Ipsos Reid released a poll this week showing that 66 percent of British Columbians say protecting the environment is more important than economic growth. But is it really a zero-sum game when it comes to the environment and economy? Is there really a direct trade-off?

Last Friday in the New York Times, Nobel Prizing-winning economist Paul Krugman argued that a cap-and-trade system on carbon emissions could actually spur business investment and mitigate global warming at the same time.

"Right now, the biggest problem facing our economy is plunging business investment," Krugman wrote. "Businesses see no reason to invest, since they’re awash in excess capacity, thanks to the housing bust and weak consumer demand."
"But suppose that Congress were to mandate gradually tightening emission limits, starting two or three years from now," he went on. "This would have no immediate effect on prices. It would, however, create major incentives for new investment — investment in low-emission power plants, in energy-efficient factories and more."

In other words, environmental regulations could do more to spur business investment than low interest rates and other "easy money" measures of central banks.

Here's more details about the Ipsos Reid Poll:

NEWS RELEASE | Majority of British Columbians Say Protecting the Environment Should be Given Priority Over Economic Growth

This article originally appeared on Ecotrust Canada's blog, Conservation Economy.

Photo credit: Diane Allen

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