GMAT Focus EditionVerbal ReasoningMedium
A country has implemented a new policy aimed at reducing its carbon emissions by heavily investing in renewable energy sources. Proponents argue that this policy will not only achieve emission reduction targets but also stimulate economic growth through job creation in the green sector. Which of the following, if true, would most seriously weaken the claim that the policy will stimulate economic growth?
- ANeighboring countries are also investing heavily in renewable energy, potentially creating a competitive market for green jobs.
- BThe initial investment required for renewable energy infrastructure is substantial and may require significant foreign borrowing.
- CThe country's existing fossil fuel industry is a significant employer, and a shift to renewables would lead to substantial job losses in that sector.
- DStudies show that renewable energy sources, while clean, tend to be less efficient in energy production than traditional fossil fuels.
Show answer & explanationAnswer & explanation
Correct answer: C. The country's existing fossil fuel industry is a significant employer, and a shift to renewables would lead to substantial job losses in that sector.
The claim is that the policy will 'stimulate economic growth through job creation in the green sector'. Option A directly counters this by highlighting a negative economic impact on existing jobs, suggesting a net job loss or at least a significant offset to the green job creation, thus weakening the claim of overall economic stimulation.
Why the other options are wrong
- A. Competition might affect the *rate* of growth or profitability, but doesn't directly negate the creation of green jobs or the overall economic stimulation within the country.
- B. Initial investment costs affect the *funding* of the policy, but don't inherently prevent job creation or economic stimulation once the investment is made.
- D. Efficiency relates to energy output, not directly to job creation or economic growth in the green sector. The policy is about *investment* in renewables and the jobs that creates.
Net Impact Analysis
Evaluating the overall effect of a policy or action by considering both positive and negative consequences across all relevant sectors or groups.
- Goes beyond just positive outcomes.
- Requires consideration of trade-offs and opportunity costs.
- Aims for a comprehensive understanding of effects.
Memory trick: Look at ALL the numbers, not just the shiny ones.