Fighting Global Warming: Problematic Economic Implications

The shift to a low-carbon economy is moving slowly—even in countries committed to addressing climate change. This is not due to a lack of awareness, but to the high cost of cutting emissions, especially for low-income households. Policymakers face a real dilemma: how to advance climate goals without placing too much financial strain on lower- and middle-income families or risking job losses. Achieving net-zero emissions is not just a technical challenge—it is fundamentally an economic one.

Addressing this issue requires a clear analysis, beginning with the rejection of unrealistic regulatory proposals. Although the problem is complex, it is essential to first establish some fundamental economic principles before exploring practical solutions.

Strict regulations: depending on technological breakthroughs

Climate regulations have faced pushback due to their economic costs. Still, there is hope that new technologies will soon offer cheaper alternatives that can outperform fossil fuels. The key question is whether these innovations will arrive in time to counter the accelerating effects of global warming.

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As progress rests on technological breakthroughs, the final pages will reference The Green-Market System, a book that presents an innovative monetary solution to encourage both consumers and corporations to embrace the transition to a carbon-free economy.