Carbon regulations cannot burden the poor

In Short

Carbon regulations should relay subsidy programs, which may be phased out as the green market expands.

A Few Details

Carbon regulations, with punishing carbon pricing (i.e., penalties on fossil fuels to reduce the price gap with green products) and strict energy-efficiency regulations (i.e., rules to impose the purchase of net-zero products) can’t go too fast and too far, as corporations can’t adapt their production overnight. Any sudden restrictions could hurt businesses unless they pass costs onto customers, with severe repercussions for the economy and employment.

Without cheap green products, governments are reluctant to enforce punishing strategies. They fear the election of radical opponents by workers feeling already left-behind from economic growth for decades. It makes governments rather passive to accelerate the green transition. Instead, they wait for prices of green products to go lower.

More Info