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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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    Cited by:

    1. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    2. Pablo Del Río, 2010. "Climate Change Policies and New Technologies," Chapters,in: Climate Change Policies, chapter 5 Edward Elgar Publishing.
    3. del Río, Pablo, 2011. "Analysing future trends of renewable electricity in the EU in a low-carbon context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2520-2533, June.
    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. repec:eee:rensus:v:74:y:2017:i:c:p:824-834 is not listed on IDEAS
    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. Sandén, Björn A. & Hillman, Karl M., 2011. "A framework for analysis of multi-mode interaction among technologies with examples from the history of alternative transport fuels in Sweden," Research Policy, Elsevier, vol. 40(3), pages 403-414, April.
    11. 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.
    12. 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).
    13. 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.
    14. Nathalie Lazaric & Kevin Maréchal, 2010. "Overcoming inertia: insights from evolutionary economics into improved energy and climate policy," Post-Print hal-00452205, HAL.
    15. 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.

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