RAGCED works on a broad range of economic development issues and projects, including helping our fellow Action Groups consider the economic aspects of their work. Climate change, I believe, is a perfect example where RAGCED can offer valuable insights.
Key Insights on Climate Change Response
The first insight is to keep both costs and benefits in mind. While this may sound obvious, in our eagerness to act, we sometimes overlook this critical aspect. Consider four key problems in our broad response to climate change:
The Paris Accord is not very cost-effective: It has been estimated that for every dollar spent on Paris Accord policies, the return is only 11 cents—making it largely ineffective.
Current climate initiatives disproportionately affect the poor: Many climate technologies raise energy costs, and the poor spend more of their budgets on energy, worsening their situation.
Climate policies reduce funding for other crucial areas: Spending on climate change limits available funds for education, healthcare, and job creation—a concept economists call "opportunity cost."
Effective global carbon taxes are unlikely: While they could be one of the best ways to fight climate change, achieving a worldwide agreement on carbon taxes is highly improbable.
Practical Strategies for Addressing Climate Change
Despite these challenges, we should not give up. Climate change is real, and we need to act. Bjorn Lomborg, head of the Copenhagen Consensus think tank, suggests three practical and workable policies:
Improved Technology: We need new technology to reduce greenhouse gases without shutting down the economy. Investment in green technology could generate $11 for every dollar spent.
Adaptation: Humans have always adapted to change, and we must continue doing so, especially for those in less developed countries where adaptation is more challenging.
Economic Development: Increasing a person’s income allows them to afford low-carbon energy and better cope with climate change. Nobel-winning economist Thomas Schelling’s theory proposes that helping people become wealthier might be the best way to reduce climate vulnerability.
Implications for Rotary and RAGCED
These insights lead to three strategies for Rotary and RAGCED to consider:
Rotary Environmental Scholar Program: Similar to the Peace Scholar Program, this could attract funding for environmental scholars, potentially having a great impact on global climate issues.
Encouraging Grants for Adaptation: Helping the poor adapt to climate change could be an effective use of district and global grants.
Economic Development Projects: Projects improving the economic well-being of the poor could further confirm Schelling’s theory, reducing their climate vulnerability.
Climate change is a vital issue, and by carefully considering the costs and benefits, Rotary and RAGCED can have a positive impact. Let’s focus on improving technology and helping the poor adapt to climate change to maximize our effectiveness.