February 15, 2023
Testimony on Climate-related Economic Risks and Their Costs to the Federal Budget and the Global Economy
In testimony before Senate Committee on the Budget, AAF President Douglas Holtz-Eakin discusses the economic costs and budgetary impacts of climate change.
- Climate change will increase future budget deficits, largely through reduced economic growth and tax revenues;
- The existing (baseline) budget outlook is profoundly anti-growth and represents a larger economic risk than climate change; and
- Addressing the budget outlook will make more manageable budgeting mitigation and adaptation policies that will feature large, up-front federal outlays.