https://www.c2g2.net/green-moral-hazards/

Green Moral Hazards
Guest post by Gernot Wagner and Daniel Zizzamia / 9 January 2020

Gernot Wagner is faculty at New York University and the co-author of
“Climate Shock.” Prior to NYU, he was the founding executive director of
Harvard’s Solar Geoengineering Research Program, where Daniel Zizzamia was
a postdoctoral fellow. Together they wrote “Green Moral Hazards”, on which
this blog is based.

[The views of guest post authors are their own. C2G does not necessarily
endorse the opinions stated in guest posts. We do, however, encourage a
constructive conversation involving multiple viewpoints and voices.]

mor·al haz·ard [ˈmôrəl ˈhazərd, noun]

Lack of incentive to guard against risk where one is protected from its
consequences.

The formal definition of “moral hazards” applies squarely to insurance.
Health insurance is a classic example, and one where moral hazards are
pervasive. Equating moral hazards with “moral failings,” they are often
used by some on the political right as arguments against
government-provided health care.

Environmentalists have their own form of moral hazards, typically applied
to new technologies fixing problems without the need for deeper structural
and behavioral reforms: band-aid solutions in the form of “technofixes.”

The principle is the same: Cushioning risky behavior – too much carbon
pollution, say – leads to more such behavior. In that light, both and
perhaps especially carbon dioxide removal (CDR) might be the ultimate
technofix.

While moral hazard may, in fact, be a misnomer for what’s perhaps better
described as “mitigation deterrence,” the catchiness of the phrase has made
this framing impossible to ignore. Moral hazard’s malleability and tendency
to encapsulate incredible complexities makes it unhelpful as a guide for
policy. Still, there is good reason to dig deeper and query its origins
within the environmental movement.

The technofix critique has a deeply-seated prehistory throughout the
environmental movement that set the stage for the present broadly skeptical
response to geoengineering. We wrote a lengthy historical analysis
attempting to shine some light onto green moral hazards and their key role
in the past 130 years of U.S. environmental history. We hope that doing so
provides some much-needed context for current climate policy discussions,
in particularly around geoengineering.

Environmentalism’s deep moral-hazard roots
Moral-hazard-style arguments are ubiquitous in environmental thinking.
Exact definitions differ, but they are often applied as a rejection of
anything that falls short of a “green revolution,” and not in the sense of
increasing crop production by means of fertilizers or even genetically
modified organisms (GMOs), themselves technofixes.

These examples also show the complexities involved. GMOs, to go to the
extreme, are surely technological solutions to fundamental problems of food
production – including the use of too much fertilizer and pesticides.
Despite some legitimate concerns, GMOs also surely increase crop yield,
feeding more people. Without debating the merits and demerits of GMOs – and
without discussing whether not using GMOs (or, for that matter,
geoengineering) may in themselves present a form of moral hazard – moral
hazard arguments surrounding GMOs often includes wrestling with the moral
core of environmentalism – pure nature – to make a political statement
about the world.

The American tendency toward technofixes to social problems and its embrace
of technocracy can be traced at least as far back as the Progressive Era.
At the highest levels of government, Progressive reformers favored
utilitarianism and technocracy. They embraced the utopian promises of
technocrats and scientific managers proposed centuries before by Sir
Francis Bacon.

One of the first places where experts applied their knowledge to a
pervasive environmental problem was in the cities. Progressive Era cities
were a terrible mess where it was difficult to disentangle human and
environmental problems. The white male sanitary engineer arose out of the
squalor of the cities to save urbanites from their waste.

Others saw through this technofaith of their day. Women, laborers, and
minorities, who were relegated to the fringes of society where many of the
benefits of industrial society were absent and the consequences more acute,
worked to establish grassroots organizations to cope with environmental
injustices.

Urban pollution, the techno-devastation of WWI, and the rise of the
Technocracy Movement in the 1920s laid the ground work for the clash
between technologists and environmentalists that was to come, but it was
the atomic bomb that acted as the flash point for mainstream America’s
techno-anxiety. Some techno-optimists considered the atomic bomb a tool to
master nature. To many, the bomb inspired fear, in particular fear of
scientists and engineers developing a technology that could destroy life on
Earth as we know it. It is within this context that modern environmentalism
was born – and with it the deeply seated fear of technofixes.

(Solar) geoengineering and moral hazard
Fast forward to today, and to (solar) geoengineering. There is no doubt
that geoengineering discussions enter highly contested moral territory. In
short, “there are problems in human and social life with no good
solutions,” as Zygmunt Bauman laments.

For one, SRM is no “solution.” While CDR directly addresses the root cause
of the problem – excess atmospheric carbon dioxide – SRM only does so
indirectly. Meanwhile, either form of geoengineering conjures legitimate
images of technofixes.

The core question then to many is whether any kind of technofix that
sustains fossil-fueled capitalism and the status quo can be considered
“green.” This is the central concern underlying most common critiques of
so-called technofixes. The weight of the past two hundred years of U.S.
environmental history complicates these critiques and grants them authority
in environmental discourse.

The politics of power are wrapped up in defining, delimiting, and
legislating the environment and the technologies that modify it. Therefore,
there’s no easy fix here. The real task then is in broadening and
demystifying the conversation. That implies rapid, deliberate education of
both various publics and those involved in the policy process – and yes, it
includes education about moral hazard itself. Anything else will surely
shortchange both climate policy discourse and decision-making.

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