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The Guardian: A $20+ Carbon Tax would Boost Economic Growth

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Guest essay by Eric Worrall

From the “lets tax our way to prosperity” school of economics; According to Guardian author Greg Jericho, although it might seem like a massive carbon tax would hammer the economic recovery from Covid-19, the stimulus effect of spending all the extra revenue which would be squeezed out of the world’s taxpayers would make the carbon tax a net benefit for the economy.

Acting on climate change can get us out of recession. There are no excuses left

Greg Jericho
Sun 18 Oct 2020 06.00 AEDT

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October is generally not a good month for news on climate change.

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But acting remains imperative and this week, in its latest world economic outlook, the IMF revealed that acting on climate change will actually help us deal with the recession.

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Yes, a price on carbon.

The IMF proposes a price that starts at between US$6 and US$20 a ton of CO2 and reaches between US$40 and US$150 in 2050.

For reference, the last year of the carbon price here was $24.15.

The IMF estimates it will knock back annual GDP growth by a touch over 2% by the end of the decade. But here’s the thing, the IMF also suggests environmental measures that will boost economic growth.

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Read more: https://www.theguardian.com/business/commentisfree/2020/oct/18/acting-climate-change-can-get-us-out-of-recession-there-are-no-excuses-left

The IMF report is available here. Just in case you think Guardian author Greg Jericho is exaggerating, page 89 of the report says “… A green fiscal stimulus would support global GDP and employment during the recovery from the COVID-19 crisis and lay the ground for higher carbon prices by boosting productivity in low-carbon sectors. …”.

According to figures published by the IMF, the USA provides 17.44% of the IMF’s available reserve, just under $83 billion.

via Watts Up With That?

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October 19, 2020 at 12:40AM