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The importance of tipping points for sustainable development

Author

Listed:
  • Lucas Bretschger

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

  • Matthias Leuthard

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

Abstract

Solving major sustainability problems such as climate change and the loss of biodiversity requires overcoming a fundamental dilemma: on the one hand, central decisions on the realignment of the economy and society should be quick and far-reaching, on the other hand, actual decision-makers are strongly oriented towards established structures, which entail great inertia and path dependencies. As a result, expectations and reality are often still far apart in sustainability policy. Tipping processes can play a decisive role in closing this gap and generally describe a non-linear and self-sustaining dynamic which can be triggered when a critical threshold (a tipping point) is crossed. The targeted promotion of crossing important thresholds can thus become a successful strategy for sustainability policy. In this paper, wehighlight the importance and limitations of tipping dynamics in promoting sustainability. We develop an integrative formal approach to illustrate the characteristics of tipping dynamics in nature, technology, politics, society and the economy, and deepen the discussion using two case studies from economic history. Finally, we discuss implications for research, policy and institutions.

Suggested Citation

  • Lucas Bretschger & Matthias Leuthard, 2024. "The importance of tipping points for sustainable development," CER-ETH Economics working paper series 24/392, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:24-392
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    More about this item

    Keywords

    Tipping point; sustainability; climate policies; non-linear development;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation

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