As the climate crisis continues to pose a global threat, top economists are debating its effects on the U.S. economy.
Mark Zandi, chief economist at Moody’s Analytics, predicts that “physical risks” will represent the largest economic cost over the next 10 to 20 years. This is the damage caused by natural disasters, which occur more frequently today. Zandi also predicts that the transition costs associated with moving from an economy dominated by fossil fuels to an economy driven by green energy will take a toll on the U.S. economy.
Jeffrey Sachs, an economics professor at Columbia University, says he is more focused on how the transition to clean energy will be possible around the world within the next 25 years.
“How can the whole world achieve a clean energy system?” Amelia asked. “Because if the US does it and the others don’t, forget it. This does not stop the global crisis.”
But former US Labor Secretary Robert Reich complains that not all countries have the wealth to invest in the transition to green energy. “It is the poorest countries that have the most difficulty adapting,” according to Reich.
Nouriel Roubini, professor of international business and economics at New York University, says there will be pressure from stakeholders and society to make a green transition.
“We need to bring communities, workers, public and private institutions together to create value in a more collective, better and purpose-driven way,” said Mariana Mazzucato, a professor at University College London.
Watch the video above to see how top economists predict the climate crisis will affect the U.S. economy.