A man-made exacerbation of climate change has been widely accepted by the scientific community and calls for a paradigm shift in economic thinking. The new imperative demands for the global economy to achieve a factor-10 reduction of carbon dioxide within the next four decades. This undoubtedly calls for radical changes in the political, the economic as well as in the societal dimension.
This essay reviews the different strategies that have been brought forwards by academics and activists aimed at combating global warming and assessing the effectiveness and legitimacy of such proposals.
Table of Contents
1. Introduction
2. Strategies for a needed paradigm shift – the global level
3. Strategies for a needed paradigm shift – the national level
4. Strategies for a needed paradigm shift – the private level
5. Conclusion
Research Objectives and Themes
The main objective of this essay is to identify and critically evaluate economic, political, and social strategies required to address the root causes of man-made climate change, specifically advocating for a paradigm shift from continuous quantitative growth to a qualitative steady-state economy.
- Analysis of global governance challenges and the limitations of voluntary cooperation.
- Examination of the structural impact of the financial system on resource wastage and climate degradation.
- Assessment of national taxation policies and the role of lobbyism in hindering environmental progress.
- Critique of market-based solutions and the potential of grassroots movements in fostering systemic change.
Excerpt from the Book
Strategies for a needed paradigm shift – the global level:
Beginning with the obstacles and potential solutions to man-made climate change, it is worthwhile to start with a global perspective. Climate change in economic terms is an externality, mainly determined by fossil fuel usage in particular its combustion. Since the global economy is still largely dependent on fossil fuels, global warming is an externality that follows the logic of the commons, as initially theorized by Elinor Ostrom (1990). A global solution based on voluntary cooperation, despite the lack of mechanisms for control and sanctioning, would lead to collective action problems, as avidly described by Mancur Olson (1965). Free-riding would be a major issue as the national utility maximizing outcome would avoiding the cost of economic restructuring, while benefiting from the overall reduction in greenhouse gas emissions. Since the incentives would be consistent for all cooperatives, the result is that no-one would engage in climate protection, as described by the typical prisoner’s dilemma, in non-cooperative game theory (Bayer et al, 2010).
The underlying logic that reduces the effectiveness of a “soft” global governance solution to climate change. Moreover, we are living in a globalized world in which the creation of transnational corporations (TNCs) and their rationale of a globally integrated supply and value chain, is emancipated from the control of the national state (Chandler & Mazlish, 2005). As a result companies and their countries of origin are able to cover-up their true greenhouse gas emissions, as energy-intensive production processes are outsourced to developing economies. Hence the statistics on greenhouse gas-emissions all-too-often misrepresent Western industrial nations and TNCs as the prigs of sustainable development and ‘green growth’, whereas developing nations such as China are depicted as regressive evildoers.
Summary of Chapters
1. Introduction: This chapter establishes the existential threat of climate change and argues for a necessary paradigm shift to reduce greenhouse gas emissions by a factor of 10.
2. Strategies for a needed paradigm shift – the global level: The chapter explores the collective action problems and governance failures that hinder global efforts to combat climate change, including the limitations of soft law and the impact of transnational corporations.
3. Strategies for a needed paradigm shift – the national level: This section focuses on the role of national taxation and the urgent need to combat lobbyism and corrupt incentive structures within the political sphere.
4. Strategies for a needed paradigm shift – the private level: This chapter critiques market-based environmental approaches and evaluates the effectiveness of grassroots movements, highlighting the tendency of the capitalist system to commercialize social initiatives.
5. Conclusion: The concluding chapter synthesizes the need for a steady-state economy and emphasizes that systemic change requires a shift toward qualitative development and moral alignment.
Keywords
Climate Change, Paradigm Shift, Steady-State Economy, Global Governance, Ecological Economics, Fossil Fuels, Collective Action, Lobbyism, Sustainability, Greenhouse Gas Emissions, Transnational Corporations, Grassroots Movements, Financial System, Public Choice Theory, Environmental Policy
Frequently Asked Questions
What is the primary focus of this work?
The work examines the economic, political, and social strategies necessary to combat the root causes of man-made climate change, arguing that a fundamental paradigm shift is required.
What are the core themes discussed?
Key themes include global governance failures, the influence of the financial system on environmental degradation, the role of national policy in discouraging energy-intensive consumption, and the effectiveness of private-sector and grassroots responses.
What is the central research goal?
The goal is to assess the legitimacy and effectiveness of various strategies aimed at achieving a drastic reduction in carbon emissions and transitioning toward a more sustainable global structure.
Which scientific methodology is applied?
The author employs an institutional and ecological economics perspective, utilizing existing theoretical frameworks like the logic of the commons, public choice theory, and critiques of growth-based economic models.
What is covered in the main body?
The main body is divided into three distinct levels of intervention: global governance and collective action, national taxation and political transparency, and private initiatives alongside grassroots social movements.
How would you summarize the work using keywords?
The work can be characterized by terms such as steady-state economy, ecological economics, collective action, lobbyism, and systemic paradigm shift.
Why does the author argue that "soft" global governance is ineffective?
The author argues that without binding control and sanctioning mechanisms, nations face a prisoner's dilemma where the incentive to free-ride outweighs the benefits of collective climate protection.
What is the "rebound effect" mentioned in the context of the private sector?
The rebound effect implies that efficiency gains from technological innovations are often nullified by increased consumption, such as the production of more cars despite individual vehicles becoming more fuel-efficient.
What is the conclusion regarding the sharing economy?
The author observes that even in socially conscious environments, sharing-economy initiatives often struggle to succeed without providing explicit monetary incentives to the supply side.
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- Alexander Ritter (Autor), 2017, Climate Change. Economic, political and social strategies to combat the root causes, Múnich, GRIN Verlag, https://www.grin.com/document/379642
