Climate mitigation is driving inflation*

Who should pay?

Presidential candidates, Harris and Trump, are talking about the economy, and numerous news stories report an economic conundrum. Economists say that inflation has come down and the economy is strong, yet households are distressed with rising prices.

In Colorado, for example, more than 23,000 households sought assistance with water bills in 2022 and 2023 (The Colorado Sun, June 2024).

In wildfire-prone California, the cost of burying power lines and insulating above-ground lines is being passed on to consumers. Candidate Donald Trump is trying to woo voters by promising to halve power bills without saying how he would do it. (WSJ, Aug 15, 2024)

With wildfires and other climate change-fueled disasters becoming more frequent, home insurers are getting skittish and raising rates. A Colorado neighbor confided in me that insurance is now his largest housing expense, more per year than mortgage payments or taxes.

Wildfire mitigation, water scarcity, insurance risk model instability — these are costs of climate change mitigation that are not included in traditional economic analyses. In other words, “Some prices are rising owing to factors other than traditional supply and demand.” (WSJ Aug 13, 2014).

Look to climate change to explain the feeling that inflation is still here and look to climate solutions for long-term relief from “climatinflation.” Vote for candidates that acknowledge the climate crisis and support legislation with solutions.

Lobby for solutions that don’t put the burden of paying for climate mitigation entirely on individual citizens. Lobby instead for solutions that get carbon emitters to pay — like a carbon fee (paid by emitters) and dividend (given to citizens to help with higher costs of electricity, water, insurance, etc..)  

*A version of this post was published as a letter to the editor of the Boulder Daily Camera on August 23, 2034.