Pollution is not the solution.Cross-posted from Real Climate Economics.
Paul Krugman’s column in The New York Times Thursday laments one of the many ironies of our time: Politicians in Washington are finally talking about job creation, but Republicans (and some Democrats, I’m sure) pin their hopes for employment on environmental deregulation. As Krugman points out, “Serious economic analysis actually says that we need more protection, not less.”
By serious economic analysis, Krugman means peer-reviewed articles published in academic journals over the last few decades that have probed the relationship between environmental regulations, employment, and economic growth. He doesn’t mean the American Petroleum Institute’s latest report that purports to show job growth potential through … wait for it … relaxing restrictions on oil and gas extraction. He means the latest findings by Yale University economist William Nordhaus, published in the American Economic Review [PDF], the top-ranked journal in economics, that finds that the economic cost of air pollution exceeds the value added of coal-fired electric generat... Read more