This article examines an alternative economic model often put forward as a better option for the planet than our current, linear economy: a circular economy. Considering the global and interconnected character of the issues we are facing today, a systemic change is needed. A circular economy is just that: a systemic shift towards a better way.
A steady-state economy entails a stable population and per capita consumption that do not exceed the carrying capacity of ecosystems.
The Social Discount Rate (SDR) represents the value we place on the welfare of future generations and consequently the cost that society today should bear for future generations - a low SDR places a similar value on future generations’ welfare as on current ones, a high SDR does the opposite. A high SDR used in policymaking results in much less money being spent on climate action today. An example of different discount rates being used in climate models can be seen in the Stern vs Nordhaus debate, whereas Nordhaus used a high and Stern a low discount rate.
Jevon’s paradox describes how a more efficient use of one resource can actually result in the opposite: an increase in use of that particular resource. In 1992, Harry Saunders built on Jevon’s paradox and said “energy efficiency gains will increase consumption above where it would be without these gains”. Efficiency alone is not enough to reduce the overall consumption of energy, but needs to be employed in conjunction with policies that limit the use of energy as well.
This article introduces the Financial Mechanism established in the UNFCCC treaty, which aims to establish instruments and channels for developed country Parties to assist developing country Parties to be able to mitigate and adapt to the climate crisis.
An introduction to Green Bonds and why they will be crucial to the future of financing.
An economic concept describing the destructive incompatibility of shared resources and self-interest.
The second of the Kyoto protocol’s reduction incentives. It issues tradable carbon allowances for Article I countries to trade, additionally encouraging Annex I countries to host projects in one another.
The CDM rewards developed countries who aid developing countries in their sustainable development, by issuing sustainable development projects with Certified Emissions Reductions (CER).