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Sustainability 2016, 8(8), 761; doi:10.3390/su8080761

Balance or Synergies between Environment and Economy—A Note on Model Structures

1
Global Climate Forum, Berlin 10178, Germany
2
Academy of Disaster Reduction and Emergency Management (ADREM), Beijing Normal University, Beijing 100875, China
*
Author to whom correspondence should be addressed.
Academic Editors: Roberto Roson and S. Amer Ahmed
Received: 31 May 2016 / Revised: 22 July 2016 / Accepted: 28 July 2016 / Published: 13 August 2016
(This article belongs to the Special Issue Balancing Environmental Resources and Economic Welfare)
View Full-Text   |   Download PDF [255 KB, uploaded 13 August 2016]   |  

Abstract

The UN sustainable development goals contain environmental, economic, and social objectives. They may only be reached, or at least it would be easier to reach them, if instead of a trade-off between these objectives that implies a need for balancing them, there are synergies to be reaped. This paper discusses how the structures of economic models typically used in policy analysis influence whether win–win strategies for the environment and the economy can be conceptualised and analysed. With a focus on climate policy modelling, the paper points out how, by construction, commonly used model structures find mitigation costs rather than benefits. This paper describes mechanisms that, when added to these model structures, can bring win–win options into a model’s solution horizon, and which provide a spectrum of alternative modelling approaches that allow for the identification of such options. View Full-Text
Keywords: economic model structures and mechanisms; climate policy analysis models; win–win strategies; general equilibrium framework; multiple equilibria economic model structures and mechanisms; climate policy analysis models; win–win strategies; general equilibrium framework; multiple equilibria
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Wolf, S.; Schütze, F.; Jaeger, C.C. Balance or Synergies between Environment and Economy—A Note on Model Structures. Sustainability 2016, 8, 761.

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