Adaptation, Mitigation and “Green” R&D to Combat Global Climate Change. Insights From an Empirical Integrated Assessment Exercise

This work develops a framework for the analysis at the macro-level of the relationship between adaptation and mitigation policies. The FEEM-RICE growth model with stock pollution, endogenous R&D investment and emission abatement is enriched with a planned-adaptation module where a defensive capital stock is built through adaptation investment. Within this framework the optimal path of planned adaptation, the optimal inter and intra temporal mix between adaptation, mitigation and investment in R&D, and the sensitivity of a strategy to each other is identified. The major conclusions of this research show that adaptation, mitigation and R&D are strategic complements as all concur together to the solution of the climate change problem; nonetheless the possibility to adapt reduces the need to mitigate and partly crowds out other forms of investment like those in R&D. The optimal intertemporal distribution of strategies is also described: it requires to anticipate mitigation effort that should start already when climate damages are low and postpone adaptation intervention until they are substantial. Thus the possibility to adapt is not a justification to delay abatement activities. A sensitivity analysis demonstrates the robustness of these results to different parameterizations, in particular to changes in expected climate-change damages and in the discount rates.

20103151713534NDL2010-022.pdf (application/pdf-Objekt).

Finance-dominated capitalism in crisis – the case for a Global Keynesian New Deal

Eckhard Hein, Eckhard and Achim Truger sehen in der Ungleichheit die zentrale Ursache für die aktuelle Finanz- und Wirtschaftskrise:

„We analyse the long-run imbalances of finance-dominated capitalism underlying the present crisis – which began in 2007 – with a focus on developments in the US and Germany. We argue that beyond inefficient regulation of the financial sector, the severeness of the present crisis has been mainly caused by increasing inequalities of income distribution and rising imbalances in the world economy associated with finance-dominated capitalism. From this it follows that in the near and not so near future, the US will no longer be able to act as the driving force for world demand. In order to avoid a period of deflationary stagnation in major parts of the world economy, we finally propose the policy package of a Global Keynesian New Deal which should consist of: 1. re-regulation of the financial sector, 2. re-orientation of macroeconomic policies along (Post-)Keynesian lines, and 3. re-construction of international macroeconomic policy co-ordination, in particular on the European level, and a new world financial order.“

Finance-dominated capitalism in crisis – the case for a Global Keynesian New Deal – Munich RePEc Personal Archive.

Wachstum schafft nicht zwingend Reichtum

„Reiche Länder sind nicht deshalb reicher, weil sie schneller wachsen als arme“, sagt John Joseph Wallis, Ökonomie-Professor an der University of Maryland. „Sie erleben seltener Episoden mit negativem Wachstum, und sie schrumpfen in Krisen langsamer.“ Die traditionelle Wachstumstheorie kann dieses Muster nicht erklären. Wallis hat daher eine eigene Erklärung entwickelt – seine „Theorie des Schrumpfens“. Ein ungelöstes Koordinationsproblem ist für Wallis eine fundamentale Ursache für Instabilität – solange einzelne Akteure befürchten müssen, dass sie schlechter wegkommen, wenn sie mit anderen kooperieren, gebe es keine Lösung für das Dilemma. Ein weiterer Aufsatz, der wegführt vom neoliberalen Paradigma.

Wissenswert: Wachstum schafft nicht zwingend Reichtum – Politik – Ökonomie – Wissenswert – Handelsblatt.com.