Environment

Karl Aiginger, 20 January 2020

The new president of the European Commission, Ursula von der Leyen, has announced a ‘European Green Deal’ and the Commission has asserted Europe’s need to develop a new growth model to achieve climate neutrality. However, the Commission’s limited view of ‘productivity’ ignores the fact that raising labour productivity can raise emissions and accelerate climate change. Instead, this column argues that a welfare-oriented Green Deal needs to focus on resource and energy productivity, not raising labour productivity.

Ghazala Azmat, John Hassler, Andrea Ichino, Per Krusell, Tommaso Monacelli, Moritz Schularick, 17 January 2020

Climate change is at the top of our policy agendas. What can economics contribute to help deal with this important global challenge? With the aim to answer this question, the Managing Editors of Economic Policy are opening a call for papers for a special issue on “The Economics of Climate Change” to bring together the best ideas to inform the debate and provide high-impact policy advice.

Markus K Brunnermeier, Jean-Pierre Landau, 15 January 2020

Central banks have been called on to contribute to fighting climate change. This column presents a framework for thinking about the issue and identifies some major trade-offs and choices. It argues that climate should be a major part of risk assessments and that capital ratios could be used in a proactive way by applying favourable regimes to ‘green’ loans and investments. It also suggests that central banks may want to take several climate change-related aspects into account when designing and implementing monetary policies. However, the central bank should retain absolute discretion to interrupt any action if its first-priority objective – price stability – were to be compromised.

Vladimir Otrachshenko, Olga Popova, José Tavares, 22 December 2019

There is evidence that hot climatic temperatures and crime are linked. With climate change raising temperatures around the world, it is possible we may see higher levels of personal aggression. Based on data from Russia, this column shows that on hotter days, women are more likely to be killed in homicides, especially over weekends. Colder days have no similar effect on violence. Lower wages and higher unemployment contribute to higher homicide rates, so policies promoting employment may mitigate victimisation during extreme temperature days.

Michael Mehling, Harro van Asselt, Kasturi Das, Susanne Droege, 10 December 2019

The new European Commission is considering the introduction of a ‘carbon border tax’. This column argues that the current EU legal framework and earlier policy proposals for border carbon adjustments offer a good indication of what such a measure might look like. If certain substantive and procedural guidelines are observed, a ‘carbon border tax’ along these lines can work and pass legal muster, but some important questions remain. Without a concrete mandate in the EU emissions trading system allowance directive to elaborate a border carbon adjustment, new legislation or an amendment will be necessary. 

Other Recent Articles:

Events

CEPR Policy Research