When it comes to global warming we associate the phenomena with large disasters. We expect to see low lying cities wake up under fifteen feet of water overnight. While their are some dramatic weather effects, this overlooks the impact of carbon emissions on the economy. Simply put we are stuck in recession because we are paying the price for environmental damage.
A recent government study estimated the cost of CO2 emissions at $63 per ton. Also according to the US government each ton of CO2 produces around $2250 in economic activity. In other words each ton of carbon imposes a 2.8% tax on the economy. A tax is perhaps a bad term as tax implies somebody is getting the money. Instead C02 vaporizes money by reducing the rate at which it is spent.
U.S. GDP grew at 3.2% in the forth quarter of 2010. This is a problem as natural population growth should be keeping the economy growing at around 3%. Coming out of a recession we would like to see the economy chugging along at 5% or more.
3.2% + 2.8% = 6% You want to know where the jobs are, they are literally going up in smoke.