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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
Sun 18 Oct 2020 06.00 AEDT
October is generally not a good month for news on climate change.
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.
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.
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.