Decarbonisation in North America; an Empirical Analysis of the Economic Impact in Canada, Mexico, and the United States

By Pablo David Necoechea Porras

The world’s carbon emissions are beginning to be addressed to fulfil the
promise of the Paris climate change agreement. Keeping global temperature increase
to below 2°C will need global net greenhouse gas emissions to decrease dramatically. Nowadays, the world’s energy system is heavily based on fossil fuels: coal and oil account for about 30% each of total energy supply, and gas for another 20% or so. Low- or zero-
carbon energy sources together account for the remaining 20% . However, it is possible to take the carbon out of the world economy over the next years and do so with increased economic wealth in all countries. Decarbonisation has an economic value added.  Economies urge to decrease pollution and to be less materially intensive to have sustainable growth realizing that the low-carbon transition could generate economic growth.

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