economic damages

Al Gore’s film An Inconvenient Truth bombarded audiences with image after image of hurricanes, tornadoes, floods, forest fires, and drought, creating the impression of a world in climate chaos. Gore blamed the alleged upsurge in extreme weather on global warming, that is, mankind’s sins of emission. One of Gore’s mighty pieces of evidence was a dramatic increase in insurance payments for weather-related damages. As he writes in his best-selling book of the same title:

Over the last three decades, insurance companies have seen a 15-fold increase in the amount of money paid to victims of extreme weather. Hurricanes, floods, drought, tornadoes, wildfires and other natural disasters have caused these losses [An Inconvenient Truth, p. 101].

Gore presented a chart similar to this one:

Seeing is believing, right? The problem, of course, is not merely that correlation (warmer weather/bigger losses) does not prove causation. More importantly, the economic data depicted in the chart have not been adjusted (“normalized”) to offset increases in population, wealth, and the consumer price index.

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