Paul Krugman takes a Friday off from the financial crisis to deal with the naysayers on cap and trade. The argument goes, say some, that if cap and trade on emissions is put into place the economy will come crashing down around us — things will just be too expensive.
Krugman very plainly outlines some reasearch and a plan that says otherwise:
… the opponents of action claim that limiting emissions would have devastating effects on the U.S. economy. So it’s important to understand that just as denials that climate change is happening are junk science, predictions of economic disaster if we try to do anything about climate change are junk economics.
Yes, limiting emissions would have its costs. As a card-carrying economist, I cringe when “green economy” enthusiasts insist that protecting the environment would be all gain, no pain.
But the best available estimates suggest that the costs of an emissions-limitation program would be modest, as long as it’s implemented gradually. And committing ourselves now might actually help the economy recover from its current slump.