Mainstream economic policy must factor climate change into its growth calculation.

The scientific community is at the forefront of raising awareness about climate change and providing inconsistencies Proof Link to human activity. Yet economic policies lag behind the need for caution to decarbonize the economy. Indeed, the warm response of the economic policy community is part of the disconnect between knowledge and action in tackling the climate crisis. Something nice Research However, the mainstream Economy Climate change has not been a factor in its growth calculus. Part of the reason is the fear that strong climate action will slow short-term economic growth.

Climate action is not expensive. By an estimate, an additional investment $ 3.5 trillion By limiting global warming, net zero carbon emissions will need to be reached annually by 2050. 1.5 degrees Celsius Reducing the likelihood of catastrophic climate events. The message from the economics of the loss of externalities or spillovers is that costs Action Much less than carbon and climate Cost About this Inactivity.

To move the index on climate activity, the mainstream economy needs to keep pace with climate science.

When it comes to finding solutions to a terrible problem, whether it’s HIV-AIDS or terrorism, the link between cause and effect is crucial. Scientists have clarified Connection Climate change ecosystem highlights – greenhouse gas emissions, rising temperatures, rising sea levels, flood and storm degradation, and increased heat flux fires (see figure). 1) র্কBut caution in blaming individual events for global warming. But New research Just doing so ে concludes that extreme heat flow Siberia And 2021 would not have happened without the Pacific Northwest climate change. Or that climate change tHeavy rains and floods in Belgium in 2021 and Germany More potential and more intense.

Figure 1. Connecting dots to climate change ecosystems

Connecting dots to climate change ecosystem graphics

Source: Image of the author.

Negative external economies call for a tax on carbon emissions. Although about 40 countries have taken the initiative Carbon price, Strong lobbies continue to block climate action There has been big oil Misleading The public has been concerned about greenhouse gas emissions since the 1970s. Fossil fuels suffer huge subsidies, including — estimated health risks $ 5 trillion A year. China, Japan and the United States are the largest donors of new fossil fuel plants. Multilateral Development Bank (MDBs) have also invested in fossil fuel projects.

Instead of the underlying self-correcting force of the climate crisis, there is a downward spiral. In this case, Energy shortages related to global warming could be ridiculously more dependent on fossil fuels. Texas’ The power failure in 2021 was partly due to the freezing of the natural gas pipeline due to the unseasonably cold weather. W.Rising ar-triggered petroleum prices increase energy concerns and inspire policy changes.

The relative absence of the economy at the policy table loses an opportunity. The last count, the top economic journal is still barely Revealed Articles on climate change. Widely quoted Quarterly Journal of Economics No and quantitative disclosures were made Econometrica-Only two. Received the Nobel Prize in Economics Nordhaus To “integrate climate change into long-term macroeconomic analysis”, but did not recognize the cited work and its follow-up indicative losses, tipping points and irreversibility.

Focuses on the underlying evaluation of this omission error GDPA gross measure of production that is environmental and does not net out Biodiversity The loss is a signal to maximize GDP growth regardless of the loss, with no allowance for the intensity of the carbon. The “Miracles of East Asia The rapid celebration of indirect GDP growth at the expense of ecological destruction. China and India have seen rapid growth, as was the case in developed economies Bad Environment. Southeast Asia The highest emissions growth rate is despite the fact that the climate is most vulnerable.

Once conventional economic growth is adjusted for CO2 Per capita emissions, a true picture emerges that can help guide policy. One such measure is the Planetary Pressure-Adjusted Human Development Index (PHDI). United Nations Development Program To qualify its own Human Development Index (HDI). The country’s ranking varies significantly from HDI to PHDI, for example, the top Norway dropped to 15th place and the United States17th placeDropped to 45 places.

The World Bank For 1995 to 2008, the 146 countries estimated national resources as the sum of natural capital, not just the sum of capital produced and human capital. United Nations Environment Program The UNEP estimates the inclusive resources as “natural capital, human capital and the social value of capital produced” in 135 countries between 1990-2014. UNEP shows a broader adjustment for environmental damage, probably since the World Bank’s measure, according to the report, does not deduct the social cost of carbon from fossil fuels or include the cost of carbon sequestration from ecosystem conservation.

The important question is whether there is an economic system like the World Bank Country policy and institutional assessment Adjust for environmental damage. And whether there are such arrangements Business indexing Rank performance is good, with less control, environmental and social protection that on the wrong basis.

Growth analysis Properly emphasizes productivity as well as employee participation as well as physical and human capital savings, but neglects environmental sustainability. The World Bank And International Monetary Fund, Which has produced reports on climate change, must integrate climate effects into growth estimates. A major role for MDBs could be to help address global public health issues, such as environmental health issues across the country. In this case, they could lend themselves to climate mitigation and adaptation, as promised. The World Bank is a new one Climate change action plan Which, among other things, aims to align the activities of the International Finance Corporation with the Paris Climate Goals by 2025.

To move the index on climate activity, the mainstream economy needs to keep pace with climate science. Growth economyInfluential in the policy of the countryCan integrate climate change and the environment. When supplementing this, if not replaced, the Gross Domestic Product is measured by a value-added measure that net the loss of climate costs.

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