Oct 21 2020: Making economic sense out of climate change

Many of us have seen promising signs of economic investment in green energy. We’ve also craved influential policies to curb wasteful energy usage. Well, no lesser economic bastion than the International Monetary Fund in their World Economic Outlook makes the case that “…economic policy tools can pave a road toward net zero emissions by 2050 even as the world seeks to recover from the COVID-19 crisis.

Green infrastructure, carbon taxes, it is all here with the clear directive to build policies to mitigate climate change.

But wait, there’s more. The perspective is that this is not neutral, it is positive, economically speaking—”Our model-based scenario analysis suggests that a comprehensive policy strategy to mitigate climate change could boost global GDP in the first 15 years of the recovery by about 0.7 percent of global GDP on average, and employment for about half of that period leading to about 12 million extra persons being employed globally.” The piece goes on to discuss transition costs, so it won’t be a slam dunk. But the tides are turning towards a world that does not need to be run on economic policies that are aggravating climate change.

Finding the Right Policy Mix to Safeguard our Climate