The semester is almost over, so I needed some sort of challenging take-home message for my Climate Change course. The course is part of an upper-tier general education program, open to students of all disciplines. One aspect that I have found challenging to convey to my students has been the extent to which the global population (now 7 billion and growing) affects our physical environment. We as humans have become an important part of the physical environment and any understanding of the physical environment requires understanding of humans and any understanding of the human society requires understanding of the physical environment. Geologists informally call this the Anthropocene– an era of heightened human impact on the Earth. We developed the language of Science to understand and convey our physical environment; likewise, we use economics to describe essential parts of human interaction with regards to material prosperity. If we want to understand and guide our behavior in the Anthropocene, we need to be as bilingual as possible in these two languages. That does not necessarily require fluency- just that we know enough to be able to talk and listen across these disciplinary barriers.
As it happens, this week’s New York Times was helpful to a guy like me who comes from the science end of this spectrum. A magazine article by Adam Davidson, entitled, “Boom, Bust or What? Larry Summers and Glenn Hubbard Square Off on Our Economic Future” (NYT-May 5, 2013) has tried to capture the essence of two apparently opposite economic approaches by interviewing the two influential economists. I have included a few illustrative snippets below:
Summers segued to an explanation for how he chose a career in economics. The field, he said, provided tools that can be used to make the world, or a basketball team, better. The key is reading data and recognizing what it tells you.
[Hubbard] ticked off a series of empires: Rome, medieval China, Spain, 19th-century Britain — and argued that they fell because their leadership ossified and squashed free trade, technological progress or other forces of economic growth.
In the late ’70s and early ’80s, they were young academic stars, part of a revolution in economics taking place at Harvard. New computer technology and large data sets allowed them to explore with unprecedented precision how government policy affected the economic behavior of people and companies. Many of their peers went on to become influential public figures. Jeffrey Sachs, Paul Krugman, Ben Bernanke and Greg Mankiw were all at Harvard or nearby M.I.T. around the same time. But by the 1990s, it was Hubbard and Summers who, above others, translated the leading economic research into Washington policy.
Through their own work and that of their protégés, much of the economic policy now advocated by moderate Democrats can be traced to the ideas of Summers. (“I’m progressive, but not of the ideological left,” Summers told me.) And many Republican policies, especially dealing with taxation, can be credited, in some way, to Hubbard on the right. (“I’m a pragmatist,” he says of his conservatism. “I’m not doctrinaire.”) The space between their views roughly defines the American center.
Hubbard argues that the imperative of the moment — our 3-point shot — is rolling back federal benefits for wealthier and middle-class Americans. If it’s done right, he says, taxes will fall and “more entrepreneurs will start businesses. Corporate investment would rise, creating more jobs. Individuals will work harder and save more. The country would have faster growth. The benefits are quite broad.” If we stay the present course, though, Social Security, Medicare and Medicaid will keep growing unchecked, and the United States, paralyzed by debt, could burn like Rome. Summers, who once told me “I don’t do apocalypse,” acknowledged that some entitlement reform is inevitable, but that it is not the real adjustment that needs to be made. “That is playing defense,” he said. “It is essential but insufficient.” Instead, Summers wants the country to start playing offense: the crisis that demands our attention now, he says, is long-term unemployment. Millions of Americans have been out of work for more than half a year, many for much longer; not only are they suffering, but the overall economy is poorer without their contribution. Summers argues that the U.S. government can address this problem in several ways, especially by committing to more government spending, notably on infrastructure.
For two men who are so smart and analytical, neither could fully articulate how they came to understand their field in such fundamentally different ways. During our many conversations, each referred to opinions shaped early in life. Summers and Hubbard were born in the 1950s, but they had remarkably different upbringings. Summers’s parents were well-respected economists at the University of Pennsylvania. Two of his uncles won Nobel Prizes in the field, including Paul Samuelson, who advised President Kennedy and wrote “Economics,” an enormously influential textbook. His family and their friends were committed Democrats who celebrated the expansionary programs under Lyndon Johnson. Some of them even helped design those programs.
Hubbard, on the other hand, grew up in a remote agricultural town in Central Florida. His parents were public-school teachers. The programs that were beloved by Summers’s family struck many Southerners as another sign of government growing too large. Hubbard told me that a favorite book in high school was Friedrich Hayek’s “Road to Serfdom,” a 1944 treatise against big government that remains a sacred text among conservatives, including Paul Ryan.
These two men are of the same age, with the same educational background, and underlying tool sets based on data, yet they have come to completely opposite conclusions as to how society should run its economy. The only noticeable difference that Davidson was able to identify was the environment in which they grew up. They do seem to agree that society needs economic growth to function, though they argue about how to achieve the growth.
There are many commonly cited justifications for our supposed constant need for economic growth, including the demand to satisfy growing populations, and the perception that no-growth means decline (the decline of the big empires in Hubbard’s argument). I have written extensively on the perceived need for economic growth (see the February 11 blog), positing that no growth does not have to equal decline, but can instead mean an effort toward a productive, stable and flexible steady-state. The figure below describes three United Nation scenarios for population growth.
The most credible of these scenarios, and the one to withstand validation over many years, is the medium growth scenario that forecasts asymptotic stabilization over the second half of the century (in other words, the population levels off to a semi-constant number). To an ignorant physicist, Summers’ and Hubbard’s arguments, as presented by Davidson, look a lot like using hand-picked data to justify the heavily loaded philosophies they cultivated during their upbringing with heavily discounted future (February 4th blog). A correction in outlooks is badly needed.



Am I Talking Out of Both Sides of My Mouth?
Last week’s blog was dedicated to Jim Hansen’s retirement and the central role that he has played in the Climate Change debate. It immediately garnered several comments from readers, none of which had anything to do with the blog.
All three comments focused on my personal life, referring to a local issue in which my wife played a major role, while I played a relatively minor one. The impression I got from the comments was that the individuals were attempting to get to her through me. Since this is my blog, and I am also the moderator, I could have easily blocked these comments.
However, the comments raised a few issues that are relevant to the main focus of this blog, so I will try to address them here. Some of these issues are personal and some are more general.
Some history:
On June 2010, the City of New York decided to narrow a street (Prospect Park West, Brooklyn, NY) and construct a two-way protected bike lane, as shown below.
The city’s argument for the change was safety: the claim was that the multi-lane street caused speeding, which in turn led to traffic accidents. The street borders a large urban park (Prospect Park) that is already popular with bikers, especially during weekends.
The trend of replacing car lanes with bike lanes is not confined to New York City — it is global, and, almost everywhere, it triggers conflicts between car owners, bikers and pedestrians on how to share the common real estate. Two local organizations were formed to try to oppose the city’s change: “Neighbors for Better Bike Lanes” and “Seniors for Safety.” My wife is the president of the first organization and I am a member of the second. My wife and I happen to live in an apartment on the street in question, and our apartment was used to host a few of the meetings.
A common complaint raised in almost every such conflict – this one in Brooklyn being no exception – is that of a NIMBY (Not In My Back Yard) mentality. NIMBY, according to Wikipedia, is “a pejorative characterization of opposition by residents to a proposal for a new development because it is close to them, often with the connotation that such residents believe that the developments are needed in society, but should be further away.”
Reading through the recent comments on my blog, I found common theme was an accusation that I am talking out of both sides of my mouth – preaching for the need to take steps to minimize the impact of Climate Change, while at the same time, fighting to block them if such steps take place near where I live.
In 2010, I was teaching an honors course in my College that was related to Climate Change with an emphasis on students’ investigation of NIMBY phenomena in New York City. The product of the students’ investigation can be seen at http://macaulay.cuny.edu/eportfolios/tomkiewiczs11/.
As part of this course, I wanted to discuss the bike lane and try to figure out if such struggles can be classified as NIMBY. I wanted to invite my wife and the head of the local biking organization that was supporting the change to talk to the class. I couldn’t do it because the issue was litigated but I tried to address the issue through data analysis that included publicly available data that were collected by the pro-bikers group. The main question that I wanted to address with the class was whether or not this was an environmental issue in the first place. The city never claimed that it was an environmental issue; they claimed that this was a safety issue. Safety issues need to be backed by data. According to the groups that oppose the move, the data were not there. An environmental assessment of the move was never performed. If use was supposed, as the comments claim, to lower carbon footprints – there were strong arguments that it might achieve the opposite.
In terms of carbon footprints, NYC is one of the most sustainable cities in the United States. A recent inventory of NYC greenhouse gases is shown below:
About 75% of NYC’s total emissions come from buildings, with another 22% coming from transportation. Among NYC’s commuters, 55% use public transportation. In fact, 54% of households are without cars and 10% of residents walk to work. The relative contribution from bikes is rather small in this area. Also, most of the bikers that use this bike lane are recreational bikers – not commuters.
Surprisingly, slowing traffic speed to below the average of 30 mph (the speed limit in residential streets in NYC), actually increases gas consumption by about 30%.
Analysis of the environmental impact of such a change doesn’t stand up to scrutiny, thus making it difficult to characterize this issue as a NIMBY issue. As a safety issue, on the other hand, is a completely local issue that needs to be supported by data. The main argument in this debate is that the data do not support the claim. NIMBYism is a major obstacle for policy implementation of steps that are designed to mitigate impacts. I did discuss many aspects of this in previous blogs (June 18, July and August 27 – 2012), but this doesn’t mean that conflicts between local communities and government should be avoided. The constant scrutiny is beneficial and actions that impact communities need to be supported by data and the data should withstand scrutiny.
Now that I have addressed this issue, I hope that my little fight over a road near my apartment will disappear as a topic from this blog. It doesn’t belong here.