Greenflation: Are Commodity Prices Actually Rising?
What impact does inflation have on environmental sectors? Economists have recently raised concerns about “greenflation,” a term coined to describe rising commodity prices associated with going green, due to a higher demand for sustainable materials. The implementation of more carbon-neutral regulation and increasing environmental, social, and governance (ESG) practices may contribute to these rising costs. On January 26, 2022, the Environmental Law Institute hosted leading experts for an in-depth economic discussion about greenflation, regulations, and ESG practices. Below we present a transcript of that discussion, which has been edited for style, clarity, and space considerations.