In order for our survival as a species we must tackle the climate crisis. On the other hand our economy is also crucial for our survival as a species. Economies create jobs, businesses and generate taxes for the government. The climate ensures that we can continue to live on this planet without succumbing to cold, asphyxiation and many more elements that would kill us.
The economy and the climate seem to be chained together. If you choose one over the other, the latter one will crumble. For decades now politicians and world leaders have elected to choose the economy, because people are more concerned with how much they have in their pocket than the climate.
Do we really need to choose between the economy and the climate?
How are they Linked?
To be able to answer this question as well as possible we need to understand how the economy and the climate are linked. First of all climate changes pose major risks towards several economic sectors such as agriculture, forestry, fisheries and tourism. When temperatures rise and the rainfall patterns become altered it can have an impact on crop yields. Which eventually could lead to less crops being produced and therefore prices of food would increase.
The production and the consumption of energy are also very central to economic activity. Fossil fuel combustion in order to produce energy is a large contributing factor to the greenhouse effect. In order to transition to cleaners and more renewable sources of energy large investments have to be made. Not just in terms of money, but people being willing to change their lifestyles as well.
These are two of the many examples of how the economy and the climate are linked together.
Energy
Many things about your everyday life are decided by energy. The most common source of energy we currently use are fossil fuels. Why do we use fossil fuels more than any other energy source? They are cheaper to use than solar energy for example. Of the many things about your everyday life that are decided by energy are: What car you drive, the temperature of your house, the food you eat and how cheap businesses can produce their products.
What car you Drive
Electric cars have become the car that you should drive ideally to stop carbon emissions from increasing more and more. The only problem is that only a certain percentage of the population can afford an electric car. The cheapest Tesla cost 120.000 dollars when this article was written on June 22 2023. Another problem with electric cars is that the parts that are needed for producing an electric car, for example lithium, are really dangerous to mine.
Miners who take on the enormous risk of mining lithium can according to https://nj.gov/health/eoh/rtkweb/documents/fs/1119.pdf suffer from several side effects. The side effects are loss of appetite, vomiting, nausea, diarrhea, abdominal pain, headaches, muscle weakness, twitching, blurred vision, loss of coordination, tremors, confusion, seizures and coma. It is also not cheap to mine lithium, because according to the New York Times it costs approximately between 5.000 and 8.000 dollars to produce one ton of lithium.
Food
The kind of food that you eat is also controlled by energy. This is, because all of the food that you eat cannot be farmed in the place where you reside. It is simply not possible to farm Oranges in New York due to the climate and other obstacles. For example Oranges thrive in well-drained soil with specific pH levels. New York soils, particularly in certain regions, may not be naturally suitable for growing oranges, requiring significant soil amendments and management practices.
Therefore in order to get you your orange when you live in New York they are either flown in by plane or transported by a transport boat. Electric planes have not been invented yet and the electric boat engines that exist are not powerful enough to power a large transport boat. When the oranges have arrived at a storage unit either at an airport like JFK or a port nearby they are transported with a truck to your grocery store.
Businesses
Finally, businesses produce many of their goods in factories. These factories are powered by energy produced most commonly by fossil fuels. Now you may be thinking why are these factories powered by fossil fuels when the companies who own them are based in America? The answer is quite simple, actually it is cheaper to have a factory in India than the USA, because you don’t have to pay fines for the amount of carbon dioxide you release into the atmosphere. At the same time You don’t have to abide by the same strict laws when it comes to working conditions and wages. Finally you can use the cheapest and easiest energy source on the planet fossil fuels without being harassed.
Travelling
During the pandemic that lasted between 2020–2022 many of us really got to appreciate travelling. The lockdowns were tiresome and grotesque, but we all agreed to tough it out to save lives. Before we pandemic those of us who had enough money to travel regularly did so for a relatively cheap price. All this thanks to the cheap cost of fossil fuels and cheap airline tickets.
If we were instead to put more of an emphasis on putting the climate first, travelling will become much more expensive. It will also take much longer to travel from place to place. Having to take the train from Los Angeles to Miami isn’t as fast as boarding a plane. Finally the amount of experiences we will have will also become fewer due to the fact that travelling abroad or even nationally will become less frequent.
How does this relate to the Economy?
The link between the economy and the climate is undeniable, and the choices we make regarding one inevitably impact the other. Ignoring the climate crisis in favour of short-term economic gains is a dangerous path that ultimately undermines both our environment and our long-term economic stability.
Addressing the climate crisis presents numerous economic opportunities. Transitioning to cleaner and more renewable sources of energy, such as solar and wind power, requires significant investments and innovation. This shift can create new industries, generate jobs, and stimulate economic growth. The renewable energy sector has already shown promising signs of contributing to job creation and economic development in many countries.
Moreover, investing in climate resilience and adaptation measures can protect economic sectors vulnerable to the impacts of climate change. For example, agricultural practices can be adapted to changing rainfall patterns, reducing the risk of crop failures and ensuring food security. By embracing sustainable practices, such as responsible resource management and circular economy principles, businesses can reduce their environmental footprint and enhance their long-term viability.
Transitioning to a low-carbon economy also mitigates the financial risks associated with climate change. As extreme weather events become more frequent and severe, businesses and governments face increasing costs related to infrastructure damage, insurance claims, and disaster recovery. By proactively investing in climate mitigation and adaptation, we can reduce these costs and safeguard our economic stability.
Additionally, global efforts to combat climate change create opportunities for international cooperation and collaboration. Through initiatives like the Paris Agreement, countries can work together to share knowledge, technologies, and resources, fostering economic partnerships that transcend national borders.
While there may be short-term costs associated with prioritizing the climate, the long-term benefits far outweigh them. Choosing the climate over the economy is not a zero-sum game. By taking decisive action to address the climate crisis, we can build a more sustainable and resilient economy that benefits current and future generations.
It is important to acknowledge that the transition to a sustainable economy must be inclusive and equitable. As we pursue climate solutions, we must ensure that vulnerable communities and workers in carbon-intensive industries are not left behind. Policies and programs that support retraining and job placement in green industries can help alleviate the social and economic impacts of the transition.
Ultimately, it is not a matter of choosing between the economy and the climate, but rather finding a balance that prioritises long-term sustainability and resilience. By embracing the economic opportunities presented by addressing the climate crisis, we can build a prosperous future while safeguarding the planet for generations to come.
Opposing Perspectives
In Carolyn Kormann’s article “The False Choice Between Economic Growth and Combatting Climate Change,” she criticizes the notion that there is an inherent conflict between economic growth and combating climate change. Kormann challenges the idea that transitioning to a sustainable, low-carbon economy would necessarily impede economic development.
Kormann argues that the transition to a “spaceship economy,” where resources are used more sustainably and the environmental impact is addressed, can actually be conducive to economic growth. She points out that advancements in clean energy technologies and the development of new industries related to renewable energy can create jobs and stimulate economic activity.
Moreover, Kormann suggests that the costs of climate mitigation should be weighed against the benefits. She highlights the economic advantages that can be derived from mitigating climate change, such as improved productivity and reduced health risks from air pollution. By considering the broader economic and societal benefits, she asserts that the cost-benefit analysis of climate change mitigation becomes more favorable.
Kormann also emphasizes the importance of incorporating renewable energy sources and implementing effective policies and regulations. She argues that a combination of strategies, including a carbon tax, incentives, and government subsidies, can accelerate the transition to a low-carbon economy without sacrificing economic growth.
Overall, Kormann challenges the idea that economic growth and combating climate change are mutually exclusive. She advocates for a more nuanced approach that recognizes the potential economic benefits of sustainable practices and the need for strong policy measures to drive the necessary transitions.
Conclusion
In conclusion, the intertwined relationship between the economy and the climate demands a balanced and proactive approach. It is crucial to recognize that choosing between the economy and the climate is a false dichotomy that overlooks the potential synergies and benefits of addressing both simultaneously.
The economy and the climate are inherently linked, and the choices we make in one domain inevitably impact the other. By prioritizing short-term economic gains at the expense of the climate, we risk jeopardizing our long-term economic stability and the well-being of future generations. However, addressing the climate crisis presents significant economic opportunities.
Transitioning to cleaner and renewable sources of energy, investing in climate resilience and adaptation measures, and embracing sustainable practices can drive economic growth, create jobs, and reduce financial risks associated with climate change. The renewable energy sector has already demonstrated its potential for job creation and economic development.
Moreover, global efforts to combat climate change foster international cooperation and collaboration, enabling countries to share knowledge, technologies, and resources. By working together, we can build economic partnerships that transcend national borders and pave the way for a more sustainable future.
While there may be short-term costs involved in prioritizing the climate, the long-term benefits far outweigh them. It is essential to view the transition to a sustainable economy as an inclusive and equitable endeavor, ensuring that vulnerable communities and workers in carbon-intensive industries are not left behind. Policies and programs that support retraining and job placement in green industries can help mitigate the social and economic impacts of the transition.
Ultimately, finding a balance between the economy and the climate is key. By embracing the economic opportunities presented by addressing the climate crisis, we can forge a prosperous future while safeguarding the planet for generations to come. It is a collective responsibility to take decisive action, prioritize sustainability, and create a resilient and inclusive economy that benefits both people and the environment.
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