Leading economists: Green coronavirus recovery also better for economy


In the aftermath of the global coronavirus pandemic, governments are likely to mobilise significant spending to reinvigorate their economies.

Our new research , based on surveys of more than 200 of the world’s most senior economists and economic officials, suggests that spending this money on climate-friendly “green” policy initiatives could not only help shift the world closer to a net-zero emissions pathway, but could also offer the best economic returns for government spending. 

The economic and human costs of the pandemic have been tragically high. It has also had huge short-term climate impacts, with the IEA predicting an 8% drop in CO2 emissions this year. If this were repeated every year this decade it would be roughly in line with a pathway to 1.5C.

However, while CO2 emissions also fell sharply during the 2008 global financial crisis (GFC), they quickly resurged on a wave of carbon-intensive stimulus spending, as governments moved to restart their economies. Numerous public figures have been urging governments to heed this lesson, pushing for post-coronavirus stimulus spending to accelerate climate action instead.

In a new study, forthcoming in the Oxford Review of Economic Policy , coauthored with Prof Nicholas Stern , Prof Joseph Stiglitz , and Dimitri Zenghelis , we explored the economic pros and cons of government spending on different post-crisis recovery policies, including some that would be climate-friendly and others that would not. 

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Leading economists: Green coronavirus recovery also better for economy

We asked 230 leading economists to rate these policies according to speed of implementation, long-term economic benefit and climate impact, ranging from positive to negative.

The respondents, including academics, senior G20 finance ministry and central bank officials, gave some of their highest ratings for climate benefit and economic outcomes to “green” measures including clean energy investment and building retrofits. In contrast, unconditional airline bailouts were rated poorly across all metrics.

The findings suggest that a post-crisis green stimulus can help drive a superior economic recovery.

Crisis recovery

Government spending can be a highly effective way to accelerate economic recovery after a major crisis. This is likely to be...

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