Sustainable Information Technology

Climate change laws – good or bad for the Mexican economy?

Cactus: The Thorny Issue of Mexican Climate Change LawsLast week, Mexico passed a tough new law on climate change. The new law requires that

– emissions of carbon dioxide should be 30 percent below current levels by 2020
– 50 percent below 2000 levels by 2050
– 35 percent of the country’s energy must come from renewable sources by 2024

Read more:

My question is, will this be bad, neutral or good for the Mexican economy?

Are Climate Change Laws an Economic Handicap?

I think the arguments for each of the options can be summarised something like this…

* BAD: The Mexican’s will slowdown and handicap their own economy. Costs of production will increase which will in turn make Mexico less competitive

* NEUTRAL: The new climate change laws will make no difference to the economy because more important general economic conditions will influence and ultimately decide the fate of the economy (such as labour force skills and costs, access to markets, etc)

* GOOD: This will benefit the Mexican economy. The effects will be both direct (effects such as the development of leading edge technologies which will be exported to other countries) and indirect (such as a change in perception of Mexico itself as a trusted trading partner and a strong country showing leadership in the global economy).

What are your thoughts?