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This timely Handbook recognises the emergence of climate change as the defining topic of our time. With public climate discourse growing more urgent every year, this Handbook brings together international experts from different economic disciplines to answer critical climate policy questions.
The 2023 United Nations Climate Change Conference reinforced already existing pressure to transition away from fossil fuels, in particular for the most polluting source, coal. We use a comprehensive dataset on bank loans for coal projects to shed light on which type of banks continue to finance coal and how coal phase-out commitments affect coal financing. We find that coal financing is becoming increasingly concentrated, partly in banks with a very high coal exposure. We also find that many coal loans have maturities much shorter than the remaining lifetime of coal assets, thus exposing equity holders of coal assets to the risk of a more difficult loan rollover. An econometric analysis shows that countries with a strong commitment to coal phase-out, fixed in national law for example, receive less coal financing. Using an instrumental variable, we identify this effect as causal.
Electricity production is the sector with the largest share of global emissions and there are many options for decarbonizing it. Identifying the lowest cost option for achieving decarbonization (and full reliability) is a complex optimization problem at the intersection of economics and engineering. Key determinants are the cost of individual technologies, the geographical potential, the complementarities between energy sources and supporting infrastructure like electricity grids and energy storage. This paper reviews the literature on the subject and draws high-level conclusions from the abundance of specialized analyses. It finds that energy-economy models have strongly changed projections...
This paper analyzes the cross-border risks that could result from a decarbonization of the world economy. We develop a typology of cross-border risks and their respective channels. Our qualitative and quantitative scenario analysis suggests that the mid-transition – a period during which fossil-fuel and low-carbon energy systems co-exist and transform at a rapid pace – could have profound stability and resilience implications for global trade and the international financial system.
Climate change is unfolding amid the greatest information and communication revolution in human history. From e-commerce and social media to smart manufacturing and precision farming, digital technologies have become prevalent in all aspects of economic and social life. Digital technologies also have the potential to shape climate change action. Green digital transformation can help countries adapt e¬ffectively to the impacts of climate change and create greener growth pathways. Doing this means combining a focus on digital transformation and inclusion with a strategic and sustainable use of digital technologies to address climate change. Green Digital Transformation: How to Sustainably Close the Digital Divide and Harness Digital Tools for Climate Action illuminates the channels through which digital technologies intersect with climate change, and it proposes a path to low-emissions applications of digital technologies to help countries mitigate and adapt to climate change.
While economic research emphasizes the importance of governmental institutions for growth and progress, conventional public policy textbooks tend to focus on macroeconomic policies and on tax-and-spend decisions. Markets, State, and People stresses the basics of welfare economics and the interplay between individual and collective choices. It fills a gap by showing how economic theory relates to current policy questions, with a look at incentives, institutions, and efficiency. How should resources in society be allocated for the most economically efficient outcomes, and how does this sit with society's sense of fairness? Diane Coyle illustrates the ways economic ideas are the product of thei...
The world is on the cusp of one and a half degrees of warming - just the rise it has committed itself to avoiding. Heat at such levels would be intolerable. Even before one and a half, seasons of climate disaster have struck with ever more devastating force, and yet a notion has taken hold that the cause is now lost: the intolerable has become unavoidable. The limit will be overshot - perhaps two degrees as well - and the best we can do is cool down the Earth at some later point, towards the end of the century, by means of technologies not yet proven. How did this happen? How could the idea of overshoot gain such traction? What forces are driving us into a climate that people - particularly ...
This is an open access title available under the terms of a CC BY-NC-ND 4.0 License. It is free to read, download and share on Elgaronline.com. This Research Handbook explores the complex interplay between competition law and sustainability, and also provides key insights into the role and limitations that tax, environmental laws, consumer laws, and social laws have in promoting sustainability. A distinguished array of international experts examine core principles of environmental and social sustainability, delve into the economic dynamics that shape this multidimensional relationship, and critically analyse how competition law and policy can both positively and negatively shape sustainability outcomes.
The current model of economic expansion driven by fossil fuels is unsustainable, leading many to toy with the idea of ditching growth to save the planet. But, as Alessio Terzi argues, a post-growth world would be prone to catastrophes no less serious than climate change itself. Luckily, with the right policies, growth can be made earth-friendly.
This book examines how a society that is trapped in stagnation might initiate and sustain economic and political development. In this context, progress requires the reform of existing arrangements, along with the complementary evolution of informal institutions. It involves enhancing state capacity, balancing broad avenues for political input, and limiting concentrated private and public power. This juggling act can only be accomplished by resolving collective-action problems (CAPs), which arise when individuals pursue interests that generate undesirable outcomes for society at large. Merging and extending key perspectives on CAPs, inequality, and development, this book constructs a flexible...