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Climate Friendly Communities: A Review of What Economists Know About the Potential Business Impacts Prepared for:

By Tracy Morgenstern, City Of Seattle and Office Of Sustainability


The City of Seattle recently commissioned an analysis of the technical feasibility of a range of strategies in transportation, building energy, and waste sectors to achieve net carbon neutrality by the year 2050 from maximum deployment of known technologies at reasonable penetration rates. The energy-saving strategies that were identified provide opportunities to reduce greenhouse gas emissions and redesign urban landscapes, architecture, and transportation systems to become more resilient to climate change and higher fossil fuel prices. They also introduce policies, incentives, and regulations, and require investments that other cities and regions have not necessarily made. Do these initiatives disadvantage businesses and households in Seattle, or do they incentivize efficiency and innovation and position the city more competitively for growth in the future? This report reviews the relevant literature in economics to help provide answers to these important questions. We consider how the suite of regulations and incentives considered by Seattle could affect business profitability and competitiveness. We also explore the benefits to Seattle and its businesses of becoming a more climate friendly. The report does not analyze the specific economic impacts of the emissions reduction strategies under consideration. Rather, i

Year: 2013
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