Ten Myths of Addressing Global Warming and the Green Economy

The debate on policy responses to climate change is fueled by an array of myths, ranging from assumptions that high carbon taxes will generate needed clean innovations to the belief the U.S. is the natural leader in the clean energy sector. If we are to effectively address climate change while at the same time become globally competitive in the clean energy industry, policies need to be guided by careful and reasoned analysis.

In the report ITIF dismantles the top ten myths in the debate, which are:

1. Higher prices on greenhouse gases are enough to drive the transition to a clean economy
2. The U.S. can make major contributions to solving climate change on its own
3. Cap-and-trade is a sustainable global solution
4. We don’t need innovation; we have all the technology we need
5. “Insulation is enough” (e.g. energy efficiency will save us)
6. Low growth is the answer…just live simply
7. Information technology (IT) is a significant contributor to climate change
8. Going green is green (e.g., it makes economic sense to go green)
9. We are world leaders on the green economy, and it’s ours for the taking
10. Foreign green mercantilism is good for solving climate change (and good for the U.S.)