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Saturday, July 28, 2007
Tom Borelli :: Townhall.com Columnist
Serving Caterpillar at the Global Warming Table
by Tom Borelli
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Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


For other companies the profit motive is much less clear or totally absent. Take for example Caterpillar Inc. – the construction and mining equipment and engine company. Judging by statements made by CEO Jim Owens and the negative impact of cap-and-trade on the economy and its customers, Caterpillar’s participation in USCAP is not based on increasing profits.

Caterpillar’s business and future profitability depends on a growing economy and growth in the energy and mining industry. In fact, according to its 10-K filing – a detailed annual report filed with the Securities and Exchange Commission (SEC) – Caterpillar cites a decline in energy and mining industries as a business risk. “The energy and mining industries are major users of our machines and engines. Decisions to purchase our machines and engines are dependent upon performance of these industries. If demand of output in these industries increases, the demand for our products would likely increase and vice versa.”

Yet government studies found that cap-and-trade is both bad for the economy and harmful to Caterpillar’s customers in the coal mining industry. For example, the Energy Information Administration (EIA) – a research arm of the Department of Energy – conducted a study on cap-and-trade during the Clinton administration and found these regulations would significantly increase gasoline prices and energy prices as well as reduce economic growth by almost 2 percent. Construction, manufacturing and transportation industries would be negatively affected.

More recently, the Congressional Budget Office (CBO) released a study on cap-and- trade and concluded the cost of meeting carbon dioxide limits would be paid by the consumer via higher energy prices and that the poor would bear the greatest burden. More importantly from Caterpillar’s perspective, carbon dioxide caps would harm the coal industry and reduce coal production – a key customer for Caterpillar products – up to 40 percent.

Astonishingly, at Caterpillar’s 2007 shareholder meeting, Owens stated he did not conduct a cost benefit analysis on the impact of cap-and-trade on its business. He justified company participation in USCAP by saying he wanted a “seat at the table” – the CSR euphemism for engaging with stakeholders.

Caterpillar’s participation in USCAP is a case study illustrating the dangers posed by CSR to shareholders and limited government. In this instance, a major corporate power is acting as an agent for the environmental activist’s agenda while harming its business interest.

Unlike the mutually beneficial relationship promised by CSR, Caterpillar’s participation in USCAP is a parasitic relationship where the company is being manipulated by more savvy CEOs and activist organizations. For unsuspecting Owens, his seat is at Hannibal Lector’s table and he is the main course.

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About The Author

Thomas J. Borelli, PhD. is the editor of FreeEnterpriser.com and Director of the Free Enterprise Project at the National Center for Public Policy Research.

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A Solution for Global Warming, Part III
DDT has gotten a bad rap. Most of us conservatives already know this, but let me review a few facts:

Despite the alarmism generated over Rachel Carson's 1968 book, "Silent Spring", DDT has NEVER been proven to be deadly, or even particularly harmful to ANY vertebrate animal species. Carson quoted ONE STUDY that proved that DDT, at about a thousand times the concentration at which it appears in the environment, caused a "thinning of eggshells" for one particular species of turtle, but even then did not result in a lower probability of live hatch.

During the 1940s-1960s, DDT single-handedly ELIMINATED the health threat of Malaria in all developed nations on the planet.

Scientists estimate that DDT, if used adequately in developing nations in Africa, would save over a million human lives per year on that continent, lives that will instead be lost to Malaria.

Shortly after the publication of Rachel Carson's book (in which, by the way, she ADMITTED the NECESSITY of using DDT to defeat malaria), developed nations worldwide began banning DDT, beginning with Sweden and Norway in 1970, followed by the US in 1972. Today, it is legal only in un-developed and under-developed nations. Yet even there, where hunger is a bigger problem than malaria, food aid from developed nations comes with strings attached, and one of those strings is a restriction or ban on DDT usage. So, even though the nations themselves technically don't restrict DDT, the result is the same. The nations sacrifice a million lives to save the 20 million that would starve to death without food aid. It's too bad that the wise and generous developed nations that help these underdeveloped nations won't let them save all 21 million!

Even the United Nations, as liberal a body as that is, openly advocates the widespread use of DDT in Africa to eliminate malaria.

Okay, so DDT is, by any rational measure, GOOD for mankind. Yet it has been portrayed by the environmental left, and their enablers in the mainstream media, as evil incarnate. DDT is the poster boy for the chemical rape of the environment. Even today, after having saved so many millions of lives, it could still save over a million lives a year, if it were just ALLOWED to do so.

But here's a new twist. A here-to-fore unmentioned benefit of DDT, that eclipses not only the minor harmful effects it has on the environment, but also the huge positive effects it has had, and can continued to have, for humans. DDT can REVERSE GLOBAL WARMING! In fact, it has already done so, as I will show shortly.

DDT was invented in the 1800s, but its ability to kill insects was not discovered until 1939. Shortly thereafter, it was manufactured in bulk for that purpose, to kill insects. Its first major use was in the Allied military forces of World War II, to kill lice on soldiers. After WW2, its use expanded drastically as 1) an agricultural insecticide, and 2) the cornerstone of nearly worldwide attempts to eliminate malaria by eradicating its carrier, the anopheles mosquito. Huge volumes of DDT were sprayed around the globe throughout the 1950s and 60s.

Then Rachel Carson killed DDT. I do not believe that she intended to do so, because she admitted, in "Silent Spring" that DDT was the best hope for eradicating malaria. But she did, nevertheless, exagerate claims of the harmful effects of DDT. The newborn worldwide environmental whacko movement latched onto this book and USED it to further their extremist agenda, and with the help of a few well-placed friends in government, got DDT banned in all developed nations. For the most part, these bans went into effect between 1970 and 1975 (though the UK held out until 1985). The US ban went into effect in 1973.

Now, It is a proven fact that DDT kills insects. And my first post in this series shows that insects, through respiration, produce nearly twice as much carbon dioxide as human industry. And, according the the AGW alarmists, carbon dioxide is the culprit behind global warming. Does it not stand to reason, scientifically, that the widespread use of DDT could, in fact, slow, stop, or even REVERSE global warming?

In theory, yes! But in fact? Well, let's look at the empirical evidence. Recall my second post in this series, in which I mentioned the period between 1940 and 1975, a period which utterly defies the entire anthropogenic global warming theory. To review, global average temperatures dropped dramatically in the 1940s and remained low throughout the 50s, 60s, and early 70s, then skyrockected beginning in 1975. Given that the burning of fossil fuels did not decrease during the 1940-1975 period, but rapidly INCREASED, AGW alarmists cannot explain this period. But I can.

The adoption of DDT as an insecticide coincides with the beginning of the sharp drop in global average temperatures in the early 1940s. Its expanding use in agriculture and malaria eradication coincides with the continued rapid temperature decline in the late 1940s. The sustained high levels of DDT use in the 50s and 60s coincide with the fluctuating, but relatively LOW temperatures of that same period. And the ban on DDT in the US (the major user of DDT at that time) precedes the current sky-rocketing trend in global temperatures, that began in 1975, by two years, about the time it would take insect populations to recover from massive depletion. And the near-worldwide ban on DDT since 1975 coincides with the most rapidly increasing temperatures ever observed on this planet.

Now, to be perfectly honest, I do not believe that the ban on DDT, in and of itself, is SOLELY to blame for the current rate of global warming. The DDT ban is, in reality, just a SYMBOL of environmental whackoism, a proxy, if you will, for the worldwide movement to ban or restrict the use of pesticides. Rachel Carson opened the floodgates with her book, and DDT, the poster child, was not the ONLY pesticide to have its use banned or restricted. This period, beginning in 1970, saw vastly increased levels of government control, worldwide, over pesticide usage. At the same time, and for the same reason, agricultural scientists began researching pesticides with an eye toward not just protecting crops, but protecting the environment as well. Meanwhile, agricultural economists came up with profit-oriented reasons (such as "economic treatment thresholds") to not spray insecticides at the first sign of a minor insect infestation in crops. I'm not saying that any of these are bad things, but merely that they did, in fact, begin around that same time. And their combined effects, far greater than merely the ban on DDT, caused worldwide insecticide usage to drop by at least an order or magnitude over a period of just 5-10 years. And this period almost exactly coincides with the beginning of the sky-rocketing global average temperatures, a trend which continues to this day.

I do not delude myself into thinking that we can, or even should, eradicate all insects from the face of the planet. Even if we could, there are many species that are beneficial to man, either directly or indirectly, and we need to preserve those species. But we can't ERADICATE all insects anyway, because we can't manufacture enough insecticide to do it, and we can't afford to apply it worldwide, and even if we could, there's the problem of resistance. However, with the carefully-planned and executed application of a variety of insecticides, as well as genetic, mechanical, and natural methods of controlling insect populations, we could easily halve the worldwide insect population. That, along with a conversion to nuclear power, would more than offset the remaining human industry component of carbon dioxide production.

Regards,
Trevor

A Solution for Global Warming, Part II
1940-1975.

That has always been a problem for global warming alarmists. You see, they can rant and rave all they want about how temperatures have been going up since the mid-1800s, but they can't explain those three-and-a-half decades. Even their own, probably biased, time series charts of global mean temperatures, PROVE that temperatures were actually DECREASING in the 1940s, and remained relatively low throughout the 50s, 60s, and early 70s. It was, in fact, this period of LOW temperatures that spawned doom-and-gloom predictions of global COOLING, and had serious scientists concerned about the onset of the next ICE AGE. Of course, now, those same alarmists and serious scientists have changed 180 degrees, but that's beside the point. The point is, the GW alarmists have no credible explanation for why temperatures DECREASED during this period.

The theory of anthropogenic global warming rests on the increase in atmospheric carbon dioxide levels caused by the burning of massive and ever-increasing amounts of fossil fuels since the beginning of the industrial revolution. Did humankind stop burning fossil fuels between 1940 and 1975? Did we even REDUCE our burning of fossil fuels during that time? I don't have the statistics on that, but common sense dictates that, not only did we not reduce fossil fuel consumption, we INCREASED fossil fuel consumption at probably the fastest pace since the first oil well was drilled. Think about it. In 1940, only the most wealthy people could afford cars. By 1975, nearly every household in America had at least one car, and many had two or more. And these weren't the small, fuel-efficient cars that Americans started buying in the late 70s, but big, huge, gas-guzzling monstrosities that made today's SUVs look like Priuses. We had a HUGE expansion in industrial output at the beginning of this period, as factories worldwide started churning out the vehicles, equipment, and supplies needed to fight WW2. And after WW2, we had a huge increase in population (the Baby Boom), along with the increased demand for production and transportation of goods needed to feed the rapidly-expanding population. All of these things would seem to contribute to global warming, yet temperatures dropped like a rock throughout the biggest armed conflict in the history of the world, continued to drop rapidly for 5 years after that war ended, then remained low for the next 25 years. And then, at about the time we started buying Datsuns and Toyotas, with three times the gas mileage of 1960s American-made cars; at about the same time the Baby Boom ended; temperatures began a sky-rocket rise that continues to this day. Again, the GW alarmists have no credible explanation for why temperatures DECREASED between 1940 and 1975.

Don't get me wrong - they've TRIED to explain it. One story is that, well, even when a strong general trend exists, there will be fluctuations around this trend, and 1940-1975 was just a downward fluctuation of the overall warming trend. But, gee, you know, when I think of "flucutations", I think of one or two years, five at the most. But we're talking about THIRTY-FIVE YEARS of suppressed temperatures here! I don't buy the "fluctuation" theory. But, if it were true, if a fluctuation can last 3.5 decades, then how do they know that 1975-2005 is not just an UPWARD fluctuation around that same trend?

Here's my favorite GW-alarmist explanation for 1940-1975. SMOG. "Yes," say the GW alarmists, "we were emitting a great deal of carbon dioxide between 1940 and 1975, but we were also generating a great deal of smog. This smog, like clouds, blocked sunlight from reaching the earth. Of course, smog is a bad thing, and we had to get rid of it, and we started doing so right around 1975. And once the full spectrum of sunlight was able to penetrate to the earth, the carbon dioxide was able to take effect and drive our temperatures up."

There are several problems with this explanation. First, though smog may have become a political issue as early as 1975, I don't recall anything serious actually being DONE about it until the mid 80s. And even with these efforts, smog remained a serious issue for at least another decade, and even today, is an issue in many population centers. So why were temperatures going up between 1975 and 1985, when we still had the smog?

Second, if we were generating smog in the 1940s-60s, then we must have been generating smog before then, in about the same proportion to carbon dioxide. If the 1940-1975 smog was enough to counteract the 1940-1975 carbon dioxide, why was the 1860-1940 smog not enough to counteract the 1860-1940 carbon dioxide? Inquiring minds want to know.

Finally, and here's the really great part, if smog is that damned effective at keeping temperatures low, despite constantly-increasing carbon dioxide levels, then the solution to global warming is, in fact, quite obvious. We need more smog! Of course, I don't believe the smog vs CO2 argument for a minute, but anyone who really did believe it should be be openly advocating a rapid increase in smog production. Granted, smog is bad, and creates a boatload of problems in and of itself. But global warming, if the alarmists are to be believed, is the greatest threat that mankind has ever faced. Lesser of two evils! Duh!

For the record, I do not advocate increasing smog production. Not because I think smog is bad, but because I don't believe it will work.

Stay tuned for Part III

Regards,
Trevor
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