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Going Greener Won't Cut Much* Into Bottom Line: Study

*If governments are smart with policies

By Caroline Zimmerman,  Newser User

Posted Apr 3, 2008 7:54 PM CDT

(Newser) – Cutting greenhouse-gas emissions will put a dent in the world's bottom line, but the damage could be minimal with the right economic policies, the International Monetary Fund forecasts. A 60% reduction of 2002 emission levels will reduce global growth by 2.6% come 2040, but the world's economy would still double in size, the Wall Street Journal reports.

The right international system of carbon credits and taxes would keep business happy, the Journal notes; most important, the IMF says, is setting a global price for emissions in a "long-term and credible" plan that will attract investors. An inexpensive way for companies to cut back on emissions is to help factories in China and India become more energy-efficient.

IMF hopes global cap-and-trade agreement carbon emissions will reduce developing nations's dependence on coal as a main source of energy.
IMF hopes global cap-and-trade agreement carbon emissions will reduce developing nations's dependence on coal as a main source of energy.   (Shutterstock)
The IMF found that the cost of reducing greenhouse gas emissions to the global economy can be averted with the right policies.
The IMF found that the cost of reducing greenhouse gas emissions to the global economy can be averted with the right policies.   (Shutterstock)
Head of International Monetary Fund, IMF, Dominique Strauss-Kahn gestures as he leaves the Elysee Palace, in Paris, after a meeting with French President Nicolas Sarkozy in this file photo.
Head of International Monetary Fund, IMF, Dominique Strauss-Kahn gestures as he leaves the Elysee Palace, in Paris, after a meeting with French President Nicolas Sarkozy in this file photo.   (Associated Press)
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