The authors and editors of Twenty-First Century Macroeconomics challenge traditional assumptions about economic growth, and develop the elements of a reoriented macroeconomics that takes account both of environmental impacts and of social equity. Policies including carbon trading, revenue recycling, and reorientation of private and social investment are analyzed, providing insight into new paths for economic development with flat or negative carbon emissions.
These issues will be crucial to macroeconomic and development policies in the twenty-first century. What are the likely economic effects of climate change? What are the costs of substantial action to avert climate change? What economic policies can be effective in responding to climate change? The debate has broad implications for public policy. However, it also raises fundamental questions about economic analysis itself, and moves issues of environmental policy from the microeconomic to the macroeconomic level.
Taking global climate change seriously requires a re-examination of macroeconomic goals. Economic growth has been closely linked to expanded use of energy, primarily fossil fuels. The assumption of continuing economic growth, in turn, leads economists to discount future costs, including the generational impacts of climate change. Challenging conventional concepts of growth implies different development paths both for rich and poor nations.
Twenty-First Century Macroeconomics brings together contributions from scholars around the world to address these issues. Scholars, researchers and students of economics and development studies along with policymakers and non-governmental organizations will find this insightful book of great interest.
Contents: Introduction Jonathan M. Harris and Neva R. Goodwin
PART I: THE SCOPE OF THE CHALLENGE
1. Understanding the Challenge of Global Warming Lloyd J. Dumas
2. The New Climate Economics: The Stern Review versus its Critics Frank Ackerman
3. Economics and Climate Change: Resilience, Equity, and Sustainability Neva R. Goodwin
4. The Right to Development in a Climate-Constrained World Paul Baer, Tom Athanasiou and Sivan Kartha
PART II: MACROECONOMIC THEORY PERSPECTIVES
5. The Economic Fundamentals of Global Warming Duncan K. Foley
6. Energy Productivity, Labor Productivity, and Global Warming Lance Taylor
7. Macroeconomics and Sustainable Development: Applying the Sustainomics Framework Mohan Munasinghe
8. Ecological Macroeconomics: Consumption, Investment and Climate Change Jonathan M. Harris
PART III: POLICY OPTIONS FOR RESPONDING TO CLIMATE CHANGE
9. Cap and Dividend: How to Curb Global Warming While Promoting Income Equity James K. Boyce and Matthew Riddle
10. Policies for Funding a Response to Climate Change Brian Roach
11. The New EU Emissions Trading Scheme: A Blueprint for the Global Carbon Market? Christian Egenhofer
12. Implementation of Sustainable Development in Poland Andrzej Kassenberg
13. Climate Change from the Investor's Perspective Adam Seitchik