CLIMATE CHANGE AND RECESSION: A LETTER TO THE ECONOMIST (October 22, 2008)

It is hard to disagree with your warning that “a deep recession would be a big challenge for the European Union” (“Bad Times Ahead,” October 18, 2008). Indeed, most countries of the club would be fighting their own corners, thus weakening the solidarity of the club. As you warn, one early casualty would be the Union’s plans to fight climate change, a pact of solidarity between generations, as agreed in March 2007. Silvio Berlsuconi is already questioning the deal by saying that this is no time for Europe to play Don Quixote by tackling climate change alone. Many European leaders will agree with him, albeit not necessarily overtly. But it is good to point out that there is a silver lining here, as well. Namely, a deep recession would also mean lower emissions. Although it is anyone’s guess how a drop in production would be offset by laxer rules on pollution, the future does not bode as ill in this regard as in many others.

Addendum (September 21, 2009)

According to today’s online edition of Financial Times, the newest study of the International Energy Agency shows “an unparalleled fall in greenhouse gas emissions.” In short, the silver lining I mentioned in passing less than a year ago is with us already. But the IEA’s call for more of the same is certain to fall on deaf ears. Emissions, what emissions?