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Book/Special report

Investment and growth in the time of climate change

Largely focussing on the European dimension of this goal, this report considers investment and economic growth on a greenhouse-gas emissions trajectory that breaks with the past. At the heart of this analysis is the quest for economic efficiency. Considering trade-offs and government policy together, the key message from this report is that there is unexploited scope for making Europe’s climate action more efficient, growth-friendly, and in tune with fiscal constraints.

By: , , and Date: June 13, 2012 Topic: Energy & Climate

See also comment ‘Investment and growth in the time of climate change

Climate scientists mostly agree that, if current trends continue, global greenhouse-gas emissions are very likely to result in dangerous interference by mankind in the earth’s climate. Against this background, the world community has set itself the goal of limiting the increase in the global average temperature by the end of this century to no more than 2°C compared to pre-industrial times. To get there, global emissions will have to fall substantially.

Largely focussing on the European dimension of this goal, this report considers investment and economic growth on a greenhouse-gas emissions trajectory that breaks with the past. Investment-related questions that this report pursues include: how should Europe properly balance investment in mitigating greenhouse-gas emissions and adaptation to climate change?

How urgent is it to invest in both? How do global cooperation on climate action and fear of climate catastrophe impact on the balance between mitigation and adaptation? What are the key obstacles to climate investment? Which policies promise to remove these obstacles and make investment profitable, thereby encouraging investment finance? What are the respective roles of the private and the public sector? Growth-related questions include: how are climate action and economic growth linked and, specifically,what is the role of innovation? Are there only trade-offs between climate action and growth or are therewin-wins, too? Can climate action help Europe emerge from its economic crisis? How can climate action be made as growth-friendly as possible?

In addressing these questions, this report takes an economic perspective. More specifically, at the heart of the analysis is the quest for economic efficiency. Not surprisingly for this type of analysis, a key theme running through the report is one of trade-offs and difficult choices that society needs to make. Cognisant of the fact that markets left alone will not make economically efficient choices, another common theme is the role of government policies in bringing about efficient outcomes. Considering trade-offs and government policy together, the key message from this report is that there is unexploited scope for making Europe’s climate action more efficient, growth-friendly, and in tune with fiscal constraints.

The report is the result of a joint research effort by the Economics Department of the European Investment Bank and Bruegel. It is our hope that it will help to clarify some of the complexities involved in designing effective policies to address climate change without sacrificing too much economic growth, in a world in which international cooperation on climate action is so difficult to achieve.


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Parliamentary Testimony

European Parliament

Economic benefits of the Digital Single Market

Testimony before the European Parliament Committee on the Internal Market and Consumer Protection (IMCO).

By: J. Scott Marcus Topic: European Parliament, Innovation & Competition Policy, Testimonies Date: July 18, 2018
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Past Event

Past Event

Should we revisit the patent system for pharmaceutical products?

Analysis of the legal issues with the current IP system for regulated market authorisations for pharmaceutical products, as well as its economic effects.

Speakers: Arno Hartmann, Christian Jervelund, Margaret K. Kyle, Roberto Romandini, Bruno van Pottelsberghe, Amaryllis Verhoeven and Reinhilde Veugelers Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 9, 2018
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Opinion

Strategie per decarbonizzare la mobilità

Decarbonizzare il trasporto su strada non rappresenta una priorità solo per combattere il cambiamento climatico, ma anche per risolvere un nodo più tangibile: quello dell’inquinamento dell’aria nelle nostre città. Una sfida fondamentale per la salute dei cittadini europei.

By: Simone Tagliapietra Topic: Energy & Climate Date: July 4, 2018
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Blog Post

Beyond Nord Stream 2: a look at Russia’s Turk Stream project

Since 2015, Nord Stream 2 has been at the centre of all European discussions concerning the EU-Russia relations. But as endless political discussions in Europe are being held on this pipeline project, the pipes of another similar Russian pipeline project – Turk Stream – are already being laid by Gazprom at the bottom of the Black Sea. This piece looks at these developments, analysing their strategic impacts on Europe.

By: Simone Tagliapietra Topic: Energy & Climate Date: July 4, 2018
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Upcoming Event

Sep
3-4
08:30

Bruegel Annual Meetings 2018

The 2018 Annual Meetings will be held on 3-4 September and will feature sessions on European and global economic governance, as well as finance, energy and innovation.

Speakers: Maria Åsenius, Richard E. Baldwin, Carl Bildt, Nadia Calviño, Maria Demertzis, Mariya Gabriel, Péter Kaderják, Joanne Kellermann, Jörg Kukies, Emmanuel Lagarrigue, Philippe Lespinard, Montserrat Mir Roca, Dominique Moïsi, Jean Pierre Mustier, Ana Palacio, Jean Pisani-Ferry, Lucrezia Reichlin, Norbert Röttgen, André Sapir, Jean-Claude Trichet, Johan Van Overtveldt, Margrethe Vestager, Reinhilde Veugelers, Thomas Wieser, Guntram B. Wolff and Georg Zachmann Topic: Energy & Climate, European Macroeconomics & Governance, Finance & Financial Regulation, Global Economics & Governance, Innovation & Competition Policy Location: Brussels Comic Strip Museum, Rue des Sables 20, 1000 Brussels
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Parliamentary Testimony

European Parliament

The potential impact of Brexit on ICT policy

Testimony before the European Parliament's Committee on Industry, Research and Energy (ITRE).

By: J. Scott Marcus Topic: European Parliament, Innovation & Competition Policy, Testimonies Date: June 27, 2018
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Opinion

Europe needs a fresh approach to climate strategy

The EU needs a new approach to long-term climate strategy to ensure that EU climate policy is brought in line with the goals of Paris and takes into account recent technological and political changes. Climate policy can only succeed if it does not come out of a bureaucratic ‘black box’, but is part of an inclusive process involving a wide range of stakeholders.

By: Andrei Marcu and Georg Zachmann Topic: Energy & Climate Date: June 20, 2018
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Past Event

Past Event

The EU’s vision for a modern, clean economy

This event is part of a joint project by Bruegel and European Roundtable on Climate Change and Sustainable Transition (ERCST/ICTSD): “Developing the EU Long-Term Climate Strategy.”

Speakers: Georg Zachmann, Andrei Marcu and Sami Andoura Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 20, 2018
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Blog Post

Robots, ICT and EU employment

Disruptive technologies based on ICT, robots, and artificial intelligence have transformed labour markets through their important effects on employment. As the number of industrial robots continues to rise, our results imply that some measures to facilitate workforce transition and accommodate the rise of automation might be needed to maintain satisfactory labour market outcomes.

By: David Pichler, Georgios Petropoulos and Francesco Chiacchio Topic: Innovation & Competition Policy Date: June 15, 2018
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Past Event

Past Event

Misinformation & missing information: a fix for fake news

This event hosted Professor Marshall van Alstyne who presented his research on fake news and on the potential solutions of the associated problems. A panel discussed the routes of the fake news problem and how we can design an effective policy response.

Speakers: Marshall Van Alstyne, Anni Hellman, Thomas Myrup Kristensen, Efi Koutsokosta and Georgios Petropoulos Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 8, 2018
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Past Event

Past Event

The European automotive sector: future challenges and opportunities

On 6 June Bruegel is organising a closed-door brainstorming workshop on: The European automotive sector: future challenges and opportunities.

Speakers: Simone Tagliapietra, Reinhilde Veugelers, Stefan Deix and Giovanni Coppola Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 6, 2018
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Podcast

Podcast

Robots: Positive or negative for EU employment?

Bruegel research fellow Georgios Petropoulos features in this episode of ‘The Sound of Economics’ to discuss a study he has co-authored on the impact of robotisation on employment in Europe.

By: The Sound of Economics Topic: Innovation & Competition Policy Date: May 29, 2018
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