• By The Financial District

ANALYSTS ARGUE GREEN NEW DEAL IS MORE AFFORDABLE

Economist Robert Pollin of the University of Massachusetts at Amherst has debunked the claim of critics of the Green New Deal that it is expensive and not viable in the long-term, saying the shift to clean energy is profitable in the long run, C. J. Polychroniou reported for Truthout.

Pollin said the global economy must spend an average of $4.5 trillion per year (or 2.5 percent of global GDP) between 2024 and 2050 in clean energy investments to meet the 2050 Intergovernmental Panel on Climate Change (IPCC) emissions reduction target.


The International Renewable Energy Agency (IREA) puts the figure at $4.4 trillion per year, Polychroniou reported. Mark Jacobson, one of the authors of a Green New Deal energy study published in the journal One Earth, the world will spend around $13 trillion per year on energy by 2050 if we are still reliant on fossil fuels, but the cost drops to $6.8 trillion if we are using clean, renewable energy.


Trillions of dollars will also be saved each year in health costs, because the Green New Deal would reduce toxic air and water pollution, which are now responsible for millions of deaths annually.


In addition to staving off the worst effects of global warming, the transition to a clean energy economy through the Green New Deal will also boost economic growth by creating millions of new, well-paying jobs in manufacturing, construction, energy, sustainable agriculture, engineering, and other sectors of the economy.


Moreover, between 2016 and 2020, the world’s largest banks have put collectively $3.8 trillion into fossil fuel companies, a development which may perhaps be the best indication of the toothless design behind the Paris climate accord and why it is naïve and dangerous to rely on the “invisible hand” of the market either for economic transformation or for a solution to the problem of climate change.


Indeed, as climate economist Nicholas Stern put it more than a decade ago, greenhouse gas emissions “represent the biggest market failure the world has seen,” Polychroniou concluded.



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