Profitably Stabilizing Global Climate

This editorial, published by the Rocky Mountain Institute, argues that stabilizing the global climate is not only possible but profitable through the application of advanced resource efficiency in energy, farming, and forestry. It contends that the costs of climate abatement are often overestimated by econometricians and that market failures, rather than a lack of cost-effective technology, prevent the widespread adoption of these solutions.

• Global warming is characterized not as a natural result of optimal economic activity, but as a consequence of the inefficient use of resources, particularly energy. Advanced technologies for resource efficiency can support current or expanded global economic activity while stabilizing the climate and reducing costs.
• The author asserts that most current methods for abating climatic change are profitable rather than costly, and they rely on market forces rather than government regulation. In many cases, saving fuel is now cheaper than burning it.
• The document argues that scientific uncertainty regarding climate change should not delay policy action. Because the necessary abatement actions are 'no-regrets' measures that save money regardless of the climate outcome, they are advantageous even if the problem is not as severe as feared.
• The author disputes econometric claims that cutting CO2 emissions by 28% (the Toronto interim target) would cost the United States $200 billion per year. The editorial argues that using modern energy-efficient techniques would instead save the US approximately $200 billion a year.
• The gap between the availability of energy efficiency and its actual adoption is attributed to specific market failures, including poor consumer access to information, high implicit discount rates for efficiency investments, utility business models that prioritize sales over cost reduction, and perverse regulatory signals.
• The document claims that climate abatement does not require a reduction in living standards or comfort. Superior engineering can maintain or improve services—such as lighting, heating, and transportation—while using fewer resources.
• Resource efficiency is presented as essential for the development of poorer nations, as high levels of efficiency make the necessary infrastructure investments for energy, water, and materials affordable.

APA

Lovins, A. (1992). Profitably Stabilizing Global Climate. RMI. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_E92-7-Profitably-Stabilizing-Climate-An-Editorial.pdf

Chicago

Lovins, A.B. Profitably Stabilizing Global Climate. RMI, 1992. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_E92-7-Profitably-Stabilizing-Climate-An-Editorial.pdf.

Wikipedia

{{cite press release |last1=Lovins |first1=A.B. |title=Profitably Stabilizing Global Climate |publisher=RMI |date=6 January 1992 |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_E92-7-Profitably-Stabilizing-Climate-An-Editorial.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{lovins1992profitably, author = {Lovins, A.B.}, title = {{Profitably Stabilizing Global Climate}}, publisher = {RMI}, year = {1992}, month = jan, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_E92-7-Profitably-Stabilizing-Climate-An-Editorial.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }