QOTD -- COVID19 Meets Climate Risk

For the better part of this year, various advocates and the World Health Organization have been making the case that accelerating climate change creates the conditions for pandemics. The Bank for International Settlements is increasingly in sync with this analysis.


As the quote below illustrates, economists are starting the technical work to explore how best to adjust various regulatory and pricing standards in order to accelerate the process by which carbon-based activities become more expensive:

It may take years before a workable framework emerges for many reasons, not the least of which is that economies and consumers are not likely to be able to absorb additional costs in the near future due to pandemic-related economic difficulties. Economists and policymakers will take the time now to consider optimal frameworks so they are ready for release when the recovery arrives.

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