Because the climate is a common good, economists generally advocate the use of an international carbon price to internalize climate risk, to incorporate as many countries as possible into an agreement and to thwart “free-rider” strategies (Appendix 1). There are two main ways of moving in this direction: allowances markets and taxation. Voir l'article...

By Armin Haas. It will be key for the global sustainability transition that the measures taken in the respective sustainability dimensions, i.e. the economic, the ecological, and the social dimension, complement and reinforce each other. As central banks seem to become increasingly attractive to perform whatever kind of functions for whatever overarching purpose, it seems to be wise to have a closer look at them. It would not be yielding if a supposedly helpful measure concerning the ecological dimension of the sustainability transition would negatively impact the economic dimension. It is the gist of sustainability that no dimension can be expanded on the expenses of the others. Voir l'article...