Strict regulations on corporations could harm the economy
Imposing stringent green regulations on corporations, combined with price controls on their outputs, could lead to widespread corporate collapse.
While a few successful corporations might manage the costs of a green transition through gradually enforced regulations, many other corporations and small businesses are merely surviving. These businesses cannot absorb the additional expenses without significant financial strain.
If corporations are not permitted to increase their prices to cover these inherent costs, many will face bankruptcy, leading to the loss of millions of jobs and widespread economic hardship.
Alternatively, allowing corporations to pass on these costs through price increases would lead to sharp rises in the costs of renewable energy, electric vehicles, food, and other essentials, disproportionately affecting those who cannot afford such increases.
Imposing such draconian legislation without careful consideration would likely harm the most vulnerable, potentially triggering a political backlash and resulting in the reversal of green policies. This concern has led governments to impose only moderate regulations on corporations thus far—measures that have had limited success in reducing carbon emissions.