Paul Krugman, the NY Times columnist and Nobel Prize-winning economist, provides a clear, concise explanation in today's paper of why action on climate change is not only affordable, but a very good way to stimulate the economy. Calling a spade a spade, he labels denials of climate change "junk science," and predictions of economic disaster resulting from doing anything about it "junk economics."
Citing a recent MIT study of the cost of climate change proposals, he concludes that, contrary to what many conservatives assert, the cost to consumers, while not zero, would be quite modest. But ultimately, he explains, adopting strong climate-change policy will "create major incentives for new investment — investment in low-emission power plants, in energy-efficient factories and more."
His column, which is well worth reading, is reprinted below. And you can link to his blog here.
An Affordable Salvation
by Paul Krugman
The 2008 election ended the reign of junk science in our nation’s capital, and the chances of meaningful action on climate change, probably through a cap-and-trade system on emissions, have risen sharply.
But the opponents of action claim that limiting emissions would have devastating effects on the U.S. economy. So it’s important to understand that just as denials that climate change is happening are junk science, predictions of economic disaster if we try to do anything about climate change are junk economics.
Yes, limiting emissions would have its costs. As a card-carrying economist, I cringe when “green economy” enthusiasts insist that protecting the environment would be all gain, no pain.
But the best available estimates suggest that the costs of an emissions-limitation program would be modest, as long as it’s implemented gradually. And committing ourselves now might actually help the economy recover from its current slump.
Let’s talk first about those costs.
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