Young Economics.

How green will the bail-out be?

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Governments around the world have embraced the idea of fiscal stimulus: spending their way out of the downturn.  Those who embrace free-market ideals rebel against strategy, claiming the public sector will spend wastefully since they can’t correctly gauge private demand.  However, one big argument on the other side is that government spending can be very effective, particularly in providing socially beneficial goods that get passed over during profit-motivated investment decisions.

This is exactly the argument the government is supporting when they claim they will use this spending opportunity to beef up environmentally friendly programs.  How much weight is behind these claims?  The Financial Times has an excellent interactive graph that breakdowns how much of each nations stimulus package is actually going towards green investment.

You can access it here.

For the Canadians, of our $31.8 bn spending package, 8% (2.6bn) will be devoted to green tech.  This is a smaller proportion given than in the US, Germany, China and the EU to name just a few.

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Written by jk

March 5, 2009 at 12:04 pm

Posted in Uncategorized

Tagged with ,

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