Edward B. Barbier, a distinguished professor and environmental economics expert, shares insights from his book, Scarcity and Frontiers. He discusses how historical responses to resource scarcity shape economic sustainability and innovation. Barbier highlights the importance of transitioning from fossil fuels to green technologies and the competitive landscape surrounding environmental markets. He also examines the complexities of divestment strategies, the political landscape of green technology, and the potential pitfalls of prioritizing economic growth over true sustainability.
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insights INSIGHT
Industrial Revolution and Fossil Fuels
The Industrial Revolution's two phases fueled the fossil fuel era, causing lasting productivity boosts and ecosystem alteration.
Coal drove the first phase, while oil and gas drove the second, shaping global development and material use.
insights INSIGHT
Underpricing Nature
Economies undervalue nature due to structural underpricing and underinvestment across markets, policies, and businesses.
This 'negative pricing' of nature, especially fossil fuels, hinders the green transition and exacerbates environmental damage.
insights INSIGHT
The Green Race
A "green race" is emerging, driven by investment opportunities in green sectors and the slowdown of fossil fuel-based economies.
This competition focuses on green innovation and the development of environmental markets, potentially reshaping global economies.
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In "Economics for a Fragile Planet," Edward Barbier addresses the critical issue of why economies often disregard the environmental costs associated with resource exploitation. The book explores the structural features of economic systems that lead to the underpricing and underinvestment in natural capital. Barbier argues that this underpricing creates a disconnect between economic activity and environmental sustainability. He examines various policy and market mechanisms that contribute to this problem, offering insights into how to better integrate environmental considerations into economic decision-making. The book ultimately calls for a more holistic approach to economic development that values and protects the environment.
Scarcity and Frontiers
Scarcity and Frontiers
Edward B Barbier
Edward Barbier's "Scarcity and Frontiers" explores the historical relationship between resource scarcity, innovation, and economic development. The book examines how societies have responded to resource constraints throughout history, highlighting the interplay between scarcity, frontier expansion, and technological advancements. Barbier analyzes key historical periods, demonstrating how access to abundant resources has fueled economic growth and shaped global power dynamics. The work emphasizes the importance of understanding both relative scarcity and abundance in shaping economic trajectories. Ultimately, the book provides valuable insights into the challenges and opportunities presented by resource scarcity in the modern era.
Capital in the Twenty-First Century
Thomas Piketty
In this book, Thomas Piketty examines the historical dynamics of wealth and income inequality from the 18th century to the present. He argues that when the rate of return on capital exceeds the rate of economic growth, it leads to a concentration of wealth and significant social and economic instability. Piketty's analysis is based on extensive historical and comparative data from over twenty countries, challenging the notion that free market capitalism naturally reduces inequality. He proposes a global system of progressive wealth taxes to mitigate these inequalities and protect democratic values. The book is a groundbreaking work that reorients our understanding of economic history and the inherent contradictions of capitalism[1][4][5].
Contributor(s): Professor Edward B Barbier | Drawing on his book, Scarcity and Frontiers, Edward Barbier argues that how economies choose to exploit natural resources is critical to both their sustainability and prosperity. In past eras, a critical driving force behind global economic development has been the response of society to the scarcity of key natural resources. By raising the cost of exploitation and use, scarcity creates incentives to innovate and substitute. However, economies also avoid scarcity by obtaining and developing new "frontiers" of vital resources. How these two responses play out often determines which economies emerge as leaders.
In the present era, rising ecological scarcity and global environmental risks are a defining turning point for all economies, but especially those that are vying to win the “green competitive race” for leading global sectors and markets. The outcome of this race will define how innovation and productivity unfolds over the coming decades as well as whether economies will become more environmentally sustainable.
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