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Why It Matters

Pricing Our Climate

Why It Matters

Council on Foreign Relations

News

4.2876 Ratings

🗓️ 29 July 2020

⏱️ 34 minutes

🧾️ Download transcript

Summary

As the effects of climate change move from scientific predictions to daily headlines, some investors have begun sounding the alarm about impending dangers to financial markets. In this episode, experts break down the intersection of climate change and the economy, and examine whether the persuasive power of the dollar can be leveraged in the fight for climate action.   Featured Guests:  Kate Mackenzie (Green Columnist, Bloomberg)  Michael Greenstone (Professor of Economics, University of Chicago)   For more information on this episode, visit us at cfr.org/podcasts/pricing-our-climate

Transcript

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0:00.0

So I saw this cartoon the other day and it showed two dinosaurs and they were looking up at this giant

0:07.4

meteor and one yells to the other, oh no, the economy.

0:12.2

And you know, it just makes you think,

0:13.5

do you think there's something absurd

0:15.2

about looking at this existential problem

0:17.9

from a financial standpoint?

0:20.2

Yeah, I absolutely do, actually.

0:22.0

I have a lot of sympathy for that argument.

0:25.0

There's a school of thought which is that, you know, talking about things in terms of the economy

0:31.0

tends to make people listen who might not otherwise want to listen or be inclined

0:35.8

to listen.

0:37.5

And a lot of people feel that it's safer to talk about climate change in the context of finance and the economy.

0:44.3

Being in the US people are very nervous about straying into something that they think

0:49.1

is political or politicized and that in turn has created this kind of aversion to talking

0:55.4

about it in a really broad and robust way and unfortunately it's a simple rubric for kind of analyzing and thinking about climate change.

1:06.3

It does make it kind of easier for people to get their heads around.

1:11.0

Now to a dire warning about climate change.

1:14.0

According to a new report, experts say that we have until 2030 to avoid catastrophe.

1:19.0

It also says if unprecedented changes are not made and made soon there will be irreversible

1:25.1

damage to the planet.

1:26.5

One of the world's coldest regions is witnessing a record number of wildfires.

1:31.1

The heat wave has lit a match to the Arctic.

...

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