Friday, May 1, 2009

Krugman on Cap & Trade

From yesterday's NY Times.

and here's an alternative perspective from Vaclav Klaus (President of the Czech Republic) over at Real Clear World.

1 comment:

Kendyll Goeman said...

Krugman’s “An Affordable Solution” was interesting because it addressed the effects that the emission regulations would have on the environment AND the economy. The EPA and environmental research groups at M.I.T stated that the emissions reduction would only cut consumption by 2% (in 2050). Krugman pointed out that the emissions plan would resuscitate the economy, not the environment as most would think. New incentives for industries may be just enough to boost the economy, increase spending confidence, and raise revenue circulation. Krugman did not delve into what would happen with a boosted economy. A boosted economy may increase revenue flow; more money in society’s pockets may raise the demand for more expensive, environmentally friendly products. Klaus, however, does not believe in green jobs, etc., but he believes that economic growth increases energy use, thus harming the environment. I would have to side with Krugman’s facts and figures. The environment will benefit when the economy benefits.