If you thought Greenspan was confused about energy (see Part I), his discussion of global warming in The Age of Turbulence is downright stupefying. He opens well:
There can be very little doubt that global warming is real and man-made. (p. 454)
But the next sentence is (I kid you not)
We may have to rename Glacier National Park when its glaciers disappear, in what now looks to be 2030, according to park scientists.
That’s what all the fuss is about — we’ll have to rename one of our national parks in 23 years. This is the Lomborg view. The movie version might be called A “Minor Inconvenience” — That’s Our Truth.
Greenspan then immediately launches into an extended discussion trashing cap-and-trade systems, ultimately claiming:
There is no effective way to meaningfully reduce emissions without negatively impacting a large part of an economy. Net, it is a tax. If the cap is low enough to make a meaningful inroad into CO2 emissions, permits will become expensive and large numbers of companies will experience cost increases that make them less competitive. Jobs will be lost and real incomes of workers constrained.
Unless of course jobs are created in the clean energy industry and people can balance the higher cost of energy with a more efficient use of it, as California has done. That Greenspan does not like a high price for CO2 is not surprising — how much is it really worth to avoid renaming Glacier National Park, anyway? What is stunning is that he makes this particular argument against carbon prices in the very same chapter he calls for a $3 a gallon gasoline tax!
The gas tax is both necessary and good: “we need significantly higher gasoline prices to wean us off gasoline-powered motor vehicles…. The expectation of higher gasoline prices through taxes … would galvanize large technological breakthroughs in the production of ethanol” especially cellulosic ethanol from biomass. “Alternatively, if ethanol fails and gasoline prices are high enough, plug-in hybrids will significantly displace petroleum consumption over time.” (p. 461) Dr. Greenspan — techno-optimist!
But just 6 pages earlier, his alter ego, techno-pessimist Mr. Alan, was calling a carbon price both unnecessary and evil:
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