Stating the Obvious: carbon cuts "could hurt economy"

Herald Sun

Herald Sun

But hang on… surely this wonderful new green economy will create thousands of jobs, billions of dollars of investment, and everything in the environmental garden will by rosy, right? That’s what we’ve been told over and over again by the Rudd government, despite the fact that a bit of common sense would tell you that taxing energy will cause huge damage to any economy. Seems that it takes this long for the media to catch up with common sense:

IMF experts say the global economy stands to benefit from action against climate change, but warn that aggressive curbs on emissions could jeopardise the recovery without careful planning.

Days before a major climate summit gets underway in Copenhagen, the experts at the International Monetary Fund said a global pact would help the world’s poorest who face the worst effects of rising temperatures.

“Greater climate resilience can promote macroeconomic stability and alleviate poverty,” Michael Keen and Benjamin Jones of the global lender’s fiscal affairs department wrote in a staff position note.

But they also called for caution. They warned that sudden, large hikes in the costs of carbon emissions blamed for global warming could generate “unwelcome pressures on production costs and household incomes, thus dampening prospects for recovery”.

Preventing developing countries from using fossil fuels will consign millions if not billions of people back into a life of poverty – it’s a simple as that. There is no green economy panacea – it’s a myth.

Read it here.


  1. Gosh, Simon – I believe you’re got a point about the “Green Jobs” issue:

    Kevin Rudd said so during a brief overseas trip to Australia back in July…

    Christine Milne said so …

    Sharan Burrow said so (1 million green jobs)…

    Even the Member for Goldman Sachs had a bob each way on the issue:
    Mar 2009 (Con):
    Aug 2009 (Pro):

    I mean – none of them would tell porkies … would they??

  2. rukidding says:

    What seems to get lost here is that it is a Carbon Pollution Reduction Scheme.Which means it is designed to reduce our CO2 emissions.
    Seeing how almost,no, everything we do emits CO2 it is only logical if we reduce our emissions we reduce our living standard.

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