Fossil-fuel price spikes are causing pain but little climate payoff

What is the point of climate change policy? To make the world a better place for all of us, and for future generations.

In my new book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet, I analyze a lot of ways to make smart climate policy—and many that unfortunately waste resources. But we also need to ask ourselves the broader question: If the goal is to make the world a better place, is climate change policy the most important thing to focus on?

For decades, climate activists have exhorted people in the wealthy West to change their personal behavior to cut carbon emissions. We have been told to drive less, to stop flying and, in general, to reduce consumption—all in the name of saving the planet from ever higher temperatures.

The Covid-19 pandemic has now achieved these goals, at least temporarily. With the enormous reduction in global economic activity, it has been as if people around the world suddenly decided to heed the activists and curtail their travel and consumption.

Two months after the Paris climate-treaty negotiations concluded with fanfare, the world is figuring out it was sold a lemon.

In December, global leaders patted each other on the back and declared a job well done. The treaty will come into force later this year after it has been signed by representatives of at least 55 nations representing 55 percent of global greenhouse-gas emissions.

This will provide “a turning point for the world,” according to President Obama. “Our children and grandchildren will see that we did our duty,” says UK Prime Minister David Cameron.