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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

Would living standards decline if the global economy transitioned to renewable energy?

By Jacob Alabab-Moser
NO

A transition to renewable energy would elevate living standards worldwide across indicators such as health, the economy and quality of life.

The International Renewable Energy Agency compared a business-as-usual energy scenario with a more sustainable energy scenario and found that the latter would produce 2.5% more GDP growth, seven million more jobs and a 13.5% higher welfare indicator, reflecting improved health from reduced air pollution. The International Energy Agency estimated that achieving net zero emissions by 2050 would prevent 1.9 million premature deaths from household air pollution each year between 2020 and 2030. The cost of the transition would be more than offset by the economic benefits, with every dollar spent bringing returns between three and eight dollars, according to IRENA.

Financial services firm Deloitte reported in May that inaction on climate change could cost the global economy $178 trillion by 2070, with global warming "leading to loss of productivity and employment, food and water scarcity, worsening health and well-being, and ... an overall lower standard of living." In contrast, "the global economy could gain US$43 trillion over the next five decades by rapidly accelerating the transition to net-zero."

This fact brief is responsive to conversations such as this one.
ABOUT THE CONTRIBUTOR
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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