From the July 8 edition of CBS' CBS This Morning:
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Refusing to act on climate change will be bad for business, according to a major recent report assessing the alarming risks of unchecked global warming on the U.S. economy. But while some top business media outlets recognize global warming as a serious issue for their audience, others are still stuck in denial.
On June 23, the Risky Business Project released a comprehensive analysis of the economic impacts of climate change in the United States. The study found that the current path of "business as usual" -- emitting carbon dioxide and other greenhouse gases responsible for driving catastrophic climate change without restrictions -- will reduce labor productivity of outdoor workers by up to three percent, reduce agricultural yields by up to 70 percent in some regions, and cost up to $507 billion in property damages from sea level rise by 2100. The co-chairs are calling for business to rein in their greenhouse gas emissions to prevent an economic crash on the scale of the 2008 financial crisis or worse.
However, some top U.S. business media outlets are denying that climate change is a problem worth addressing -- a disservice to their business viewers, who have a lot to lose. Here are the good, the bad, and the ugly cases of business media covering Risky Business:
In covering the study's findings, Bloomberg Television, a cable and satellite business news channel, featured an interview with former Treasury Secretary Henry Paulson, one of the report's co-chairs and a Republican. Bloomberg's Erik Schatzer began the interview by stating that "the research [on man-made climate change] is overwhelmingly conclusive," and went on to have a rational discussion about solutions to global warming that businesses can take today. Schatzer noted that Bloomberg Television is a child company of the media organization founded by Michael Bloomberg, another co-chair of Risky Business. Paulson suggested that businesses fully disclose their climate change risks, that they invest in "resilience," and that the nation "take out a national insurance policy" to respond to the impacts of climate change, adding that businesses must advocate for government policies that would allow the nation to "avoid the most adverse outcomes."
Paulson elaborated on "the cost of inaction" alongside former Treasury Secretary under President Bill Clinton, Robert Rubin, in a well-done interview on the June 29 edition of CNN's Fareed Zakaria GPS:
Fox Business's coverage of the Risky Business report ridiculed the impacts of climate change and brushed aside the findings as "scare tactics." On the June 24 edition of Cavuto, Fox Business contributor Lauren Simonetti asserted that the organization is using "scare tactics," going on to entirely dismiss the idea of increasing heat-related mortality, saying "what does that mean -- mortality?"
Journalists should not be duped into portraying anti-wind energy activist John Droz Jr. as simply a "physicist" and an expert on issues related to climate change. Droz has cast doubt on man-made climate change and undermined scientifically accurate sea-level rise predictions in North Carolina, despite admitting he has no expertise in either area.
CNN's profile of progressive philanthropist Tom Steyer falsely equated Steyer's political donations with those of the Koch brothers without noting the Kochs will spend far more, and it failed to disclose that the group it quoted criticizing Steyer's environmental activism is funded by the Kochs.
During the June 19 edition of CNN's The Lead with Jake Tapper, a profile of environmental activist and philanthropist Tom Steyer attempted to equate Steyer's planned contributions on behalf of candidates who support legislative action on climate change to planned 2014 spending by conservative billionaires Charles and David Koch. During the profile, Tapper portrayed Steyer as a hypocrite, noting that "another point of dispute involves Steyer's assets. ... Steyer made his money as the manger of a $20 billion hedge fund, amassing a fortune through a variety of investments, including many in the very fossil fuels he now decries." Tapper went on to criticize Steyer for having "continued to make money off these unclean energies while simultaneously decrying them," though he also noted that Steyer is divesting his fossil-fuel investments.
The segment also included a clip of Tim Phillips, president of Americans for Prosperity (AFP), accusing Steyer of "hypocrisy" in his previous investments:
Tapper did not note that AFP is what Politico called the "main political arm" of the Koch brothers, or that the group reportedly plans to spend $125 million in this year's elections for the purpose of "benefiting conservatives."
Further, the premise that Steyer's political contributions are equivalent to those of the Koch brothers is flawed. Contrary to Tapper's contention that Steyer is a direct ideological counterpart to the Kochs, the political spending from Steyer is not equal to that of the Koch brothers. According to the Daily Beast, the Kochs have "set an initial 2014 fundraising target of $290 million" to fund a "new energy initiative" intended in part as a response to "the commitment by liberal billionaire Tom Steyer to steer $100 million into ads in several states to make climate change a priority issue in the elections."
Tapper did not mention that Steyer's planned political contributions are one-third of those planned by the Koch brothers' interests.
The Wall Street Journal published an op-ed pushing for a lift on a decades-old ban on crude oil exports without disclosing that the authors' work was funded by the oil industry, which stands to benefit from its claims.
A Wall Street Journal op-ed by the lead authors of a study for the consulting group IHS Inc. argued that the Obama Administration "needs to lift the ban on oil exports." The co-authors advanced their report's claims that ending a 41-year-old ban on crude oil exports would spur domestic oil production, resulting in lower gasoline prices and fueled job creation. However, the Journal did not disclose that this study, titled U.S. Crude Oil Export Decision: Assessing the Impact of the Export Ban and Free Trade on the U.S. Economy, was funded almost entirely by oil and gas corporations, including industry giants ExxonMobil, Chevron, Chesapeake Energy, Devon Energy, and ConocoPhillips:
This research was supported by Baker Hughes, Chesapeake Energy, Chevron U.S.A., Concho Resources, ConocoPhillips, Continental Resources, Devon Energy, ExxonMobil, Halliburton, Helmerich & Payne, Kodiak Oil & Gas, Nabors Corporate Services, Newfield Exploration, Noble Energy, Oasis Petroleum North America, Pioneer Natural Resources, QEP Resources, Rosetta Resources, Weatherford and Whiting Petroleum.
In fact, several top business media outlets repeated the report's boldest claims when it was released in late May -- like that it would lead to $746 billion in investment into the U.S. economy or save U.S. motorists $265 billion by 2030 -- without disclosing its industry funding. CNBC, Bloomberg, USA Today's Money section, and the Wall Street Journal all covered the study with no mention of the oil giants that have a financial incentive to lift the ban on crude oil exports because it would allow them to sell more of their oil at the higher world price. USA Today even noted that two of the report's funders, ExxonMobil and ConocoPhilips, have been pushing for the White House to lift the ban -- but did not disclose their investment in the IHS report. Some outlets got it right: Reuters and conservative news site Breitbart (surprisingly) did mention that the IHS study was funded by oil and energy companies.
The crude oil export ban was enacted in the 1970s in response to an Arab oil embargo, which shocked the U.S. economy. The Center for American Progress explained that lifting the ban would "enrich oil companies," but "could increase domestic gasoline prices and reduce our energy security":
The increase in domestic oil supply, combined with the decline in demand, has also led to a significant decrease in foreign oil imports. These changes make us less vulnerable to a sudden foreign oil supply disruption that could cause price spikes. Unfortunately, the oil industry would squander this newfound price stabilization and energy security by lifting the ban on crude oil exports. Doing so would enrich oil companies by enabling them to sell their oil at the higher world price, but it could increase domestic gasoline prices and reduce our energy security.
Even Goldman Sachs supports keeping the ban - at least until the U.S. market reaches "saturation" where it's producing more oil than it can consume -- because it benefits the economy by keeping refining for U.S. workers.
Lifting the ban on crude oil exports would also be catastrophic for the climate, according to the Sierra Club. Oil Change International published a study finding that keeping the ban on crude exports is imperative for the United States to achieve its climate goals.
The Journal's failure to disclose the background these op-ed authors shared with the oil industry falls in line with a repeated lack of transparency about who the newspaper publishes. In 2012, the Journal was found to have "regularly failed to disclose the election-related conflicts of interest of its op-ed writers."
Image at the top obtained via Flickr user roseannadana with a Creative Commons license.
Conservative media are claiming that Environmental Protection Agency Administrator Gina McCarthy admitted she is waging a "war on coal" when, in fact, she has consistently stated that the EPA is simply meeting its obligation to serve public health with its new clean power plan.
In an interview with McCarthy on the June 13 edition of HBO's Real Time with Bill Maher, host Maher said that he has heard that the EPA's proposed "Clean Power Plan," which will for the first time implement standards for carbon pollution from existing power plants, amounts to "a war on coal," adding that he "hope[s] it is." McCarthy responded, "Actually, EPA is all about fighting against pollution and fighting for public health. That's exactly what this is." Maher responded "Oh, great."
The Weekly Standard declared that this meant that McCarthy "agreed with Bill Maher" that "the Obama administration is engaged in a war on coal." National Review, Twitchy and EHS Today all concurred. However, even the conservative Washington Examiner concluded that "[i]t appears Maher's glee was premature" after an EPA spokesperson clarified that McCarthy was not agreeing with Maher and has consistently stated that the agency is not waging a "war on coal."
Indeed, McCarthy has always responded to claims that the EPA is waging a "war on coal" by explaining that the agency is simply serving its public health mandate and that it is not "fair" to claim the EPA is targeting any one energy source without regard for the facts. For example, McCarthy's testimony before Congress earlier this year:
SEN. DEB FISCHER (R-NE): And do you think it's fair to say -- maybe the EPA has somewhat of a war on coal so that we can lessen our dependence upon coal in this country?
McCARTHY: Senator, I -- I don't think that that's fair to say. What we're trying to do is our job to protect public health by reducing pollution from some of the largest sources ...
McCARTHY: Of those pollutions. [Senate Committee on Environment and Public Works hearing, 3/26/14, via Nexis, emphasis added]
And in an interview with The New York Times:
"We don't have a war on coal," [McCarthy] said. "We're doing our business, which is to reduce pollution. We're following the law."
And an interview with Bloomberg News about the carbon pollution standards:
PETER COOK (Bloomberg News): The argument is this is a war on coal. You are putting coal out of business with this proposal.
McCARTHY: Well if you take a look at it, what we're projecting is that coal in 2030 will still be a very significant portion of the electric generating capacity here. And what we're hoping that folks will do is realize that this is an opportunity to actually make investments in coal, to make them more efficient so that we can have the best and cleanest facilities moving forward. But the ultimate choice is going to be up to the states. Do they want to shift towards more renewables? Do they want to focus on energy efficiency? Do they want to do all of those things together?
And we'll see how they end up, but we know that the - that the reductions that we put in state by state were based on what - what states are doing today and what we think they can do in each of those states moving forward in a way that will maintain reliability and affordability of the electricity supply. But every fuel will have a place moving forward. They just have to get cleaner. And in the end, we have to produce the carbon reductions that we need for public health. [Bloomberg TV, 6/3/14, via Nexis, emphasis added]
The so-called "war on coal" is empty political rhetoric. Here are facts that put the EPA's plan in context -- facts you likely won't hear from The Weekly Standard or National Review:
Fox News exploited the violent turmoil in Iraq to baselessly lay blame for increasing gasoline and oil prices at the feet of President Obama. Fox hosts cited Obama's alleged "policy mistakes" in Iraq as the impetus for the rising cost of petroleum products, continuing a long pattern of attacking Obama over the price of gasoline while ignoring the fact that global market trends are largely out of the president's control.
On the June 13 edition of Fox News' Fox & Friends, co-host Brian Kilmeade and Fox Business anchor Stuart Varney discussed the impact of the recent turmoil in Iraq on the global oil market. Varney used the opportunity to attack President Obama for the withdrawal of American combat troops from Iraq from 2009 through 2011:
VARNEY: Let me make this very clear, we are all paying for the president's policy mistakes. The retreat in Iraq, the chaos in Iraq, will be paid for by us at the pump.
The withdrawal of American troops from Iraq was completed on December 18, 2011. According to data from the United States Energy Information Agency (EIA), the market prices of crude oil and refined gasoline have fluctuated since that time, but the withdrawal itself spurred no appreciable price corrections. Data from the Federal Reserve Bank of St. Louis, overlaying the prices for West Texas Intermediate (WTI) crude oil with inflation adjusted prices for gasoline, confirm that the withdrawal had no lasting impact on market prices:
Reputable market analysts agree that the outbreak of violence in Iraq -- the world's eighth largest oil producer -- is driving market speculation and investment in petroleum futures. This in turn has resulted in a slight, but noticeable increase in global crude oil market prices during the past several days. Varney is correct in noting that instability in Iraq is impacting global oil prices, but his analysis veered into well-worn Fox News paranoia when he used that fact to pin the blame for rising prices on President Obama.
Fox has a storied history of blaming this president for rising oil and gasoline prices.
Business media have been spreading the myth that the Environmental Protection Agency's plan to rein in carbon pollution will harm the American manufacturing industry by increasing electricity prices. But a new report by a group of business leaders found that the manufacturing industry is at far greater economic risk from the extreme weather events that the EPA's clean power plan would help prevent.
When the EPA proposed standards for the carbon pollution driving climate change for existing power plants, several top U.S. business media outlets promoted claims that the rules would harm manufacturers. Reuters published two articles that uncritically repeated utility industry lobbyists' claims that the rules will "destroy jobs" at "manufacturing plants." The Wall Street Journal cited a steel industry spokesman that claimed the rules will "impede the post-recession growth of American manufacturing" without criticism, and the newspaper's editorial board suggested that the rules will "punish" regions that rely on manufacturing. Fox Business' Lou Dobbs Tonight hosted Steve Milloy, a policy director at coal giant Murray Energy, who lambasted the rules, stating: "if you work in manufacturing, do you want to see your job exported to China?"
However, an analysis by Business Forward -- an association of American business leaders focused on sound public policy -- found that extreme weather events will have severe economic impacts on the automotive manufacturing industry in the United States, while any increase in electricity prices as a result of turning to clean power will have minimal costs for the manufacturing industries. The analysis has not been covered* by the prominent business media outlets that promoted claims that the standards would harm manufacturers.
For example, automakers, who represent the nation's largest industrial sector, are extremely vulnerable to disruptions in the global supply chain caused by extreme weather events. The study found that extreme weather events -- many of which are happening more frequently -- can cause an auto assembly plant to shut down at immense costs of $1.25 million or more per hour. Business Forward explained that even when extreme weather events happen on the other side of the globe, they impact manufacturers:
Because supply chains are global, disruptions on the other side of the planet can slow down or shut down an American factory. For example, in October 2011, severe floods in Thailand affected more than 1,000 industrial facilities. Production by consumer electronics manufacturers in the U.S. dropped by one-third.
The carbon standards, by contrast, would cost the automotive industry far less because electricity is a "comparatively small portion" of their total costs. The report found that if electricity costs increased by 6.2 percent by 2020, it would add less than $7 to the cost of producing car that sells on average for $30,000. Overall, this would cost the average auto assembly plant about $1.1 million, or the equivalent of less than an hour of assembly line downtime at a single auto plant each year. The EPA estimates that electricity prices will increase slightly as a result of the standards, but efficiency improvements will lower electric bills by 2025.
A Media Matters analysis of Fox News coverage of the Environmental Protection Agency's proposed carbon pollution standards finds that long after a report from the Chamber of Commerce was discredited, Fox News continued to cite it. In addition, Fox News only hosted politicians who opposed EPA standards and who have altogether received over $1.6 million in contributions from fossil fuel industries in 2014.
An Associated Press article about the Environmental Protection Agency's proposed regulations to cut carbon emissions failed to disclose that Americans for Prosperity (AFP), a source it cited criticizing the proposal, is a front group for the Koch brothers that routinely makes false attacks against clean energy initiatives.
A June 2 AP article reported that Colorado could serve as a model for reducing carbon emissions while handling its energy needs, following comments from the Obama Administration and Sen. Mark Udall (D-CO). The article cited Dustin Zvonek, the Colorado director of Americans for Prosperity, which the outlet described as a group "which warns the EPA's rules would cost billions and lead to higher energy costs," but failed to mention the organization's oil industry funding:
"There's still a lot to be clarified," said Dustin Zvonek, Colorado director of the group Americans For Prosperity, which warns the EPA's rules would cost billions and lead to higher energy costs. Zvonek said Colorado's action to cut carbon emissions may have only prompted an even lower bar to meet.
"Are we going to be penalized or punished for the fuel-switching standard and therefore take an even bigger hit? That's not clear," Zvonek said.
Among AFP's major supporters are brothers David and Charles Koch, their charitable foundations and their company, Koch Industries, Inc., which has significant operations in oil and gas exploration and coal supply and trading. A 2012 report by the International Forum on Globalization explained that the Koch brothers have used their wealth to attempt to block legislation or rules aimed at mitigating the damage climate change is causing.
Greenpeace reported that AFP has received nearly $6 million from Koch-affiliated groups from 2005-2011.
Editorial boards across the country continue to use the Chamber of Commerce's study to claim that the Environmental Protection Agency's new carbon pollution standards will cost jobs and increase electricity bills, even though that study incorrectly assumed that the standards would be stricter and would require expensive technology.
The Environmental Protection Agency's forthcoming regulations on greenhouse gas emissions will provide legally required protection for the health and welfare of Americans at a cheap cost, while allowing states flexibility -- contrary to media fearmongering about the landmark standards.
From the May 28 edition of MSNBC's The Ed Show:
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Fox News brushed aside the value of Environmental Protection Agency research grants for clean cooking and heating technologies, saying that the dangerous indoor pollution from dirty stoves is only "a mere contribution" to 4.3 million deaths, and fearmongered that the EPA would soon come after American stoves. However, even Fox News' "favorite" environmental pundit has said that the fact that millions are dying from dirty cooking stoves -- more deaths than from AIDS and malaria combined -- is an "immediate problem."
One year ago, New York City launched its bike share program to the chagrin of a Wall Street Journal editorial board member who claimed it was a "totalitarian" instrument of "aesthetic torture" that has "appalled" New Yorkers. However, the program has survived conservative attacks on it and proven immensely popular, with nearly 9 million rides in its first year.
Dorothy Rabinowitz, a member of Wall Street Journal's editorial board, made waves last year by railing against the launch of Citi Bike, New York City's bike share program. In a video op-ed on WSJ Live, Rabinowitz derided the "totalitarian"-backed program that has "begrimed" NYC neighborhoods, saying the city is "helpless" to the wishes of its "autocratic" mayor and the bike lobby.
Even after Rabinowitz' argument was mocked on both the Colbert Report and The Daily Show, Rabinowitz stuck to her vendetta, dubbing the bike racks "instruments of aesthetic torture," and her colleagues defended her. She is not alone among conservatives for displaying an irrational hatred of bicyclists. Soon afterward, Fox Business' Melissa Francis called the Citi Bike racks a "nuisance" and an "eyesore," putting it frankly: "I hate these bikes." But they have proven to be the exception rather than the rule.
Rabinowitz claimed that she represented "the majority of [NYC] citizens" who are equally "appalled" by the bike share program, but polling has shown the opposite with even the Wall Street Journal itself dubbing the bike share "popular." Before the program was launched, polls from Quinnipiac University's Polling Institute found that 74 percent of New Yorkers polled agreed the bike rental program was a "good idea." One month after its launch, the same institute found that only 20 percent were opposed to the program, with the majority of every "age, income party, gender and educational group" supporting the program: