To a greater or lesser extent, in most Western countries, we can’t keep our borders secure; we can’t keep our industries intact; and we can’t preserve a moral order once taken for granted. Eventually, something will crystalize out of this age of disruption but in the meantime we could be entering a period of national and even civilizational decline.
In Australia, we’ve had ten years of disappointing government. It’s not just the churn of prime ministers that now rivals Italy’s, the internal divisions and the policy confusion that followed a quarter century of strong government under Bob Hawke and John Howard. It’s the institutional malaise. We have the world’s most powerful upper house: a Senate where good government can almost never secure a majority. Our businesses campaign for same sex marriage but not for economic reform. Our biggest company, BHP, the world’s premier miner, lives off the coal industry that it now wants to disown. And our oldest university, Sydney, now boasts that its mission is “unlearning”. . . .
Since the Global Financial Crisis, at least in the West, growth has been slow, wages stagnant, opportunities limited, and economic and cultural disruption unprecedented. Within countries and between them, old pecking orders are changing. Civilizational self-doubt is everywhere; we believe in everyone but ourselves; and everything is taken seriously except that which used to be.
Just a few years ago, history was supposed to have ended in the triumph of the Western liberal order. Yet far from becoming universal, Western values are less and less accepted even in the West itself. We still more or less accept that every human being is born with innate dignity; with rights, certainly, but we’re less sure about the corresponding duties. . . .
Climate change is by no means the sole or even the most significant symptom of the changing interests and values of the West. Still, only societies with high levels of cultural amnesia – that have forgotten the scriptures about man created “in the image and likeness of God” and charged with “subduing the earth and all its creatures” – could have made such a religion out of it.
There’s no certain way to regain cultural self-confidence. The heart of any recovery, though, has to be an honest facing of facts and an insistence upon intellectual rigour. More than ever, the challenge of leadership is to say what you mean and do what you say. The lesson I’ve taken from being in government, and then out of it, is simply to speak my mind. The risk, when people know where you stand, is losing their support. The certainty, when people don’t know where you stand, is losing their respect. . . .
Beware the pronouncement, “the science is settled”. It’s the spirit of the Inquisition, the thought-police down the ages. Almost as bad is the claim that “99 per cent of scientists believe” as if scientific truth is determined by votes rather than facts.
There are laws of physics; there are objective facts; there are moral and ethical truths. But there is almost nothing important where no further enquiry is needed. What the “science is settled” brigade want is to close down investigation by equating questioning with superstition. It’s an aspect of the wider weakening of the Western mind which poses such dangers to the world’s future.
Physics suggests, all other things being equal, that an increase in atmospheric carbon dioxide would indeed warm the planet. Even so, the atmosphere is an almost infinitely complex mechanism that’s far from fully understood. . . .
Certainly, no big change has accompanied the increase in atmospheric carbon dioxide concentration over the past century from roughly 300 to roughly 400 parts per million or from 0.03 to 0.04 per cent.
Contrary to the breathless assertions that climate change is behind every weather event, in Australia, the floods are not bigger, the bushfires are not worse, the droughts are not deeper or longer, and the cyclones are not more severe than they were in the 1800s. Sometimes, they do more damage but that’s because there’s more to destroy, not because their intensity has increased. More than 100 years of photography at Manly Beach in my electorate does not suggest that sea levels have risen despite frequent reports from climate alarmists that this is imminent. . . .
Australia, for instance, has the world’s largest readily available supplies of coal, gas and uranium, yet thanks to a decade of policy based more on green ideology than common sense, we can’t be sure of keeping the lights on this summer; and, in the policy-induced shift from having the world’s lowest power prices to amongst the highest, our manufacturing industry has lost its one, big comparative economic advantage. . . .
Also now apparent is the system instability and the perverse economics that subsidised renewables on a large scale have injected into our power supply. Not only is demand variable but there’s a vast and unpredictable difference between potential and dispatch-able capacity at any one time. Having to turn coal fired power stations up or down as the wind changes makes them much less profitable even though coal remains by far the cheapest source of reliable power.
A market that’s driven by subsidies rather than by economics always fails. Subsidy begets subsidy until the system collapses into absurdity. In Australia’s case, having subsidised renewables, allegedly to save the planet; we’re now faced with subsidising coal, just to keep the lights on. . . .
In the longer term, we need less theology and more common sense about emissions reduction. It matters but not more than everything else. As Clive James has suggested in a celebrated recent essay, we need to get back to evidence based policy rather than “policy based evidence”.
Even if reducing emissions really is necessary to save the planet, our effort, however Herculean, is barely-better-than-futile; because Australia’s total annual emissions are exceeded by just the annual increase in China’s.
There’s a veneer of rational calculation to emissions reduction but underneath it’s about “doing the right thing”. Environmentalism has managed to combine a post-socialist instinct for big government with a post-Christian nostalgia for making sacrifices in a good cause. Primitive people once killed goats to appease the volcano gods. We’re more sophisticated now but are still sacrificing our industries and our living standards to the climate gods to little more effect.
So far, climate change policy has generated new taxes, new subsidies and new restrictions in rich countries; and new demands for more aid from poor countries. But for the really big emitters, China and India, it’s a first world problem. Between them, they’re building or planning more than 800 new coal-fired power stations – often using Australian coal – with emissions, on average, 30 per cent lower than from our own ageing generators.
Unsurprisingly, the recipients of climate change subsidies and climate change research grants think action is very urgent indeed. As for the general public, of course saving the planet counts – until the bills come in and then the humbug detector is switched on. . . .
I’m reminded of the story of a man randomly throwing pieces of paper from the window of a train. Eventually his companion asked him why he did it. It keeps the elephants down, he said. “But there are no elephants here”, his companion replied. “Precisely; it’s a very successful method”.
A tendency to fear catastrophe is ingrained in the human psyche. Looking at the climate record over millions of years, one day it will probably come; whatever we do today won’t stop it, and when it comes, it will have little to do with the carbon dioxide emissions of mankind.
Law of Markets 
