Climate change and enlightened self-interest

Why must we wait for others to address climate change? Let’s get on with it.

Climate change and enlightened self-interest

As the world comes to terms with the effects of #climatechange (never mind the head-in-sand naysayers), bankers and insurers will play an increasing role.  Insurers probably have the most to lose as weather-related claims will continue to rise.  The typical fallback in the United States has been for the government to subsidize and regulate, witness the National Flood Insurance Program and current restrictions imposed in California.  At some point actuary tables will simply make insurance in certain locations unaffordable or unavailable.  A good starting point would be second homes.  

Without insurance, banks will not offer loans and mortgages.  The effect will be clear for developers – build elsewhere, on solid ground.  How governments react will be telling.  Some will update polices and codes accordingly.  They may discover that it is cheaper to buy out properties than continually rebuild.  Others will continue to seek short term political and financial gain then beg for bailouts.  

In the end, there will probably be many semi-coordinated decisions made by individuals, aka enlightened self-interest.