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Published: Sunday 11 August, 2013

c a online shop c a online shop ?The green guinea pig

Now that the Republicans control the House of Representatives and Prop 23 has died, the California Air Resources Board ARB takes center stage with its rollout of AB32. Without being overly dramatic, California now stands as the worlds best laboratory for figuring out how to balance greenhouse gas reduction policies while encouraging economic prosperity for all. There will be no one action hero here who saves the day for us all. In a state with over 35 million people, each of us will face the new rules of the game embedded in AB32. How we adapt to this new regulatory environment will yield crucial information concerning the true costs of decarbonizing our economy.

Given todays fossil fuel using economy, we face a nasty tradeoff between economic growth, and exacerbating natural resource depletion and the threat of climate change. China has recently engaged in a green big push of investment as its powerful state government offers cheap land and low interest loans to green businesses. AB32 will help to level this competitive playing field. It sends a clear credible signal to Californias venture capitalists that those companies that can develop a new generation of low carbon products ranging from solar panels to electric vehicles will enjoy soaring sales. This green tech competition between China and California will only spur on the decoup c a online shop ling of greenhouse gas production from world GNP.

While specific firms such as a Tesla may win or lose this competition, the world economy can only gain. As China and California both invest more in the green economy, the probability of a fundamental breakthrough in green tech increases. Once a new idea is developed it is a public good that can be replicated aro c a online shop und the world. Yes, California produces just a fraction of the worlds greenhouse gas emissions but if AB32 stimulates green innovation then this could be a global game changer. Economists have long noted that human ingenuity can substitute for natural capital. Up until now, investment in the green economy has lagged. AB32 will address this funding gap.

While the innovation induced benefits from AB32 could be quite large, the Air Resources Board needs to be vi c a online shop gilant about keeping its regulatory costs low. Today, Republicans tend to oppose climate change regulation. They will be more favorably inclined as the reality of climate change starts to be apparent and if the ARB can credibly demonstrate the low regulatory costs and green job creation of complying with this regulation. c a online shop