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Greenflation Watch: Aviation


Valin

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greenflation-watch-aviation
National Review/The Corner

Andrew Stuttaford

June 19, 2022

If there’s one thing that we know about climate policy in its current form (apart from the fact that it is unlikely to make a great deal of difference to any effects that the climate may have), it is that it will make quite a lot of what we take for granted much more expensive.

The other day, I quoted a tweet by Christine Lagarde, the president of the European Central Bank, which included these words:

Quote

While decarbonisation in the energy sector can cause rising prices in the medium term, it can lower inflation in the long term. That’s why green innovation is key.

It’s not often that I write something complementary about Ms. Lagarde, a second-rate politician now transformed into a fifth-rate central banker, but she does merit a few points for (more or less) admitting that decarbonization will lead to rising prices in “the medium term,” which really means from now until who knows when.

So, it’s worth keeping an eye on where those price rises will be hitting. One area will be flying. Airline tickets are already more expensive, partly on the back of higher fuel costs. These have risen sharply for any number of reasons, of which the energy transition away from greenhouse gases has only been a relatively small (direct) contributor.

(Snip)

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2 hours ago, Valin said:

decarbonization will lead to rising prices in “the medium term,” which really means from now until who knows when.

Why did my mind hear the opening chords of "2525" when I read that line?

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