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Here's Why Coronavirus And Climate Change Are Different Sorts Of Policy Problems

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Climate protection and public health have striking similarities. The benefits of both can be enjoyed by everyone, even by individuals who do not contribute to the collective efforts to address these problems. If climate change slows down, both drivers of gas-guzzlers and electric cars will benefit – although the former did not help in climate efforts. Similarly, if the spread of Coronavirus is halted (the so-called flattening the curve), individuals who refused to wash their hands, as well as the ones who washed them assiduously, will enjoy the restored normal life.

Most countries have gotten their acts together, although belatedly, on Coronavirus. Citizens also seem to be following the advice of public health officials. Could then the Coronavirus policy model be applied to climate change? We urge caution because these crises are different, which means that policies that worked well for Coronavirus might not be effective for climate change.

Different Penalties for Policy and Behavioral Procrastination

Climate change is the defining crisis of our times. Floods, hurricanes, forest fires, and extreme weather events have become more frequent and severe over the years. Although climate change generates passionate discussions in big cities and university campuses, there is inadequate public clamor for immediate action. Some types of decarbonization policies are certainly in place. However, carbon-intensive lifestyles continue (with "flying shame" in Scandinavia being an exception).

This policy lethargy and behavioral inertia are due to many reasons, including concerted opposition by the fossil fuel industry to deep decarbonization. But there are other reasons as well. Climate change is cumulative and does not have a quick onset. Its effects are not always immediate and visible. Many individuals probably do not see a clear link  between their actions and the eventual outcome. This reduces the willingness to alter lifestyles and tolerate personal sacrifices for the collective good.

In contrast, Coronavirus is forcing an immediate policy response and behavioral changes. Its causality is clear and its onset quick. Lives are at stake, especially in western countries. The stock markets are tanking, and the economy is heading towards a recession. Politicians recognize that waffling can lead to massive consequences, even in the short-term. Corona-skeptic President Trump has reversed course and declared a national emergency.

In the US, there is federal inaction on climate change. But Coronavirus seems different. 2020 is a Presidential election year, and perhaps this motivates the federal government to (finally) act decisively so that Coronavirus does not become Hurricane Katrina type of political liability.

Spatial Optimism

Climate policies are hobbled by "spatial optimism," whereby individuals believe that their risk of getting affected by climate change is less than for others. This reduces the willingness to tolerate personal sacrifices for deep decarbonization.

Coronavirus episode began with some level of spatial optimism in the Western world. After all, it was happening in China. But this confidence has quickly disappeared. Globalization means a lot of international travel and trade. China is the main global supplier of many products. Prominent companies such as Apple (AAPL) and Tesla (TSLA) depend on China for manufacturing and sales of their products. Spatial optimism has been overwhelmed by international travel as well as globalized supply chains and financial markets.

Belief in the Efficacy of Adaptation

Some might believe that climate change can be "managed." Innovators will probably develop commercial-scale negative carbon technologies and societies will adapt to sea-level rise by building seawalls, or maybe relocating some communities to safer areas.

Coronavirus offers no such comfort. Unlike the seasonal flu, there is no vaccine (yet). It is difficult to adapt to the Coronavirus threat when you don't know what to touch, where to go, and if your family members and neighbors are infected. Not to mention, how many rolls of tissue paper you need to stock before the supplies run out at the local grocery store.

Different Incentives to Attack Scientific Knowledge

On Coronavirus, citizens seem to be willing to follow the advice of public health professionals (at least when it comes to social distancing as reflected in empty roads and shopping centers). Every word of Dr. Anthony Fauci counts.

Why has this advice not drawn scorn from politicians who are suspicious of the "deep state"? After all, the same politicians attack scientific consensus on climate change.

Climate skeptics probably see substantial political and economic payoffs by delaying climate action. Stock markets have not penalized climate skepticism in the US: markets hit record high levels in the first three years of the Trump presidency. And, climate opposition is not leading to electoral losses. On the contrary, the climate agendas in liberal states, such as Oregon and Washington, have stalled.  

Nobody seems to gain by attacking scientific consensus to delay policy action on Coronavirus. Airlines, hospitality, and tourism industries, who have taken a direct hit from social-distancing policies, probably want the problem to be quickly addressed so that people can get back to their "normal" lives.

US politicians who talk about the "deep state," may want Coronavirus issue resolved before the November 2020 election. Attacking science does not further their political objectives. After all, the looming recession and the stock market decline could influence the election outcomes.

Depth, Scale, and Duration of Changes

Climate policy will cause economic and social dislocation. Decarbonization means that some industries will shut down. Jobs will be lost, and communities will suffer unless "just transition" policies are in place.

Coronavirus policies will probably not cause long-term structural changes in the economy. People will resume flying, tourists will flock to Venice, Rome, and Paris, and the basketball arenas will again overflow with spectators.

However, some short-term measures could lead to long-term changes. For example, individuals may realize that telecommuting is easy and efficient. As a result, they may permanently reduce their work-related travel. Coronavirus may provide the sort of a "nudge" that shifts long-term behavioral preferences.

In sum, the contrast between the rapid response to Coronavirus and policy waffling on climate change reveals how citizens think of risk and how this shapes their willingness to incur costs for the collective good. Further, it suggests that politicians respect science when its recommendations serve their political ends.

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