Environment & Climate Change

The Inflation Reduction Act, to which Sen. Joe Manchin and Majority Leader Chuck Schumer agreed Wednesday, is what the country needs now. It will help address one of the world’s biggest long-run challenges, climate change, while making progress on inflation. At the same time it will help protect the most vulnerable by extending tax credits for healthcare.

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.

In this edition of Columbia Energy Exchange, host Jason Bordoff and Professor Joseph Aldy explore the role of climate-change and broader environmental policy in the U.S. federal government’s emergency economic stimulus funding package.

Environmental economists from Harvard, Yale, and other leading research institutions say an Environmental Protection Agency (EPA) proposal that would eventually allow more mercury pollution from power plants relies on a cost-benefit analysis that is fatally flawed. In a new report, the economists detail how the EPA’s calculations inappropriately fail to consider how reducing mercury pollution provides tens of billions of dollars in health benefits to the American people.

Professor Joseph E. Aldy served as a a co-chair and author of this December 2019 report, which was commissioned by the External Environmental Economics Advisory Committee (E-EEAC).