The multiplier doesn’t care about the climate

The multiplier effect, referred to above, creates a problem because it is non specific: other things being equal, there is no control over where the multiplier effects have impact. So the desired, clean, growth of the economy has undesirable implications in terms of additional resource and energy use. Clean begets dirty.

One solution would be to impose caps on resource and energy use. There are several proposals for how to do this, from what is essentially a consumption tax based on financial transactions, suggested by Richard Murphy (Murphy 2015a), one of the authors of the 2008 British New Green Deal, to the kind of Cap and Share scheme promoted by the Irish NGO FEASTA (Davey 2012). An ecologically feasible Green Deal would involve resource and energy caps, at source, effectively the equitable rationing of commodities (goods and services). Doing this would also incentivise the transition to less ecologically and resource intensive offerings across the market, so long as emitting activities are not thereby driven underground.

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