Innovation and climate change. What can be done about it?
Different economic interpretations on the current situation
Growth and environment, enterprise and territory, looking at all the different nuances engendered by all the different people involved in production processes and in the markets, while also seeing innovation as the drive required to do more and better. The relationship between research, industry, environment and territory is a cross-sectional topic that needs constant research and updating, paying attention to its many interpretations. This is what Fabio Menghini does with his article “Pensiero economico, innovazione e cambiamento climatico” (“Economic thought, innovation and climate change”), recently published in the journal Equilibri.
Menghini tackle this theme topic from an economic sciences viewpoint, and starts with an observation: the economy seems incapable to offer a significant contribution to the climate change debate. The reason for this might actually be just one: economic models consider the great environmental themes that are significantly affecting the future of our planet only as exogenous variables in relation to the system concerned. A big constraint as, as it has now been scientifically established, the production and organisation required to obtain such contribution are increasingly connected with the environment, which, however, is not acknowledged as an economic variant, hence the gap between economy and industry. It is also a matter of culture, which can generate biased and damaging analyses.
Menghini’s contribution does not stop here – it goes on to consider some examples of economic interpretations of what is happening, examples that are fully at odds with each other yet help readers really understand the true complexity of the topic. The author particularly considers three different analyses: one that outlines innovation and growth as completed processes and foresees an era of secular stagnation; one that sees technological progress as unstoppable and able to sustain growth and solve all environmental issues; and, finally, one that conceives innovation as a driver for transformation, necessary to fight climate change but only if actively supported by the government and strong economic policies.
Fabio Menghini’s article is an excellent tool to better understand some of the key interpretations of the current situation.
Pensiero economico, innovazione e cambiamento climatico (“Economic thought, innovation and climate change”)
Fabio Menghini, Equilibri, 1-2/2022, pp. 53-69
Different economic interpretations on the current situation
Growth and environment, enterprise and territory, looking at all the different nuances engendered by all the different people involved in production processes and in the markets, while also seeing innovation as the drive required to do more and better. The relationship between research, industry, environment and territory is a cross-sectional topic that needs constant research and updating, paying attention to its many interpretations. This is what Fabio Menghini does with his article “Pensiero economico, innovazione e cambiamento climatico” (“Economic thought, innovation and climate change”), recently published in the journal Equilibri.
Menghini tackle this theme topic from an economic sciences viewpoint, and starts with an observation: the economy seems incapable to offer a significant contribution to the climate change debate. The reason for this might actually be just one: economic models consider the great environmental themes that are significantly affecting the future of our planet only as exogenous variables in relation to the system concerned. A big constraint as, as it has now been scientifically established, the production and organisation required to obtain such contribution are increasingly connected with the environment, which, however, is not acknowledged as an economic variant, hence the gap between economy and industry. It is also a matter of culture, which can generate biased and damaging analyses.
Menghini’s contribution does not stop here – it goes on to consider some examples of economic interpretations of what is happening, examples that are fully at odds with each other yet help readers really understand the true complexity of the topic. The author particularly considers three different analyses: one that outlines innovation and growth as completed processes and foresees an era of secular stagnation; one that sees technological progress as unstoppable and able to sustain growth and solve all environmental issues; and, finally, one that conceives innovation as a driver for transformation, necessary to fight climate change but only if actively supported by the government and strong economic policies.
Fabio Menghini’s article is an excellent tool to better understand some of the key interpretations of the current situation.
Pensiero economico, innovazione e cambiamento climatico (“Economic thought, innovation and climate change”)
Fabio Menghini, Equilibri, 1-2/2022, pp. 53-69