The Spirit of Green - developing an economic strategy to combat climate change
The Economist William Nordhaus is a Professor of Economics at Yale University has made his name using economic models to consider the implications and the strategies used to tackle climate change. In 2018 he, along with economist, Paul Romer, won the Nobel prize in Economics for ‘integrating climate change into long-run macroeconomic analysis.’
In his latest book, The Spirit of Green, Nordhaus considers a new way of ‘green thinking’ that looks at the way the world can trying to overcome its biggest global challenge without compromising current and future economic prosperity.
The central theme in Green Thinking is how collective action by individuals, businesses and governments can reshape the way the global economy works in terms of economic efficiency, sustainability, finance, corporate social responsibility and equity.
Nordhaus looks at specific policy options related to climate change including, cap and trade schemes, carbon pricing, low-carbon technology, and carbon taxes. These policy options are all looked at in the context of international cooperation at corporate and governmental level. The book is seen as a ‘ground-breaking new vision of how we can have our environment and our economy too.’
The Spirit of Green provides a very useful context for America’s ‘Green New Deal’ and China’s ‘Green Revolution’.
Some points to discuss with your class
What are the advantages and disadvantages of cap and trade schemes, along with carbon taxes as policies to combat climate change?
How important is international cooperation in developing strategies to reduce climate change?
What are the most significant challenges for the world in developing a strategy to reduce climate change?
Unit 2.8(1): Market Failure – Externalities
Unit 2.8(3): Government intervention to manage externalities, merit and demerit goods