Combating Climate Change Need Not Thwart Jobs and Growth
One of society’s most pressing questions is how to balance the demand for sufficient energy to power economic growth and development with the urgent need to sharply reduce carbon emissions, the chief contributor to climate change, notes F&D’s editor-in-chief Jeffrey Hayden. The question fuels intense debate, he says—one that has become increasingly polarized and frequently puts growth and sustainable energy in opposition.
But Nicholas Stern of the London School of Economics (LSE) argues the twin challenges of fighting poverty and climate change are not mutually exclusive. Massive infrastructure investment will be needed in the next 15 years to foster poverty reduction and economic growth in the face of rapid urbanization. But this investment offers an opportunity, says Stern—with international collaboration and deliberate planning—to promote sustainable development, including by reducing the use of fossil fuels.
The ILO’s Peter Poschen and Worldwatch Institute’s Michael Renner say we need not choose between green and jobs. Indeed, protecting the environment can go hand in hand with economic prosperity and job opportunities. ILO and other research concludes that if emissions are cut in line with the goals set for the Paris climate discussions, the result would be net gains of about 0.5 to 2.0 percent of total employment.
In a primer on carbon pricing, IMF economist Ian Parry looks at the practical problems of setting a price for carbon that reflects its true costs. He argues that falling energy prices and positive momentum for action on mitigation after the Paris talks make this the perfect time to phase in carbon taxes.
An analysis of the four major declines in oil prices in the past 30 years by World Bank economists finds the most recent collapse has an eerie similarity to the prolonged slump that began in 1986, which...
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