“Green” Is Not an Economic Growth Strategy
Many governments, particularly in the West, have put the green transition at the center of their policy agendas.
However, as Robert Atkinson writes for Research Money, organizing national economic policy around green growth is not the path to Canadian growth, no matter how noble such a goal sounds.
Canada must consider how technology drives productivity growth, whether energy production has a higher value-add per work hour than the national average, and if the nation can gain an advantage in exporting a particular clean energy product or service. Finally, policymakers must remember that the climate benefits to Canada from its green growth expenditures are likely to be small, while the costs are not.
Nations should still work to develop clean energy alternatives. However, the best way to spur widespread decarbonization is to ensure that it's cheaper than dirty energy, which requires clean energy innovation and research. The best thing Canada can do to help with global climate change is to reach its Mission Innovation target by doubling its clean energy R&D.
