Sustainable Macroeconomics, Climate Risks and Energy Transitions

Given the industrialized world's historical dependence on fossil fuel-based energy resources and the now-realized perils of moving beyond the earth's carbon budget, this book explores the myriad challenges of climate change andinreaching a low-carbon economy.Reconciling the medium-term competing, yet frequently complementary, needs for transition policies, the book provides guidelines for complex and often conflicting climate policy tasks. The book presents empirical trends in the use of carbon-emitting resources and evaluates market-driven short-termism and its adverse impact on resource use and the environment; itemphasizes a medium-term macroeconomic perspective for thetransition. The authorsattempta paradigm shift towardsa framework of sustainable macroeconomics.Theysurveyrelevant historical models, conductempirical and numerical analyses ofthe climate change-relevant dynamic models, provideempirical illustrations, and evaluatediverse policy options and implementationstogether withtheir historical evolution. New analytical issues are also considered, e.g.,strategic behavior intheenergy and resource sectors, energy competition andthedynamics of market sharesinnew energy technology, and supporting policiesfor dealing with the tipping pointsencounteredin climate change. The authors suggest a multitude of market-based strategies and public fiscal, monetary, and financial policies, and longer-run planning for resource extraction-allsuitablefordrivingsustainable growth andatransformation of theenergy sector. Thebookalsoexaminesthe multiple delaying forces slowing the transition to a low-carbon economy; these typically arise from short-termism, lock-ins, irreversibility, leakages, non-cooperative games, and other political strategies.Thus, they explain the snail's pace evolution of current national and global climate policies. The bookwill appealto scholars and students of economics and environmentalscience. It is also relevant for policymakers and practitioners in multilateral institutions, research institutions as well asgovernments and ministries of countriesinterested in alternative energy sources, climateeconomists, andthose who study theimplementation of sustainable and lowcarbon-based policies.