https://www.project-syndicate.org/onpoint/what-climate-change-requires-of-economics-by-daron-acemoglu-2021-09
When we account for endogenous technology, we find that the transition to cleaner energy is much more important than simply reducing energy consumption, and that technological interventionsneed to be redirected far more aggressively than they have been. Similarly, when one incorporates more realistic assumptions about the costs of global warming – including the possibility of climate tipping points – one’s conclusions about how to approach the problem tend to change substantially.
When we account for endogenous technology, we find that the transition to cleaner energy is much more important than simply reducing energy consumption, and that technological interventionsneed to be redirected far more aggressively than they have been. Similarly, when one incorporates more realistic assumptions about the costs of global warming – including the possibility of climate tipping points – one’s conclusions about how to approach the problem tend to change substantially.