Founding partner at Kepos Capital and chair of the Climate-Related Market Risk subcommittee Dr. Robert Litterman testified during a hearing to consider “climate-related economic risks and their costs to the Federal Budget and the Global Economy.”
Kennedy: “Dr. Litterman, How much will it cost to make the United States of America carbon neutral by 2050?”
“I don’t know, sir.”
“So you’re advocating we do these things but you don’t know the ultimate cost?”
“Yes, absolutely. I certainly don’t know the ultimate cost, and it’s very uncertain. It depends on innovations. It depends on…”
“I understand. I’m just trying to lay a foundation here to understand your expert testimony.”
“So you’re advocating we do these things, but you don’t know the ultimate cost?” Kennedy pressed.
“Yes, absolutely, I certainly don’t know the ultimate cost,” Litterman said.
Kennedy then asked another witness, President of the American Action Forum Dr. Douglas Holtz-Eakin, the same question, who estimated $50 trillion.
“If we spend $50 trillion … how much will that lower world temperatures?” Kennedy asked, with Holtz-Eakin saying he doesn’t know because it would be contingent on China.
Holtz-Eakin: “Depends on how it’s done. If we do it all in the federal budget with directed things,
Kennedy: it’s ultimately private dollars anyway.
“You’re going to look at 50 trillion dollars.”
Kennedy: “If we make the United States of America carbon neutral by 2050 by spending 50 trillion dollars, which you’re advocating, I gather.”
“No, if you’re going to do something, do something smart. That’s what I advocated.”
Kennedy: “If we spend 50 trillion dollars to make the United States of America carbon neutral by 2050, how much will that lower World temperatures?”
“I can’t expect because we don’t know what China and India and the rest of the globe have done.”
Kennedy then asked Litterman who provided a similar answer, saying it’s about working with other countries, but Kennedy again pressed about the possibility of China and India not cooperating.
Kennedy: “Dr. Litterman, if we spend 50 trillion dollars or however much it takes to make the United States carbon neutral by 2050, how much will it lower World temperatures?”
Dr. Litterman: “Senator, that depends on the rest of the world. We have to work with the rest of the world. We’re in this together.”
Senator: “What if we spend 50 trillion dollars, Europe cooperates, most western democracies cooperate, but India and China don’t. How much will our 50 trillion dollars lower World temperature?”
Dr. Litterman: “Senator, we have to get the world to work together. How much? I don’t know.”
Senator: “Do you believe based on your observation of Mr. Xi Jinping that he will ever do anything that is inconsistent with China’s best interests in the name of global climate change?”
“I understand that China has a federal carbon tax.”
Kennedy: “Okay, yeah. But, faced with a policy, okay, where China does something that’s not in its best interest but it does it because it’s in the global best interest, do you think President Xi would do that?
“I think that President Xi understands that we have to work together to address this global problem. Yes, I do, and it will be in the best interests of China to work with the United States to address.”
Kennedy: So, you think the answer is yes?
“I think the answer is that it’s in China’s best interest to work with the rest of the world to address this problem, as it is in the United States’ best interests to work with the rest of the world to address this problem. Do you create harmonized incentives?
“Do you believe in the Tooth Fairy?” Kennedy asked.
“No sir,” Litterman said.
“Do you believe in the Easter Bunny?” Kennedy responded.
“No sir.”
“Do you believe that Jimmy Hoffa died of natural causes?”
“No sir,” Litterman said.
President Joe Biden outlined in 2021 steps the federal government needs to take to achieve net-zero emissions by 2050, though questions about how it will be funded and its benefits have arisen.
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You believe in the tooth fairy? Kennedy questions Litterman, Holtz-Eakin on climate in Budget