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Do people really care about global warming?

Author

Listed:
  • Francesco Busato
  • Bruno Chiarini
  • Gianluigi Cisco
  • Maria Ferrara

Abstract

Global warming represents a "hot" topic in our current daily life. This paper builds up and simulates a dynamic stochastic general equilibrium (DSGE) model in the spirit of Nordhaus (2008) while investigating consumers' behavior in a context where economic and environmental issues interact. The paper suggests that households do not care about global warming as much as they should. Even if households make pro-environmental consumption choices, their investment decisions focus on the economic aspect mainly. Therefore, households' propensity to consume clean products is not sufficient to produce benefits to the environment.

Suggested Citation

  • Francesco Busato & Bruno Chiarini & Gianluigi Cisco & Maria Ferrara, 2022. "Do people really care about global warming?," Economics and Business Letters, Oviedo University Press, vol. 11(1), pages 24-32.
    • Handle: RePEc:ove:journl:aid:16098
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/16098
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    References listed on IDEAS

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