According to a poll by The Economist, 79% of respondents say that they who would support political reforms combating climate change if those changes had no effect on their realincome.
The report looks at elements of the system of state support which have the effect of cutting a family income in real terms, as a second earner works more.
The most fruitful reform, notes Lardy, would be to end financial repression by liberalizing interest rates, which would increase real rates on deposits, thereby decreasing saving if the incomeeffect is strong, and increasing consumption.