Economic recovery, carbon emissions and the obsessional defence

July 28, 2013 § 1 Comment

It’s a commonplace in economics that growth in GDP is a good thing. And it’s a commonplace in psychology that awkward topics of conversation will be avoided. If something upsets the status quo – expect a defence.

There are few topics as awkward as the relationship between economic growth and climate change. As economies grow, they use more energy. And sadly, neither improvements in efficiency, techno-wizardry, or a move towards renewables is likely to solve the problem. Carbon savings made in one place free up resources to be used elsewhere. This year’s efficiency improvement is swallowed up in next year’s growth. This is what is known as the rebound effect. « Read the rest of this entry »

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