The Macroeconomics of Decarbonisation: Implications and Policies

Decarbonisation is the reduction of carbon dioxide emissions using low carbon power sources to meet global temperature standards. To limit global warming to 1.5°C, the world economy must reduce emissions and reach climate neutrality within the next three decades. The Macroeconomics of Decarbonisation provides a guide to the macroeconomic fundamentals of decarbonisation and proposes a policy agenda to achieve the climate goals of the international community.

Format: Hardback
Length: 346 pages
Publication date: 08 February 2024
Publisher: Cambridge University Press

Decarbonisation is the process of reducing carbon dioxide emissions by utilizing low-carbon power sources, thereby reducing the release of greenhouse gases into the atmosphere. This is crucial in meeting the global temperature standards set by international climate agreements. To mitigate global warming to 1.5°C, avoiding the worst-case scenarios predicted by climate science, the world economy must undergo a rapid reduction in emissions and achieve climate neutrality within the next three decades. This task is undoubtedly challenging. Transitioning away from carbon-intensive production will necessitate a historic restructuring of our economies.

The Macroeconomics of Decarbonisation, written by a team of academics affiliated with the European think tank Bruegel, offers a comprehensive guide to the macroeconomic fundamentals of decarbonisation. It identifies the significant economic transformations, both in the long and short term, and the policy interventions required to overcome roadblocks. The book proposes a macroeconomic policy agenda aimed at achieving the climate goals set by the international community.

To achieve this ambitious goal, policymakers must prioritize the transition to renewable energy sources, promote energy efficiency, and invest in infrastructure development. Additionally, policies that encourage sustainable consumption and production, such as carbon pricing and green subsidies, can play a pivotal role in driving decarbonisation.

Furthermore, international cooperation and collaboration are essential to address the global nature of the climate crisis. Developed countries must provide financial support and technology transfer to developing countries to help them adapt to and mitigate the effects of climate change.

In conclusion, decarbonisation is a critical challenge that requires urgent action. By implementing a comprehensive macroeconomic policy agenda, we can achieve the climate goals of the international community and create a sustainable future for generations to come.

Weight: 671g
ISBN-13: 9781009438360