The Economics of the Yasuní Initiative : Climate Change as if Thermodynamics Mattered

Climate change and the intertwined extinction crisis lend themselves to political economy. Joseph Henry Vogel has constructed an argument for bringing the carbon-rich but economically poor countries through the bottleneck of a cowboy economy and into the 'cap and trade' Annex I countries of the Kyoto Protocol. Ecuador serves as the example. The Economics of the Yasun Initiative is a counterpoint to The Economics of Climate Change by Sir Nicholas Stern on many levels. At the most basic level, Vogel argues that Stern is wrong for his failure to recognize the nature of climate change as thermodynamic, thereby missing the point of Northern appropriation of the atmospheric sink. The switch to thermodynamics brings into focus the legitimacy of a 'carbon debt that starts to tick with the first report of the IPCC in 1990. Through the lens of economic theory, the understandable intransigence of poor countries to assume the 'cap' in 'cap and trade' is a distortion to the economic system. But by that same economics, one distortion can justify another. That other distortion is the payment Ecuador seeks for not drilling in the Yasun Biosphere. Heeding the call of Deirdre (formerly Donald) McCloskey that economics needs more humor, Vogel has written a scathing critique of economics-as-usual which also entertains.