The False Economy of Climate Cuts: A Risky Gamble for the Future

The proposed climate cuts are not just about saving money; they represent a fundamental shift in how the nation addresses the growing threat of climate change. By undervaluing the social cost of carbon and dismantling environmental regulations, the administration risks saddling future generations with the immense financial burden of a warming planet. These actions, framed as economic wins, may ultimately prove to be a costly miscalculation.

Undermining the Social Cost of Carbon

A central point of contention lies in the administration's approach to the "social cost of carbon," a metric used to estimate the economic damages resulting from each ton of carbon dioxide emitted into the atmosphere. The Trump administration significantly reduced this valuation, signaling a disregard for the long-term economic consequences of climate change. This move makes it exceedingly difficult to enact new rules slowing climate change and its growing costs in the future. Some experts argue that this downplaying of climate change costs serves a political agenda, allowing for deregulation and increased fossil fuel reliance under the guise of economic benefit.

However, climate scientists and economists caution against dismissing the social cost of carbon altogether. While debates exist regarding the precise calculations, the underlying premise remains: carbon emissions have real and quantifiable economic repercussions. Uncertainty in predicting future climate impacts does not negate the existence of these costs.

Deregulation and Environmental Rollbacks

Beyond the social cost of carbon, the administration has actively rolled back numerous environmental regulations, arguing that they hinder economic growth. These rollbacks span various sectors, including clean air and water protections, wildlife conservation, and toxic chemical regulations. While proponents claim these actions free businesses from unnecessary burdens, critics argue they prioritize short-term profits over long-term environmental and economic sustainability.

For example, claims made by the Trump administration regarding Superfund hazardous waste clean-ups have been called misleading. While the administration touted completing more clean-ups than previous years, data suggests otherwise.

The Real Costs of Inaction

The potential economic consequences of climate change are far-reaching. Rising temperatures, extreme weather events, and sea-level rise can disrupt industries, damage infrastructure, and displace communities. A failure to adequately address these challenges could lead to significant economic losses in the long run.

The Rhodium Group, a climate and economic research firm, projects that demand for power could increase as much as 9% on average nationwide within the next 15 years, due to warming alone, and that by later this century people will be paying as much as 20% more for their power than they would if the climate were not warming, especially in parts of Texas and the South. Extreme heat and humidity are also making it more difficult to work, cutting into both household incomes and company profits as temperatures limit both the number of hours people can labor outdoors and the efficiency of the work they do.

A Global Perspective

The United States isn't alone in grappling with climate change. Many nations are investing heavily in renewable energy and sustainable development, recognizing the economic opportunities in a green economy. By retreating from climate action, the U.S. risks falling behind in the global race for clean energy leadership.

Countries that have prioritized their people above their arms industry's profit margins are outpacing the U.S. in health, education, infrastructure, economic competitiveness and overall quality of life.

The Future Under Threat

The long-term implications of the administration's climate policies are significant. By prioritizing short-term economic gains over long-term sustainability, the nation risks jeopardizing the health, prosperity, and security of future generations. The false economy of climate cuts may ultimately lead to a far more expensive and challenging future.