The Economics of Climate Change 'The Goal Is to Change Course not Slow Down'
SPIEGEL: Mr. Edenhofer, you want to reconcile the economy with climate protection. Is that even possible?
Ottmar Edenhofer: During the 20th century, labor efficiency rose because we placed no limits on our use of fossil fuels as a source of energy. That will no longer work in the 21st century. We have to succeed in decoupling economic growth from CO2 emissions. We simply don't have another viable alternative.
SPIEGEL: In 2009, the UN is planning to reach a new global climate agreement. In these times of financial crisis, is that even possible?
Edenhofer: We have to make it possible, otherwise, we will see an environmental collapse just like the one we have experienced with banks. If we hesitate on climate protection, we will essentially be digging our own grave. It will be expensive to reverse the process and repair the damage later on.
SPIEGEL: The economist Hans-Werner Sinn has warned that climate protection in the West is only making oil and natural gas cheaper for China and India.
Edenhofer: We have to take this warning seriously. If the good example that we set fails to convince the Chinese and the Indians to come on board with climate protection, the oil and gas that we dont burn will be burned in Asia. That would make all our climate policies meaningless.
SPIEGEL: Wouldn't you say that the looming recession is the best climate protection program?
Edenhofer: A recession would only slow the increase in emissions. That doesn't help the climate, and it still harms the economy. The goal is not to slow things down but to change course.
SPIEGEL: What do you think of the plans for an economic program?
Edenhofer: Please, let's not start again with the same old formulas like the one used to build the German autobahn! If we are going to launch an economic program, then it should focus on energy research, solar power plants and carbon capture and storage . That would strengthen the most innovative companies.
SPIEGEL: Would it be right to subsidize the car industry at this point in time?
Edenhofer: It would be pointless to subsidize car purchases without linking it to fuel consumption. On the other hand, when it comes to challenges like enhancing electric mobility, the state should give the automobile industry a helping hand. However, this should only be for a limited period of time, and there should be something given back in return. The transportation sector has to take part in CO2 trading. In other words, they have to pay for emissions at the going market rate.