Wednesday, November 28, 2007

Contraction and Convergence Makes Poverty History

Over on openDemocracy (see link to the right) Steve is worried that tackling climate change will give developed countries an advantage over poor countries.

With Contraction and Convergence, the opposite of Steve's account is true.

With C&C, a target for a safe level of global CO2 is set, countries are allocated CO2 on a per capita basis, and trading of the quota is allowed. The US will have to buy CO2 quotas from poor African countries, so there is an intrinsic tendency to economic convergence in the system.

Also, with the transfer of solar technology to developing countries, they will become energy rich, and Somalia may find itself exporting hydrogen to Europe. Given help with water conservation and management, green economics can really help to make poverty history.

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