“A new study finds that economic liberalization is not at odds with protecting the environment. After examining 49 cases of sustained economic liberalization since 1970, economists Justin Callais, Vincent Geloso, and Alicia Plemmons found that, compared with similar countries that did not liberalize, reforming countries saw GDP per capita rise 16 percent within ten years, no effect on total greenhouse gas emissions, and a modest decline in air pollution deaths,” notes The Doomslayer.
The Daily Economy reports:
For many, economic growth and environmental protection exist in direct tension. People with this belief generate policy proposals to permit growth while protecting the environment. For others, the tension is irremediable — they believe growth necessarily destroys. For these zealots, degrowth is the only way. For both groups, liberalizing the economy — allowing for more economic growth — carries at least a risk of environmental degradation.
In recent work with Justin Callais and Alicia Plemmons, published in Structural Change and Economic Dynamics, we show that there is no reason to worry. We used 49 cases of sustained economic liberalization since 1970 and measured their effects on outcomes such as death rates from air pollution, total greenhouse gas emissions, as well as emissions per capita and per dollar of economic output. In this context, liberalization refers to the adoption of policies that promote international trade, secure property rights, and lessen fiscal and regulatory burdens.
Comparing with similar countries that did not liberalize, we found that while GDP per capita increased 16 percent within ten years for liberalizers, environmental outcomes did not deteriorate. In fact, we found that death rates from air pollution declined modestly, while there were no effects of liberalization on total greenhouse emissions. Moreover, post-2000 liberalizers actually showed signs of lower emissions per dollar of economic activity and capita.
In other words, pro-growth policies are not in tension with environmental preservation.
In many ways, the environment is actually improving. The amount of vegetation on the Earth has increased for each of the last 30 years.
Most of the world’s forests are expanding. Reforestation is offsetting the effects of global warming in parts of the U.S.
Mangrove forests are recovering. Rivers are getting cleaner in many countries, such as the Hudson, Seine, and Emscher rivers.
Rough popcornflowers have rebounded from near-extinction to 2 million plants.
A very healthy coral reef is nestled among offshore oil platforms.
Fish species rebounded off the coast of California due to their young finding a sanctuary in abandoned oil rigs.
