No Green Growth Without Innovation
With the reality of climate change no longer contentious, the debate has shifted towards the consequences of climate change containment for economic growth. Economists have not tackled this debate very well. Discussion has mainly revolved around the trade-off between immediate costs and long-term benefits of fighting climate change. Current approaches to green growth are taking place in an oversimplified setting, largely disregarding innovation. In this
Bruegel Policy Brief, Philippe Aghion, David Hémous, and Reinhilde Veugelers discuss how government intervention should be designed so as to turn on the private green innovation machine to fight climate change, thus paving the way for ‘green growth’ – the optimum trade-off between ‘catching’ climate change in time while maintaining a reasonable rate of growth, even in the short term.
https://www.bruegel.org
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