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The economics of climate change and the change of climate in economics

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  • Kevin Maréchal

Abstract

Economics is an unavoidable decision-making tool in the field of climate policy. At the same time, traditional economics is being challenged both empirically and theoretically by scholars in different fields. Its non-neutrality in dealing with climate-related issues-which is illustrated by the controversy over the "no-regret potential"-would thus call for an opening of economics to insights from other disciplines. Within that context, we show that an evolutionary-inspired line of thought coupled with a systemic and historical perspective of technological change provides a very insightful alternative to traditional economics. More particularly, it follows from that framework that the picture of the climate challenge ahead looks very different from what traditional economic analyses would suggest. For instance, the lock-in process makes it unlikely that traditional cost-efficient measures (such as carbon taxation or tradable emission rights) will be sufficient to bring about the required radical changes in the field of energy as they fail to address structural barriers highlighted in our approach. © 2007 Elsevier Ltd. All rights reserved.

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  • Kevin Maréchal, 2007. "The economics of climate change and the change of climate in economics," ULB Institutional Repository 2013/176653, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:ulb:ulbeco:2013/176653
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    4. Kurt Dopfer, 2011. "Evolution and Complexity in Economics Revisited," Papers on Economics and Evolution 2011-02, Philipps University Marburg, Department of Geography.
    5. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
    6. Cordier, Mateo & Pérez Agúndez, José A. & O'Connor, Martin & Rochette, Sébastien & Hecq, Walter, 2011. "Quantification of interdependencies between economic systems and ecosystem services: An input-output model applied to the Seine estuary," Ecological Economics, Elsevier, vol. 70(9), pages 1660-1671, July.
    7. Kevin Maréchal & Hélène Aubaret-Joachain & Jean-Paul Ledant, 2008. "The influence of Economics on agricultural systems: an evolutionary and ecological perspective," Working Papers CEB 08-028.RS, ULB -- Universite Libre de Bruxelles.
    8. del Río, Pablo, 2017. "Why does the combination of the European Union Emissions Trading Scheme and a renewable energy target makes economic sense?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 824-834.
    9. Maréchal, Kevin, 2010. "Not irrational but habitual: The importance of "behavioural lock-in" in energy consumption," Ecological Economics, Elsevier, vol. 69(5), pages 1104-1114, March.
    10. Jeori Van Mierlo & Cathy Macharis & Walter Hecq & Leen Govaerts & Bernard De Caevel, 2009. "CLEVER: Clean Vehicule Research: LCA and Policy Measures," ULB Institutional Repository 2013/155788, ULB -- Universite Libre de Bruxelles.
    11. Li, Ying Ming & Schwarze, Reimund, 2013. "From global public good to regional economic services: A comparative study on the development of climate change as economic goods in China and the EU," UFZ Discussion Papers 12/2013, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. Foxon, Timothy J., 2011. "A coevolutionary framework for analysing a transition to a sustainable low carbon economy," Ecological Economics, Elsevier, vol. 70(12), pages 2258-2267.
    13. Nathalie Lazaric & Kevin Maréchal, 2010. "Overcoming inertia: insights from evolutionary economics into improved energy and climate policy," Post-Print hal-00452205, HAL.
    14. J. Farmer & Cameron Hepburn & Penny Mealy & Alexander Teytelboym, 2015. "A Third Wave in the Economics of Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 329-357, October.
    15. João Tovar Jalles, 2020. "The impact of financial crises on the environment in developing countries," Annals of Finance, Springer, vol. 16(2), pages 281-306, June.
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    18. Pablo del Río González & Xavier Labandeira Villot, 2009. "Climate Change at Times of Economic Crisis," Economic Reports 05-09, FEDEA.

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