No trade-off between net zero and economic growth, state top UK economists in letter to PM
In a letter delivered to the offices of the Prime Minister, Chancellor of the Exchequer and Secretary of State for Energy Security and Net Zero on Wednesday 4 June, leading environment economists from the University of Oxford, the University of Cambridge, and the London School of Economics and Political Science state that with careful policymaking, there is no trade-off between climate action and economic growth.
The letter was written in response to ongoing debates and interventions in British politics around the economic costs of net zero, which the authors feel have obscured the evidence and could harm Government decision making.
“Maintaining the course on net zero is the safest way to secure Britain’s long-term economic prosperity and energy security, while delivering high paid jobs and investment. There is no high-carbon path to long-term growth,” the authors affirm.
The letter is authored by some of the most recognisable names in UK environmental economics, who have previously been involved in seminal UK guidance including the Stern Review on the economics of climate change, the Commission on the Economy and Climate and the UK Climate Change Committee.
The authors are:
Professor Lord (Nicholas) Stern, IG Professor of Economics and Government and Chair, Global School of Sustainability, London School of Economics and Political Science
Professor Sam Fankhauser, Professor of Climate Economics and Policy, Smith School of Economics and the Environment, University of Oxford, and Research Director, Oxford Net Zero
Professor Cameron Hepburn, Battcock Professor of Environmental Economics, Smith School of Enterprise and the Environment, University of Oxford
Dr Anupama Sen, Head of Policy Engagement, Smith School of Enterprise and the Environment, University of Oxford
Dr Dimitri Zenghelis, Senior Advisor, The Bennett Institute, University of Cambridge and Visiting Senior Fellow, Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science.
The signatories conclude:
“We call on you to personally lead the debate on climate change and intensify the UK’s push to a more secure and sustainable future as part of a refreshed growth strategy, including by adopting the Seventh Carbon Budget recommendations. Credible policy and leadership can guide expectations and provide investors and companies with greater clarity and confidence that a low carbon future will be profitable. By reducing perceived policy risk, this also lowers the cost of capital. We must base future energy and net zero policy decisions on the plentiful economic and scientific evidence.”
