Northern Institute ’s Post

Very happy to share our new paper entitled “𝑇ℎ𝑒 𝑤𝑒𝑙𝑓𝑎𝑟𝑒 𝑝𝑟𝑜𝑝𝑒𝑟𝑡𝑖𝑒𝑠 𝑜𝑓 𝑐𝑙𝑖𝑚𝑎𝑡𝑒 𝑡𝑎𝑟𝑔𝑒𝑡𝑠” published in Ecological Economics with Frank Venmans.   𝐈𝐧 𝐚 𝐧𝐮𝐭𝐬𝐡𝐞𝐥𝐥: We show that many popular low carbon scenarios are postponing emissions reductions and leading to substantial welfare losses because of the climate constraint they use.   In order to support climate policy at national and global level, many climate-economy models have been developed in the past decades, following different modelling approaches. Two approaches are predominant in such models: cost–benefit and cost-effectiveness analysis, alongside with the use of different types of climate constraints (such as a radiative forcing constraint, a temperature constraint or a cumulative emissions constraint).  We analyse the impacts of these different constraints on optimal carbon prices, emissions and welfare.   𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧𝐬: Our first recommendation is to add climate damages to the model. Another way to improve the dynamics is to adjust the carbon price path (as indicated in our paper). Concerning the constraints used in cost-effectiveness analysis, a cumulative emissions constraint scores best on welfare while a radiative forcing constraint with overshoot (which was a very popular constraint in IPCC scenarios) scores worst, leading to postpone abatement efforts and to substantial welfare losses (e.g., $23 Trillion). We also show that large net negative emissions are never optimal and an artefact of constraints with overshoot. Instead, respecting the Paris agreement at the lowest welfare cost requires radical worldwide reductions in emissions by 2040.   𝐖𝐢𝐬𝐡 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐦𝐨𝐫𝐞? 𝐎𝐮𝐫 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐢𝐬 𝐨𝐩𝐞𝐧-𝐬𝐨𝐮𝐫𝐜𝐞 𝐚𝐧𝐝 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐛𝐞𝐥𝐨𝐰:

Often, sustainable development is perceived as hinging on ecological capital alone. However, it is essential to acknowledge the pivotal role of robust social capital in this equation. A cohesive, optimistic society focused on public welfare is poised to make a more significant contribution compared to a fragmented and disorganized social structure. The better environmental quality observed in North America and Europe is a testament to proactive societies. In democratic governance, the influence of public opinion on the government is evident. Yet, the nature, quality, sensibility, and maturity of the electorate play a critical role in determining the extent of this impact. Developing nations in South East and Far East regions often grapple with prioritizing employment-driven economic growth over sustainability. The development agenda's prioritization significantly reflects on the resulting environmental quality. #SustainableDevelopment #SocialCapital #EnvironmentalQuality #PublicWelfare #GlobalGovernance

Any public policy that forgoes socially inclusive and environmentally sustainable developmental principles is doomed to be a fiasco. Writes Abdullah Khan Read more👇 https://lnkd.in/dvWEHNXq #GDP #environment #fiasco #analysis #socialwelfare #EconomicPolicy

New research by Resources for the Future and other scholars provides a monetary estimate to the difference in climate change impacts that are, and will be, experienced by wealthy versus lower income countries. The result "owes to the fact that most of climate change’s global welfare impact will occur outside US borders, where most people have lower incomes than the median American." The research utilizes a novel analytical approach that applies recent welfare weighting recommendations from the U.S. OMB's Circular A-4, and has important policymaking implications for the U.S. and the global community. https://lnkd.in/gexYC7Eh

Transforming power of #research and development on #inequality and #wellbeing: a European Union perspective within the circular economy framework To establish a “well-being economy” that prioritizes human and environmental welfare, understanding the relationship between income inequality, research and development (R&D) potential, and human development is crucial. (...) findings (of this study) carry profound implications for policymakers, urging a redefinition of economic growth metrics and a shift toward a well-being economy that emphasizes human and environmental health. https://lnkd.in/e4B92uGy

The research presented in this book is focused on the identification and enhanced understanding of systemic issues in general (e.g., economic, organizational, environmental) and human behavior in particular (e.g., participation, commitment, responsibility) leading to resource misallocation, over-exploitation, and unsustainable outcomes. The approach used transcends conventional neoclassical welfare economics. https://lnkd.in/g2ABGpTa

In my new paper, I analyze how austerity and sustainability, narrated as common-sense solutions, changed the urban development policy in Tampere. Despite containing contradictory elements, the ‘common-sense' neoliberalism of the Finnish city is to boost sustainable city development and gradually shrink the welfare state. https://lnkd.in/dPsn7EXP

Moving beyond friend-shoring and near-shoring. May the school of new Neomercantilism (Trumpism) increases welfare of the world? How it may work for the GREAT U.S.? These are the emerging research questions in the international trade atleast in the next four years. Who are interested in conducting joint research works around these questions? Let's share our proposal. Do any research institutions support this kind of proposal?

📌 "Sustainability, Policy, and Global Impact" examines the interconnections between sustainability, policy, and global impact. It emphasises the significance of prudent resource utilisation, environmental protection, and social welfare for future generations. By analysing these interrelated issues, the book aims to motivate readers to contribute to a sustainable future by understanding how policy decisions and global impacts shape our world. 📚 🌐: https://bit.ly/3y6hqof #istunipress #openaccess #books #economics #sustainability