"Study Shows Global Warming Will Not Hurt U.S. Economy" -- That's the Heritage Foundation touting a new study by economists from MIT and the National Bureau of Economic Review.
This study, "Climate Shocks and Economic Growth: Evidence from the Last Half Century" [PDF] -- wildly mistitled and deeply flawed, as we will see -- is yet another value-subtracting contribution by the economics profession to climate policy.
What makes the paper especially noteworthy, however, is not merely the credentials of the authors, but that they thank such climate economist luminaries as William Nordhaus and Richard Tol for "helpful comments and suggestions." The only helpful comment and suggestion I can think of for this paper is, "Burn the damn thing and start over from scratch."
Heritage quotes the study:
Our main results show large, negative effects of higher temperatures on growth, but only in poor countries. In poorer countries, we estimate that a 1?C rise [sic -- the Heritage folks haven't mastered the ° symbol] in temperature in a given year reduced economic growth in that year by about 1.1 percentage points. In rich countries, changes in temperature had no discernable effect on growth. Changes in precipitation had no substantial effects on growth in either poor or rich countries. We find broadly consistent results across a wide range of alternative specifications.
Heritage then quotes a commentary on the study by right-wing blogger for U.S. News & World Report James Pethokoukis, "Sorry, Climate Change Wouldn't Hurt America's Economy." Pethokoukis also quotes from the study:
Despite these large, negative effects for poor countries, we find very little impact of long-run climate change on world GDP. This result follows from (a) the absence of estimated temperature effects in rich countries and (b) the fact that rich countries make up the bulk of world GDP. Moreover, if rich countries continue to grow at historical rates, their share of world GDP becomes more pronounced by 2099, so even a total collapse of output in poor countries has a relatively small impact on total world output.
(If these excerpts suggest to you that the study authors and the economist commenters are victims of some sort of collective mass hysteria, then you are a getting (a little) ahead of me ... but the fact that thoroughly-debunked denier Ross McKitrick is a commenter on this paper certainly suggests this entire effort is indefensible.)
Pethokoukis himself then offers a conclusion that, though amazing, is not utterly ridiculous given a narrow misreading of this absurdly narrow, easily-misread study: