TY  - JOUR
A1  - Schütze, Franziska
A1  - Fürst, Steffen
A1  - Mielke, Jahel
A1  - Steudle, Gesine A.
A1  - Wolf, Sarah
A1  - Jäger, Carlo C.
T1  - The Role of Sustainable Investment in Climate Policy
JF  - Sustainability
N2  - Reaching the Sustainable Development Goals requires a fundamental socio-economic transformation accompanied by substantial investment in low-carbon infrastructure. Such a sustainability transition represents a non-marginal change, driven by behavioral factors and systemic interactions. However, typical economic models used to assess a sustainability transition focus on marginal changes around a local optimum, whichby constructionlead to negative effects. Thus, these models do not allow evaluating a sustainability transition that might have substantial positive effects. This paper examines which mechanisms need to be included in a standard computable general equilibrium model to overcome these limitations and to give a more comprehensive view of the effects of climate change mitigation. Simulation results show that, given an ambitious greenhouse gas emission constraint and a price of carbon, positive economic effects are possible if (1) technical progress results (partly) endogenously from the model and (2) a policy intervention triggering an increase of investment is introduced. Additionally, if (3) the investment behavior of firms is influenced by their sales expectations, the effects are amplified. The results provide suggestions for policy-makers, because the outcome indicates that investment-oriented climate policies can lead to more desirable outcomes in economic, social and environmental terms.
KW  - climate policy
KW  - green growth
KW  - macroeconomic models
KW  - sustainable investment
KW  - technical progress
KW  - expectations
KW  - 1.5 degrees C
Y1  - 2017
U6  - https://doi.org/10.3390/su9122221
SN  - 2071-1050
VL  - 9
PB  - MDPI
CY  - Basel
ER  - 
TY  - GEN
A1  - Schütze, Franziska
A1  - Fürst, Steffen
A1  - Mielke, Jahel
A1  - Steudle, Gesine A.
A1  - Wolf, Sarah
A1  - Jäger, Carlo C.
T1  - The Role of Sustainable Investment in Climate Policy
T2  - Postprints der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe
N2  - Reaching the Sustainable Development Goals requires a fundamental socio-economic transformation accompanied by substantial investment in low-carbon infrastructure. Such a sustainability transition represents a non-marginal change, driven by behavioral factors and systemic interactions. However, typical economic models used to assess a sustainability transition focus on marginal changes around a local optimum, whichby constructionlead to negative effects. Thus, these models do not allow evaluating a sustainability transition that might have substantial positive effects. This paper examines which mechanisms need to be included in a standard computable general equilibrium model to overcome these limitations and to give a more comprehensive view of the effects of climate change mitigation. Simulation results show that, given an ambitious greenhouse gas emission constraint and a price of carbon, positive economic effects are possible if (1) technical progress results (partly) endogenously from the model and (2) a policy intervention triggering an increase of investment is introduced. Additionally, if (3) the investment behavior of firms is influenced by their sales expectations, the effects are amplified. The results provide suggestions for policy-makers, because the outcome indicates that investment-oriented climate policies can lead to more desirable outcomes in economic, social and environmental terms.
T3  - Zweitveröffentlichungen der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe - 137 
KW  - climate policy
KW  - green growth
KW  - macroeconomic models
KW  - sustainable investment
KW  - technical progress
KW  - expectations
KW  - 1.5 degrees C
Y1  - 2021
U6  - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-470485
SN  - 1867-5808
IS  - 137
ER  -