The former U.S. first lady Eleanor Roosevelt once said: “It takes as much energy to wish as it does to plan.” American politicians would do well to devote their energies to planning a sound long-term energy strategy, as opposed to wishing the issues would go away.
The U.S. is the largest oil producer in the world and the second largest source of global greenhouse gas emissions. U.S. oil and gas output hit a record high last year. Fossil fuels remain the country’s dominant source of electricity, accounting for more than half of total generation this year. Job growth related to U.S. fossil fuel production far outpaced that for renewable energy in 2023.
In the 2020 election, Joe Biden positioned climate as a major crisis. When elected, he followed through with several steps. The most notable of these was the Inflation Reduction Act of 2022, which included hundreds of millions of dollars in clean-energy tax credits and measures to encourage the sale of electric vehicles (EVs).
In this year’s contest, former President Trump and Vice President Harris share the twin goals of lowering energy costs and boosting jobs in the sector. But the two of them have completely different takes on the energy transition and climate risks.
Harris seeks to build on the Biden administration’s policies, favoring an expansion of renewable energy. Her policies will include consumer incentives for purchase of domestically-produced EVs and investments in charging stations, along with clean-energy tax credits. However, she has retracted her past support for the progressive Green New Deal proposal and a fracking ban.
On the other side, a Trump presidency would de-emphasize programs to manage climate change. He plans remove restrictions on new fossil fuel exploration to increase supply and lower energy costs. During his four years in office, Trump rolled back more than 125 environmental protection rules. He intends to repeal all of the conservational regulations put in place by the current administration. Trump could also cut tax credits for electric vehicles.
The former president pulled America out of the Paris climate accord during his tenure. He promises to not only withdraw from the agreement again, but also from the United Nations convention on climate change. The realignment could render global climate goals out of reach.
The consequences of climate change are growing. 2023 was the warmest year on record in the U.S. The country witnessed 28 extreme weather events, causing $95 billion in damage and displacing 2.5 million Americans. Warmer sea temperatures added to the strength and persistence of Hurricanes Helene and Milton this year. Insurers took a large hit, losing money on homeowners' coverage in 18 states across the nation.
The costs from climate change are rising.
The economic consequences are only going to compound with time. Disruptions related to climate change will lead to higher inflation and lower growth. According to the Office of Management and Budget, uncontrolled climate change could cost the U.S. economy up to $2 trillion annually, with additional expenditures of $128 billion per year to cover factors like disaster risks and insurance. Food inflation alone could rise by as much as 3 percentage points a year.
The First Lady from Hyde Park was a staunch environmentalist who highlighted the importance of respecting nature. In the current day, the ecology and the economy are inextricably linked. Policy must seek to preserve both for future generations.
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