where, with the younger generation … even more committed to taking action, it helps decision makers, businesses, people that are betting literally their money on different events taking place, that this sort of action in the future is going to even accelerate more because the younger generation is even more concerned about it.”

Again, I encourage you to listen to this 42nd episode of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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