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Climate Change and Green Growth : An Inframarginal Perspective

    Key message: Neoclassical marginal analysis deals with topological problems of optimal allocation of resources in a given division of labor structure. Nonetheless, it cannot deal with the non-topological changes in division of labor structure driven by emissions reduction and environmental protection. Consequently, marginal analysis suggests that greenhouse gas emissions reduction and environmental protection would impede economic development. Such a conclusion is misleading both in theory and in policy. This study develops a series of theoretical articles in inframarginal perspective to investigate how the non-topological structural changes of division of labor driven by carbon emissions reduction and environmental protection lead to economic growth, and reveal the underlying policy implications.

Further reading:

1) What’s inframarginal analysis?

2)Inframarginal Analysis : A textbook

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