Reducing Carbon Emissions Could Help -Not Harm- US Economy

Robert Repetto, professor in the practice of economics and sustainable development at the Yale School of Forestry & Environmental Studies has put together a website that reviews 25 of the leading economic models used to predict the economic impacts of reducing emissions. And he says a national policy to cut carbon emissions by as much as 40 percent over the next 20 years could still result in increased economic growth.

"As Congress prepares to debate new legislation to address the threat of climate change, opponents claim that the costs of adopting the leading proposals would be ruinous to the U.S. economy. The world's leading economists who have studied the issue say that's wrong -- and you can find out for yourself," says Repetto.

The interactive website, synthesized thousands of policy analyses in order to identify the seven key assumptions accounting for most of the differences in the model predictions. The site allows visitors to choose which assumptions they feel are most realistic and then view the predictions of the economic models based on the chosen assumptions.

Among the key optimistic assumptions are that renewable energy technologies will be available at stable or increasing prices; that higher fossil fuel prices will stimulate energy-saving technological change; that reducing U.S. carbon emissions will reduce economic damages from climate change and air pollution; and that the United States will incorporate international trading of emission permits into its national policy.

Growth rates of the U.S. Gross Domestic Product (GDP) have been 3 percent per year over recent decades. With emissions reduced by 40 percent below projected business-as-usual trends, even under most pessimistic assumptions the GDP would grow 2.4 percent a year, reaching $23 trillion by 2030, according to the website's predictions. Under the most favorable assumptions, GDP would rise slightly above 3 percent a year.

"The website shows that even under the most unfavorable assumptions regarding costs, the U.S. economy is predicted to continue growing robustly as carbon emissions are reduced," said Repetto. "Under favorable assumptions, the economy would grow more rapidly if emissions are reduced through national policy measures than if they are allowed to increase as in the past."

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Build Green Today for a Cheaper Tomorrow!

Building "green" is the fastest way to cut carbon emissions in North America, says the Commission for Environmental Cooperation (CEC). The Commission issued a report today from its Vancouver meeting detailing how rapid market uptake of currently available and emerging advanced energy-saving technologies could result in over 1,700 fewer megatons of CO2 emissions in 2030, compared to projected emissions that year following a business-as-usual approach. A cut of that size would nearly equal the CO2 emitted by the entire US transportation sector in 2000.

The report, Green Building in North America: Opportunities and Challenges, is the culmunation of a 2 year study by the CEC Secretariat. An international advisory panel of architects and developers, sustainability and energy experts, real estate appraisers and brokers, along with governmental officials oversaw the effort. John Westeinde, chairman of the advisory panel, believes the increased construction costs will begin to be paid back immediately.

"The investments made for climate change benefit in buildings have direct payback, generally from the point of view of reduced energy costs and water costs as well the indoor health environment and increased productivity of the inhabitants of those buildings," he said in an interview with Reuters

ScienceDaily has a very good breakdown of the report numbers here. I'll post the US numbers.

In the United States, buildings account for:

40 percent of total energy use;
12 percent of the total water consumption;
68 percent of total electricity consumption;
38 percent of total carbon dioxide emissions; and
60 percent of total non-industrial waste generation.

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