Research questions for a green, inclusive economy
Green Economy Workshop
Professor of Environmental Economics
Smith School and INET at Martin School,
University of Oxford and New College
Professorial Research Fellow, LSE
Monday 10 February 2014
Could wealth accounts realistically complement
GDP as the focus of public obsession?
Wealth per capita (2005 USD)
Net foreign assets
Source: Hamilton and Hepburn (2014, Oxrep) “Wealth”, forthcoming
Then develop a metric of prosperity as the
accumulation of solutions to human problems?
Source: McLaughlin et al. (2014, Oxrep) “Historical wealth accounts for the Britain”, forthcoming
Prices are powerful, but systems thinking
(resilience, non-marginality, ABIAM) is critical
is all “renewable”
Often the most valuable
assets (coal, oil, gas)
The politics of the transition are critical
– can we better use leverage points?
As likely as not, CO2 only
Likely, CO2 only
Aggregate Fossil Fuel CO2 extraction [GtCO2]
reserves by country
9th – 20th countries
Source: Otto, Allen and Hepburn (2014) based on Aurora Energy Research (2014)
Key research questions on the transition
relate to politics and innovation
What drives down costs of clean energy?
How have governance mechanisms for the commons emerge?
How can we create the institutions that we need for the transition?
How can firms use behavioural economics to develop the profitable
business models that respect planetary boundaries?