endogenous growth

Dimitri Zenghelis explains why Paul Romer’s theory of endogenous growth can be harnessed to direct and design a net-zero-carbon future while using William Nordhaus’s DICE and RICE models may already have proved truly damaging. Read more

This paper considers the macro-economic consequences of the continued expansion of particular forms of intensive, modern agriculture, with a focus... Read more

‘To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of worldwide importance. We offer our assessment of the original article and trace its legacy, in particular Nordhaus's later series of ‘DICE’ models. From this work, many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. We use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damage and climate risk – optimal policy comprises strong controls. Read more

A new version of a standard economic model shows that the risks from unchecked climate change are bigger than previously... Read more

Endogenous growth, convexity of damages and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions Read more

External link to full article Abstract We present an example of how public policies affect the evolution of the economy... Read more