In an illuminating piece by Tilak Doshi on Forbes, the economic trajectory of Europe under the weight of its environmental policies is critically analyzed.
Doshi paints a stark picture of what he describes as a self-inflicted wound to Europe's industrial base, driven by stringent regulations and a shift away from reliable energy sources.
"Voltaire famously said that 'common sense is not so common.' Nowhere is this adage more relevant than in the field of energy policies in the European Union. These policies are most vigorously pursued in Germany-Europe's industrial powerhouse-since it adopted the Energiewende legislation in 2010. The 'green' regulations and mandates adopted are simultaneously hostile to fossil fuels and nuclear energy. Energiewende refers to the ongoing energy transition to an imagined future of low carbon, environmentally sound, reliable, and affordable energy supply".
"Germany's industrial production peaked in November of 2017, and by the end of last year had fallen to a level last seen in 2006 outside of the global financial recession and Covid-19 years. Its industrial sector contracted by almost 14% in the 6 years ending December 2023. Energy-intensive trade-oriented industries, involving both among small and medium-sized firms as well as behemoths like BASF, have been worst hit, as high energy prices make vast swathes of Germany's manufacturing sector uncompetitive. The self-inflicted economic meltdown in the pursuit of 'net zero' policy goals goes beyond Germany. Industrial capacity is being decimated across Europe".
Doshi points out that these economic policies have not just been problematic for industry, but also have broader socio-political repercussions.
The rigorous enforcement of these policies, without adequate consideration for economic realities and the basic energy needs of a developed economy, may well lead to what Doshi refers to as economic suicide.
His article urges a balance-a recalibration of environmental goals with the practical needs of economic stability and growth, reflecting a sentiment that perhaps, the pendulum of environmental policy has swung too far.
https://wattsupwiththat.com/2024/05/11/as-europe-deindustrializes-is-it-undergoing-economic-suicide/
No comments:
Post a Comment