01 September 2021
A New Economic Theory for the Green Transition. A webinar hold by Dr Sergio Focardi, in collaboration with the Master of Arts in Political Economics at the Franklin University, September 23, Lugano, Switzerland. Participation to the webinar is free but participants are requested to register on the Franklin University website.
Ignored for a long time, environmental issues are rapidly escalating to a true state of emergency. The Governments of advanced economies are beginning to act in order to mitigate climate change, avoid exhaustion of natural resources, and reduce biological and industrial pollution. The European Union Green Deal, (https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en ) announced at the end of 2019 by Ursula von der Leyen, President of the European Commission, is an ambitious project to make Europe a truly sustainable economy. The Green Deal is articulated in three major goals:
- no net emissions of greenhouse gases by 2050
- economic growth decoupled from resource use
- no person and no place left behind
This webinar deals with the goal of creating a growing economy decoupled from resource use. In order to achieve economic growth without exhausting natural resources, advanced economies must become more qualitative. To support this process, both economic theory and the practice of finance must understand qualitative growth.
But mainstream economic theory is unable to understand and model qualitative growth. The key issue is aggregation of heterogeneous variables. This webinar discusses how the current view of growth is primarily quantitative and how qualitative growth is ultimately factored as inflation. Without a major overhaul of economic theory, policies to avoid exhausting natural resources will be perceived as producing recessions. As clearly stated in various EU briefings, economies must develop a new concept of growth.
After discussing the difficulty of aggregating heterogeneous variables and how it impacts the notion of inflation, the webinar claims that parsimonious economic models are idealized models connected to financial observables. The webinar discusses how to represent qualitative growth and sketches a growth model which is both qualitative and quantitative.
Dr Focardi has written extensively on qualitative growth of economies that are complex evolutionary systems, including the article Fabozzi, Focardi, and Sharma, Investment Management Post Pandemic, Post Global Warming, Post Resource Depletion which has just been published in the Journal of Portfolio Management. In addition, an article in The Conversation, coauthored by Sergio Focardi and Manon Rivoire, explains this theme to an audience of non-specialists. This article is available at the following link:
We hope that this webinar will be of interest to you. Participation is free but we ask you to register on the site of Franklin University. Please follow the link:
then proceed to the webinar event, click on Register and follow instructions