The misconception that stringent climate policies are too costly is widespread among political decision-makers and the public and an often-used argument by governments for sluggish policy making.  However, the cost argument ignores the long-term economic benefits of policy changes and is build on the decomposition of environmental impact into separate population, income, and technology effects.  This method of decomposing environmental impact calculates costs of climate policy that are far too high.  The aggregate economic assessment of climate policies in a holistic economic-ecological system shows economic growth is only initially moderately reduced by a strict climate policy.  The cost of climate policy overlooks its long-term benefits, which depend on avoided climate loss and damages.



Bretschger, Lucas. "Getting the Costs of Environmental Protection Right: Why Climate Policy Is Inexpensive in the End". Ecological Economics. Accessed January 16, 2025. https://www.sciencedirect.com/...

Posted on 16/01/25

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