America Doesn’t Have to Choose Between the Economy and the Climateby Helen Mountford and Joel Jaeger - March 06, 2017
Solar panels at Curtis H. Stanton Energy Center. Photo by OUC Reliable One/Wikimedia Commons
This post is part of WRI’s blog series, The Trump Administration. The series analyzes policies and actions by the administration and their implications for climate change, energy, economics and more.
New EPA Secretary Scott Pruitt recently said “I believe that we as a nation can be both pro-energy and jobs, and pro-environment. We don’t have to choose between the two.” While we don’t always see eye to eye with Mr. Pruitt, on this one we have common ground.
For many years, we’ve heard that economic growth and environmental protection are in conflict. However, there is growing and compelling evidence that this simply is not the case: A strong economy and a healthy environment are not only complementary, but each depends on the other.
The Economic Case for Climate Action
The negative economic impacts of environmental damage are becoming clearer. Risky Business, a project founded by Mike Bloomberg, Hank Paulson and Tom Steyer, has mapped the potential costs of climate change, finding that states like Missouri and Illinois risk up to a 70 percent decline in average annual crop yields by the end of the century due to rising temperatures. Billions of dollars of property in states like Florida and California will likely be underwater by midcentury. And it is not just climate change that poses a cost to our economy and our communities. Nationwide, the health impacts of air pollution are estimated to be equivalent to 4 percent of GDP each year. By acting now, we can avoid increasing costs down the road.
But it’s not just about preventing risks. Climate action can actively benefit the economy, according to new work from the New Climate Economy. The key drivers of economic growth – resource efficiency, infrastructure investment and innovation – can be harnessed to reduce greenhouse gas emissions. It’s a logical connection: a more efficient economy is a more productive economy, and a more efficient economy also emits less carbon.
The economic case for climate action is only becoming stronger as time goes on and the costs of clean energy and other technologies continue to drop. Since 2008, the cost of utility-scale solar energy in the United States has fallen 64 percent and the cost of wind energy has fallen 41 percent, making them increasingly cost-competitive with traditional fossil fuel power, even without subsidies. Even without considering the air pollution and climate benefits, clean energy makes economic sense.
The US Is Decoupling Economic Growth from Carbon Emissions
Many U.S. states are already proving that it is possible to have a strong economy and a strong environment. Thirty-three states and the District of Columbia expanded their economies while reducing energy-related carbon emissions from 2000 to 2014, according to Brookings. This includes red states like Kentucky, Alaska and Georgia, as well as blue states like California, New York and Massachusetts. This is an economic issue, not a political one.
As a whole, from 2000 to 2015, the United States grew its GDP by 30 percent while reducing its energy-related emissions by 10 percent.