US faces worst of both worlds: Paris climate agreement
In economic terms the US could end up with the worst of both worlds by leaving the Paris agreement, according to analysis currently being carried out by Cambridge Econometrics and Radboud University.
With the rest of the world committed to moving towards a 2°C target, including more efficient and electric vehicles, the relatively high-cost oil sector in the US could face substantial decline.
At the same time, by trying to delay the transition, the US will miss out on a potential stimulus from large investments in renewables, energy efficient buildings and equipment as well as accelerated innovation in new technologies.
The analysis, carried out using the E3ME macroeconomic model, shows that if the rest of the world presses on with implementing the agreement, the US’s decision to try to put a brake on the transition leaves it no less vulnerable to the economic costs and less likely to reap the benefits.
To find out more about our work on the decarbonisation transition, please contact Hector Pollitt.
Image of Donald Trump credited to the White House.