Library

By: Christian Kerschner, Melf-Hinrich Ehlers, Christian Kimmich, Sgouris Sgouridis, Jordi Solé, Martin Černý

Energy-Economy-Environment (E3) models feature prominently in energy policy and climate mitigation planning. Nevertheless, these models have a mixed track record when assessed retrospectively and exhibit biases that can make them counterproductive for prescriptive policy during transition. We argue that in times of energy transitions it is preferable to develop a vision of the desired future energy system rather than relying on techno-economic solutions based on simple objectives (e.g. lower carbon emissions). We support this argument through reasoned inference supported by historical examples. A critical appraisal of E3 modeling exercises highlights the biases, structural or implicit, favoring existing energy system modalities. As a result, if E3 models are uncritically used to formulate long-term energy policy, there is the risk of unintended or deliberate performativity preventing a radical transition. Given the significant learning-by-doing effects in reducing technology costs, the evolution of energy systems is path-dependent and reinforced by technology policy feedbacks. This is showcased by Germany's Energiewende. Therefore, it is preferable to prioritize a clear articulation of the vision for the future desired end-state which can be shared with stakeholders a priori. Then utilize models as exploratory tools for assessing the economics and scale of corresponding interventions. These should include focused technology policy that aims to commoditize relevant technical innovations through learning-by-doing and scale economies. Ideally such models should be open, exploratory, reflexive and incorporate the dynamics of innovation.

By: Max Koch

Given environmental pressures and long-term economic stagnation, GDP growth can no longer be considered as method to improve welfare resources. Researchers must investigate the relationship between growth and welfare, finding ways to decouple them, new welfare funding sources less dependant on economic fluctuations, and methods to decrease demand for welfare. Policymakers must realize the environmental limitations of the economy, working alongside researchers, activists and citizens to ensure public support.

By: Daniel W. O'Neill, Arthur Apostel

Policymakers and economists are becoming increasingly concerned about wealth inequality. Here we estimate Belgium's wealth distribution — and based on this distribution — the revenue potential, distributional impact, and environmental effect of three proposals for a one-off Belgian wealth tax. Our method consists of (1) estimating the Belgian wealth distribution by extending survey data with a top-tail Pareto distribution based on a novel national rich list, and (2) combining the estimated wealth distribution with proposed tax configurations and published elasticities. There are four main results. First, the wealthiest 1% of households possess ~24% of total net wealth, substantially more than previous estimates suggest. Second, the revenue potential of a one-off tax is considerably higher than estimated by wealth tax advocates. Third, the distributional impact would be limited as the richest 1% of households would still possess at least 23% of total net wealth. Fourth, a one-off tax would likely reduce CO2 emissions by only 0.1–0.6%. Overall, our findings suggest a one-off wealth tax could finance over half of Belgium's COVID-19 costs, but would lead to only small reductions in wealth inequality and environmental impact. Ecological economists may therefore wish to pursue other policy proposals to achieve fair distribution and sustainable scale.

By: Jason Hickel, Daniel W O’Neill, Andrew L Fanning, Huzaifa Zoomkawala

High-income nations are responsible for 74% of global excess material use, driven primarily by the USA (27%) and the EU-28 high-income countries (25%). China is responsible for 15% of global excess material use, and the rest of the Global South (ie, the low-income and middle-income countries of Latin America and the Caribbean, Africa, the Middle East, and Asia) is responsible for only 8%. Overshoot in higher-income nations is driven disproportionately by the use of abiotic materials, whereas in lower-income nations it is driven disproportionately by the use of biomass.

By: Sandra Venghaus, Martin Fritz, Dennis Eversberg, Lilian Pungas

This Special Issue engages critically with the promises of 'green' economic growth within the bioeconomy discourse which as a concept is increasingly marshalled as providing an answer to multiple challenges. The aim is to shed light on the nexus of sustainability, technology and growth within the bioeconomy from multidisciplinary, critical and constructive perspectives. The papers published in the Special Issue either address the interplay between the three following three factors or focus on one particular aspect: Sufficiency perspectives Democracy and participation Institutions and governance

By: Heinrich Böll Foundation, ZOE – Institute for Future-Fit Economies, Finanzwende Recherche

By: Giorgos Kallis, Angelos Varvarousis, Panos Petridis

By: Timothée Parrique, Inês Cosme, Nick Fitzpatrick

By: Giovanni Cunico, Sebastiaan Deuten, I-Chun Huang

By: Denis de Bernardy

By: Alf Hornborg

By: Karl Krähmer

By: Anitra Nelson

By: Sarah Koller

This article explores the existential conditions for a transition towards socioeconomic degrowth through an analysis of a paradigm shift between two extreme polarities of socio-ecological positioning: the Dominant Social Paradigm (DSP) and the New Ecological Paradigm (NEP). It is suggested that the transition from one to the other – understood as the first collective step towards degrowth – re...

By: Clive L. Spash, Frédéric Hache

The Dasgupta Review is the latest attempt at justifying financialisation of Nature, but also much more. It represents a high point in applying concepts of capital and wealth accumulation comprehensively to all aspects of human and non-human existence. Unravelling the flaws in the arguments, contradictions and underlying motives requires both understand of and cutting through the specialist lang...

By: Jason Hickel, Huzaifa Zoomkawala, Dylan Sullivan

This paper quantifies drain from the global South through unequal exchange since 1960. According to our primary method, which relies on exchange-rate differentials, we find that in the most recent year of data the global North (‘advanced economies’) appropriated from the South commodities worth $2.2 trillion in Northern prices — enough to end extreme poverty 15 times over. Over the whole period...

By: Clive L. Spash

The problematic conceptualisation of Nature has led confusion and failure to relate to reality. Some merge Nature into society creating a hybrid concept that denies the existence of anything but that which is human controlled or influenced, a position popular amongst Promethians of the Anthropocene. Strong social constructionism also dissolves Nature into the human as evident in some stands of ...

By: Sam Butler-Sloss, Marc Beckmann

The planetary emergency is an intellectual and humanitarian challenge that urgently warrants a significant amount of research attention from the economics profession. Is this happening? To answer this question, we assess the number of articles in the top 300 economics journals that are about either (a) climate change and/or (b) natural capital, ecosystem services or biodiversity (NEB). We find ...

By: Lynda Collins

This book sets out the necessary components of any constitution that could be considered "ecological" in nature. In particular, it argues that an ecological constitution is one that codifies the following key principles, at a minimum: the principle of sustainability; intergenerational equity and the public trust doctrine; environmental human rights; rights of nature; the precautionary principle...