https://quillette.com/2022/07/27/green-dreams-inflationary-realities/
We must find ways to combat climate change without incurring devastating inflation, greater class division, the immiseration of the middle class, and the destitution of the poor.
Global policy and politics, particularly in the high-income world, have been obsessed with dreams of a green economy. Imposing ever-more rigid methods to reduce greenhouse gas emissions as the way to “save the planet” is almost unchallenged in the media, academia, and corporate boardrooms of the developed world. The results on the ground have been less convincing, as the price of everything—from energy and food to construction costs—rises to unsustainable levels and international trade slows as global recession looms. Billions now face immiseration, malnutrition, or starvation. Economist Isabel Schnabel calls this process “greenflation”—companies’ efforts to reduce emissions have driven up prices, particularly since the Russian invasion of Ukraine.
This has caused tremendous price pressure on rare earths, copper, and other materials critical to the production of batteries. The green lobby and its media supporters, meanwhile, like to claim that renewable energy is now economically competitive. But in places where strict green energy policies have been introduced, people end up with skyrocketing energy costs. In California, residents pay up to 80 percent above the US national average for electricity. Reliance on wind power has made even Texas’s grid vulnerable. Rather than learn from these experiences, other states, notably New York, have decided to adopt similar policies.
