Common Questions About Climate Economics Answered & What the Data Shows: Current Trends and Projections
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📚 Chapter 22 of 41
Q: Won't climate action destroy the economy?
A: Transitions create short-term disruptions but long-term benefits. Renewable energy creates more jobs than fossil fuels lose. Energy costs fall as technology improves. Many regions see net economic gains from climate action.Q: How can we afford trillions in climate investment?
A: We already spend trillions on energy infrastructure. Redirecting investment from fossil fuels to clean alternatives doesn't increase total spending. Climate damages already cost hundreds of billions annually—money better spent on prevention.Q: Do carbon taxes hurt poor people?
A: Without design considerations, yes. But carbon tax revenue can fund rebates making low-income households better off. British Columbia's carbon tax returns more to citizens than it collects. Progressive design ensures fairness.Q: What about developing countries' right to develop?
A: Clean development pathways now cost less than fossil-fuel-based growth. Renewable energy provides electricity access cheaper than extending grids. Leapfrogging dirty development benefits economies and citizens.Q: Can markets solve climate change alone?
A: No. Market failures require government intervention. Public investment, regulations, and international cooperation complement market mechanisms. Pure market solutions move too slowly given climate urgency.Economic data reveals accelerating climate costs and expanding solution markets: