How excellent

This is the logic that underpins my work on sustainable cost accounting. In it the concepts of deferral and discounting, implicit in almost all current financial modelling, are replaced by current accounting and compounding i.e. the provisions for the cost of climate change are made now, because if they are not they simply increase.

By this standard we should never have had the steam engine. The cost of compounding Newcomen since 1712 is pretty high. And agriculture over the 8,000 years since Ur of the Chaldees?

It also goes entirely against everything Nordhaus, Weizman, Stern etc have told us about the costs and benefits of climate change action or not action. Even, we know that the price of solutions is falling – solar, wind etc are still getting cheaper – and therefore we have some complexity here, it’s cheaper to solve in the future as against greater damages costs of not solving now.

But that would be a sophisticated consideration of the problem not a Snippate one.

8 comments on “How excellent

  1. In order for climate change to be a problem, wouldn’t the climate have to be, you know, changing? No doubt the global average temperature has risen very slightly over the last few decades, but hardly enough to get into any kind of a panic about. In any case, things have been getting gradually milder since the end of the Little Ice Age a couple of hundred years ago so the current warming is probably just a continuation of that natural process. None of the scary predictions of the climate alarmists have come to pass. In simple terms this means that they are wrong.

  2. So he wants to write a new IFRS standard for current accounting, as he’s a professional accountant there’s a clear path for him to do this through his professional body.
    And given that US introduced SFAS 15 (FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures) over a decade ago I’m sure he’ll be acknowledging theirs and other contributions

  3. ‘my work on sustainable cost accounting’

    When that doesn’t work out, he can work on social accounting. Then equality accounting. Then accounting justice. Ad infinitum.

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