The economics of climate change is simple: attaching a price to greenhouse gases.
Zero emissions by 2035, and no negative economic impact? Here is why the global climate tax works:
- GHG tax increases cost of fossil energy. The cost pressure is an incentive to become more efficient (innovation drive), as well as looking for alternatives
- Fossil energy and energy intensive products/services will become more expensive – incentive to save energy
- Regressive cash-back will increase purchase power of low-income brackets, maintain the purchase power of the middle class, and not affect the high-income brackets. More cash in the hands of the lower-income brackets equals higher spending, equals growth for local businesses
- Electricity generated form wind and the sun is cheaper than fossil generated electricity already now. The investment in renewable energy infrastructure is further lowering cost of clean energy: the energy of choice will be renewable
- The investments in the renewable energy infrastructure will create more jobs than will be lost in the fossil industry
An economic no-brainer
The economics of climate change is simple – it is an economic no-brainer. A a group of leading economists – including 25 Nobel laureates and 4 former fed heads – have already been urging the US to introduce a domestic carbon tax.
The global climate tax goes a step further – by lifting the tax to the global level, thus excluding potential economic disadvantages from countries that do vs countries that do not introduce such taxes.