Davide Furceri, Michael Ganslmeier, Jonathan D. Ostry 07 September 2021
There are few issues that have sparked more attention across the globe than how to avoid the environmental and human catastrophe that climate change is inflicting on our planet. There has been unprecedented advocacy to pursue far-reaching climate changes policies (CCPs). But even in the wake of massive public protests and an ambitious agenda since the 2015 Paris Agreement, the hesitancy of politicians is remarkable.
From a theoretical perspective, there are two key factors that may provide an explanation for the slow reform progress on environmental issues. On the one hand, passing far-reaching CCPs often comes with distributional consequences: since CCPs limit economic activity in