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Planetary Economics: Energy, climate change and the three domains of sustainable development, by Michael Grubb
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How well do our assumptions about the global challenges of energy, environment and economic development fit the facts?
Energy prices have varied hugely between countries and over time, yet the share of national income spent on energy has remained surprisingly constant. The foundational theories of economic growth account for only about half the growth observed in practice. Despite escalating warnings for more than two decades about the planetary risks of rising greenhouse gas emissions, most governments have seemed powerless to change course.
Planetary Economics shows the surprising links between these seemingly unconnected facts. It argues that tackling the energy and environmental problems of the 21st Century requires three different domains of decision-making to be recognised and connected. Each domain involves different theoretical foundations, draws on different areas of evidence, and implies different policies.
The book shows that the transformation of energy systems involves all three domains - and each is equally important. From them flow three pillars of policy – three quite distinct kinds of actions that need to be taken, which rest on fundamentally different principles. Any pillar on its own will fail.
Only by understanding all three, and fitting them together, do we have any hope of changing course. And if we do, the oft-assumed conflict between economy and the environment dissolves – with potential for benefits to both. Planetary Economics charts how.
- Sales Rank: #1971015 in Books
- Published on: 2014-03-18
- Original language: English
- Number of items: 1
- Dimensions: 9.70" h x 1.40" w x 6.70" l, .0 pounds
- Binding: Hardcover
- 548 pages
Review
"Really comprehensive and interesting. A profoundly important book - a genuinely original view of how we might overcome some of the most fundamental problems facing effective climate change policy around the world today." - Lord Anthony Giddens, Fellow of Kings College, Cambridge and former Director of the London School of Economics.
"A seminal book that challenges conventional wisdom about growth, innovation and climate policy. After reading it you understand why the tools that mainstream economics has provided policymakers have been unequal to the task. In filling out the picture, Planetary Economics contains a crucial practical message: the fact that energy is at the core of the economic machine is both the challenge and the opportunity, and three pillars of policy together are needed to steer it in safer directions." - Laurence Tubiana, Ambassador and Special Envoy for Climate Change, France, and President, 21st UNFCCC Conference of Parties (COP21)
"This is the work we've all been waiting for for years. Its unique perspective combines deep academic insights with Grubb's experience of the worlds of government and businesses .. the depth and saliency of the arguments and examples is exemplary. A major intellectual and personal achievement." - Simon Shackley
"Something interesting on every page" - Professor Scott Barrett, School of Advanced International Studies, Washington - review in Nature
"The book is compulsory reading for policymakers and academics for understanding the broader challenges of environmental change. What makes the book such an outstanding contribution is the way it brings together the fields of energy, environment, innovation, behavioural economics and macroeconomics. Its key policy message is a timely call for policymakers to act decisively, so that our societies can have the confidence to invest and innovate in solving the great environmental challenges of our time." - Professor Marcel Fratzscher, President of German Institute for Economic Research (DIW Berlin)
"This important book sets out a clear and comprehensive theory of how transition can be achieved and a convincing and well evidenced argument that it will be, if only we apply the policy tools and approaches available. Proposed policies for building a low carbon economy often reflect very different ways of thinking: economists favouring markets and carbon pricing, scientists and technologists a vision of transformative innovation (fearing the short- term bias of markets and cost benefit analysis), whilst some environmentalists seek to engage people's enthusiasm to achieve changes in personal behaviour. Michael Grubb argues cogently that a successful strategy must combine all three approaches, and illustrates their respective roles and complementary nature." - Lord Adair Turner, former Director-General of Confederation of British Industry and Vice-Chairman of Merrill Lynch Europe; from 2008-12, Chair of UK Financial Services Authority and UK Climate Change Committee; currently Senior Fellow, Institute of New Economic Thought
"The defining features of climate change -- long-time horizons, global reach, and uncertain but possibly catastrophic impacts – have stymied policymakers and strained many of the standard tools of economics. In Planetary Economics, Grubb and colleagues document and then tackle these characteristics head on. They organize the debate, fill in gaps, and present a unified framework for thinking about the problem, the best policy solutions, and how they need to fit together. This is an important read for anyone looking for a sensible and comprehensive way forward." - Billy Pizer, Associate Professor of Public Policy at Duke University and former Deputy Assistant Secretary for Environment and Energy, US Treasury
"Combines extraordinary breadth with depth, all written with exceptional clarity. In explaining why energy and climate change take us beyond the traditional boundaries of economics, it is a landmark study which should expand the horizons of economics itself – as well as mapping out how, in doing so, we can solve some of the most pressing problems of our time." - Catherine Mitchell, Professor of Professor of Energy Policy, Exeter University
"An ambitious book that looks at nothing less than the future of human and planetary well being. It is smart, provocative, and unconventional at every turn. Grubb shows that the world’s energy and economic systems are on the wrong track. Profoundly new thinking, including policies, will be needed to transform these systems and put the planet on track to much lower and safer levels of global warming pollution. The elements of that new thinking―such as smarter innovation policies, cleaner energy networks, and better values―are all around us today. Grubb’s big contribution is to stitch them together and chart a path for change." - David Victor, Professor and Director of Laboratory on International Law and Regulation at University of California San Diego, and author Global Warming Gridlock and The Death of the Kyoto Protocol
"Sets out a clear and comprehensive theory of how transition can be achieved and a convincing and well evidenced argument that it will be, if only we apply the policy tools and approaches available." - Lord Adair Turner, former Director-General of CBI and Vice-Chairman of Merrill Lynch Europe; Chair of UK Financial Services Authority and UK Climate Change Committee, 2008-12
"This book provides a fascinating integration of neoclassical, behavioural and innovation economics, backed up with reams of evidence from the climate and energy literature. The conclusions seem so obvious that, once presented, it is hard to understand why they have not yet become the mainstream view of how to tackle climate change." – Paul Ekins, Professor of Resources and Environmental Policy, UCL Institute for Sustainable Resources
"Michael Grubb has been a pioneer and innovative thinker in the field of climate change. In this book Michael not only exposes his understanding of the science underlying climate change but also the political realities which are clearly responsible for what many perceive as the lack of progress in reaching an effective global agreement. The author also explores and analyses the inertia that exists in the energy systems of different countries in the world, and looks at barriers that inhibit progress and opportunities by which the world can move ahead. This book, therefore, is a rich compilation of research based insights and analysis which would be a valuable resource for academics, government officials and the public at large in understanding the current status of and future prospects for action in the field of climate change." - R K Pachauri, Director-General, The Energy and Resource Institute, New Delhi
"A book of extraordinary scope and ambition that will challenge readers to think more clearly and carefully about some of the biggest issues this planet and its people face. Grubb has no ideological axe to grind and no particular allegiance to one scholarly school or another – instead he draws on a range of theoretical frames to shed as much light as possible on the dynamics governing our energy systems, all with an eye toward figuring out how to steer them in a safer and more secure direction. Anyone who works in this area will be provoked to think more wisely as a result of reading this book." - Michael Levi, Senior Fellow for Energy and the Environment, US Council on Foreign Relations
About the Author
Michael Grubb is Senior Researcher and Chair of Energy and Climate Policy at Cambridge University, UK and Senior Advisor on Sustainable Energy Policy to the UK Energy Regulator Ofgem. His former positions include Chair of the international research organization Climate Strategies; Chief Economist at the Carbon Trust; Professor of Climate Change and Energy Policy at Imperial College London, UK; and Head of Energy and Environment at Chatham House. He is editor-in-chief of the journal Climate Policy.
Jean-Charles Hourcade is Research Director at the Centre National de la Recherche Scientifique and at the École des Hautes Études en Sciences Sociales, France. He is Professor at the École Nationale des Ponts et Chaussées and was formerly Director of the Centre International de Recherche sur l'Environnement et le Développement. He has advised the UNDP, UNEP, OECD, IEA and World Bank several times.
Karsten Neuhoff is Head of Climate Policy at the German economics research institute Deutsches Institut für Wirtschaftsforschung (DIW), and is Professor at the School of Economics and Management at the Technical University of Berlin, Germany.
Most helpful customer reviews
1 of 1 people found the following review helpful.
A tour de force on how to mitigate climate change for decision makers, researchers, and, yes, the public
By Emil Dimantchev
This book is a comprehensive investigation into the challenges and opportunities that we face as we try to tackle climate change, a must-read for anyone interested in the issue.
If you are wondering whether to purchase it, my first advice is, do not be put off by the "economics" in the title. What is implied by economics here is the broadest sense of the term, which is how we allocate resources. In fact, Grubb refutes many misconceptions that originate from a fixation with mainstream economic theory. Throughout the book, he integrates insights from climate science, political science, psychology, engineering, and the theory of how complex systems develop. The result is an interdisciplinary perspective that provides deep, nuanced, and practical insights into the mitigation of climate change.
The central premise of the book is that we need to devise specific policies and take actions to address three domains of challenges and opportunities - 1) tackling the efficiency gap between the way we currently use energy and the way we could be if we implemented currently available and cost-effective technologies, 2) pricing "externalities" (carbon pricing and reforming fossil fuel subsidies) and 3) spurring technological innovation, and the book delves into each. Grubb cogently explains why we need separate policies to tackle each of these areas and presents a useful framework for how these policies will coexist. The book not only has breath but also depth and it will likely be useful for anyone interested in any of these areas.
Grubb draws on the relevant academic research and explains the takeaways we can draw from it. He also recounts the practical experiences countries have had with climate policy (with a focus on the EU) and does so in exceptional detail (I have worked with European climate policy for five years and I still learned much from his discussion of it). It makes sense - as his biography suggests, he was there, advising governments on the policies being implemented. Grubb also discusses in detail opportunities for future improvement in existing policies both in the EU and other nations.
The prose is surprisingly lucid and a pleasure to read. Thought this book could be considered a textbook it is nothing like any textbook I have read. Fo this reason, I would recommend it not only to decision makers, but also anyone concerned about climate change and the policies that we must implement to successfully mitigate it.
1 of 1 people found the following review helpful.
Four Stars
By Stein B Jensen
Comprehensive and interesting. Showing the complexity of the necessary policy actions needed to achieve a low carbon future.
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