The Climate Change Objection to Economic Growth

Abstract

This book argues for increased economic growth as a cure for poverty. This chapter responds to the objection that such growth is unacceptable because it leads to dangerous climate change. The authors agree that such growth will lead to climate change, that such climate change is dangerous, and endorse a carbon-tax scheme that allows sufficient growth to address global poverty. Two objections to this view are discussed. The first holds that growth should be stopped as much as possible. However, this ignores the fact that dangerous climate cannot be prevented, and the extent of suffering by the world’s poor because of a lack of growth. The second objection wants to reduce growth in rich societies, but not poor societies. But this overlooks the fact that different economies are intertwined, so that a reduction in growth in a rich country can often disproportionally harm poor countries.