In Econ 101 terms, a normal good is a good for which consumption rises as incomes rise. An inferior good is a good for which consumption falls as income rises. With regards to CO2 emissions, the distinction is important because the income effect of policies aimed at CO2 reductions may cause unintended consequences if the income effects counter the direct reduction of the policy. If CO2 reducing policies result in diminished economic growth, and if CO2 emissions are inferior, then the reduced income due to reduced growth will put pressure on CO2 emissions to rise, potentially countering some of the direct decrease in emissions caused by the policy itself.
Global carbon dioxide emissions from industry rose about 3 percent in a weak global economy this year, a study released on Monday showed, adding fresh urgency to efforts to control planet-warming gases at U.N. climate talks in South Africa.The study by the Global Carbon Project, an annual report card on mankind's CO2 pollution, says a slowdown in emissions during the 2008-09 global financial crisis was a mere speed bump, and the gain in 2011 followed a 6 percent surge in 2010."The global financial crisis was an opportunity to move the global economy away from a high-emissions trajectory. Our results provide no indication of this happening," the authors say in the study published in the journal Nature Climate Change.Delegates from nearly 200 nations attending major talks in South Africa are struggling to make progress towards tougher steps to curb soaring carbon pollution.
via www.mnn.com
