Daniel Spiro, Uppsala University: "The Economics of Planetary Boundaries"
Staff lunch seminar. Daniel Spiro is associate senior lecturer (associate professor) in economics at Uppsala University in Sweden. He will present the paper "The Economics of Planetary Boundaries", co-authored by Gustav Engström, Johan Gars, Chandra Kiran, Raphael Calel, Therese Lindahl, and Badri Narayanan.
Human activities are threatening to push the Earth system beyond its “planetary boundaries” (1), risking catastrophic and irreversible global environmental change. Action is urgently needed, yet well-intentioned policies designed to reduce pressure on a single boundary can simultaneously, through global economic feedbacks, aggravate other pressures. To understand both the direct and indirect effects of policies in a multi-boundary world, we develop and calibrate a new integrated assessment model of the world economy that incorporates multiple earth system processes. We find that a global carbon tax would have benefits beyond reducing carbon emissions, easing pressure on multiple of the critical Earth system processes. Some pressures would, however, increase and a complementary biofuel policy is needed to remain within the safe operating space.