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<channel>
	<title>Stand-Up Economist</title>
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	<link>http://www.standupeconomist.com</link>
	<description>What is (and isn&#039;t) funny about economics</description>
	<lastBuildDate>Mon, 01 Mar 2010 15:05:48 +0000</lastBuildDate>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-29/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-29/#comments</comments>
		<pubDate>Mon, 01 Mar 2010 15:05:48 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1174</guid>
		<description><![CDATA[Nature Conservancy&#8217;s carbon footprint calculator. 
How the G.O.P. Goes Green (Lindsey Graham)  
Senators to propose abandoning cap-and-trade
Hayhoe&#8217;s dairy paper in PNAS
South Dakota legislators tell schools to teach ‘astrological’ explanation for global warming
Robert J. Myers, Actuary Who Shaped Social Security Program, Dies at 97 
Vermont Senate Votes to Close Nuclear Plant. &#8220;Plant officials had testified [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li>Nature Conservancy&#8217;s <a href="http://www.nature.org/initiatives/climatechange/calculator/">carbon footprint calculator</a>. </li>
<li><a href="http://www.nytimes.com/2010/02/28/opinion/28friedman.html">How the G.O.P. Goes Green</a> (Lindsey Graham)  </li>
<li><a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/26/AR2010022606084.html?hpid=topnews">Senators to propose abandoning cap-and-trade</a></li>
<li><a href="http://www.pnas.org/content/101/34/12422/suppl/DC1#F16">Hayhoe&#8217;s dairy paper in PNAS</a></li>
<li><a href="http://climateprogress.org/2010/02/25/south-dakota-legislators-tell-schools-to-teach-%E2%80%98astrological%E2%80%99-explanation-for-global-warming/#more-20006">South Dakota legislators tell schools to teach ‘astrological’ explanation for global warming</a></li>
<li><a href="http://www.nytimes.com/2010/02/26/business/26myers.html?ref=obituaries">Robert J. Myers, Actuary Who Shaped Social Security Program, Dies at 97</a> </li>
<li><a href="http://www.nytimes.com/2010/02/25/us/25nuke.html?hp">Vermont Senate Votes to Close Nuclear Plant</a>. &#8220;Plant officials had testified under oath to two state panels that there were no buried pipes at Vermont Yankee that could leak tritium, although there were. No tritium has turned up in drinking water, but even plant supporters expressed dismay at the leak and the misstatements. “If the board of directors and management of Entergy were thoroughly infiltrated by antinuclear activists, I do not think they could have done a better job of destroying their own case,” said one senator, Randolph D. Brock III, a St. Albans Republican.&#8221;</li>
<li><a href="http://www.nypost.com/f/print/entertainment/the_new_sweetheart_deals_yIobNvxY0O71LxMN7oGPcP">The new sweetheart deals</a>: &#8220;And then there are couples who treat their relationships more like month-to-month calling plans. Photographer Christian Johnston, 48, created what he calls “The Contract” with his then-girlfriend. The two agreed to formally check in every 30 days and accept or decline another month together.&#8221;</li>
<li><a href="http://www.nytimes.com/2010/02/24/dining/24robots.html?th=&#038;emc=th&#038;pagewanted=all">Just Like Mombot Used to Make</a>: robot chefs! &#8220;Then, a month later in Nagoya, Japan, the Famen restaurant opened, with two giant yellow robot arms preparing up to 800 bowls of ramen a day. When it’s slow, the robots act out a scripted comedy routine and spar with knives. “The concept of this restaurant is that Robot No. 1 is the manager, which boils the noodles, and Robot No. 2 is the deputy manager, which prepares for soup and puts toppings,” said Famen’s owner, Kenji Nagaya. “Human staffs are working for the two robots.”&#8221;</li>
<li><a href="http://blog.ted.com/2010/02/innovating_to_z.php">Innovating to zero! Bill Gates on TED.com.</a> At TED2010, Bill Gates unveils his vision for the world&#8217;s energy future, describing the need for &#8220;miracles&#8221; to avoid planetary catastrophe and explaining why he&#8217;s backing a dramatically different type of nuclear reactor. The necessary goal? Zero carbon emissions globally by 2050.</li>
<li><a href="http://www.nytimes.com/2010/02/21/nyregion/21yitta.html?hp">God Said Multiply, and Did She Ever</a>: &#8220;WHEN Yitta Schwartz died last month at 93, she left behind 15 children, more than 200 grandchildren and so many great- and great-great-grandchildren that, by her family’s count, she could claim perhaps 2,000 living descendants.&#8221;</li>
<li><a href="http://www.nytimes.com/2010/02/21/business/economy/21unemployed.html?hp=&#038;pagewanted=all">Millions of Unemployed Face Years Without Jobs</a> </li>
<li><a href="http://www.nytimes.com/2010/02/21/business/economy/21view.html?8dpc">A Small Price for a Large Benefit</a>: Robert Frank calls for a carbon tax <em>of $300 per ton of CO2</em>. </li>
<li><a href="http://www.nytimes.com/2010/02/22/opinion/22krugman.html?th&#038;emc=th">The Bankruptcy Boys</a>: What do Republicans want? <a href="http://gregmankiw.blogspot.com/2010/02/thoughts-about-fiscal-commission.html">Greg Mankiw&#8217;s answer.</a> </li>
</ul>
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		<title>Round Two (part 2) with libertarians on global warming</title>
		<link>http://www.standupeconomist.com/blog/climate/round-two-part-2-with-libertarians-on-global-warming/</link>
		<comments>http://www.standupeconomist.com/blog/climate/round-two-part-2-with-libertarians-on-global-warming/#comments</comments>
		<pubDate>Sun, 21 Feb 2010 16:01:11 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Climate]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1096</guid>
		<description><![CDATA[Here&#8217;s Rossputin&#8217;s response to my recent post on climate change. This statement stands out for me:
There is probably an atmospheric data set we could agree on&#8230;
Great, Ross, what is it? The hallmark of science is testable predictions, so give me a data set and make a prediction about it. How about the satellite data from [...]]]></description>
			<content:encoded><![CDATA[<p>Here&#8217;s <a href="http://rossputin.com/blog/index.php/continuing-the-climate-change-debate-with-yoram-bauman">Rossputin&#8217;s response</a> to my <a href="http://www.standupeconomist.com/blog/climate/round-two-with-libertarians-on-global-warming/">recent post on climate change</a>. This statement stands out for me:</p>
<blockquote><p>There is probably an atmospheric data set we could agree on&#8230;</p></blockquote>
<p><em>Great, Ross, what is it?</em> The hallmark of science is testable predictions, so give me a data set and make a prediction about it. How about the satellite data from <a href="http://www.drroyspencer.com/latest-global-temperatures/">Roy Spencer and John Christy</a>? Roy Spencer ever provides <a href="http://www.drroyspencer.com/research-articles/global-warming-as-a-natural-response/">a handy prediction</a> (made in late 2008):</p>
<blockquote><p> If the PDO [Pacific Decadal Oscillation] has recently entered into a <a href="http://jisao.washington.edu/pdo/">new, negative phase</a>, then we can expect that global average temperatures, which haven’t risen for at least seven years now, could actually start to fall in the coming years. The <a href="http://www.ijis.iarc.uaf.edu/seaice/extent/AMSRE_Sea_Ice_Extent.png">recovery of Arctic sea ice now underway</a> might be an early sign that this is indeed happening. The next few years of satellite data might provide some very interesting insights into whether the Pacific Decadal Oscillation is indeed a major force in climate change. </p></blockquote>
<p>Are you willing to make this same prediction? And if the PDO (which Spencer calls his &#8220;<a href="http://www.drroyspencer.com/global-warming-101/">favorite candidate</a>&#8221; for a non-anthropogenic natural cause for global warming) does stay in a negative phase and temperatures nonetheless rise as predicted by the IPCC, are you going to admit that you were wrong? Or are you going to continue to avoid making any testable predictions?  </p>
<p><em>Please tell me you like this data set (or can provide me with another one) and that you like Spencer&#8217;s prediction (or can provide me with another one).</em> Otherwise I&#8217;m going to lump you in with the &#8220;<a href="http://www.redstate.com/erick/2010/02/12/vigilance-im-banning-birfers-truthers-and-groups-affiliated-therewith/">birthers and truthers</a>&#8220;.  </p>
<p>PS. The issue above is what I want to focus on, but let&#8217;s take a quick look at one of the nine  pieces of evidence that you use to back up your claim that &#8220;the collapse of the global warming paradigm is&#8230; happening daily&#8221;: <strong><span style="color: #800000;"><a href="http://canadafreepress.com/index.php/article/19705" target="_blank">India withdraws from the IPCC</a></span></strong>, an article dated Friday Feb 5 2010. There&#8217;s only one problem with this piece of evidence: <em>It&#8217;s not true</em>. The headline indeed says &#8220;India quitting IPCC&#8221;, but the body of the article doesn&#8217;t really support that statement. And <a href="http://online.wsj.com/article/SB40001424052748703427704575051130546785628.html">this Feb 9 <em>Wall Street Journal</em></a> piece says that &#8220;Prime Minister Manmohan Singh expressed support for the United Nations&#8217; Intergovernmental Panel on Climate Change and its leader, Rajendra Pachauri, at a local energy conference in New Delhi Friday&#8221;. (Don&#8217;t believe the <em>WSJ</em>? <a href="http://news.bbc.co.uk/2/hi/south_asia/8501401.stm">Watch the video yourself.</a>) Now, let&#8217;s see if you&#8217;re honest enough to admit that you were wrong in claiming that India withdrew from the IPCC. Or maybe you&#8217;d like to bet $100 (or $1,000?) that on January 1 2011 India will still be listed as a member of the IPCC? (See <a href="http://www.ipcc.ch/pdf/ipcc-principles/ipcc-countries.pdf">here</a>, linked from <a href="http://www.ipcc.ch/organization/organization_structure.htm">here</a>. ) </p>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-28/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-28/#comments</comments>
		<pubDate>Fri, 19 Feb 2010 22:03:20 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1114</guid>
		<description><![CDATA[U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion
Gregoire proposes new taxes on soda, water, candy
The Ethical Dog: Looking for the roots of human morality in the animal kingdom? Focus on canines, who know how to play fair
California Death Spiral: Adverse selection in the individual health insurance market in [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li><a href="http://www.theonion.com/content/news/u_s_economy_grinds_to_halt_as">U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion</a></li>
<li><a href="http://seattletimes.nwsource.com/html/localnews/2011109601_webtaxes17m.html">Gregoire proposes new taxes on soda, water, candy</a></li>
<li><a href="http://www.scientificamerican.com/article.cfm?id=the-ethical-dog">The Ethical Dog</a>: Looking for the roots of human morality in the animal kingdom? Focus on canines, who know how to play fair</li>
<li><a href="http://www.nytimes.com/2010/02/19/opinion/19krugman.html?ref=opinion">California Death Spiral</a>: Adverse selection in the individual health insurance market in CA.</li>
<li><a href="http://www.taxadmin.org/Fta/link/FORMS.html">State tax forms</a> from the Federation of Tax Administrators.</li>
<li><a href="http://www.nytimes.com/2010/02/16/opinion/16brooks.html?th&#038;emc=th">The Lean Years</a> by David Brooks. &#8220;College grads who entered the job market during the recession of 1981 earned 25 percent less than grads who entered when times were good. That earnings gap persisted for decades. Seventeen years after graduation, the recession kids were still earning 10 percent less than the boom kids. Over a lifetime, recession kids can expect to earn $100,000 less than their luckier cohorts.&#8221;</li>
<li><a href="http://www.nytimes.com/2010/02/16/us/politics/16teaparty.html?th=&#038;emc=th&#038;pagewanted=all">Tea Party Movement Lights Fuse for Rebellion on Right</a></li>
<li><a href="http://levine.sscnet.ucla.edu/">Economic and Game Theory page of David K. Levine</a>. Includes the lecture &#8220;<a href="http://levine.sscnet.ucla.edu/papers/behavioral-doomed.pdf">Is Behavioral Economics Doomed?</a>&#8220;</li>
</ul>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-27/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-27/#comments</comments>
		<pubDate>Mon, 15 Feb 2010 18:58:50 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1089</guid>
		<description><![CDATA[Meghan McCain passes the GOP &#8220;purity test&#8221; but is seriously confused about economics and market-based environmental policy:
[I support] market-based energy reforms by opposing cap-and-trade legislation.
Yes and no. I believe in climate change and support market-based energy reforms. I also support cap-and-trade legislation, in theory. But I oppose, as my father says, Obama’s “cap and tax” [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li>Meghan McCain <a href="http://www.thedailybeast.com/blogs-and-stories/2010-01-24/yes-im-a-pure-republican/">passes the GOP &#8220;purity test&#8221;</a> but is seriously confused about economics and market-based environmental policy:<br />
<blockquote><p><strong>[I support] market-based energy reforms by opposing cap-and-trade legislation.</strong></p>
<p>Yes and no. I believe in climate change and support market-based energy reforms. I also support cap-and-trade legislation, in theory. But I oppose, as my father says, Obama’s “cap and tax” plan. The Obama administration has used this to tax people instead of encouraging the exploration of new technology. As it is, this philosophy has turned into something that could adversely affect our economy.</p>
<p>So put me down for half a “no.”</p></blockquote>
<p>As I wrote <a href="http://www.standupeconomist.com/blog/climate/round-two-with-libertarians-on-global-warming/">elsewhere</a>, this demonstrates a complete failure to understand that the way market-based instruments reduce pollution is by <a href="http://www.standupeconomist.com/blog/books/cartoon-introduction-to-economics/#excerpts">making pollution expensive</a>. I half-expect lefties to live in a la-la-land where we get to taste the honey without the sting of the bee (check out <a href="http://vimeo.com/8847746">this video</a> that manages to talk about cap-and-trade for 6 minutes without mentioning that the price of fossil fuels will go up) , but the right wing is supposed to understand how markets work and right now it’s lost.
</li>
<li><a href="http://sports.espn.go.com/ncb/news/story?id=3148849">NCAA 2010 March Madness</a> schedule. Go Zags!</li>
<li><a href="http://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf">Rethinking macro policy</a>, by Olivier Blanchard and colleagues at the IMF. One interesting paragraph reminded me of the Bauman-Lucas Hypothesis (that advances in macroeconomics produce complexities that offset those advances, or&#8212;in lay terms&#8212;that macroeconomics is pointless :):<br />
<blockquote><p>It may even be that success in responding to standard demand and supply shocks, and in moderating fluctuations, was in part responsible for the larger effects of the financial shocks in this crisis. The Great Moderation led too many (including policymakers and regulators) to understate macroeconomic risk, ignore, in particular, tail risks, and take positions (and relax rules)—from leverage to foreign currency exposure, which turned out to be much riskier after the fact.</p></blockquote>
</li>
<li><a href="http://www.seattlepi.com/sound/415381_sound84252047.html">Lakeside mansion up for auction at $15 million</a></li>
<li><a href="http://uwnews.org/uweek/article.aspx?visitsource=uwkmail&#038;id=55581">Scientists urge new approaches to agriculture in the face of climate change</a>. UW&#8217;s David Battisti. </li>
</ul>
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		<title>Round Two with libertarians on global warming</title>
		<link>http://www.standupeconomist.com/blog/climate/round-two-with-libertarians-on-global-warming/</link>
		<comments>http://www.standupeconomist.com/blog/climate/round-two-with-libertarians-on-global-warming/#comments</comments>
		<pubDate>Fri, 12 Feb 2010 15:11:08 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Climate]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1053</guid>
		<description><![CDATA[About two years ago I had a back-and-forth on climate change with libertarian blogger Rossputin, the Cato Institute&#8217;s Jerry Taylor, and the Heartland Institute&#8217;s James Taylor. Rossputin recently emailed me to ask: &#8220;After ClimateGate, GlacierGate, etc&#8230;. do you give even a little credence yet to my view that [anthropogenic climate change is] essentially a hoax?&#8221; [...]]]></description>
			<content:encoded><![CDATA[<p>About two years ago I had a <a href="http://rossputin.com/blog/index.php/bauman_libertarians_and_global_warming">back-and-forth</a> on climate change with libertarian blogger <a href="http://rossputin.com/blog/index.php">Rossputin</a>, the Cato Institute&#8217;s <a href="http://www.cato.org/people/jerry-taylor">Jerry Taylor</a>, and the Heartland Institute&#8217;s <a href="http://www.heartland.org/about/profileresults.html?profile=D48A01A1EBE050FE3B85E4D47FFD65E7&#038;directory=26A394AD86DF0BB9C8E9925B64B54655">James Taylor</a>. Rossputin recently emailed me to ask: &#8220;After ClimateGate, GlacierGate, etc&#8230;. do you give even a little credence yet to my view that [anthropogenic climate change is] essentially a hoax?&#8221; So here&#8217;s an update.</p>
<p>In my <a href="http://rossputin.com/blog/index.php/bauman_libertarians_and_global_warming">original post </a> I accused libertarians of promoting the &#8220;Three No&#8217;s&#8221;:</p>
<ol>
<li><em>No recognition that climate change is a theoretical possibility.</em> I am happy to say that we&#8217;ve made progress on this: Rossputin and the Taylor boys all acknowledge that it is at least possible that something like carbon emissions could be a problem. This is terrific.</li>
<li><em>No peace with the IPCC.</em> With the possible exception of Cato&#8217;s Jerry Taylor, we have made no progress here. Two years ago libertarian folks were writing about the “impending collapse of the global warming paradigm”, and today the &#8220;impending collapse of the global warming paradigm&#8221; is &#8212;guess what?&#8212;<em>still</em> impending. Libertarians used to mock environmentalists for making claims of impending collapse (that we&#8217;re running out of food, oil, minerals, etc.) that didn&#8217;t pan out; Julian Simon was a master of this, and I admire him for it. But now you&#8217;re making the same mistake yourselves, and you deserve to be mocked for it, starting with Julian Simon, who wrote &#8220;My guess is that global warming is likely to be simply another transient concern, barely worthy of consideration ten years from now.&#8221; <a href="http://www.juliansimon.com/writings/Norton/NORTON05.txt"><em>He wrote that in 1994.</em></a> Give it up already! You already agree that climate change is a theoretical possibility (see point #1 above), so it&#8217;s not that hard to go from there to accepting the scientific evidence. Speaking of the scientific evidence&#8230;</li>
<li><em>No negotiation about climate change science, i.e., no serious scientific engagement.</em> Here I am sorry to say that we&#8217;ve made <em>negative</em> progress. My fear&#8212;see my questions below&#8212;is that ClimateGate and GlacierGate &#038;etc have eliminated the possibility of reaching agreement simply because we can no longer agree on a data set that will tell us, e.g., about global temperatures. I see ClimateGate mostly as an administrative issue&#8212;people who ask others to delete emails to avoid FOIA requests should not be in positions of authority&#8212;but I cannot stop others from interpreting it as evidence of &#8220;<a href="http://www.sltrib.com/News/ci_14337716">a conspiracy to limit population not only in this country but across the globe</a>.&#8221;  </li>
</ol>
<p>So here are my questions, and I&#8217;m going to limit myself to one for each of my libertarian friends (but of course you&#8217;re free to opine on whatever you want):</p>
<ul>
<li><em>For Jerry Taylor of the Cato Institute:  To what extent (if at all) have you changed your views since you wrote the following <a href="http://rossputin.com/blog/index.php/jerry_taylor_responds_libertarians_and_g">during our last go-round</a> two years ago?</em><br />
<blockquote><p>&#8220;I actually agree with almost all of [<a href="http://rossputin.com/blog/index.php/bauman_libertarians_and_global_warming">Yoram's original post</a>]&#8230; While I don&#8217;t pretend to speak for libertarians in general, I think an honest examination of the libertarian community would find that the beliefs Mr. Bauman is attacking are not as widely spread as he thinks. For instance, Prof. Pat Michaels &#8211; a senior fellow here at Cato who holds a PhD in climatology and who is widely published in the scientific literature on this matter &#8211; agrees that anthropogenic emissions are the main driver behind the warming trend of the past several decades. Moreover, he thinks the IPCC reports are fairly reasonable (albeit not perfect) summaries of the scientific literature (which maybe shouldn&#8217;t surprise &#8211; he is a member of the IPCC). He believes, however, that future warming will be at the lower end of the IPCC forecasts and that the economic costs will prove modest given the distribution of that warming.&#8221;</p></blockquote>
</li>
<li><em>For Rossputin: Is there a data set that we can agree on? </em>Presumably not the <a href="http://hadobs.metoffice.com/hadcrut3/diagnostics/comparison.html">Hadley Centre</a> one (although my understanding is that you skeptics were for it before you were against it), but how about <a href="http://data.giss.nasa.gov/gistemp/graphs/Fig.A2.lrg.gif">NASA</a> (from their <a href="http://data.giss.nasa.gov/gistemp/graphs/">graphs</a> page), or <a href="http://www.ncdc.noaa.gov/img/climate/research/2009/decadal-global-temps-1880s-2000s.gif">NOAA</a> (from their annual <em><a href="http://www.ncdc.noaa.gov/sotc/?report=global">State of the Climate</a></em> report), or&#8230; you tell me! The hallmark of science is refutable implications, but we can&#8217;t get there unless we can agree on a data set to refute predictions. I&#8217;m on board with the IPCC, which predicts global average temperature increases of 0.2 C (0.36 F) for the next few decades. My untrained eye says that <a href="http://www.ncdc.noaa.gov/img/climate/research/2009/decadal-global-temps-1880s-2000s.gif">they&#8217;re doing pretty good so far</a>, so well in fact that IMHO they&#8217;ve earned the benefit of the doubt; but if global temperatures rise by less (or more!) than they predicted then I&#8217;m going to reconsider. My question for you is whether you believe any of these graphs. If you do then let me know which one and what it tells you and what kind of changes will convince you that you&#8217;re wrong about global warming being a &#8220;hoax&#8221;. And if you don&#8217;t believe any of these graphs then then all I can do is encourage you to put a thermometer outside your house and start taking temperature readings :)    </li>
<li><em>For James Taylor of the Heartland Institute: What changes would you make to this <a href="http://www.standupeconomist.com/pdf/misc/climate9.ppt">draft PPT</a> of an &#8220;introduction to climate science&#8221; lecture that I&#8217;ll be presenting to my ENVIR 100 students at UW next fall? </em> I&#8217;ll take your suggestions seriously, and FYI here&#8217;s a smaller <a href="http://www.standupeconomist.com/pdf/misc/climate9.pdf">PDF version</a>. </li>
</ul>
<p>PS. Am I still invited for Thanksgiving dinner at the Taylor family compound? I might be on comedy/book tour this fall (promoting my fabulous <a href="http://www.standupeconomist.com/blog/books/cartoon-introduction-to-economics/">cartoon economics book</a>; see here for an <a href="http://www.standupeconomist.com/blog/books/cartoon-introduction-to-economics/#excerpts">excerpt on carbon pricing</a>)  and Thanksgiving would be fun (especially if your compound is in Hawaii, which is where my girlfriend wants to spend Tgiving this year :).</p>
<p>PPS. Let me repeat something I said 2 years ago:</p>
<blockquote><p>Listen up, my libertarian friends. You have a lot to contribute to the climate change discussion, in particular by emphasizing the superiority of markets and market mechanisms over the inefficient and often ineffective command-and-control policies that are beloved by lefties. But first you need to take a seat at the table instead of taking pot-shots at something that economists know is theoretically possible and that the scientific consensus says is “very likely”.
</p></blockquote>
<p>We still need you at the table. Check out this <a href="http://seattletimes.nwsource.com/html/opinion/2009396163_guests29flory.html">this op-ed calling for a revenue-neutral carbon tax</a> co-authored by Todd Myers of the free-market Washington Policy Center here in Seattle; I&#8217;d bet that you think it&#8217;s a good idea just on the grounds of national security! Imagine how much more likely this kind of revenue-neutral tax reform would be if you put your weight behind it. </p>
<p>Instead we have a GOP &#8220;purity test&#8221; (&#8221;We support market-based energy reforms by opposing cap-and-trade legislation&#8221;) that demonstrates a complete failure to understand that the way market-based instruments reduce pollution is by <a href="http://www.standupeconomist.com/blog/books/cartoon-introduction-to-economics/#excerpts">making pollution expensive</a>. I half-expect lefties to live in a la-la-land where we get to taste the honey without the sting of the bee (check out <a href="http://vimeo.com/8847746">this video</a> that manages to talk about cap-and-trade for 6 minutes without mentioning that the price of fossil fuels will go up) , but the right wing is supposed to understand how markets work and <a href="http://www.thedailybeast.com/blogs-and-stories/2010-01-24/yes-im-a-pure-republican/">right now it&#8217;s lost.</a> <em>  </p>
<p> <strong>Update Feb 18: Here&#8217;s <a href="http://rossputin.com/blog/index.php/continuing-the-climate-change-debate-with-yoram-bauman">Rossputin&#8217;s response</a>. Stay tuned for more!</strong></p>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-26/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-26/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 21:15:48 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1049</guid>
		<description><![CDATA[$2.6 billion gap in state budget prompts Dems to look at taxes. But not carbon taxes. They are looking at a pollution tax that opponents say would raise gas prices 4 cents per gallon. Also WA among states weighing sale of liquor business; it&#8217;s about time. (If the state wants to discourage alcohol consumption it [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li><a href="http://seattletimes.nwsource.com/html/localnews/2010761367_taxes11m.html">$2.6 billion gap in state budget prompts Dems to look at taxes</a>. But not carbon taxes. They are looking at a <a href="http://">pollution tax</a> that opponents say would raise gas prices <a href="http://www.stopwahiddengastaxes.com/">4 cents per gallon</a>. Also <a href="http://www.seattlepi.com/local/6420ap_us_privatizing_liquor.html">WA among states weighing sale of liquor business</a>; it&#8217;s about time. (If the state wants to discourage alcohol consumption it should do it with alcohol taxes, not by having the government run the liquor stores.) </li>
<li><a href="http://www.nytimes.com/2010/02/07/business/07digi.html?th&#038;emc=th">Buy Now, Pay Later (Maybe With Your Allowance)</a> </li>
<li><a href="http://climateprogress.org/2010/02/07/audi-green-police-worst-green-superbowl-commercial/#more-18658">&#8220;Green police&#8221; Super Bowl ad</a>. </li>
<li><a href="http://www.nytimes.com/2010/02/06/world/asia/06maid.html?hp">Bruised Maid Dies at 12, and Pakistan Seethes</a>. Wow.</li>
<li>Me on the <a href="http://www.pbs.org/newshour/bb/business/jan-june10/economy_02-04.html">PBS NewsHour</a> (with a cameo from my father!) </li>
<li>Kind words about the cartoon book from <a href="http://www.marginalrevolution.com/marginalrevolution/2010/02/yoram-bauman.html">Tyler Cowen</a>.</li>
</ul>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-25/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-25/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 16:01:48 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1041</guid>
		<description><![CDATA[For Scots, a Scourge Unleashed by a Bottle (alcoholism)
Microsoft’s Creative Destruction. &#8220;Microsoft’s huge profits — $6.7 billion for the past quarter — come almost entirely from Windows and Office programs first developed decades ago&#8230; While the company has had a truly amazing past and an enviably prosperous present, unless it regains its creative spark, it’s [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li><a href="http://www.nytimes.com/2010/02/04/world/europe/04scotland.html?th&#038;emc=th">For Scots, a Scourge Unleashed by a Bottle</a> (alcoholism)</li>
<li><a href="http://www.nytimes.com/2010/02/04/opinion/04brass.html?th=&#038;emc=th&#038;pagewanted=all">Microsoft’s Creative Destruction</a>. &#8220;Microsoft’s huge profits — $6.7 billion for the past quarter — come almost entirely from Windows and Office programs first developed decades ago&#8230; While the company has had a truly amazing past and an enviably prosperous present, unless it regains its creative spark, it’s an open question whether it has much of a future.&#8221;</li>
<li><a href="http://www.nybooks.com/articles/23592">The Chess Master and the Computer</a></li>
<li><a href="http://www.ncdc.noaa.gov/img/climate/research/2009/decadal-global-temps-1880s-2000s.gif">Hottest decade on record</a>. Nice graph. From NOAA&#8217;s annual <a href="http://www.ncdc.noaa.gov/sotc/?report=global">State of the Climate</a> report. </li>
<li><a href="http://www.nytimes.com/2010/02/02/sports/football/02fast.html?th&#038;emc=th">Coaches Still Vexed by Going for Two</a>. Game theory.</li>
<li>Two wacky ballot measure proposals: One is to change the Seal of the State of Washington &#8211; currently an image of George Washington &#8211; to &#8220;a <a href="http://seattletimes.nwsource.com/html/politicsnorthwest/2010962448_initiative_replace_state_seal.html">tapeworm</a> dressed in a three pieced suit attached to the taxpayer&#8217;s rectum.&#8221;  And <a href="http://www.denverpost.com/portal/ci_13900666?_loopback=1#ixzz0eaEGSYgq">Denver voters will be asked to create UFO commission</a>. </li>
<li><a href="http://www.nytimes.com/interactive/2010/02/02/us/politics/20100201-budget-porcupine-graphic.html">Budget Forecasts, Compared With Reality</a> </li>
<li><a href="http://www.nytimes.com/2010/02/02/science/earth/02copenhagen.html?hp">Countries Submit Emission Goals</a> post-Copenhagen.</li>
<li><a href="http://www.cleveland.com/living/index.ssf/2010/02/bill_watterson_creator_of_belo.html">Bill Watterson, creator of beloved &#8216;Calvin and Hobbes&#8217; comic strip looks back with no regrets</a>.
</li>
<li><a href="http://climateprogress.org/2010/02/01/misguided-cap-and-divide-bill-by-cantwell-and-collins-is-neither-politically-nor-environmentally-viable/#comment-260601">Climateprogress disses the Cantwell-Collins cap-and-dividend bill</a>. I have some input in the comments section. </li>
<li><a href="http://www.nytimes.com/2008/08/14/technology/personaltech/14pogue.html?_r=2&#038;sq=scanmyphotos.com&#038;st=cse&#038;scp=2&#038;pagewanted=all">Your Photos, Off the Shelf at Last</a> </li>
<li><a href="http://www.slate.com/id/2242942/pagenum/all/#p2">Suicide or Murder at Guantánamo?</a> Jack Shafer doesn&#8217;t buy the murder angle.</li>
<li></li>
</ul>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-24/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-24/#comments</comments>
		<pubDate>Fri, 29 Jan 2010 05:15:49 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1030</guid>
		<description><![CDATA[From Obama&#8217;s State-of-the-Union: 
But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means [...]]]></description>
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<li>From Obama&#8217;s <a href="http://www.nytimes.com/2010/01/28/us/politics/28obama.text.html?sq=obama%20text&#038;st=cse&#038;scp=1&#038;pagewanted=all">State-of-the-Union</a>: 
<p>But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means continued investment in advanced biofuels and clean coal technologies. (Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America. (Applause.)</p>
<p>I am grateful to the House for passing such a bill last year. (Applause.) And this year I&#8217;m eager to help advance the bipartisan effort in the Senate. (Applause.)</p>
<p>I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here&#8217;s the thing &#8212; even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future -– because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation. (Applause.)</p>
<p>&#8230;We have gone from a bystander to a leader in the fight against climate change.</li>
<li>From the <a href="http://www.nytimes.com/2010/01/28/us/politics/28mcdonnell.text.html?pagewanted=all">Republican response</a>: 
<p>All Americans agree, this nation must become more energy independent and secure.</p>
<p>We are blessed here in America with vast natural resources, and we must use them all.</p>
<p>Advances in technology can unleash more natural gas, nuclear, wind, coal, and alternative energy to lower your utility bills.</p>
<p>Here in Virginia, we have the opportunity to be the first state on the East Coast to explore for and produce oil and natural gas offshore.</p>
<p>But this Administration&#8217;s policies are delaying offshore production, hindering nuclear energy expansion, and seeking to impose job-killing cap and trade energy taxes.</p>
<p>Now is the time to adopt innovative energy policies that create jobs and lower energy prices.</li>
<li><a href="http://www.slate.com/id/2242791/">Kidney Mitzvah: Israel&#8217;s remarkable new steps to solve its organ shortage.</a></li>
<li><a href="http://www.slate.com/id/2242919/">Efficient Markets Theory Disproved at Davos!</a> If a 10-pound note is lying on the ground in Davos, will a billionaire pick it up?</li>
</ul>
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		<title>C&#8217;mon, Bill G, you&#8217;re smarter than this!</title>
		<link>http://www.standupeconomist.com/blog/climate/cmon-bill-g-youre-smarter-than-this/</link>
		<comments>http://www.standupeconomist.com/blog/climate/cmon-bill-g-youre-smarter-than-this/#comments</comments>
		<pubDate>Mon, 25 Jan 2010 16:58:33 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Climate]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1019</guid>
		<description><![CDATA[From the last page of Bill Gates&#8217;s annual letter: 

One area that I have been spending a lot of personal time on is energy and its effect on climate. The most important innovation required to avoid climate change will be a way of producing electricity that is cheaper than coal and that emits no greenhouse [...]]]></description>
			<content:encoded><![CDATA[<p>From the last page of <a href="http://www.gatesfoundation.org/annual-letter/2010/Pages/bill-gates-annual-letter.aspx">Bill Gates&#8217;s annual letter</a>: </p>
<blockquote><p>
One area that I have been spending a lot of personal time on is energy and its effect on climate. The most important innovation required to avoid climate change will be a way of producing electricity that is cheaper than coal and that emits no greenhouse gases. There will be a huge market for this, and governments should supply large amounts of funding for basic R&#038;D. Because the foundation invests in areas where there is not a big market, I have not yet seen a way that we can play a unique role here, but I am investing in several ideas outside the foundation. I am surprised that the climate debate hasn’t focused more on encouraging R&#038;D since it is critical to getting to zero emissions.
</p></blockquote>
<p>Dear Mr Gates: With all due respect, you need to spend a little more personal time on this. First of all, it is simply wrong to suggest that a &#8220;huge market&#8221; for &#8220;producing electricity that is cheaper than coal and that emits no greenhouse gases&#8221; will <em>magically</em> come into being. Without a price on carbon, the market will assign clean energy exactly the same value that it assigns dirty energy; in other words, without a dollop of government intervention (e.g., through a carbon tax or cap-and-trade system) there will be no &#8220;huge market&#8221; for technology specifically because it is green. </p>
<p>Second, it is wrong in terms of both theory and practice to say that &#8220;the climate debate hasn’t focused more on encouraging R&#038;D&#8221;. As a theoretical matter, a good place to start would be the literature review from my PhD dissertation (&#8221;<a href="http://smallparty.org/yoram/research/">The Effects of Environmental Policy on Technological Change in Pollution Control</a>&#8220;, 2003), e.g.: </p>
<blockquote><p>Kneese and Schultze: Over the long haul, perhaps the most important single criterion on which to judge environmental policies is the extent to which they spur new technology toward the efficient conservation of environmental quality.</p>
<p>Orr: It seems to me that the greatest advantage of effluent charges relative to alternative control mechanisms is in their provision of decentralized incentives for technological change.
</p></blockquote>
<p>As a practical matter, the reason carbon-pricing fanatics like me are fanatical about it is that we want to create incentives so that profit-maximizing entities in the private sector will pursue clean energy R&#038;D. You write about seeking &#8220;large amounts of [government] funding for basic R&#038;D&#8221;, but somehow you fail to connect the dots between private-sector investment and carbon pricing.</p>
<p>PS. Maybe you&#8217;d like to expand your private investments &#8220;outside the foundation&#8221; to include support for an effort here in Washington State to <a href="http://carbonwa.org/">replace the state property tax with a carbon tax</a>&#8230;</p>
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		<title>In the news</title>
		<link>http://www.standupeconomist.com/blog/in-the-news-23/</link>
		<comments>http://www.standupeconomist.com/blog/in-the-news-23/#comments</comments>
		<pubDate>Sat, 23 Jan 2010 01:37:14 +0000</pubDate>
		<dc:creator>Yoram</dc:creator>
				<category><![CDATA[Blog]]></category>

		<guid isPermaLink="false">http://www.standupeconomist.com/?p=1017</guid>
		<description><![CDATA[The Guantánamo “Suicides”: A Camp Delta sergeant blows the whistle. Wow, this article sure makes it look like there was a cover-up. And if there was it&#8217;s bad bad bad. More here from Slate.
Our Basic Human Pleasures: Food, Sex and Giving. A good read for the selfishness crowd. 
Hedging America by Robert Solow. The first [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li><a href="http://www.harpers.org/archive/2010/01/hbc-90006368">The Guantánamo “Suicides”: A Camp Delta sergeant blows the whistle</a>. Wow, this article sure makes it look like there was a cover-up. And if there was it&#8217;s bad bad bad. More here from <a href="http://www.slate.com/id/2241948/pagenum/all/">Slate</a>.</li>
<li><a href="http://www.nytimes.com/2010/01/17/opinion/17kristof.html?th&#038;emc=th">Our Basic Human Pleasures: Food, Sex and Giving</a>. A good read for the selfishness crowd. </li>
<li><a href="http://www.tnr.com/article/books-and-arts/hedging-america?page=0,0">Hedging America</a> by Robert Solow. The first two pages are a terrific introduction to economic concepts (just like in my cartoon book!). </li>
<li><a href="http://www.nytimes.com/2010/01/10/world/europe/10ulster.html?th&#038;emc=th">Government Is in Peril as Scandal Rocks Ulster</a>. Just in case you think it&#8217;s always older men and younger women.</li>
<li>Thomas Friedman bangs the drum on <a href="http://www.nytimes.com/2010/01/10/opinion/10friedman.html?th&#038;emc=th">carbon pricing</a>. </li>
<li><a href="http://online.wsj.com/article/SB10001424052748703514404574588673072577680.html">Naked Copenhagen</a>: Temperature is increasingly at the mercy of the developing world.</li>
<li><a href="http://www.nytimes.com/2010/01/08/science/earth/08smog.html?hp">E.P.A. Seeks Stricter Rules to Curb Smog</a></li>
</ul>
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