Buy insurance to protect against climate risk
Notes: Full quote —
Cutting greenhouse gas emissions is like buying an insurance policy: we incur a cost to reduce a risk. Every year Australians spend millions on insuring homes, cars and their health, not because they know that something will happen to them, but because of the risk that it might. Households make the decision that insurance premiums are worth paying. As a nation, what premium do we pay for insurance against catastrophic climate change?
The price of the premium is the cost of reducing greenhouse gas emissions. The Australian Department of Treasury estimates that if Australia reduces greenhouse gas emissions by 80% by 2050 it will shave 0.1% per year off economic growth. The economy will continue to grow, but growth will be a bit slower.
That seems like a small price to pay to avoid catastrophic climate change.
This concept should have some appeal to conservatives and people who are risk-adverse. Of course, they have to acknowledge there is a risk. Given that some people struggle to accept the reality of climate change because they are overwhelmed by the consequences, the opportunity to mitigate the risk could help them acknowledge the problem of climate change.
Source: The Conversation, Philip Adams, Janine Dixon and Peter Dixon