At a time when their economies are sputtering, European leaders have embraced the bizarre idea of further reductions in greenhouse-gas emissions. There is a strong correlation between carbon emissions and GDP growth, so, in the absence of alternatives to fossil fuels, Europeans are, in effect, calling for a deeper recession.
SÃO PAULO – In a heroic case of finding a silver lining in the bleakest of all situations, the European Union climate commissioner has concluded that the global economic crisis and recession actually provided a lucky break for everyone.
Commissioner Connie Hedegaard says that the slowdown in economic activity will make it easier for the EU to achieve its 2020 goal of ensuring that greenhouse-gas emissions are 20% below their 1990 level. In fact, Hedegaard believes that cutting emissions has become so easy that European leaders should be more ambitious and unilaterally aim for a 30% reduction below the 1990 level – an idea that has won support from David Cameron’s new British government.
This may seem like good news, but it is not, because there is a strong correlation between economic growth and carbon emissions. For almost all countries, higher emissions come from higher growth rates. And if you restrict carbon emissions without providing affordable alternative energy sources, GDP will falter. In other words, by advocating even deeper cuts in emissions, Hedegaard is, in effect, calling for an even deeper recession.
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SÃO PAULO – In a heroic case of finding a silver lining in the bleakest of all situations, the European Union climate commissioner has concluded that the global economic crisis and recession actually provided a lucky break for everyone.
Commissioner Connie Hedegaard says that the slowdown in economic activity will make it easier for the EU to achieve its 2020 goal of ensuring that greenhouse-gas emissions are 20% below their 1990 level. In fact, Hedegaard believes that cutting emissions has become so easy that European leaders should be more ambitious and unilaterally aim for a 30% reduction below the 1990 level – an idea that has won support from David Cameron’s new British government.
This may seem like good news, but it is not, because there is a strong correlation between economic growth and carbon emissions. For almost all countries, higher emissions come from higher growth rates. And if you restrict carbon emissions without providing affordable alternative energy sources, GDP will falter. In other words, by advocating even deeper cuts in emissions, Hedegaard is, in effect, calling for an even deeper recession.
We hope you're enjoying Project Syndicate.
To continue reading, subscribe now.
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